Future of Dispute Resolution By Way of Mediation

“Prescribing Mediation As A Mandatory First Step For Resolution Of Every Allowable Dispute Will Go A Long Way In Promoting Mediation. Perhaps, An Omnibus Law In This Regard Is Needed To Fill The Vacuum.”

The Honorable Chief Justice of India, J. N. V. Ramana, recently proposed making mediation mandatory before to the filing of any admissible dispute in Indian courts. CJI N. V. Ramana reiterated the judiciary’s support for alternative dispute resolution (“ADR”), and mediation in particular, from the India-Singapore Mediation Summit to the opening of the International Arbitration and Mediation Center in Hyderabad. Other Judges of the Honourable Supreme Court of India Share The Said Sentiment. Additional Recent Statute Amendments, Such as The Commercial Courts Act of 2015, Etc. Demonstrates The Legislature’s Intent to Make Pre-Litigation Mediation in Commercial Matters Mandatory. We now question if mediation is the best option for resolving disputes in the future in light of initiatives like these taken by the government and judiciary. It’s Critical To Know The Mediation’s Limitations Before Analyzing Its Success.

History Of Mediation In India

Indians Are Not Away From Mediation As A Dispute Resolution Process. An Essential Part of Indian Mythology Was Mediation. Lord Krishna attempted to mediate disputes between the Pandavas and the Kauravas in the Mahabharata. As a result, the Panchayat System was crucial in mediating disputes between parties seeking a community-level resolution as an impartial third party. Elders in Indian families have chosen to mediate conflicts between family members. However, the establishment of courts in British India made the traditional indigenous dispute resolution system ineffective. In India as well as in other Asian nations, mediation has long been the “go-to” method for preserving relationships while resolving conflicts.

What id Mediation? How is it conducted?

One Non-Adversarial Alternative Dispute Resolution Process Is Mediation. It’s a party-centered process in which a neutral third party, the mediator, uses her skills to help parties settle their differences amicably. This process focuses more on the settlement of the dispute than on the merits of the adjudication of the dispute because the mediator assists the parties in understanding one other’s points of view. The procedure is entirely voluntary and confidential. Throughout the mediation process, the parties may end it at any moment.

Instead than offering the parties a settlement, the mediator uses his or her specialized skills to assist the parties in reaching a collaborative solution. Mediation helps parties maintain their relationships, which creates opportunities for future collaboration. It helps parties settle their differences more quickly and economically by resolving conflicts without requiring the parties to go to court.

Statuatory recognition of ADR

The Industrial Disputes Act of 1947, specifically Section 4, allowed for the investigation of industrial dispute settlement through the appointment of conciliation officers. Both the Hindu Marriage Act of 1955 and the Special Marriage Act of 1954 include provisions aimed at resolving or exploring reconciliation in cases arising from matrimonial disputes.

The Code of Civil Procedure, 1908, Section 89, allowed for the referral of ongoing court cases to extrajudicial settlement conferences, arbitration, mediation, and conciliation. The same held true for court cases that were still pending and in which the judges believed that a settlement might be investigated in the relevant case.

Disputes that were pending before the Central Government of the Tribunal or the Appellate Tribunal under the Companies Act may be resolved through the channels provided under Section 442 of the Companies Act of 2013. Maintaining A Panel Of Mediators And Conciliators To Allow The Parties To Explore Dispute Settlement Is Permitted By Rule 3 Of The Companies (Mediation And Conciliation) Rules, 2016.

The Legislature Has Been Increasingly Dependent On Mediation Under Various Statutes. Recently, Section 12A was added to the Commercial Courts Act, 2015, by amendment, to mandate pre-litigation mediation in cases where no urgent relief was requested. This is a significant advancement since it requires that commercial disputes involving claims of more than INR 3 lakhs be investigated through mediation before a commercial case can be filed in any Indian commercial court. In addition, the Consumer Protection Act of 2019 allows for the dispute to be referred to mediation. Furthermore, the scope of mediation has frequently been expanded by Indian courts, including the Apex Court, to include cases involving contracts, trade, commerce, and consumer disputes  And Even Tortuous Liability.

Future of Mediation

Parties Have Access To A Voluntary, Time-Bound, Cost-Effective, And Confidential Dispute Resolution Process Through Mediation. Following a successful mediation, the parties sign an agreement outlining their settlement, which is governed by the terms of the applicable contract law. The Hon’ble Supreme Court of India emphasized the need for a law governing mediation in MR Krishna Murthi V. New India Assurance Co. Ltd. (2019) due to the growing popularity of mediation in the nation. Furthermore, the Hon’ble CJI Made The Same Suggestion During The Most Recent India-Singapore Mediation Summit. There is a need for a statute to oversee mediation procedures even if India’s Arbitration and Conciliation Act, 1996 governs arbitration and conciliation. ADR in general and mediation in particular have the ability to restore the Sanctity Of Contracts Entered Into Between The Parties, Ranging From An Online Order Of Product To Any Large Stake Investment.

Disputes are inevitable in a society where agreements are made almost in every aspect of life. Parties Can Now Purchase Anything from a Laptop to a Safety Pin More Easily Thanks to E-Commerce. By 2026, the Indian e-commerce market is projected to reach a valuation of USD 200 billion. India’s courts are overworked due to an excessive case backlog. In India, there are currently about 4 crore cases pending before district courts, of which about 70% have been pending for longer than a year and for 40% longer than three years. As a result, a more rapid and economical method of resolving disputes is urgently needed.

Online dispute resolution closes the gaps and offers a time-bound, cost-effective method of resolving conflicts; in India, use of this method is growing.

We Are An Online Dispute Resolution Institution Helping Individuals And Businesses In Resolving Their Legal Disputes Faster And In A Cost-Effective Way.

To Know More About Our Offering, Visit Our Page On Online Dispute Resolution.