A Bill to promote and facilitate mediation especially institutional mediation for resolution of disputes

jftLVªh lañ Mhñ ,yñ—(,u)04@0007@2003—21 REGISTERED NO. DL—(N)04/0007/2003—21 सी.जी.-डी.xएxलx.G-अI.D-2H2x12x2x021-232057 CG-DL-E-22122021-232057 xxxGIDExxx vlk/kkj.k EXTRAORDINARY Hkkx II — [k.M 2 PART II—Section 2 izkf/kdkj ls izdkf'kr PUBLISHED BY AUTHORITY lañ 29] ubZ fnYyh] lkseokj] fnlEcj 20] 2021@vxzgk;.k 29] 1943 ¼'kd½ No. 29] NEW DELHI, MONDAY, DECEMBER 20, 2021/AGRAHAYANA 29, 1943 (SAKA) bl Hkkx esa fHkUu i`"B la[;k nh tkrh gS ftlls fd ;g vyx ladyu ds :i esa j[kk tk ldsA Separate paging is given to this Part in order that it may be filed as a separate compilation. RAJYA SABHA ———— The following Bill has been introduced in the Rajya Sabha on the 20th December, 2021:— Bill No. XLIII of 2021 A Bill to promote and facilitate mediation, especially institutional mediation, for resolution of disputes, commercial or otherwise, enforce mediated settlement agreements, provide for a body for registration of mediators, to encourage community mediation and to make online mediation as acceptable and cost effective process and for matters connected therewith or incidental thereto. BE it enacted by Parliament in the Seventy-second Year of the Republic of India as follows:–– CHAPTER I PRELIMINARY 1. (1) This Act may be called the Mediation Act, 2021. Short title, extent and (2) It shall extend to the whole of India. commencement. (3) It shall come into force on such date as the Central Government may, by notification, appoint and different dates may be appointed for different provisions of this Act and anyS3\F\BILL 2021\GI\1675GI\1675GI THE MEDIATION 1 2 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision. CHAPTER II APPLICATION Application. 2. (1) Subject to sub-section (2), this Act shall apply where mediation is conducted in India, and— (i) all or both parties habitually reside in or are incorporated in or have their place of business in India; or (ii) the mediation agreement provides that any dispute shall be resolved in accordance with the provisions of this Act; or (iii) there is an international mediation. (2) The provisions of sub-section (1) shall not apply wherein one of the parties to the dispute is the Central Government or a State Government, or agencies, public bodies, corporations and local bodies, including entities controlled or owned by such Government, except where the matter pertains to a commercial dispute: Provided that nothing shall prevent the Central Government or a State Government from notifying, such kind of dispute, as it deems appropriate for such Government, for resolution through mediation under this Act, wherein such Government, or agencies, public bodies, corporations and local bodies including entities controlled or owned by them, is a party. Definitions. 3. In this Act, unless the context otherwise requires,— (a) "commercial dispute" means a dispute defined in clause (c) of sub-section (1) of section 2 of the Commercial Courts Act, 2015; 4 of 2016. (b) "Council" means the Mediation Council of India established under section 33; (c) "court" means the principal civil court of original jurisdiction in a district, and includes the High Court in exercise of its ordinary original civil jurisdiction, having jurisdiction to decide the disputes forming the subject matter of mediation, if the same had been the subject matter of a suit or proceeding; Explanation.—In a commercial dispute of a Specified Value as defined in the clause (i) of sub-section (1) of section 2 of the Commercial Courts Act, 2015, the court 4 of 2016. of competent jurisdiction shall be the Commercial Courts referred to in Chapter II of the said Act; (d) "court annexed mediation" means mediation including pre-litigation mediation conducted at the mediation centres established by any court or tribunal; (e) "institutional mediation" means mediation conducted under the aegis of a mediation service provider; (f) "international mediation" means mediation undertaken under this Act and relates to a commercial dispute arising out of a legal relationship, contractual or otherwise, under any law for the time being in force in India, and where at least one of the parties, is— (i) an individual who is a national of, or habitually resides in, any country other than India; or (ii) a body corporate including a Limited Liability Partnership of any nature, with its place of business outside India; or (iii) an association or body of individuals whose place of business is outside India; orSEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 3 (iv) the Government of a foreign country; (g) "mediation" means mediation referred to in section 4; (h) "mediator" means a person who is appointed to be a mediator to undertake mediation, and includes a person registered as mediator with the Council. Explanation.—Where more than one mediator is appointed for a mediation, reference to a mediator under this Act shall be a reference to all the mediators; (i) "mediation agreement" means a mediation agreement referred to in sub-section(1) of section 5; (j) "mediation communication" means communication made, whether in electronic form or otherwise, through— (i) anything said or done; (ii) any document; or (iii) any information provided, for the purposes of, or in relation to, or in the course of mediation, and includes a mediation agreement or a mediated settlement agreement; (k) "mediation institute" means a body or organisation that provides training, continuous education and certification of mediators and carries out such other functions under this Act; (l) "mediation service provider" means a body or organisation that provides for the conduct of mediation under this Act and rules and regulations made thereunder, and are recognised by the Council. Explanation I.—For the purposes of this clause, mediation service provider 39 of 1987. includes an Authority constituted under the Legal Services Authorities Act, 1987, or mediation centre annexed to a court, tribunal or such other forum as may be specified. Explanation II.—An Authority constituted under the Legal Services Authorities 39 of 1987. Act, 1987, or mediation centre annexed to a court or tribunal or such other forum shall be deemed to be a mediation service provider recognised by the Council; (m) "mediated settlement agreement" means mediated settlement agreement referred to in sub-section (1) of section 22; (n) "notification" means notification published in the Official Gazette and the expression ‘‘notified’’ with its cognate meanings and grammatical variations shall be construed accordingly; (o) "online mediation" means online mediation referred to in section 32; (p) "participants" means persons other than the parties who participate in the mediation and includes advisers, advocates, consultants and any technical experts and observers; (q) "party" means a party to a mediation agreement or mediation proceeding whose agreement or consent is necessary to resolve the dispute and includes their successors; (r) "pre-litigation mediation" means a process of undertaking mediation, as provided under section 6, for settlement of disputes prior to the filing of a suit or proceeding of civil or commercial nature in respect thereof, before a court or notified tribunal under sub-section (2) of section 6; (s) "prescribed" means prescribed by rules made by the Central Government under this Act;S3\F\BILL 2021\GI\1675GI\1675GI THE MEDIATION 1 4 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— (t) "Schedule" means the Schedule annexed to this Act; (u) "secure electronic signature" with reference to online mediation means, electronic signatures referred to in section 15 of the Information Technology Act, 2000; and 21 of 2000. (v) "specified" means specified by regulations made by the Council under this Act. CHAPTER III MEDIATION Mediation. 4. Mediation shall be a process, whether referred to by the expression mediation, pre-litigation mediation, online mediation, community mediation, conciliation or an expression of similar import, whereby party or parties, request a third person (referred to as mediator or mediation service provider) to assist them in their attempt to reach an amicable settlement of a dispute. Mediation 5. (1) A mediation agreement shall be in writing, by or between parties and anyone agreement. claiming through them, to submit to mediation all or certain disputes which have arisen or which may arise between the parties. (2) A mediation agreement may be in the form of a mediation clause in a contract or in the form of a separate agreement. (3) A mediation agreement is in writing, if it is contained in or recorded as— (a) any document signed by the parties; (b) an exchange of communications or letters including through electronic form as provided under the Information Technology Act, 2000; 21 of 2000. (c) any pleadings in a suit or any other proceedings in which existence of mediation agreement is alleged by one party and not denied by the other. (4) A reference in any agreement containing a mediation clause shall constitute a mediation agreement if the agreement is in writing and the reference is such as to make the mediation clause as part of the agreement. (5) The parties may agree to submit to mediation any dispute arising between them under an agreement, whether entered prior to arising of the dispute or subsequent thereto. (6) A mediation agreement in case of international mediation shall refer to an agreement for resolution in matters of commercial disputes referred to in clause (a) of section 3. Pre-litigation 6. (1) Subject to other provisions of this Act, whether any mediation agreement exists mediation. or not, any party before filing any suit or proceedings of civil or commercial nature in any court, shall take steps to settle the disputes by pre-litigation mediation in accordance with the provisions of this Act: Provided that pre-litigation mediation in matters of commercial disputes of Specified Value shall be undertaken in accordance with the provisions of section 12A of the Commercial Courts Act, 2015, and the rules made thereunder. 