REPORT ON MEDIATION

CENTRE
AT

(DELHI MEDIATION CENTRE, 30TH OF APRIL, 2024)

Report Submitted to: Dr. Mehpara Name: Ashish

Exam Roll : 21309806219
Section: I

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INTRODUCTION

In 2002, amendments to Section 89 of the Indian Code of Civil Procedure introduced

alternative dispute resolution mechanisms, including arbitration, mediation, conciliation,
and pre-trial settlement methodologies. Mediation is typically defined as a voluntary process
wherein conflicting parties, with the assistance of a neutral third party, negotiate to reach a
mutually acceptable settlement .The voluntary nature of mediation precludes coercive
participation. Therefore, advocating for mandatory mediation in all cases appears redundant
and undermines the fundamental principles of the mediation process.

LEGAL RECOGNITION OF MEDIATION IN INDIA

In India, the concept of mediation received legislative recognition with the Industrial
Disputes Act, 1947, appointing conciliators under Section 4 to mediate and promote
settlement in industrial disputes .Arbitration as a dispute resolution method was
acknowledged as early as 1879 and incorporated into the Civil Procedure Code of 1908. The
Arbitration Act of 1940 repealed the arbitration provision in Section 89 of the Civil
Procedure Code. The Legal Services Authorities Act of 1987 established the National Legal
Services Authority, with the Chief Justice of India as its Patron-in-Chief.

In 1996, the Indian Parliament enacted the Arbitration and Conciliation Act, which
addressed conciliation procedures for disputes arising from legal relationships, contractual
or otherwise. The CPC Amendment Act of 1999 introduced Section 89 into the Code of
Civil Procedure 1908, allowing for the reference of pending court cases to Alternative
Dispute Resolution (ADR), including mediation. This amendment came into force on July
1, 2002.

MEDIATION IN INDIA – CURRENTLY

On February 22, 2013, the Supreme Court of India issued guidelines for courts handling
matrimonial matters, emphasizing mediation as a preferred method for resolving disputes.

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Family Courts are urged to make every effort to settle matrimonial disputes through
mediation, even if initial counselling. fails. Criminal courts dealing with complaints under
Section 498-A of the IPC are encouraged to refer parties to mediation if settlement seems
feasible, while ensuring the integrity of the law is upheld. Additionally, all mediation centers
are instructed to establish pre-litigation desks/clinics to settle disputes before they escalate
to court.

Mediation is gaining recognition in India as an effective dispute resolution mechanism.

Before granting a divorce decree, courts now offer parties an opportunity for reconciliation.
Studies indicate that 10-15% of marital disputes are resolved through mediation centers.
Issues such as divorce settlements, maintenance, and child custody are considered ideal for
mediation.

Brief discyssion of case mediation centre.

1. Mr. A Vs Mr. B Under Section 138 N.I. Act: In a financial dispute involving Mr.
A, a money lender, and Mr. B, an investor, tensions arose over cheques issued by
Mr. D as security against a loan. Although the terms were not formally documented,
both parties orally agreed that Mr. B would return the amount with interest, subject
to market rates.Years of unresolved conflict led them to seek mediation. With the
intervention of mediators and legal advisors, a resolution was reached. The
settlement dictated that Mr. B would repay the loan amount, along with interest
adjusted according to prevailing market rates, in four installments, due on the 10th
of each month.In return, Mr. A agreed to withdraw all legal actions against Mr.
B.This case underscores the importance of clarity and mutual understanding in
financial agreements, even in the absence of written documentation. It showcases
the efficacy of mediation in facilitating fair resolutions and fostering amicable
solutions to complex financial disputes.

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 2. Mr. C Vs Mrs. D Under Section 13 H.M.A.: Mr. C and Mrs. D faced marital
difficulties stemming from alleged abuse, leading Mrs. D to seek a divorce, custody
of their children, and Rs. 15 lakh in compensation. Despite years of legal battles,
mediation and legal counsel facilitated their reconciliation. Now, they collaborate to
rebuild their relationship. Their journey underscores the importance of support and
understanding in overcoming marital discord, offering hope that love can endure
even the most trying times.

3. Mrs. X Vs Mr. Y Under Section 73 of I.C.A : In a contractual dispute governed by

Section 73 of the Indian Contract Act, Mrs. X and Mr. Y found themselves in
disagreement over terms. Initially, both parties agreed to settle for a sum of Rs. 75
lakh. However, after seeking legal advice, Mrs. X opted for a higher settlement
amount of Rs. 1.10 crore. Additionally, she secured custody of their child.Mediation
proved instrumental in reconciling their differences. With the guidance of mediators
and legal counsel, a compromise was reached.

This case underscores the importance of legal guidance in contract negotiations,

especially under Section 73 of the Indian Contract Act, which deals with
compensation for breach of contract. It highlights the role of mediation in achieving
mutually beneficial resolutions while adhering to contractual obligations.

MEDIATION AS A JUSTICE DELIVERY SYSTEM

Mediation isn't always the best approach for resolving disputes, especially when there's
deliberate deceit, bad faith, forgery, or privacy concerns. It might not work if one party is
sure they have a strong case, or if they want a neutral opinion on a genuine difference, to set
a precedent, or to be publicly vindicated.

However, mediation becomes appealing when parties prioritize:

1. Minimizing the costs involved in resolving the dispute.

2. Maintaining control over the settlement process.

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3. Achieving a speedy resolution.

4. Keeping the dispute confidential.

5. Preserving or fostering a business relationship between the parties.

Mediation is particularly suited for disputes between parties with ongoing contractual
relationships, like licenses, distribution agreements, or joint research and development
contracts. It allows for solutions that consider business interests, not just legal rights and
obligations.

LET US NOW DISCUSS THE WAYS IN WHICH THE GOVERNMENT CAN MAKE
THE MEDIATION SYSTEM EFFECTIVE IN INDIA

1. Incentivize Mediation: Instead of penalizing litigation, the government can offer

incentives for parties to opt for mediation, such as tax benefits or reduced court fees for
cases referred to mediation.

2. Public Awareness Campaigns: Launching nationwide campaigns to educate the

public about the benefits of mediation and how it can lead to faster and more cost-effective
dispute resolution.

3. Integration into Legal Education: Introducing mediation training and courses in law
schools to equip future lawyers with mediation skills and promote its use as a dispute
resolution method.

4. Online Mediation Platforms: Developing user-friendly online mediation platforms

to make mediation more accessible, especially for parties in remote areas or with limited
resources.

5. Certification and Regulation: Implementing a certification process for mediators

and establishing regulatory bodies to ensure quality standards and ethical practices in
mediation.

6. Encouraging Corporate Adoption: Encouraging businesses to include mediation

clauses in contracts and promoting the use of mediation for resolving commercial disputes.

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7. Collaboration with NGOs and Civil Society: Partnering with non-governmental
organizations and civil society groups to provide mediation services in communities and
address socio-economic disputes at the grassroots level.

8. Research and Development: Investing in research and development to continuously

improve mediation techniques, develop best practices, and measure the effectiveness of
mediation programs.

By adopting a multi-faceted approach and incorporating these suggestions, the government

can work towards making the mediation system more effective and widely accepted in India.

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