NEW DELHI: The Union Cabinet on Wednesday cleared changes to the mediation bill which makes mediation voluntary instead of mandatory as provided for in the original bill tabled in Rajya Sabha in December 2021.
The bill, seeking to provide statutory backing to mediation, was sent to the parliamentary standing committee on law which had recommended reducing the time limit by half and also making it voluntary for parties.
The Cabinet accepted these recommendations and accordingly amendments will be moved during passage of the bill in Parliament during the monsoon session beginning on Thursday. The bill has been conceived as a help for unclogging courts reeling under massive pendency of cases by providing an institutional mechanism to promote mediation before a dispute is taken to the court. It will help in resolution of both civil and commercial cases.
Pre-litigation mediation under the bill provides that irrespective of whether an agreement for mediation exists, parties to a dispute, civil as well as commercial, will take steps to settle it in accordance with the provisions of the new law.
“The mediation law upon coming into force, would bring in requisite legal intervention towards providing statutory recognition to mediation and enabling growth of a culture of amicable settlement of disputes, out of court. A settlement not only helps in preserving the relationship amongst the parties offering ease of business but also contributing in the growth of the economy,” said the law ministry.
The bill, seeking to provide statutory backing to mediation, was sent to the parliamentary standing committee on law which had recommended reducing the time limit by half and also making it voluntary for parties.
The Cabinet accepted these recommendations and accordingly amendments will be moved during passage of the bill in Parliament during the monsoon session beginning on Thursday. The bill has been conceived as a help for unclogging courts reeling under massive pendency of cases by providing an institutional mechanism to promote mediation before a dispute is taken to the court. It will help in resolution of both civil and commercial cases.
Pre-litigation mediation under the bill provides that irrespective of whether an agreement for mediation exists, parties to a dispute, civil as well as commercial, will take steps to settle it in accordance with the provisions of the new law.
“The mediation law upon coming into force, would bring in requisite legal intervention towards providing statutory recognition to mediation and enabling growth of a culture of amicable settlement of disputes, out of court. A settlement not only helps in preserving the relationship amongst the parties offering ease of business but also contributing in the growth of the economy,” said the law ministry.