4 of 2016. (2) The provisions of sub-section (1) shall be applicable to the tribunals notified by the Central Government or a State Government, as the case may be. (3) For the purposes of sub-sections (1) and (2), unless otherwise agreed upon by the parties, a mediator,— (i) registered with the Council; (ii) empanelled by a court annexed mediation centre; (iii) empanelled by an Authority constituted under the Legal Services Authorities Act, 1987; and 39 of 1987.SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 5 (iv) empanelled by a mediation service provider recognised under this Act, shall conduct pre-litigation mediation. (4) For conducting pre-litigation mediation under clauses (ii) and (iii) of sub-section (3), a party may request any person designated for this purpose by the 39 of 1987. High Courts, or an Authority constituted under the Legal Services Authorities Act, 1987, as the case may be. (5) The courts and an Authority constituted under the Legal Services Authorities 39 of 1987. Act, 1987, shall maintain a panel of mediators for the purposes of pre-litigation mediation. (6) Notwithstanding anything contained in sub-sections (1) and (2) and the Motor 59 of 1988. Vehicles Act, 1988, when an application for compensation arising out of an accident is made before the Claims Tribunal, if the settlement as provided for in section 149 of that Act is not arrived at between the parties, the Claims Tribunal shall refer the parties for mediation to a mediator or mediation service provider under this Act. (7) Where the parties arrive at a settlement agreement under sub-section (6), it shall be placed before the Claims Tribunal for its consideration. (8) If the parties do not reach to settlement agreement under sub-section (6), a failure report prepared by the mediator shall be forwarded to the Claims Tribunal, which has referred the matter for mediation, for adjudication. 7. (1) A mediation under this Act shall not be conducted for resolution of any dispute Disputes or or matter contained in the indicative list under the First Schedule: matters not fit for Provided that nothing contained herein shall prevent any court, if deemed appropriate, mediation. from referring any dispute to mediation relating to compoundable offences or matrimonial offences connected with or arising out of civil proceedings between the parties: Provided further that the outcome of such mediation shall not be deemed to be a judgment or decree of court referred to in sub-section (2) of section 28, and shall be further considered by the court in accordance with the law for the time being in force. (2) If the Central Government is satisfied that it is necessary or expedient so to do, it may, by notification, amend the First Schedule. 8. (1) If exceptional circumstances exist, a party may, before the commencement of, or Interim relief during the continuation of, mediation proceedings under this Act, file suit or appropriate by court or tribunal. proceedings before a court or tribunal having competent jurisdiction for seeking urgent interim relief. (2) The court or tribunal shall after granting or rejecting urgent interim relief, as the case may be, refer the parties to undertake mediation to resolve the dispute, if deemed appropriate. 9. (1) Notwithstanding the failure to reach any settlement under sub-section (1) of Power of court section 6, the court or tribunal may, at any stage of proceeding, refer the parties to undertake or tribunal to refer parties to mediation, if a request to this effect is made by them. mediation. (2) If the court or tribunal refers the parties to undertake mediation, it may pass suitable interim order to protect the interest of any party if deemed appropriate. (3) The parties shall not be under obligation to come to a settlement in the mediation pursuant to a reference under sub-section (1). CHAPTER IV MEDIATORS 10. (1) Unless otherwise agreed upon by the parties, a person of any nationality may Appointment be appointed as a mediator: of mediators.S3\F\BILL 2021\GI\1675GI\1675GI THE MEDIATION 1 6 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— Provided that mediator of any foreign nationality shall possess such qualification, experience and accreditation as may be specified. (2) The parties shall be free to agree upon the name of mediator and the procedure for their appointment. (3) If the parties do not reach any agreement on a matter referred to in sub-section (2), then the party seeking initiation of mediation shall make an application to a mediation service provider for the appointment of a mediator. (4) Upon receiving an application under sub-section (3), the mediation service provider shall, within a period of seven days, appoint,— (i) the mediator as agreed by the parties; or (ii) in case the parties are unable to reach agreement as to the appointment of mediator or mediator agreed by them refuses to act as mediator, a mediator from the panel maintained by it, with his consent. (5) The person appointed under clause (i) of sub-section (4) shall communicate his willingness or otherwise within a period of seven days from the date of receipt of communication of such appointment. Preference of 11. The mediation service provider shall, while appointing any person from the panel parties. of mediators maintained by it, consider his suitability and the preference of the parties for resolving the dispute. Conflict of 12. (1) The person appointed as a mediator shall, prior to the conduct of mediation, interest and disclose in writing to the parties regarding any circumstance or potential circumstance, disclosure. personal, professional, financial, or otherwise, that may constitute any conflict of interest or that is likely to give rise to justifiable doubts as to his independence or impartiality as a mediator. (2) During the mediation, the mediator shall, without delay, disclose to the parties in writing any conflict of interest, referred to in sub-section (1), that has newly arisen or has come to his knowledge. (3) Upon disclosure under sub-section (1) or sub-section (2), the parties shall have the option to waive any objection if all of them express in writing, which shall be construed as the consent of parties. (4) Upon disclosure under sub-section (1) or sub-section (2), if either party desires to replace the mediator, then, in case of— (i) institutional mediation, such party shall apply to the mediation service provider for termination of the mandate of mediator; (ii) mediation other than institutional mediation, such party shall terminate the mandate of mediator. Termination 13. A mediation service provider may terminate the mandate of a mediator upon— of mandate of mediator. (i) the receipt of application from a party under clause (i) of sub-section (4) of section 12; or (ii) the receipt of information about the mediator being involved in a matter of conflict of interest from participants or any other person; or (iii) his withdrawal from mediation for any reason: Provided that termination under clause (ii) shall be effected if, after giving a hearing to the mediator, mediation service provider finds that there is justifiable doubt as to the independence or impartiality of the mediator and that the same has been brought to the notice of parties and that they desire to replace the mediator.SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 7 14. Upon termination of the mandate of mediator— Replacement of mediator. (i) in case of mediation other than institutional mediation under clause (ii) of sub-section (4) of section 12, the parties may, appoint another mediator within a period of seven days from such termination; and (ii) under section 13, the mediation service provider shall appoint another mediator from the panel maintained by it within a period of seven days from such termination. CHAPTER V MEDIATION PROCEEDINGS 15. Every mediation under this Act shall be undertaken within the territorial jurisdiction Territorial of the court or tribunal of competent jurisdiction to decide the subject matter of dispute: jurisdiction to undertake Provided that on the mutual consent of the parties, mediation may be conducted at mediation. any place outside the territorial jurisdiction of the court or tribunal, or by way of online mediation. Explanation.—For the removal of doubts, it is clarified that where the parties agree to conduct the mediation at any place outside the territorial jurisdiction or online, for the purpose of enforcement, challenge and registration of the mediated settlement agreement, the same shall be deemed to have been undertaken within the territorial jurisdiction of the court or tribunal of competent jurisdiction. 16. The mediation proceedings with respect to a particular dispute shall be deemed to Commencement have commenced— of mediation. (a) where there is an existing agreement between the parties to settle the dispute through mediation, the day on which a party issues notice to the other party or parties for mediation and settlement of their disputes; or (b) in other cases— (i) on the day the parties have agreed to appoint a mediator of their choice for mediation and settlement of disputes between them; or (ii) on the day when one of the parties applies to a mediation service provider for settlement of disputes through mediation by appointment of a mediator. 