The Path to Progress "In light of the signing of the Mediation Act, 2023, and
other developments, this article examines how mediation is changing as an
Alternative Dispute Resolution (ADR) mechanism" It focuses on the possibility
that mediation will become the go-to option for conflict resolution in the
future.
Introduction
A "non-adjudicatory" and rather informal method, mediation involves the parties
working together to mutually negotiate and find ways to end their conflicts.
Although mediation is a flexible procedure with many variants, the fundamental
concepts of mediation self-determination, party engagement, and autonomy are
shared by all forms of mediation, with its many benefits, mediation has long
been used as a vital tool for settling conflicts outside of the conventional
courtroom process. Parties have used the procedures and methods of both formal
and informal types of mediation for centuries as an alternative method of
resolving a wide range of conflicts.
The introduction of the pre-instituted mediation in India was the The 253rd Law
Commission of India's suggestion served as the foundation for the Commercial
Courts Act, 2015. Section 12A, which mandates that the parties must exhaust all
other remedies specified in the rules notified by the Government under the
Commercial Courts (Pre-institution Mediation and Settlement) Rules, 2018 before
approaching the court for dispute resolution, was added to the Commercial Courts
Act, 2015 in 2018, among other improvements.
Additionally, Section 89 (1) of the
Code of Civil Procedure, 1908 (CPC), which addresses the resolution of
disputes outside of court, states that the court must develop the terms of
settlement and provide them to the parties if it determines that there are
elements of a settlement that may be acceptable to them. to all parties involved
for their insights. The court may reword the terms of a potential settlement
after receiving the parties' observations and refer the matter to mediation,
arbitration, conciliation, or judicial settlement, which may include settlement
through Lok Adalat.
The purpose of Section 89 (1) of the CPC was to enable
parties to settle disputes amicably in order to lower the parties' out-of-pocket
legal costs and lighten the court's caseload. To put the aforementioned plan
into action, mediation centers have been established all over India to help with
mediation-based dispute resolution. Thus, mediation is a useful substitute
process for resolving conflicts that arise not just from marital or family
strife but also from other disputes, such as those involving contracts,
commerce, administration, and even the resolution of some insolvency-related
matters.
Mediation Always Comes To The Advantage Of The Parties
Since mediation is a party-centric procedure with little to no mediator
intervention, it effectively encourages candid conversations and open
communication between the parties. With the goal of reaching an agreeable
resolution to the disagreement, the parties negotiate in front of an impartial
mediator who guides their conversations. As a result, the parties are the ones
who participate in the dialogue and negotiating process, giving them more
influence over the resolution procedure.
Through mediation, both parties can
hear the other viewpoint in a non-confrontational setting. Additionally,
mediation can take place in a time-conditioned manner and cost-effective affair
that, when compared to typical litigation, is comparatively speedier and less
expensive.
A primary benefit of resolving conflicts through mediation is that all parties
and participants are required to uphold confidentiality regarding any
discussions, statements, documents, proposals, and/or correspondence exchanged
between the parties during the mediation process. Since maintaining the secrecy
of the mediation process is crucial, the parties are encouraged to have frank
and open discussions in order to mutually arrive at a fair settlement.
A
settlement that has been agreed upon by the parties is binding unless the Indian
Contract Act, 1872, declares it to be void. There are some situations in which a
mediation settlement may be contested, such as fraud or improper behavior in
putting the settlement into effect, if the party making the claim can provide
convincing or substantial proof. This ensures the finality and enforceability of
the mediated settlement agreements by limiting the scope of disputing a
settlement through mediation.
Global Perspective On International Mediation Laws
Various forms of mediation are widely employed in both civil and administrative
disputes to resolve both domestic and cross-border conflicts in a number of
nations throughout the world, including the United States of America, the United
Kingdom, China, Australia, etc. The United Nations Convention on International
Settlement Agreements Resulting from Mediation, also known as the Singapore
Convention on Mediation, was adopted by the UN General Assembly on December 20,
2018, and it was a step toward establishing a uniform framework for the
cross-border enforcement of settlement agreements through mediation. On August
7, 2019, India signed the Singapore Convention on Mediation, however it hasn't
been ratified yet. The United States of America has an organized and codified
mediation system in addition to its legal framework.
Numerous professional
organizations, including the American Arbitration Association, Federal Mediation
and Conciliation Service, Nation Mediation Board, Civil Mediation Council,
Chartered Institute of Arbitrators, US Institute of Peace, United Nations
Department of Political Affairs, and Judicial Arbitration and Mediation
Services, regulate the mediation process in the United States of America in
order to facilitate an effective mediation process. Within the European Union,
the Directive aims to assist Member States in developing laws pertaining to
mediation in civil and commercial disputes.The "Mediation Directive" (2008/52 )
was released. In addition to ensuring an institutional framework to regulate
mediation practice throughout EU Member States, the Mediation Directive seeks to
create a formal and consistent set of standards.
India's Legal System And The Enactment Of The Mediation Act In 2023
While mediation is becoming a more popular strategy for resolving conflicts
worldwide, private mediation in India has long lacked a formal framework and
legal sanction, which has discouraged parties from participating and increased
the backlog of judges. In India, mediation was not particularly governed by any
single law, unlike arbitration and conciliation. The Mediation Act, 2023
("Mediation Act") was introduced to address this problem and improve the
efficacy of mediation in India has therefore provided a thorough and complex
legal framework for the effective application of mediation.
The aim of the
Mediation Act is to encourage community mediation, establish online mediation as
a viable and affordable process, enforce mediated settlement agreements,
establish a body for the registration of mediators, and promote and facilitate
mediation, particularly institutional mediation, for the resolution of disputes,
whether they are commercial or not.
The key components of the Mediation Act, 2023:
- Creation of the Mediation Council of India to support, encourage, and oversee the work of impartial, accredited mediators and mediation organizations throughout India.
- Pre-litigation, internet, and community mediation are all recognized under the Mediation Act, which also defines "conciliation" to conform with global norms and practices.
- The provisions pertaining to the enforcement of domestic mediated settlement agreements enhances the effectiveness and binding character of the process.
- Specifies a time-limited procedure for the mediation process.
- Introduces clauses protecting the confidentiality of communications between the parties engaged in the mediation process.
- Establishes regulations for mediator appointments also Introduces amendments to existing statutes, like the Indian Contract Act, 1872 to align them with the new mediation framework.
Conclusion
Recent growth and development trends in the legal and corporate spheres indicate
that mediation may be positioned to become the preferred method of successfully
and swiftly settling conflicts between the parties in a better and more
economical way. Since the latest Mediation Act, 2023 came into effect, the
current The field of mediation, which is used nationwide to settle a wide range
of conflicts, is constantly changing. Furthermore, even while the Mediation Act
examines how flexible mediation can be in this new digital age, when
technology-assisted processes and online mediation platforms are changing the
face of alternative dispute resolution (ADR, the issue of how to put it into
practice has not yet been resolved.
Written By: Garima Harsh
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