Rajya Sabha passes Mediation Bill, 2021

On 01-08-2023, the Union Law Minister Arjun Ram Meghwal introduced Mediation Bill, 2021 for consideration and passing in the Rajya Sabha. He stated that the Bills is aimed “to promote and facilitate mediation, particularly institutional mediation, for resolution of commercial and other disputes, to enforce mediated settlement agreements, provide a body for the registration of mediators, to encourage community mediation and to make online mediation as acceptable and cost-effective process”.

Key highlights of the Bill:

1. Section 22 of the Mediation Bill clarifies that mediated settled agreement should be enforced in the same manner as the judgment or decree passed by the Court is enforced.
2. The mediation proceeding would be confidential and any contravention would lead to punishment.
3. It has made pre-litigation mediation mandatory for the disputes mentioned in the Bill before filing any suit in any Court or Tribunal under Section 6 of the Bill.
4. After two sessions, the mediation time limit is 180 days which can be extended to 180 days.
5. The mediation settlement can be challenged on grounds of fraud, corruption, impersonation, and disputes not fit for mediation.
6. Establishment of the Mediation Council to regulate the Bill.

Dr. Amar Patnaik praised the move of bringing a ‘distinct mediation bill as standalone, significant legislation for the country’. He said that it was the first such bill after Independence. The bill would deal with different issues and provide clarity on firstly, the enforcement of mediation-mediated settlement in the Court of law, secondly, dispensing the myth that mediation was a lesser form of justice, thirdly, the lawyers getting incentivized to get cases referred to mediation. He said this bill would elevate the ease of doing business and reduce the pendency of the cases in lower courts. However, he pointed out that there is no provision for enforcing internationally mediated settlements and the act would not apply to pending proceedings. He suggested that the pre-litigation mediation in all cases must be made mandatory.

Bhubaneshwar Kalita, BJP MP remarked that the Bill predates back to our traditional system of Panchayat which has been revolutionized and systematized over the course of years drawing influence from the Singapore Convention on Mediation. Moreover, S. Niranjan Reddy cautioned that before the enactment of the bill, the mediation infrastructure, training needs to be developed.