Mediation Act 2023- A Powerful Act , reducing the Burden on Judiciary

It is a very useful act

1. Mediation Act, 2023 –
CA. Manmohan Jindal ,RV-SFA,Mumbai
[email protected]
8850385224

2. Mediation Act, 2023 –
AJ Legal
Abhay Jindal , LL.M
Dealings in NCLT
[email protected]

3. The Mediation Act, 2023
•TheMediationAct,2023(the“Act”)waspassedbytheRajyaSabha
onAugust1,2023,theLokSabhaonAugust7,2023,andwasnotified
intheGazetteofIndiaafterreceivingtheassentofthePresidentof
IndiaonSeptember15,2023.
•FirstintroducedinParliamentonDecember20,2021(“2021Bill”),
the2021BillwasthenreferredtoaParliamentaryStanding
Committee(“StandingCommittee”),whichsubmitteditsreporttothe
RajyaSabhachairpersononJuly13,2022.

4. Mediation Act 2023
•TheActhasbeenenactedto,“promoteandfacilitatemediation,
especiallyinstitutionalmediation,forresolutionofdisputes,
commercialorotherwise,enforcemediatedsettlementagreements,
provideforabodyforregistrationofmediators,toencourage
communitymediationandtomakeonlinemediationasacceptable
andcosteffectiveprocessandformattersconnectedtherewithor
incidentalthereto,”

5. Background
•The concept of mediation is not new.
•Historically, mediation has been commonplace in the Indian context,
with the Gram Panchayats (Village Council) serving as the mediator at
the community level to help resolve disputes of all kinds .
•It has always been available as an alternative dispute resolution (ADR)
mechanism for parties in a dispute.

6. Contd..
•Mediationisamechanismthatcanbetailoredtotheneedsofthe
disputants,offeringahighlyflexibleandadaptableprocessfordispute
resolution.
•Therefore,therecentMediationAct,2023,isawelcomemoveforthe
citizensofIndia.

7. Contd..
•Mediationhasalwaysbeenaninformalandadhocprocess.
•Lackofstandardizationandvaryingapproachesfollowedbydifferent
mediatorstendtohaveasignificantimpactontheoutcomeofthe
mediationprocess.
•Theinstitutionalizationofthemediationprocessandthe
enforcementofensuingagreementsthroughtheAct,willcreatea
trustedenvironmenttowardsthesettlementsoflitigation.

8. The salient features of the Act include
Provisions for setting up a Mediation Council of India (MCI),
Ensuring the confidentiality of proceedings,
Recognition of mediation institutes,
Empanelment of mediators,
Timelines within which mediation should be conducted, along with
the withdrawal option from proceedings, and
Circumstances under which mediated agreements can be challenged,
among others.

9. •Benefits

10. Distributing the workload
•TheActiscertainlyastepforwardinfacilitatingtheeaseofdoing
businessinIndiaandeasingthepressureonthejudiciary.
•Butitsimplementationdependsalotonthetimelysetting-upofthe
proposedMCIthatistaskedwithlayingdownstandardsand
regulationstodrivetheprocessforward.

11. Conclusion
•TheActseekstoinstitutionalizeandformalizethemediationprocess,
whichislikelytoimprovetheefficiencyandeffectivenessofthe
processinthefuture.
•Itisfurtherlikelytoimprovethecredibilityandacceptanceofthe
processamongstthestakeholders.
•Withcommercialdisputesandlitigationsontherise,Indiamust
embracethisnewlegislationtostrengthenitsimageasaninvestment
destination.

12. Thanks
•CA. Manmohan Jindal , RV-SFA , Mumbai
[email protected]
•8850385224