Rajya Sabha passes Mediation Bill, 2021

Source: The post is based on the article “Rajya Sabha passes Mediation Bill, 2021”  published in The Economic Times on 1st August 2023.

What is the News?

Rajya Sabha has passed the Mediation Bill 2021.

What is Mediation?

Mediation is a type of ADR (alternative dispute resolution), where a dispute is referred to a neutral person, who engages with the warring parties and tries to find a solution agreeable to both. 

Courts have regularly been ordering mediation to settle civil, commercial, and family disputes among others.

What are the key provisions of the Mediation Bill 2021?

Firstly, persons can try to settle civil or commercial disputes through mediation before approaching any court or tribunal. However, the pre-litigation mediation is voluntary and not mandatory.

Secondly, a party may withdraw from mediation after two mediation sessions. 

Thirdly, the mediation process must be completed within 180 days, which may be extended by another 180 days by the parties.

Fourthly, the Mediation Council of India will be set up. Its functions include registering mediators, and recognising mediation service providers and mediation institutes (which train and certify mediators).

Fifthly, currently, mediations are ordered by the courts and when a dispute is thus settled, the settlement agreement is converted into a decree by the court, thus making it binding on the parties. However, the Mediation bill puts a mediated settlement agreement on par with a court judgment without the need for any further court sanction.

Lastly, Mediation agreements can only be challenged on grounds of: (i) fraud, (ii) corruption, (iii) impersonation, or (iv) relating to disputes not fit for mediation.