Description

The Mediation Act, 2023 marks a significant milestone in India’s dispute resolution landscape, aiming to formalize and promote mediation as a preferred method for resolving disputes, both domestic and international.

Key objectives and features

The Act aims to reduce the burden on courts by encouraging pre-litigation mediation. It provides a formal legal framework for mediation, promoting institutional mediation and the establishment of “mediation service providers”. A key feature is the mandatory attempt at pre-litigation mediation before filing civil or commercial suits, unless urgent interim relief is needed. The Act enhances the enforceability of Mediated Settlement Agreements (MSAs) by granting them the status of court decrees, which can be challenged on specific grounds like fraud or corruption within a limited time frame. It recognizes various forms of mediation, including online and community mediation, and reinforces confidentiality obligations. The Act also establishes the Mediation Council of India (MCI) to regulate and promote mediation, register mediators, and set standards.

Potential benefits

Mediation offers faster and more cost-effective dispute resolution compared to litigation. It can help preserve relationships between parties and reduce the workload on the judicial system. A robust mediation framework can also enhance India’s standing in international dispute resolution.

Challenges and criticisms

Concerns have been raised about the mandatory nature of pre-litigation mediation and whether it might delay access to justice. The Act’s limited scope for enforcing international mediated settlements conducted outside India is another point of criticism. There are also questions regarding the experience requirements for Mediation Council members and the need for clearer guidelines on mediator training. Some critics worry that the requirement for government approval for the MCI’s regulations could impact its independence. Other concerns include the potential for coercion in mediated settlements due to limited challenge grounds, the lack of specific guidelines for interim relief during mediation, and accessibility challenges for online mediation due to the digital divide.

Conclusion

The Mediation Act, 2023, is a positive step for India’s dispute resolution. Its success depends on effective implementation, which includes raising awareness, improving infrastructure, training mediators, and addressing the identified challenges. The Act has the potential to create a more efficient and accessible justice system by promoting amicable dispute resolution.