17. (1) The mediator shall assist the parties in an independent, neutral and impartial Conduct of manner in their attempt to reach an amicable settlement of their dispute. mediation. (2) The mediator shall at all times be guided by the principles of objectivity and fairness and protect the voluntariness, confidentiality and self-determination of the parties, and the standards for professional and ethical conduct as may be specified. (3) The mediation process may include the mediator taking such measures as may be considered appropriate, taking into account the circumstances of the case, including meeting with parties or participants, jointly or separately, as frequently as deemed fit by the mediator, both in order to convene the mediation, and during the mediation for the orderly and timely conduct of the process and to maintain its integrity. (4) The mediator shall not be bound by the Code of Civil Procedure, 1908, or the Indian 5 of 1908. 1 of 1872. Evidence Act, 1872. (5) The mediator with the consent of the parties shall determine the language or languages to be used in the mediation process. 18. (1) The mediator shall attempt to facilitate voluntary resolution of the dispute by Role of the parties and communicate the view of each party to the other to the extent agreed to by mediator. them, assist them in identifying issues, reducing misunderstandings, clarifying priorities,S3\F\BILL 2021\GI\1675GI\1675GI THE MEDIATION 1 8 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— exploring areas of compromise and generating options in an attempt to resolve the dispute expeditiously, emphasising that it is the responsibility of the parties to take decision regarding their claims. (2) The parties shall be informed expressly by the mediator that he only facilitates in arriving at a decision to resolve a dispute and that he may neither impose any settlement nor give any assurance that the mediation may result in a settlement. Role of 19. Unless otherwise agreed by the parties,— mediator in other (a) the mediator shall not act as an arbitrator or as a representative or counsel of proceedings. a party in any arbitral or judicial proceeding in respect of a dispute that is the subject matter of the mediation proceedings; (b) the mediator shall not be presented by the parties as a witness in any arbitral or judicial proceeding. Withdrawal by 20. (1) A party may withdraw from mediation at any time after the first two mediation parties from sessions. mediation. (2) Where any party fails to attend the first two mediation sessions without any reasonable cause which resulted in the failure of mediation, the court or tribunal, in subsequent litigation on the same subject matter between the parties, may take the said conduct of such party into consideration and impose such costs as deems fit. Time-limit 21. (1) Notwithstanding anything contained in any other law for the time being in for force, mediation under this Act shall be completed within a period of one hundred and eighty completion of days from the date fixed for the first appearance before the mediator. mediation. (2) The period for mediation mentioned under sub-section (1) may be extended for a further period as agreed by the parties, but not exceeding one hundred and eighty days. Mediated 22. (1) A mediated settlement agreement means and includes an agreement in writing settlement between some or all of the parties resulting from mediation, settling some or all of the agreement. disputes between such parties, and authenticated by the mediator: Provided that the terms of the mediated settlement agreement may extend beyond the disputes referred to mediation. Explanation.—A mediated settlement agreement which is void under the Indian Contract Act, 1872, shall not be deemed to be lawful settlement agreement within the meaning of 9 of 1872. mediated settlement agreement. (2) Where a mediated settlement agreement is reached between the parties in regard to all or some of the disputes, the same shall be reduced in writing and signed by the parties. (3) Subject to the provisions of sections 26 and 27, the mediated settlement agreement so signed— (i) in case of institutional mediation, shall be submitted to the mediator, who shall, after authenticating the same and forward it with a covering letter signed by him, to the mediation service provider and also provide a copy to the parties; (ii) in all other cases, shall be submitted to the mediator who shall, after authenticating the settlement agreement, provide a copy to all the parties. (4) Subject to provisions of sections 26 and 27, where no agreement is arrived at between the parties, within the time period as provided under section 21, or where, the mediator is of the view that no settlement is possible,— (i) the mediator shall submit a failure report to this effect to the mediation service provider in writing in case of institutional mediation; (ii) in all other cases, the mediator shall prepare a failure report to this effect and provide a signed copy to all the parties:SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 9 Provided that the report referred under this sub-section shall not disclose the cause of failure of the parties to reach a settlement, or any other matter or thing referring to their conduct, during mediation. (5) The parties, may, at any time during the mediation process, make an agreement with respect to any of the disputes which is the subject matter of mediation. (6) Any mediated settlement agreement under this section shall also include a settlement agreement resulting from online mediation and duly signed by the parties by way of secure electronic signature or otherwise and authenticated by the mediator in the like manner. (7) For the purposes of record, mediated settlement agreement arrived at between the parties, other than those arrived in a court or tribunal referred mediation or award of Lok Adalat or final award of Permanent Lok Adalat under section 21 or section 22E 39 of 1987. of the Legal Services Authorities Act, 1987, shall be registered with an Authority constituted under the Legal Services Authorities Act, 1987, in such manner as may be specified and such Authority shall issue a unique registration number to such settlements: Provided that the mediated settlement agreement under this section shall be registered with such Authority situated within the territorial jurisdiction of the court or tribunal of competent jurisdiction to decide the subject matter of dispute: Provided further that such registration shall not be mandatory till the time regulations under this sub-section are made. Explanation.—For the removal of doubts, it is clarified that nothing contained in this sub-section shall affect the rights of parties to enforce the mediated settlement agreement under section 28 or challenged under section 29. (8) For the purposes of registration of mediated settlement agreement, in matters other than commercial disputes, wherein mediation is not conducted by a mediation service provider, the presence of parties to the mediated settlement agreement or their authorised representative shall be mandatory before the Authority referred to in sub-section (7). (9) The registration referred to in sub-section (7) shall be made by the parties, mediator or mediation service provider within a period of one hundred and eighty days from the date of receipt of authenticated copy of mediated settlement agreement: Provided that mediated settlement agreement may be allowed to be registered after the expiry of period of one hundred and eighty days on payment of such fee as may be specified in consultation with the Authority referred to in sub-section (7). 23. (1) Subject to the other provisions of this Act, the mediator, mediation service Confidentiality. provider, the parties and participants in the mediation shall keep confidential the following matters relating to the mediation proceedings, namely:— (i) acknowledgements, opinions, suggestions, promises, proposals, apologies and admissions made during the mediation; (ii) acceptance of, or willingness to, accept proposals made or exchanged in the mediation; (iii) documents prepared solely for the conduct of mediation or in relation thereto. (2) No audio or video recording of the mediation proceedings shall be made or maintained by the parties or the participants including the mediator and mediation service provider, whether conducted in person or online to ensure confidentiality of the conduct of mediation proceedings.S3\F\BILL 2021\GI\1675GI\1675GI THE MEDIATION 1 10 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— (3) No party to the mediation shall in any proceeding before a court or tribunal including arbitral tribunal, rely on or introduce as evidence any information or communication set forth in clauses (i) to (iii) of sub-section (1), including any information in electronic form, or verbal communication and the court or tribunal including arbitral tribunal shall not take cognizance of such information or evidence. (4) The provisions of this section shall not prevent the mediator from compiling or disclosing general information concerning matters that have been subject of mediation, for research, reporting or training purposes, if the information does not expressly or indirectly identify a party or participants or the specific disputes in the mediation. Explanation.