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Essential Elements of the Mediation Act, 2021



  Jan 02, 2024

Essential Elements of the Mediation Act, 2021




The Mediation Act, 2021, establishes a framework for pre-litigation mediation in civil or commercial disputes, prioritizing mediation before resorting to courts or tribunals. Key aspects include:

Mandatory Mediation: Parties involved in certain disputes are required to attempt resolution through mediation prior to legal proceedings. Withdrawal from mediation is permitted after two sessions.

Time Limit for Mediation: The mediation process must be concluded within 180 days, with a possible extension of another 180 days.

Formation of the Mediation Council of India: This Act facilitates the creation of the Mediation Council of India, responsible for registering mediators, accrediting mediation service providers, and training mediators.

Exclusion of Certain Disputes: Specific disputes, such as those that involve criminal prosecution or affect third-party rights, are not suitable for mediation. The government has the authority to update this exclusion list.

Selection of Mediators: If parties cannot agree on a mediator, they may approach a mediation service provider for the appointment of a mediator from its panel. Enforceability of Mediation Agreements: Agreements reached through mediation are binding and enforceable, similar to court judgments. The Act enforces confidentiality in mediation proceedings, with penalties for breaches.

Challenging Mediation Settlements: Settlements can be contested on grounds of fraud, corruption, impersonation, or unsuitability for mediation.

The Mediation Act, 2021, aims to streamline dispute resolution, reduce court backlogs, and promote amicable settlements.


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