'The Mediation Bill 2021 ('Bill') was introduced in the Rajya Sabha on 20th December, 2021 with the objective to promote and facilitate mediation, especially institutional mediation, for resolution of disputes, commercia

Key Features of the Mediation Act, 2023 Wide Applicability: The Mediation Act, 2023 (Act) is applicable to all disputes between the parties except for where one of the parties is the Central Government or a State Government, or agencies, public bodies, corporations and local bodies, including entities controlled or owned by such Government. Further, the Act is only applicable to the commercial disputes. Furthermore, Section 43 of the Act introduces the concept of community mediation, requiring the prior agreement of the parties involved. This provision enables the resolution of disputes that have the potential to disrupt the peace, harmony, and tranquility among residents or families in a specific region or neighbourhood. It grants authority to the relevant governing body under the Legal Services Authorities Act, 1987, or the District Magistrate, or Sub-Divisional Magistrate to establish a group of three mediators tasked with conducting the process of community mediation. Party Autonomy: The Act upholds and encourages party autonomy. It stipulates that the parties are at liberty to agree upon a mediator as well as the process of appointment of such mediator. It also permits online mediation as a valid form of dispute resolution if preferred by the parties. The Act presently does not mandate the registration of Mediated Settlement Agreements, thereby allowing the parties to keep their confidentiality. The Act also permits parties to mediation proceedings to mediate in a language or languages of their choosing. Comfort of Confidentiality: Section 15(3) of the Act is intended to preserve the confidentiality of the mediation proceedings, the information the mediator may obtain about parties, and on the subject matter of mediation. Further, Section 22 of the Act provides that the mediator, mediation service provider, parties and participants in the mediation shall keep information and communication relating to the mediation proceedings confidential and no party to the mediation shall in any proceedings before a court or tribunal including arbitral tribunal, be at liberty to rely on or introduce as evidence any such information or communication. Nevertheless, the Act also stipulates that this confidentiality does not extend to the mediated settlement agreement when its disclosure becomes essential for the objectives of registration, enforcement, or challenge. Time Bound Mechanism: In a contemporary era, a prompt resolution of disputes not only conserves the valuable time and finances of the parties involved but also fosters an atmosphere which is conducive to contract enforcement and consequently business growth. The Act has been drafted keeping in mind this need of the hour. As stated hereinabove, the Act provides for mediation proceedings to conclude within a span of 120 days.