Understanding the Mediation Act 2021: Key Features and Implications

Introduction to the Mediation Act, 2021

The Mediation Act, 2021, establishes a comprehensive framework aimed at encouraging pre-litigation mediation in civil or commercial disputes. The primary goal is to prioritize mediation as a method of resolving conflicts before parties resort to courts or tribunals.

Key Features of the Mediation Act, 2021

• Mandatory Mediation: In certain disputes, parties must attempt mediation before initiating legal proceedings. They can withdraw from mediation after completing two sessions.
• Time Limit for Mediation: Mediation must be completed within 180 days, although this can be extended by another 180 days under specific circumstances.
• Formation of the Mediation Council of India: The Act provides for the establishment of the Mediation Council of India, which is tasked with registering mediators, accrediting mediation service providers, and training mediators.
• Exclusion of Certain Disputes: Some disputes, such as those involving criminal prosecution or those affecting third-party rights, are not considered suitable for mediation. The government retains the right to update this list.
• Selection of Mediators: If parties cannot agree on a mediator, they can seek assistance from a mediation service provider to appoint one from its panel.
• Enforceability of Mediation Agreements: Agreements reached through mediation are binding and enforceable, akin to court judgments. The Act ensures confidentiality in mediation proceedings, with penalties imposed for breaches.
• Challenging Mediation Settlements: Settlements can be contested on specific grounds such as fraud, corruption, impersonation, or if they are deemed unsuitable for mediation.

Conclusion

The Mediation Act, 2021, aims to streamline the dispute resolution process, reduce the backlog in courts, and promote amicable settlements among parties. Its implementation is expected to enhance the effectiveness of mediation as a viable alternative to litigation.

Frequently Asked Questions (FAQs)

Q1. What is the primary purpose of the Mediation Act, 2021?
Answer: The Mediation Act, 2021 aims to establish a structured framework for pre-litigation mediation in civil and commercial disputes, promoting resolution outside of courts.

Q2. How long does the mediation process last under the Act?
Answer: The mediation process must be concluded within 180 days, with a possible extension of another 180 days if necessary.

Q3. Are mediation agreements enforceable?
Answer: Yes, agreements reached through mediation are binding and enforceable, similar to judgments issued by courts.

Q4. Can parties withdraw from mediation?
Answer: Yes, parties can withdraw from the mediation process after participating in two sessions.

Q5. What disputes are excluded from mediation under this Act?
Answer: Disputes involving criminal prosecution or affecting third-party rights are not suitable for mediation, and the government can update this exclusion list.

UPSC Practice MCQs

Question 1: What does the Mediation Act, 2021 primarily promote?
A) Mandatory arbitration
B) Pre-litigation mediation
C) Court trials
D) International mediation
Correct Answer: B

Question 2: How long is the initial mediation period under the Mediation Act, 2021?
A) 30 days
B) 90 days
C) 180 days
D) 360 days
Correct Answer: C

Question 3: Which council is formed under the Mediation Act, 2021?
A) Mediation Council of India
B) National Mediation Authority
C) Mediation and Conciliation Board
D) Dispute Resolution Council
Correct Answer: A

Question 4: Are mediation agreements similar to court judgments?
A) Yes, they are enforceable
B) No, they are not binding
C) Yes, but only in civil cases
D) No, they require approval
Correct Answer: A

Question 5: Can parties challenge mediation settlements?
A) No, they are final
B) Yes, on specific grounds
C) Only in criminal disputes
D) Only with court approval
Correct Answer: B