The Lok Sabha passed the Mediation Bill, 2023, which had already received approval from the Rajya Sabha the previous week. This legislation mandates attempting mediation for civil or commercial disputes before resorting to courts or tribunals.
The Bill's aim is to promote mediation, especially institutional mediation, for resolving disputes. It enforces mediated settlement agreements, establishes a mediator registration body, encourages community mediation, and advocates for cost-effective online mediation.
Section 6 of the Bill mandates parties to engage in pre-litigation mediation before initiating civil or commercial suits. Pre-litigation mediation involves resolving disputes through mediation before filing lawsuits.
A "Schedule-I" list of disputes unsuitable for mediation is introduced, encompassing allegations of fraud, forgery, criminal offenses, etc.
The Bill permits courts to refer compoundable or matrimonial offense disputes related to civil proceedings to mediation if appropriate.
Mediation under the Bill should conclude within 180 days, extendable as agreed upon but not exceeding 180 days.
The legislation establishes the Mediation Council of India, comprising a chairperson, members experienced in mediation or ADR, and representatives from relevant government bodies and industries. The council handles mediator registration and recognition of mediation service providers and institutes for training and certification.
The Bill introduces "Community Mediation" to settle disputes impacting local peace and harmony. Parties can apply to the relevant authority to refer disputes to mediation as per the Legal Services Authorities Act, 1987.