—For the removal of doubts, it is hereby clarified that nothing contained in this section shall apply to the mediated settlement agreement where its disclosure is necessary for the purpose of registration, implementation, enforcement and challenge. Admissibility 24. (1) No mediator or participant in the mediation, including experts and advisers and privilege engaged for the purpose of the mediation and persons involved in the administration of the against mediation, shall at any time be permitted, or compelled to disclose to any court or tribunal, or disclosure. in any adjudicatory proceedings, by whatever description, any communication in mediation, or to state the contents or conditions of any document or nature or conduct of parties during mediation including the content of negotiations or offers or counter offers with which they have become acquainted during the mediation: Provided that nothing in this section and section 23 shall protect from disclosure, information sought or provided to prove or dispute a claim or complaint of professional misconduct of mediator or malpractice based on conduct occurring during the mediation. (2) There shall be no privilege or confidentiality that will attach to— (a) a threat or statement of a plan to commit an offence punishable under any law for the time being in force; (b) information relating to domestic violence or child abuse; and (c) statements made during a mediation showing a significant imminent threat to public health or safety. Termination 25. The mediation proceedings under this Act shall be deemed to terminate— of mediation. (a) on the date of signing and authentication of the mediated settlement agreement; or (b) on the date of the written declaration of the mediator, after consultation with the parties or otherwise, to the effect that further efforts at mediation are no longer justified; or (c) on the expiry of seven days from the date of the second mediation session, where a party fails to appear before the mediator consecutively for the first two mediation sessions, and the mediator has not received any communication from such party; or (d) on the date of the communication by a party or parties in writing, addressed to the mediator and the other parties to the effect that the party wishes to opt out of mediation: Provided that the parties shall have to attend at least two mediation sessions before giving such communication; or (e) on the expiry of time limit under section 21.SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 11 26. (1) For the purposes of court annexed mediation including pre-litigation mediation, Court annexed the procedure of conducting mediation shall be such as may be determined under the mediation. practice directions or rules, by whatever name called, framed by the Supreme Court or the High Courts. (2) For the purposes of sub-section (1), the Supreme Court or the High Courts, as the case may be, may constitute mediation committee. (3) The mediation committee shall, for the purposes of conducting mediation, in all courts, maintain a panel of mediators in accordance with the practice directions or rules, by whatever name called, framed by the Supreme Court or the High Courts, as the case may be, and such mediators may also conduct mediation other than those referred by a court. (4) Where the parties to a mediation referred by the court or tribunal arrive at settlement agreement in respect of some or all of the disputes, a copy of settlement agreement shall be placed before the said court or tribunal for consideration and in cases, other than court referred mediation, provided to the parties. (5) If the parties do not reach settlement agreement referred to in sub-section (4), a failure report shall be forwarded by the mediator— (i) to the court or tribunal, as the case may be, which has referred the matter for mediation; (ii) to the parties in all other cases. 27. The provisions of this Act shall not apply to the proceedings conducted by Proceedings of 39 of 1987. Lok Adalat and Permanent Lok Adalat under the Legal Services Authorities Act, 1987. Lok Adalat and Permanent Lok Adalat not to be affected. CHAPTER VI ENFORCEMENT OF MEDIATED SETTLEMENT AGREEMENT 28. (1) A mediated settlement agreement resulting from a mediation signed by the Enforcement parties and authenticated by the mediator shall be final and binding on the parties and of mediated persons claiming under them respectively and enforceable as per the provisions of settlement agreement. sub-section (2). (2) Subject to the provisions of section 29, the mediated settlement agreement shall be 5 of 1908. enforced in accordance with the provisions of the Code of Civil Procedure, 1908, in the same manner as if it were a judgment or decree passed by a court, and may, accordingly, be relied on by any of the parties or persons claiming through them, by way of defence, set off or otherwise in any legal proceeding. 29. (1) Notwithstanding anything contained in any other law for the time being in force, Challenge to in any case in which the mediated settlement agreement is arrived at between the parties other mediated settlement than in court referred mediation or by Lok Adalat or Permanent Lok Adalat under the Legal agreement. 39 of 1987. Services Authorities Act, 1987, and is sought to be challenged by either of the parties, such party may file an application before the court or tribunal of competent jurisdiction. (2) A mediated settlement agreement may be challenged only on all or any of the following grounds, namely:— (i) fraud; (ii) corruption; (iii) impersonation; (iv) where the mediation was conducted in disputes or matters not fit for mediation under section 7. (3) An application for challenging the mediated settlement agreement shall not be made after ninety days have elapsed from the date on which the party making that application has received the copy of mediated settlement agreement under sub-section (3) of section 22:S3\F\BILL 2021\GI\1675GI\1675GI THE MEDIATION 2 12 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— Provided that if the court or tribunal, as the case may be, is satisfied that the applicant was prevented by sufficient cause from making the application within the said period of ninety days, it may entertain the application within a further period of ninety days. Costs. 30. Unless otherwise agreed by the parties, all costs of mediation, including the fees of the mediator and the charges of the mediation service provider shall be borne equally by the parties. Limitation. 31. Notwithstanding anything contained in the Limitation Act, 1963 or in any other law 36 of 1963. for the time being in force, in computing the period of limitation fixed for any proceeding in respect of which a mediation has been undertaken under this Act, the period from the date of commencement of mediation under section 16, and up to— (i) submission of report under sub-section (4) of section 22; or (ii) termination of mediation under section 25; or (iii) the settlement agreement arrived at in terms of sub-section (4) of section 26, in case of mediation other than court referred mediation; or (iv) the forwarding of failure report in terms of clause (ii) of sub-section (5) of section 26, shall be excluded. CHAPTER VII ONLINE MEDIATION Online 32. (1) Online mediation including pre-litigation mediation may be conducted at any mediation. stage of mediation under this Act, with the written consent of the parties including by the use of electronic form or computer networks but not limited to an encrypted electronic mail service, secure chat rooms or conferencing by video or audio mode or both. (2) The process of online mediation shall be in such manner as may be specified. (3) The conduct of online mediation shall be in the circumstances, which ensure that the essential elements of integrity of proceedings and confidentiality are maintained at all times and the mediator may take such appropriate steps in this regard as he deems fit. (4) Subject to the other provisions of this Act, the mediation communications in the case of online mediation shall, ensure confidentiality of mediation. CHAPTER VIII MEDIATION COUNCIL OF INDIA Establishment 33. (1) The Central Government shall, by notification, establish for the purposes of and this Act, a Council to be known as the Mediation Council of India to perform the duties and incorporation discharge the functions under this Act. of Mediation Council. (2) The Council shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to enter into contract, and shall, by the said name, sue or be sued. (3) The head office of the Council shall be at Delhi or at such other place as may be notified by the Central Government. (4) The Council may, in consultation with the Central Government, establish offices at other places in India and abroad. Composition 34. (1) The Council shall consist of the following members, namely:— of Council. (a) a person of ability, integrity and standing having adequate knowledge and professional experience or shown capacity in dealing with problems relating to law, alternate dispute resolution, public affairs or administration to be appointed by the Central Government—Chairperson;SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 13 (b) a person having knowledge and experience in law related to mediation or alternative dispute resolution mechanisms, to be appointed by the Central Government—Full-Time Member; (c) an eminent person having experience in research or teaching in the field of mediation and alternative dispute resolution laws, to be appointed by the Central Government—Full-Time Member; (d) Secretary to the Government of India in the Department of Legal Affairs, Ministry of Law and Justice or his representative not below the rank of Joint Secretary—Member, ex officio; (e) Secretary to the Government of India in the Department of Expenditure, Ministry of Finance or his representative not below the rank of Joint Secretary— Member, ex officio; (f) Chief Executive Officer—Member-Secretary, ex officio; and (g) one representative of a recognised body of commerce and industry, chosen by the Central Government—Part-Time Member. (2) The Chairperson, Full-Time Member and Part-Time Member of the Council, other than ex officio members, shall hold office as such, for a term of four years from the date on which they enter upon their office and shall be eligible for re-appointment: Provided that no Chairperson, Full-Time Member or Part-Time Member, other than ex officio member, shall hold office as such after he has attained the age of seventy years in the case of Chairperson and sixty-seven years in the case of Full-Time or Part-Time Member. (3) The salaries, allowances and other terms and conditions of the Chairperson and Full-Time Members referred to in clauses (b) and (c) of sub-section (1) shall be such as may be prescribed. (4) The Part-Time Member shall be entitled to such travelling and other allowances as may be prescribed. 