The Mediation Bill, 2021, which has been cleared by the Union cabinet, is likely to be introduced in parliament in the ongoing monsoon session. The bill seeks to promote mediation (including online) and provide for enforcement of settlement agreements resulting from mediation as an alternative to litigation in the courts. The idea of mediation as a form of dispute settlement has been discussed in the country for long.
There have been suggestions that mediation should be made mandatory before disputes are taken to court. Some specific laws in the country, such as the Companies Act, prescribe mediation but there is no standalone legislation on it. The new bill will lead to meet that requirement. The bill has been cleared after accepting some amendments proposed by a parliamentary standing committee. It can change the legal and judicial system in the country for the better if it is implemented effectively.
Mediation is a cheaper and more effective method of dispute settlement. The courts are weighed down by a huge backlog of cases and at the present pace of work, it will take decades to clear the backlog. The bill proposes voluntary mediation before litigation. This is because compulsory mediation may amount to a bar on access to justice, which would not be legal. The mediation process is to be concluded within a maximum of 180 days.
The original bill had proposed 180 days, with provision for an extension of another six months. The change is to ensure that the process is not used to delay resolution of disputes. The infrastructure for mediation will be set up all over the country. This will mainly consist of the Mediation Council of India, whose functions include registering mediators, recognising mediation service providers, and mediation institutes, which train and certify mediators. The bill will apply to international mediation only if they are conducted in India. It excludes some laws, such as the law on sexual harassment at the workplace, from its scope.
India has a litigant society where individuals, governments and institutions resort to litigation easily and take even simple disputes to court. Hopefully, the trend will be discouraged now. There is a mediation mechanism in Tamil Nadu which was launched by the Madras High Court with centres in all districts. It is the only such facility in India. It has helped to reduce the pendency of cases in the state. The bill can help this happen all over the country. It is not clear how the law would apply to pending cases. The infrastructure should be set up at the earliest and it must be ensured that the mediation system is neutral and unbiased. It should earn the trust of the people.