MEDIATION BILL

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The Parliamentary Standing Committee on Law and Justice has recommended introducing reforms in the Mediation Bill, to institutionalize mediation and establishment of the Mediation Council of India.
The committee has raised concern over making pre-litigation mediation compulsory.
- One of the committee members has stated that making pre-litigation mediation mandatory may result in the delaying of cases.

Key Recommendations

The Committee has stated that pre-litigation mediation should be made optional and this provision must be introduced in a phased manner in all civil and commercial disputes.
- They recommended that the compulsory provision of pre-litigation mediation should be reconsidered and it should be offered only to those who are willing to mediate.
They examined the non-applicability of the provisions of the Bill in disputes of non-commercial nature involving the Government and its agencies.
They discussed the qualifications and appointment process of the Chairperson and Members of the proposed Mediation Council.
- The Committee has suggested that the Chairperson and the full-time Members must have ‘capacity’ and ‘knowledge and experience’ in ‘mediation.’
According to present requirements in the Bill, people dealing with problems connecting to ‘Alternative Dispute Resolution’ can become members and chairman of the council.
- The committee has recommended that the appointment of the Chairperson and Members of the Mediation Council of India should be selected by a Selection Committee.
They recommended that the Mediation Council of India should be made the nodal authority for the registration and accreditation of mediators.
- Each mediator should be given a unique registration number by the Mediation Council.
Empower the Mediation Council to constantly assess the mediator by holding training sessions periodically.

Mediation

Mediation is the method of resolving business disputes.
Mediation usually involves the disputing parties, their legal counsel and a neutral third party who facilitates the discussions.
Mediation is the step before litigation. Instead of going for expensive courtroom visits, it is better to discuss the problem before an impartial third party and consider the options that are available and agreeable to both parties.
Significance of mediation
- Preferable Outcome: The goal of mediation is to come up with options that are beneficial to both parties.
- Lower Costs: Mediation involves only discussions between parties and a third party. Costs are much lower since parties do not need to engage legal counsel over a long period.
- Confidentiality: Discussions only occur in a private room between the parties and their mediator. It protects trade secrets and other confidential documents that would otherwise be open to the public as a case in litigation.
- Flexibility: Parties are allowed to frame the discussions in a way most suitable to them.