The Ministry of Law and Justice on 5th November 2021 has proposed a draft Mediation Bill, 2021 which may facilitate timely and consensual resolution of disputes and serve the interest of stakeholders as an effective alternative remedy.
The objective of the bill is to promote, encourage and facilitate mediation especially institutional mediation for resolution of disputes commercial and otherwise, enforce domestic and international mediation settlement agreements, provide for a body for registration of mediators, to encourage community mediation and to make online mediation as an acceptable and cost effective process and for matters connected therewith or incidental thereto has been prepared.
The draft Bill proposes for pre-litigation mediation and at the same time safeguards the interest of the litigants to approach the competent adjudicatory forums/courts in case an urgent relief is sought and the successful outcome of mediation in the form of Mediation Settlement Agreement (MSA) has been made enforceable by law. Since the Mediation Settlement Agreement is out of the consensual agreement between the parties, the challenge to the same has been permitted on limited grounds.
The mediation process protects the confidentiality of the mediation undertaken and provides for immunity in certain cases against its disclosure.
Further the mediation shall be completed within a period of ninety days from the date of commencement of mediation and it shall be extended for a further period of ninety days with the consent of parties.