35. No act or proceeding of the Council shall be invalid merely by reason of— Vacancies, etc., not to (a) any vacancy or any defect, in the constitution of the Council; invalidate proceedings of (b) any defect in the appointment of a person acting as a Chairperson or Council. Full-Time Member or Part-Time Member of the Council; or (c) any irregularity in the procedure of the Council not affecting the merits of the case. 36. The Chairperson or the Full-Time Member or Part-Time Member may, by notice in Resignation. writing, under his hand addressed to the Central Government, resign his office: Provided that the Chairperson or the Full-Time Member or Part-Time Member shall, unless he is permitted by the Central Government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is earlier. 37. (1) The Central Government may, remove the Chairperson or Full-Time Member or Removal. Part-Time Member from his office, if he— (a) is an undischarged insolvent; or (b) has engaged at any time, during his term of office, in any paid employment without the permission of the Central Government; or (c) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or (d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a Chairperson or such Member; orS3\F\BILL 2021\GI\1675GI\1675GI THE MEDIATION 2 14 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— (e) has so abused his position as to render his continuance in office prejudicial to the public interest; or (f) has become physically or mentally incapable of acting as a Chairperson or Full-Time Member or Part-Time Member: Provided that where a Chairperson or Full-Time Member or Part-Time Member is proposed to be removed on any ground, he shall be informed of charges against him and given an opportunity of being heard in respect of those charges. Appointment 38. The Council may, appoint such experts and constitute such committees of experts of experts and as it may consider necessary to discharge its functions on such terms and conditions as may constitution be specified. of Committees. Secretariat and 39. (1) There shall be a Chief Executive Officer of the Council, who shall be responsible Chief for the day to day administration and implementation of the decisions of the Council. Executive Officer of (2) The qualification, appointment and other terms and conditions of service of the Council. Chief Executive Officer shall be such as may be specified. (3) The Chief Executive Officer shall discharge such functions and perform such duties as may be specified. (4) There shall be a Secretariat to the Council consisting of such number of officers and employees as may be specified. (5) The qualification, appointment and other terms and conditions of the service of the employees and other officers of the Council shall be such as may be specified. (6) The Central Government shall provide such number of officers and employees as may be necessary for the functioning of the Council till regulations are made under this section. Duties and 40. The Council shall— Functions of the Council. (a) endevour to promote domestic and international mediation in India through appropriate guidelines; (b) endevour to develop India to be a robust centre for domestic and international mediation; (c) lay down the guidelines for the continuous education, certification and assessment of mediators by the recognised mediation institutes; (d) provide for manner of registration of mediators and renew, withdraw, suspend or cancel registration on the basis of conditions as may be specified; (e) lay down standards for professional and ethical conduct of mediators under sub-section (2) of section 17; (f) hold trainings, workshops and courses in the area of mediation in collaboration with mediation service providers, law firms and universities and other stakeholders, both Indian and international, and any other mediation institutes; (g) enter into memoranda of understanding or agreements with domestic and international bodies or organisations or institutions; (h) recognise mediation institutes and mediation service providers and renew, withdraw, suspend or cancel such recognition; (i) specify the criteria for recognition of mediation institutes and mediation service providers; (j) call for any information or record of mediation institutes and mediation service providers;SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 15 (k) lay down standards for professional and ethical conduct of the mediation institutes and mediation service providers; (l) publish such information, data, research studies and such other information as may be required; (m) maintain an electronic depository of the mediated settlement agreements made in India and for such other records related thereto in such manner as may be specified; and (n) perform any other function as may be assigned to it by the Central Government. CHAPTER IX MEDIATION SERVICE PROVIDERS AND MEDIATION INSTITUTES 41. The mediation service provider recognised by the Council shall be graded by it in Mediation the manner as may be specified. service providers. 42. The mediation service providers shall perform the following functions, namely:— Functions of mediation (a) accredit mediators and maintain panel of mediators; service providers. (b) provide the services of mediator for conduct of mediation; (c) provide all facilities, secretarial assistance and infrastructure for the efficient conduct of mediation; (d) promote professional and ethical conduct amongst mediators; (e) facilitate registration of settlement agreements in accordance with the provisions of section 22; and (f) such other functions as may be specified. 43. The Council shall recognise mediation institutes to perform such duties and exercise Mediation such functions as may be specified. institutes. CHAPTER X COMMUNITY MEDIATION 44. (1) Any dispute likely to affect peace, harmony and tranquility amongst the residents Community or families of any area or locality may be settled through community mediation with prior mediation. mutual consent of the parties to the dispute. (2) For the purposes of sub-section (1), any of the parties shall make an application 39 of 1987. before the concerned Authority constituted under the Legal Services Authorities Act, 1987 or District Magistrate or Sub-Divisional Magistrate in areas where no such Authority has been constituted, for referring the dispute to mediation. (3) In order to facilitate settlement of a dispute for which an application has been received under sub-section (2), the concerned Authority constituted under the Legal Services 39 of 1987. Authorities Act, 1987 or the District Magistrate or Sub-Divisional Magistrate, as the case may be, shall constitute panel of three mediators. (4) For the purposes of this section, the Authority or District Magistrate or the Sub-Divisional Magistrate, as the case may be, shall notify a permanent panel of mediators, which may be revised from time to time. (5) The following persons may be included in the panel referred to in sub-section (4)— (a) persons of standing and integrity who are respectable in the community; (b) any local person whose contribution to the society has been recognised; (c) representative of area or resident welfare associations; andS3\F\BILL 2021\GI\1675GI\1675GI THE MEDIATION 2 16 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— (d) any other person deemed appropriate. (6) While making panel referred to in sub-section (4) the representation of women or any other class or category of persons may be considered. Procedure for 45. (1) Any community mediation shall be conducted by the panel of three mediators community referred to in sub-section (3) of section 44 who shall devise suitable procedure for the mediation. purpose of resolving the dispute. (2) The mediators shall endevour to resolve disputes through community mediation and provide assistance to parties for resolving disputes amicably. (3) In every case where a settlement agreement is arrived at through mediation under this Act, the same may be reduced into writing with the signature of the parties and authenticated by the mediator, a copy of which be provided to the parties and in cases where no settlement agreement is arrived at, a failure report may be submitted by the mediator to the Authority or the District Magistrate or the Sub-Divisional Magistrate, as the case may be, and to the parties. (4) Any settlement agreement arrived at under this Chapter shall be for the purpose of maintaining the peace, harmony and tranquility amongst the residents