Alternate dispute resolution (herein ADR) refers to a process of resolving
disputes without getting involved in the procedures of the court system. The ADR
system can prove to be as the name suggests an alternative to the current
system, that is, the traditional system or procedures used to serve justice to
the people approaching the courts.
Also, there are different types of ADR mechanisms that exist but the most
popular of these are arbitration, conciliation, negotiation, and mediation. This
article analyses the ADR mechanism of mediation in line with the Mediation bill,
2021 proposed by the department of legal affairs working under the Ministry of
Law and Affairs.[1]
Mediation And Singapore Convention
Mediation refers to the method used by parties to settle a dispute whereby they
appoint a third person or persons who help them in coming to a conflict-free
settlement of the dispute. The third person or persons appointed to help the
parties in these cases is known as the Mediator. Now, talking about the benefits
of mediation in general, it won't be incorrect to say that Mediation is a
mechanism which is fast and cost effective when compared the traditional system,
that is, litigation.
It is so because a successful mediation wherein there is a conflict-free
settlement of a dispute by the parties, there is no winner and loser as there is
no arbitral award pronounced as in cases of a court judgement. On 20th December
2018, the United Nations commission on international trade and law (Herein
UNCITRAL) adopted a model law on international commercial mediation and united
nations convention on international settlement agreements which are an outcome
of mediation.[2]
This is also known as the Singapore convention. Also, India by signing this
convention on 7th august 2019 became one of the fist signatories of this
convention.[3] According to this convention, India is now supposed to form a
mediation law for the purpose of enforcing international settlement agreements
made out of mediation and also giving a uniform legislation for mediation in
India. Also, for a country like India, it is ideal to have a formal legislative
regulation approach.[4]
It is so in a formal legislative approach the mediating process is supported by
legal institution, that is, executive and judiciary. In addition, such an
approach would introduce a uniform law applied throughout the country and one
which solves the issue of having multiple interpretations of rules on mediation
framed by the various courts in the country. It would also formalize India's
participation in the mediation process while also demonstrating the country's
consistent approach towards alternative dispute resolution by the mechanism of
mediation.
Features Of Draft Mediation Bill, 2021
On 29th September 2021 the department of legal affairs which is a department
under the ministry of law and justice uploaded the draft mediation bill on its
website. There were various issues with respect to the process of mediation in
India due to the absence of a uniform legislation. These issues were with
respect to the qualifications of the mediator, confidentiality of the
proceedings and the enforcement of the settlements.[5]
The draft bill uploaded by the department of legal affairs working under the
ministry of law and justice addresses these issues within some prescribed
Sections of the draft bill. Firstly, Section 10[6] under chapter 3 of the draft
bill talks about the appointment of a mediator and subpoint (c), clause (2) of
Section 42[7] of the draft bill lays down the role of the mediation council in
appointment of a mediator.
Although it doesn't specify the terms or specific requirements for the
appointment of a mediator and gives the power of specification of the terms or
requirements to the council, but it does provide an outline the mediation
council need to follow in the process of appointing a mediator. Secondly,
talking about the issue of confidentiality, the draft bill in Section 22[8] and
Section 23[9] of chapter 4 of the draft bill lays down the terms of
confidentiality and the admissibility and the privilege the parties have against
the disclosure of any confidential terms. Also, in Section 23, the bill
specifies situations in which there is no privilege or confidentiality on
disclosure of issues in front of the court.[10]
This Section is in consonance with the provision for mediation of family
disputes in Cyprus where the mediator is allowed to inform the authorities about
issues relating to domestic violence or child abuse.[11] Lastly, talking about
the enforcement of settlements, the very purpose of the bill is the enforcement
of settlement agreements which are a result of mediation.
To be specific, the purpose of Singapore convention was the enforcement of
agreements which were a result of mediation and part III of the draft bill lays
down the provisions for the enforcement of international commercial settlement
agreements resulting from mediation. So, in totality the draft bill addresses
all these problems.
Online And Pre-Litigation Mediation
There are various forms of mediation as mentioned in Section 4 of the draft
bill.[12] These are express mediation, pre-litigation mediation, online
mediation and conciliation or an expression of similar import. In this part of
the article, we'll try to focus on pre-litigation mediation, online mediation
and the mixture of these two forms. Considering the number of cases pending
before the courts in India, it wouldn't be incorrect to say that pre-litigation
can prove to be a game changer. It is so because it'll make it mandatory for the
parties to settle their cases (which are fit for mediation as mentioned in
Section 7 of the draft bill) before filing a suit before the courts.
The mediator for a pre-litigation mediation can be someone agreed upon the
parties or someone who is registered under the mediation council of India or
court annexed mediation center or mediation service provider as provided in the
provision of this bill. Now, clause (1) of Section 32 of the draft bill says
that an online mediation includes pre-litigation mediation which can be
conducted with the use of various computer applications and networks in
accordance with the provisions of Information Technology Act, 2000.[13]
Also, online mediation should adhere to all the other provisions as mentioned in
the act. When talking about online mediations, they are already in use in most
parts of the world including India where there exists the Online consumer
mediation center (Herein OCMC).[14] It was established at the national law
school of India university, Bengaluru after getting the approval of the ministry
of consumer affairs.[15] But, in case of OCMC, the cases presented before them
are limited to consumer disputes. With the introduction of the draft bill, it
would be easier to broaden the horizon of the issues addressed by these
mediation centers which are currently limited to solving consumer disputes only.
