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The Mediation Act, 2023

The Mediation Act, 2023:

The Parliament has passed the Mediation Bill 2023.

  • Mediation is a voluntary process in which parties try to settle disputes with the assistance of an independent third person (the mediator).
  • A mediator does not impose a solution on the parties but creates a conducive environment in which they can resolve their dispute.
  • The mediation process depends on the choice of parties, and there are no strict or binding rules of procedure.

Types of Mediation:

Court Referred Mediation:

  • Salem Advocate Bar Association, Tamil Nadu v. Union of India: In the case, Supreme Court held in reference to the matter of mediation that conciliation and arbitration are mandatory for court matters.
  • This judgment has granted legal and social recognition to mediation as a dispute resolution in India.

Private Mediation :

  • In private mediation, a qualified mediator is appointed by the parties on a fixed-fee basis. Both the parties come together to resolve the issue amicably.
  • The decision of the mediator is not ultimate and hence not binding on the parties.