or families of any area or locality but shall not be enforceable as a judgment or decree of a civil court. (5) The provisions of sub-sections (7) and (8) of section 22 shall, mutatis mutandis apply, in relation to the registration of mediated settlement agreement under this section. CHAPTER XI MISCELLANEOUS Mediation 46. (1) There shall be a fund to be called "Mediation Fund" (hereinafter referred to as Fund. the "Fund") for the purposes of promotion, facilitation and encouragement of mediation under this Act, which shall be administered by the Council. (2) There shall be credited to the Fund the following, namely:— (a) all monies provided by the Central Government; (b) all fees and other charges received from mediation service provider, mediation institutes or bodies or persons; (c) all monies received by the Council in the form of donations, grants, contributions and income from other sources; (d) grants made by the Central Government or the State Government for the purposes of the Fund; (e) amounts deposited by persons as contributions to the Fund; (f) amounts received in the Fund from any other source; and (g) interest on the above or other income received out of the investment made from the Fund. (3) The Fund shall be applied towards meeting the salaries and other allowances of Chairperson, Full-Time Member, Part-Time Member, Chief Executive Officer, Officers and employees and the expenses of the Council including expenses incurred in the exercise of its powers and discharge of its duties under this Act. Accounts and 47. (1) The Council shall maintain proper accounts and other relevant records and audit. prepare an annual statement of accounts, including the balance sheet, in such form and manner as may be prescribed in consultation with the Comptroller and Auditor-General of India. (2) The accounts of the Council shall be audited by the Comptroller and Auditor- General of India and any expenditure incurred by him in connection with such audit shall be payable by the Council to the Comptroller and Auditor-General of India.SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 17 (3) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Council shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General of India has in connection with the audit of the Government accounts, and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect the offices of the Council. (4) The accounts of the Council as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament. 48. (1) Without prejudice to the foregoing provisions of this Act, the Council shall, in Power of exercise of its powers or the performance of its functions under this Act, be bound by such Central Government directions on questions of policy as the Central Government may give in writing to it from to issue time to time: directions. Provided that the views of the Council shall be taken into consideration before any direction is given under this sub-section. (2) The decision of the Central Government whether a question is one of policy or not shall be final. 49. Nothing contained in this Act shall prevent the Central Government or State Power of Government, as the case may be, from framing any scheme or guidelines, to be notified, for Governments resolution of any dispute through mediation or conciliation in cases where the Central to frame schemes or Government or State Government or any of its entity or agencies is one of the parties and in guidelines. such cases mediation or conciliation may be conducted in accordance with such scheme or guidelines. 50. Notwithstanding anything contained in this Act, no dispute including a commercial Mediated dispute, wherein the Central Government or State Government or any of its agencies, public settlement agreement bodies, corporations and local bodies including entities controlled or owned by them is a where party, the settlement agreement arrived at shall be signed only after obtaining the prior Government written consent of the competent authority of such Government or any of its entity or or its, agency, agencies, public bodies, corporations and local bodies, as the case may be. etc., is a party. 51. No suit, prosecution or other legal proceeding shall lie against the Central Protection of Government or a State Government or any officer of such Government, or the Chairperson, action taken in good faith. Full-Time Member or Part-Time Member or Officer or employee of the Council or a mediator, mediation institutes, mediation service providers, which is done or is intended to be done in good faith under this Act or the rules or regulations made thereunder. 52. (1) The Central Government may, by notification, make rules for carrying out the Power to provisions of this Act. make rules. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may make provision for— (a) the salaries and allowances and the terms and conditions of the Chairperson and Full-Time Members under sub-section (3) of section 34; (b) the travelling and other allowances payable to the Part-Time Member under sub-section (4) of section 34; (c) the form and manner of annual statement of accounts, including the balance sheet under sub-section (1) of section 47; and (d) any other matter which is to be, or may be prescribed.S3\F\BILL 2021\GI\1675GI\1675GI THE MEDIATION 2 18 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— Power to 53. (1) The Council may, with the previous approval of the Central Government, by make notification, make regulations consistent with this Act and the rules made thereunder to regulations. carry out the provisions of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may make provision for— (a) such other forum under Explanation I to clause (l) of section 3; (b) qualification, experience and accreditation for mediators of foreign nationality under the proviso to sub-section (1) of section 10; (c) standards for professional and ethical conduct of mediators under sub-section (2) of section 17; (d) manner of registration of mediated settlement agreement under sub-section (7) of section 22; (e) fees for registration of mediated settlement agreement under the proviso to sub-section (9) of section 22; (f) manner of process of conducting online mediation under sub-section (2) of section 32; (g) the terms and conditions of experts and committees of experts under section 38; (h) qualifications, appointment and other terms and conditions of service of the Chief Executive Officer under sub-section (2) of section 39; (i) functions and duties to be performed by the Chief Executive Officer under sub-section (3) of section 39; (j) the number of officers and employees of the Secretariat of the Council under sub-section (4) of section 39; (k) the qualification, appointment and other terms and conditions of the employees and other officers of the Council under sub-section (5) of section 39; (l) conditions for registration of mediators and renewal, withdrawal, suspension or cancellations of such registrations under clause (d) of section 40; (m) criteria for recognition of mediation institutes and mediation service providers under clause (i) of section 40; (n) manner of maintenance of electronic depository of mediated settlement agreement under clause (m) of section 40; (o) manner for grading of mediation service provider under section 41; (p) such other functions of mediation service provider under clause (f) of section 42; (q) duties and functions to be performed by mediation institutes under section 43; and (r) any other matter in respect of which provision is necessary for the performance of functions of the Council under this Act. Laying. 54. Every notification under sub-section (2) of section 7, sub-section (2) of section 56, rule and regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid,SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 19 both Houses agree in making any modification in the notification, rule or regulation or both Houses agree that the notification, rule or regulation should not be made, the notification, rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that notification, rule or regulation. 55. (1) If any difficulty arises in giving effect to the provisions of this Act, the Central Power to Government may, by order published in the Official Gazette, make such provisions, not remove inconsistent with the provisions of this Act, as may appear to it to be necessary for removing difficulties. the difficulty: Provided that no such order shall be made under this section after the expiry of a period of three years from the date of commencement of this Act. (2) Every order made under sub-section (1) shall be laid, as soon as may be after it is made, before each House of Parliament. 56. (1) Subject to the enactments mentioned in the Second Schedule, the provisions Provisions of this Act shall have overriding effect for conduct of mediation or conciliation notwithstanding of Act to anything inconsistent therewith contained in any other law for the time being in force, and have overriding any instrument having force of law. effect on mediation or (2) If the Central Government is satisfied that it is necessary or expedient so to do, it conciliation may, by notification, amend the Second Schedule and thereupon it shall be deemed to have contained in been amended accordingly. other laws. 57. This Act shall not apply to, or in relation to, any mediation or conciliation commenced Act not to apply before the coming into force of this Act. to pending proceedings. 58. The Indian Contract Act, 1872, shall be amended in the manner specified in the Amendment of Third Schedule. Act 9 of 1872. 