Answer:

Mediation Act 2023 aims to promote mediation, to resolve commercial and other disputes. It is a method of alternative dispute resolution (ADR) used to resolve conflicts, disputes, and disagreements between parties with the assistance of a neutral third party, known as a mediator. Further, It helps to reduce the burden on courts by enabling out-of-court settlements, and reduce the filing of frivolous claims before Indian Courts.

Major provisions of  Mediation Act 2023-

• Pre-litigation mediation: The Bill requires persons to try to settle civil or commercial disputes through mediation before approaching any court or tribunal.
• Time Span: A party may withdraw from mediation after two mediation sessions. The mediation process must be completed within 180 days, which may be extended by another 180 days by the parties.
• Mediation Council of India: The Bill provides for the setting up of The Mediation Council of India. It is a platform for registering mediators, and recognising mediation service providers and mediation institutes.
• Forms of mediation: The Bill aims to govern two forms of mediation – voluntary and mandatory.
• Areas of exclusion: The areas excluded from mediation include serious allegations of fraud, criminal offenses, environmental matters reserved for the National Green Tribunal, and matters relating to competition, telecom, securities and electricity law and land acquisition.

Key issues involved in the act

• Mandatory pre mediation litigation -According to the Act, pre-litigation mediation is mandatory for both parties before filing any suit or proceeding in a court, whether or not there is a mediation agreement between them.
• Mediation Council of India-The Mediation Council can issue regulations only after the approval of the Central government. This questions the autonomy of MCI.
• Lack of skilled mediators-In order to mediate diverse and varying types of disputes, India has a shortage of skilled mediators.
• International settlements- Act does not provide for enforcement of mediated settlement agreements from international mediations conducted outside India.
• Departed from the Singapore Convention on Mediation -India was amongst the first to sign the United Nations Convention on International Settlement Agreements resulting from Mediation, also called the Singapore Convention on Mediation. However, in this act, it chose not to incorporate the Singapore Convention.

By addressing the lacuna, Mediation Act 2023, as a comprehensive framework, being cost effective will reduce pendency if implemented in letter and spirit and hence, could impact social change.