Rajya Sabha Passes Mediation Bill 2021

• 04 Aug 2023

On 1^st August, the Rajya Sabha approved the Mediation Bill 2021, emphasizing the use of mediation for resolving civil or commercial disputes before resorting to courts or tribunals.

Key Points:

• Focus on Alternative Dispute Resolution through Mediation: The bill aims to promote and facilitate institutional mediation, ensure the enforcement of mediated settlements, establish a Mediation Council of India, and encourage community and online mediation
• The Mediation Bill promotes the use of mediation as an alternative dispute resolution mechanism, allowing parties to attempt settlement before approaching courts or tribunals.
• Voluntary Pre-Litigation Mediation and Timeframe: The bill makes pre-litigation mediation voluntary rather than mandatory, encouraging constructive dialogue and burden reduction on the judiciary system.
• Parties have the option to withdraw from the mediation process after two sessions, and the mediation process must be completed within a maximum of 180 days, extendable for an additional 180 days if needed.
• Role of the Mediation Council of India: The establishment of the Mediation Council of India is crucial for effective mediation by registering mediators and recognizing mediation service providers and institutes.
• The council aims to ensure the availability of qualified mediators for facilitating dispute resolution.
• Legally Binding Agreements from Mediation: Agreements resulting from mediation will be treated as legally binding, providing confidence in the efficacy of the mediation process.