59. The Code of Civil Procedure, 1908, shall be amended in the manner specified in the Amendment Fourth Schedule. of Act 5 of 1908. 60. The Legal Service Authorities Act, 1987, shall be amended in the manner specified Amendment in the Fifth Schedule. of Act 39 of 1987. 61. The Arbitration and Conciliation Act, 1996, shall be amended in the manner specified Amendment in the Sixth Schedule. of Act 26 of 1996. 62. The Micro, Small and Medium Enterprises Development Act, 2006, shall be amended Amendment in the manner specified in the Seventh Schedule. of Act 27 of 2006. 63. The Companies Act, 2013, shall be amended in the manner specified in the Eighth Amendment Schedule. of Act 18 of 2013. 64. The Commercial Courts Act, 2015, shall be amended in the manner specified in the Amendment Ninth Schedule. of Act 4 of 2016. 65. The Consumer Protection Act, 2019, shall be amended in the manner specified in Amendment of Act 35 of the Tenth Schedule. 2019.S3\F\BILL 2021\GI\1675GI\1675GI THE MEDIATION 2 20 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— THE FIRST SCHEDULE (See section 7) DISPUTES OR MATTERS NOT FIT FOR MEDIATION 1. Disputes which by virtue of any law for the time being in force may not be submitted for mediation. 2. Disputes involving allegations of serious and specific fraud, fabrication of documents, forgery, impersonation or coercion. 3. Disputes relating to claims against minors, deities; persons with intellectual disabilities, under paragraph 2 of the Schedule and person with disability having high support needs [as defined in clause (t) of section 2] of the Rights of Persons with Disabilities Act, 2016 (49 of 2016); persons with mental illness as defined in clause (s) of sub-section (1) of section 2 of the Mental Healthcare Act, 2017 (10 of 2017); persons of unsound mind, in relation to whom proceedings are to be conducted under Order XXXII of the Code of Civil Procedure, 1908 (5 of 1908); and suits for declaration of title against Government; declaration having effect of right in rem. 4. Disputes involving prosecution for criminal offences. 5. Settlement of matters which are prohibited being in conflict with public policy or is opposed to basic notions of morality or justice or under any law for the time being in force. 6. Complaints or proceedings, initiated before any statutory authority or body in relation to registration, discipline, misconduct of any practitioner, or other registered professional, such as legal practitioner, medical practitioner, dentist, architect, chartered accountant, or in relation to any other profession of whatever description, which is regulated under any law for the time being in force. 7. Disputes which have the effect on rights of a third party who are not a party to the mediation proceedings. 8. Any proceeding in relation to any subject-matter, falling within any enactment, over which the Tribunal constituted under the National Green Tribunals Act, 2010 (19 of 2010) has jurisdiction. 9. Any dispute relating to levy, collection, penalties or offences, in relation to any direct or indirect tax or refunds, enacted by any State legislature or Parliament. 10. Any investigation, inquiry or proceeding, under the Competition Act, 2002 (12 of 2003), including proceedings before the Director General, under that Act; proceedings before the Telecom Regulatory Authority of India, under the Telecom Regulatory Authority of India Act, 1997 (24 of 1997) or Telecom Disputes Settlement and Appellate Tribunal established under section 14 of that Act. 11. Proceedings before appropriate Commissions, and the Appellate Tribunal for Electricity, under the Electricity Act, 2003 (36 of 2003). 12. Proceedings before the Petroleum and Natural Gas Regulatory Board, and appeals therefrom before the Appellate Tribunal under the Petroleum and Natural Gas Regulatory Board Act, 2006 (19 of 2006). 13. Proceedings before the Securities and Exchange Board of India, and the Securities Appellate Tribunal, under the Securities and Exchange Board of India Act, 1992 (15 of 1992). 14. Land acquisition and determination of compensation under land acquisition laws, or any provision of law providing for land acquisition. 15. Any other subject-matter of dispute which may be notified by the Central Government.SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 21 THE SECOND SCHEDULE (See section 56) 1. The Industrial Disputes Act, 1947 (14 of 1947). 2. The Brahmaputra Board Act, 1980 (46 of 1980). 3. The Cine-Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981 (50 of 1981). 4. The Family Courts Act, 1984 (66 of 1984). 5. The Legal Services Authorities Act, 1987 (39 of 1987). 6. The Maintenance and Welfare of Parents and Senior Citizen Act, 2007 (56 of 2007). 7. The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (14 of 2013). 8. The Finance Act, 20l6 (28 of 2016). 9. The Industrial Relations Code, 2020 (35 of 2020).S3\F\BILL 2021\GI\1675GI\1675GI THE MEDIATION 3 22 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— THE THIRD SCHEDULE (See section 58) In section 28 of the Indian Contract Act, 1872 (9 of 1872), for Exception 1 and Exception 2, the following shall be substituted, namely:— "Exception 1.—Saving of contract to refer to arbitration or mediation dispute that may arise.—This section shall not render illegal a contract, by which two or more persons agree that any dispute which may arise between them in respect of any subject or class of subjects shall be referred to resolution through arbitration or mediation. Exception 2.—Saving of contract to refer questions that have already arisen.— Nor shall this section render illegal any contract in writing, by which two or more persons agree to refer to arbitration or mediation any question between them which has already arisen, or affect any provision of any law in force for the time being as to references to arbitration or mediation.".SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 23 THE FOURTH SCHEDULE (See section 59) In the Code of Civil Procedure, 1908 (5 of 1908),— (i) under Part V, under the heading “SPECIAL PROCEEDINGS”, the sub-heading "ARBITRATION" shall be omitted; (ii) for section 89, the following section shall be substituted, namely:— "89. Settlement of disputes outside the Court.—Where it appears to the Court that the dispute between the parties may be settled and there exists elements of settlement which may be acceptable to the parties, the Court may— (a) refer the dispute to arbitration, and thereafter, the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) shall apply as if the proceedings for arbitration were referred for settlement under the provisions of that Act; or (b) refer the parties to mediation, to the court annexed mediation centre or to any other mediator as per the option of the parties, in accordance with the provisions of the Mediation Act, 2021; or (c) refer the dispute to Lok Adalat, in accordance with the provisions of sub-section (1) of section 20 of Legal Services Authorities Act, 1987 (39 of 1987) and thereafter, all other provisions of that Act shall apply in respect of the dispute; (d) effect compromise between the parties and shall follow such procedure as deemed fit for judicial settlement.".S3\F\BILL 2021\GI\1675GI\1675GI THE MEDIATION 3 24 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— THE FIFTH SCHEDULE (See section 60) In the Legal Services Authorities Act, 1987 (39 of 1987), in section 4, for clause (f), the following clause shall be substituted, namely:— "(f) encourage the settlement of disputes, including online by way of negotiations, arbitration, mediation and conciliation;".SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 25 THE SIXTH SCHEDULE (See section 61) In the Arbitration and Conciliation Act, 1996 (26 of 1996),— (a) in section 43D,— (i) in sub-section (1), the words "mediation, conciliation" shall be omitted; (ii) in sub-section (2), in clauses (e), (f) and (i), the words "and conciliation" wherever they occur shall be omitted; (b) for sections 61 to 81, the following sections shall be substituted, namely:— "61. Reference of conciliation in enactments.—(1) Any provision, in any other enactment for the time being in force, providing for resolution of disputes through conciliation in accordance with the provisions of this Act, shall be construed as reference to mediation as provided under the Mediation Act, 2021. (2) Conciliation as provided under this Act and the Code of Civil Procedure, 1908 (5 of 1908), shall be construed as mediation referred to in section 4 of the Mediation Act, 2021. 62. Saving.—Notwithstanding anything contained in section 61, any conciliation proceeding initiated in pursuance of sections 61 to 81 of this Act as in force before the commencement of the Mediation Act, 2021, shall be continued as such, as if the Mediation Act, 2021, had not been enacted.".S3\F\BILL 2021\GI\1675GI\1675GI THE MEDIATION 3 26 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— THE SEVENTH SCHEDULE (See section 62) In the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), for section 18, the following section shall be substituted, namely:— "18. Reference to Micro and Small Enterprises Facilitation Council.