Online Pre-Litigation Mediation: Problems, Solutions And Benefits
When we talk of broadening the horizon of the cases addressed by these mediation
centers online, a few significant issues come to the forefront. These issues
include the absence of emotions, proper process, unfair disclosure or leakage of
the information shared online and the lack of trust or clarity in the algorithms
used in deciding the cases.[16]
The issue pertaining to the absence of emotions when issues are addressed in an
online setting can be addressed with the argument that the absence of emotions
can prove to be very helpful when it comes down to mediation as it improves the
efficiency of mediation by avoiding unnecessary interferences by the parties
involved. It is also said that online mediation can prove to be suitable for
cases of divorce as it provides for a cool off period.
By doing so, it can be said that mediations conducted online helps in handling
these emotions better. The issue with respect to process is that an online
mediation is asynchronous, that is, the dialogue between the parties doesn't
happen simultaneously. But this issue isn't a very pertinent one as it can be
said that even in a normal course of discussion, the discussion is asynchronous
as there is only one party which speaks at a time and the conversation cannot be
considered to be simultaneous.[17]
Also, it wouldn't be incorrect to say that in an online mediation structure, the
technology used can provide assistance in conducting the mediation with specific
rule and no party would be allowed to make disruptions. So, the online mediation
process enhances flexibility and helps in following the rules and process. The
third issue is in relation to the unfair disclosure or leakage of information
shared online.
This issue can be addressed by having a proper cyber space or security setting
for the storage of the shared information. This can be done by having an
end-to-end encrypted form of platform for having conversations and there should
be rules laid down in case any of the party or mediators is found guilty of
disclosing the information shared during the process of mediation as mentioned
in the draft bill.
Lastly, come the issue with respect to the lack of trust and clarity with
respect to how the cases are settled when software's are used for mediation
instead of a living being.[18] In normal consumer cases in the USA, there are
sites like Cybersettle which uses software for making a zone of potential
agreement between the parties involved.[19]
But, with this come to the forefront, the issue of lack of clarity or trust one
can have on these software's which use different algorithms to present the
possible settlement offers. In response to this argument, it can be argued that
even a human being who becomes a mediator in cases can lack clarity and be
biased on certain issues.[20]
Thus, it is possible to trust the former keeping in mind the pace at which
technological advancement is happening around the world and in the coming times
it is possible to develop algorithms which provides clarity on the point of how
the decision was made. Also, there's always the option of only conducting the
mediation online without using software.
The benefits that can be associated with having online pre-litigation mediations
is the load on the current legal infrastructure will be reduced as cases will be
mediated online before a suit is filed before the courts. Secondly, the
mediation can happen at any timeslot decided or chosen by the parties. It'll
also reduce the money spent in travelling to the designated locations and the
money that could've been spend in taking legal recourse.
Conclusion
To conclude, the draft bill addresses the various issues with respect to
mediation and it is also safe to say that online mediations can be as effective
as offline mediations. But, in case of a country like India where mobile phones
and internet is not affordable as well as accessible to every corner of the
nation, it would be very difficult to bring into effect a full-fledged system of
online pre-litigation mediation.
Thus, a hybrid system of mediation can be ideal for a country like India. Also,
the population must be informed about the benefits of pre-litigation mediation
which is cheap and quick way to settle disputes considering the issues with
respect to qualification of mediator, confidentiality and enforcement of
settlement agreements being addressed by the draft bill which is to be presented
in the parliament.
End-Notes:
- Draft Mediation bill, 2021.
- United Nations Convention on International Settlement Agreements Resulting from Mediation (New York, 2018) (the "Singapore Convention on Mediation").
- India Signs the Singapore Mediation Convention Mediate.com, https://www.mediate.com/articles/ollapally-india-singapore.cfm.
- Rashika Narain & Abhinav Sankaranarayanan, Formulating a Model Legislative Framework for Mediation in India, 11 NUJS L. REV. 75 (2018).
- Ibid.
- Draft Mediation bill, Section 10 (2021).
- Draft Mediation bill, Section 42 (2021).
- Draft Mediation bill, Section 22 (2021).
- Draft Mediation bill, Section 23 (2021).
- Ibid.
- Anna Plevri, The Draft Law on Mediation of Family Disputes in Cyprus, 6 Y.B. oN INT’l ARB. 277 (2019).
- Draft Mediation bill, Section 4 (2021).
- The Information Technology Act, 2000 (Act 21 of 2000).
- Yuxian Zhao, Rethinking the Limitations of Online Mediation, 11 AM. J. MEDIATION 163 (2018).
- Ashok R. Patil & Sree Krishna Bharadwaj H., A Stakeholder's Assessment of Feasibility of Online Mediations in India, 5 IJCLP 62 (2017).
- Ibid.
- Ibid.
- Ibid.
- Ibid.
- Ibid.
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