Mediation Bill 2021
Source : PRS India
GS II : Important International institutions, agencies and fora- their structure, mandate
What is discussed under Mediation Bill 2021?
- Features of the The Mediation Bill, 2021
- Need for Bill
- United Nations Convention on International Settlement Agreement
Why in News ?
The Parliamentary Standing Committee on Law and Justice also recommended changes to the Mediation Bill that was introduced in the Rajya Sabha in 2021 with an aim to reduce the pendency of cases in courts.
Features of the The Mediation Bill, 2021
- The Bill requires persons to try to settle civil or commercial disputes through mediation before approaching any court or tribunal
- A party may withdraw from mediation after two mediation sessions.
- The mediation process must be completed within 180 days, which may be extended by another 180 days by the parties.
- Mediation Council of India will be set up.
- Functions include registering mediators, and recognising mediation service providers and mediation institutes.
- If the parties agree, they may appoint any person as a mediator otherwise may apply to a mediation service provider to appoint a person from its panel of mediators.
- Agreements resulting from mediation will be binding and enforceable in the same manner as court judgments.
- Disputes not fit for mediation
- Relating to claims against minors or persons of unsound mind
- Involving criminal prosecution
- Affecting the rights of third parties.
- The central government may amend this list.
- Mediated settlement agreement
- Agreements resulting from mediation (other than community mediation) will be final, binding, and enforceable in the same manner as court judgments.
- They may be challenged on grounds of fraud, corruption, impersonation, and relating to disputes not fit for mediation.
Recommendation by Parliament standing Committee
- Exclusion of State and Centre : Recommended not excluding government-related disputes from the bill’s ambit as mentioned in Clause 2 (2) to exclude the Central and state governments from non-commercial disputes with the government as one of the parties.
- Contradictory Clause : Clauses 6, 7, 8, 9 and schedule 1 of the bill are interconnected and contradictory at the same time
- International Mediation : Definition of international mediation in the bill and the provisions of the Singaporean Convention are incorporated into the bill, India has not ratified UNISA (United Nations Convention on International Settlement Agreement) yet.
- Time limit of 180 days to complete the mediation process is too long and it recommended reducing the time limit to 90 days and further an extension period of 60 days instead of 180 days.
Need for Bill
- As India is a signatory to the Singapore Convention on Mediation.
- India do not have legislation for mediation in India.
United Nations Convention on International Settlement Agreement
- Also known as the Singapore Convention on Mediation applies to international settlement agreements resulting from mediation.
- The Convention entered into force on 12 September 2020.
- It establishes a harmonized legal framework for the right to invoke settlement agreements as well as for their enforcement.
- Facilitation of international trade and the promotion of mediation as an alternative and effective method of resolving trade disputes.
- The agreement is binding.
- 55 states have signed the convention and 8 states have deposited their respective instruments of ratification or approval.
- India is a signatory of the agreement but not ratified yet.
Daily Current Affairs : Click Here