The Lok Sabha on Monday passed a bill that seeks to provide legal framework to mediation and reduce burden on courts.
Introducing the Mediation Bill, 2021, in the Lower House, Law Minister Arjun Ram Meghwal said it provides “legal backbone” to mediation.
The Rajya Sabha has already passed the bill on August 1.
The bill will also promote ease of doing business as many of petty disputes would be cleared through this alternative dispute resolution mechanism, Meghwal said, adding that this will be “cost effective means” of dispute resolution.
During the debate on the bill, the minister said the legislation has provision for penal action if the parties fail to comply with the agreed mediation.
“Under this we are making the Mediation Council. This is a neutral third party. This bill makes the process a time-bound mechanism which saves time and money of parties,” Meghwal said.
He said mediation is part of Indian culture and tradition but it lost its relevance during the British period.
“Our scriptures have reference of mediation,” he said, adding that Angad (a Ramayana character) had gone to Lanka for mediation while Lord Krishna approached Kauravas for mediation before the battle of Mahabharat.
The bill was first introduced in Rajya Sabha in 2021 and referred to the parliamentary committee on law and personnel for its detailed study.
Following the report of the committee, the government made certain amendments to the Mediation Bill, including reducing the maximum timeline for completing mediation proceedings from 360 to 180 days.
Under the other key recommendation of the panel accepted by the government, pre-litigation mediation has been made voluntary instead of mandatory.
In case of exceptional circumstances, a party can seek interim relief from the court or tribunal not only before the commencement of mediation proceedings but also during the continuation of proceedings.
The mediation settlement can be challenged on grounds of fraud, corruption, impersonation, and disputes not fit for mediation.
Disputes, other than commercial disputes, in which the central government and a state government are a party, cannot be mediated unless the nature of disputes which can be referred to mediation are notified.
S C Baheria and Virendra Singh (both from BJP) and Malook Nagar (BSP), among others, participated in the debate on the bill.
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