President was speaking at First National Conference on Mediation in New Delhi, which also led to establishment of the 'Mediation Association of India'.
- Mediation Association of India will help institutionalize and promote mediation as a preferred, organized, and accessible way to resolve disputes.
About Mediation
- It is one of the alternate dispute resolution mechanisms along with Arbitration and Conciliation.
- Between 2016 and early 2025, a staggering 7, 57,173 cases were settled using mediation.
Difference between Mediation, Arbitration and Conciliation | |||
Aspect | Mediation | Arbitration | Conciliation |
Nature | Voluntary and informal | Formal and legally binding | Voluntary and informal |
Role of Third Party | Mediator(Neutral third party) facilitates dialogue; does not impose a decision | Arbitrator (Neutral third party) acts like a judge; gives a binding decision | Conciliator (Neutral third party) suggests solutions; may propose a settlement |
Binding Decision | No | Yes | No |
Enforceability | Not enforceable unless turned into a contract | Legally binding and enforceable | Not enforceable unless agreed upon |
Significance of Mediation
- Reduces Judicial Burden: India Justice Report (IJR) 2025 pointed that the number of pending cases in the judiciary has crossed the five-crore mark.
- Cheap and Speedy Justice Delivery: Saves substantial legal fees, court costs, and the time involved in a protracted legal battle.
- Co-operative Problem Solving: Neutrality of third party as an impartial facilitator assists communication and negotiation without taking sides.
Steps taken for promoting mediation in India
- Mediation Act, 2023: Establishes a consolidated, institutional legal framework.
- Commercial Courts Act, 2015: Amended in 2018 to provide inter-alia for Pre-Institution Mediation and Settlement (PIMS) mechanism.
- Consumer Protection Act of 2019: Encourages mediation as a quick, easy, and affordable way to settle consumer disputes.
- Singapore Convention on Mediation: India is a signatory.
