Rajya Sabha passes Mediation Bill 2021
Aug 01, 2023
New Delhi [India], August 1 : The Rajya Sabha on Tuesday passed the Mediation Bill 2021 which entails people trying to settle civil or commercial disputes through mediation before resorting to any court or tribunal.
The bill was introduced in the Rajya Sabha in December 2021. The Lok Sabha earlier passed the Bill.
According to the text, the Bill aims to "promote and facilitate mediation, especially institutional mediation, for resolution of disputes, commercial or otherwise, enforce mediated settlement agreements, provide for a body for the registration of mediators, to encourage community mediation and to make online mediation as acceptable and cost-effective process and for matters connected therewith or incidental thereto."
The Mediation Bill focuses on the importance of alternative dispute resolution mechanisms. It allows individuals to attempt the settlement of civil or commercial disputes through mediation before approaching a court or tribunal.
Law Minister Arjun Ram Meghwal said, "Under this, we are making the Mediation Council of India. This is a neutral third party. This bill makes the process a time-bound mechanism which saves time and money of parties." The bill makes pre-litigation mediation voluntary instead of mandatory.
This approach encourages parties to engage in constructive dialogue and explore mutually agreeable solutions. The emphasis is on taking off the burden of the judiciary system.
Under the Mediation Bill, a party is allowed to withdraw from the mediation process after two sessions. The bill also sets a timeframe for the completion of the mediation process, with a maximum duration of 180 days, which is, however, extendable for an additional 180 days if required.
This allows parties sufficient time to negotiate and reach a resolution through the mediation procedure.
In order to resolve disputes through mediation, the establishment of the Mediation Council of India has a role to play.
This council is to play a crucial role in facilitating effective mediation by registering mediators and recognizing mediation service providers and institutes. It aims to ensure the availability of qualified mediators for dispute resolution.
Furthermore, agreements resulting from mediation will be treated as legally binding.