—(1) Notwithstanding anything contained in any other law for the time being in force, any party to a dispute may, with regard to any amount due under section 17, make a reference to the Micro and Small Enterprises Facilitation Council. (2) On receipt of a reference under sub-section (1), the Council shall either conduct mediation itself or refer the matter to any mediation service provider as provided under the Mediation Act, 2021. (3) The conduct of mediation under this section shall be as per the provisions of the Mediation Act, 2021. (4) Where the mediation initiated under sub-section (3) is not successful and stands terminated without any settlement between the parties, the Council shall either itself take up the dispute for arbitration or refer it to any institution or centre providing alternative dispute resolution services for such arbitration and the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996), shall, then apply to the dispute as if the arbitration was in pursuance of an arbitration agreement referred to in sub-section (1) of section 7 of that Act. (5) Notwithstanding anything contained in any other law for the time being in force, the Micro and Small Enterprises Facilitation Council or the centre providing alternative dispute resolution services shall have jurisdiction to act as an Arbitrator or mediator under this section in a dispute between the supplier located within its jurisdiction and a buyer located anywhere in India.".SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 27 THE EIGHTH SCHEDULE (See section 63) In the Companies Act, 20l3 (18 of 2013), for section 442, the following section shall be substituted, namely:— "442. Reference to mediation.—(1) Any of the parties to a proceedings before the Central Government, Tribunal or the Appellate Tribunal may, at any time apply to the Central Government, Tribunal or the Appellate Tribunal, as the case may be, in such form along with such fees, if any, as may be prescribed, for referring the matter pertaining to such proceedings for mediation and the Central Government, Tribunal or the Appellate Tribunal, as the case may be, shall refer the matter to mediation to be conducted under the provisions of the Mediation Act, 2021. (2) Nothing in this section shall prevent the Central Government, Tribunal or the Appellate Tribunal before which any proceeding is pending from referring any matter pertaining to such proceeding suo motu to mediation to be conducted under the provisions of the Mediation Act, 2021 as the Central Government, Tribunal or the Appellate Tribunal, deems fit. (3) The mediator or mediation service provider shall file the mediated settlement agreement arrived at between the parties with the Central Government or the Tribunal or the Appellate Tribunal under the Act. (4) The Central Government or the Tribunal or the Appellate Tribunal shall pass an order or judgment making the said mediated settlement agreement as part thereof. (5) The fee of the mediator shall be such as may be prescribed.".S3\F\BILL 2021\GI\1675GI\1675GI THE MEDIATION 3 28 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— THE NINTH SCHEDULE (See section 64) In the Commercial Courts Act, 2015 (4 of 2016),— (a) for Chapter IIIA, the following Chapter shall be substituted, namely:— "CHAPTER IIIA PRE-LITIGATION MEDIATION AND SETTLEMENT 12A. Pre-litigation Mediation and Settlement.—(1) A suit, which does not contemplate any urgent interim relief under this Act, shall not be instituted unless the plaintiff exhausts the remedy of pre-litigation mediation in accordance with such manner and procedure as may be prescribed by rules made by the Central Government. (2) For the purposes of pre-litigation mediation, the Central Government may, by notification, authorise— (i) the Authority, constituted under the Legal Services Authorities Act, 1987 (39 of 1987); or (ii) a mediation service provider as defined under clause (l) of section 3 of the Mediation Act, 2021. (3) Notwithstanding anything contained in the Legal Services Authorities Act, 1987 (39 of 1987), the Authority or mediation service provider authorised by the Central Government under sub-section (2) shall complete the process of mediation within a period of six months from the date of application made by the plaintiff under sub-section (1): Provided that the period of mediation may be extended for a further period of six months with the consent of the parties: Provided further that, the period during which the parties spent for pre-litigation mediation shall not be computed for the purposes of limitation under the Limitation Act, 1963 (36 of 1963). (4) If the parties to the commercial dispute arrive at a settlement, the same shall be reduced into writing and shall be signed by the parties and the mediator. (5) The mediated settlement agreement arrived at under this section shall be dealt with in accordance with the provisions of sections 28 and 29 of the Mediation Act, 2021."; (b) in section 21A, in sub-section (2), for clause (a), the following clause shall be substituted, namely:— "(a) the manner and procedure of pre-litigation mediation under sub-section (1) of section 12A;".SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 29 THETENTH SCHEDULE (See section 65) In the Consumer Protection Act, 2019 (35 of 2019),— (a) in section 2, clauses (25) and (26) shall be omitted; (b) for section 37, the following sections shall be substituted, namely:— "37. Reference to mediation.—The District Commission or State Commission or the National Commission, as the case may be, shall either on an application by the parties at any stage of proceedings refer the disputes for settlement by mediation under the Mediation Act, 2021. 37A. Settlement through mediation.—(1) Pursuant to mediation, if an agreement is reached between the parties with respect to all of the issues involved in the consumer dispute or with respect to only some of the issues, the terms of such agreement shall be reduced to writing accordingly, and signed by the parties to such dispute or their authorised representatives. (2) The mediator shall prepare a settlement report of the settlement and forward the signed agreement along with such report to the concerned Commission. (3) Where no agreement is reached between the parties within the specified time or the mediator is of the opinion that settlement is not possible, he shall prepare his report accordingly and submit the same to the concerned Commission. 37B. Recording settlement and passing of order.—(1) The District Commission or the State Commission or the National Commission, as the case may be, shall, within seven days of the receipt of the settlement report, pass suitable order recording such settlement of consumer dispute and dispose of the matter accordingly. (2) Where the consumer dispute is settled only in part, the District Commission or the State Commission or the National Commission, as the case may be, shall record settlement of the issues which have been so settled and continue to hear other issues involved in such consumer dispute. (3) Where the consumer dispute could not be settled by mediation, the District Commission or the State Commission or the National Commission, as the case may be, shall continue to hear all the issues involved in such consumer dispute."; (c) in section 38, in sub-section (1), the words "or in respect of cases referred for mediation on failure of settlement by mediation," shall be omitted; (d) in section 41, the third proviso shall be omitted; (e) Chapter V shall be omitted; (f) in section 101, in sub-section (2),— (i) clause (r) shall be omitted; (ii) clause (zf) shall be omitted; (g) in section 102, in sub-section (2), clause (p) shall be omitted; (h) in section 103, in sub-section (2), clauses (c) to (h) shall be omitted.S3\F\BILL 2021\GI\1675GI\1675GI THE MEDIATION 3 30 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— STATEMENT OF OBJECTS AND REASONS An effective dispute resolution process has a significant impact on the economy and doing business in the country, thereby promoting ease of living for citizens, access to justice and rule of law. The rapidly changing society and progress in various areas not limited to economic, industrial or financial sectors, demand commensurate expeditious settlement of dispute between the parties, which at present is time consuming. Thus, there is a need to further promote Alternative Dispute Resolution (ADR), inter alia, by institutional mediation. The ADR mechanism of mediation though finds mention in various existing laws, but as on date, there is no comprehensive law governing the various aspects of mediation. 2. Mediation results in amicable resolution of disputes in civil, commercial, family and matrimonial matters and fosters collaborative approach, reduces the burden on the courts, and preserves relationships amongst disputants. Therefore, bringing a comprehensive mediation law and providing for online mediation may serve the interests of all the stakeholders as effective alternative mechanism for resolving disputes. 3. The Bill covering the various aspects of mediation seeks to promote mediation as a preferred mode of ADR, inter alia, providing for— (i) subsuming conciliation under Part III of the Arbitration and Conciliation Act, 1996, in mediation as per international practice of using the terms “conciliation” and “mediation” interchangeably; (ii) compulsory pre-litigation mediation in matters of civil or commercial dispute, before parties approach a court or a tribunal as provided; (iii) conduct of online mediation; (iv) an indicative list of matters which are not fit for mediation under the First Schedule; (v) mediation that will take place within the territorial jurisdiction of the court or tribunal of competent jurisdiction, unless parties agree otherwise or undertake mediation in online mode; (vi) a period of one hundred and eighty days, for completing the mediation process which is further extendable to a maximum period of one hundred and eighty days with the mutual consent of the parties; (vii) the mediated settlement agreement resulting from mediation which will be final and binding and will be enforceable in accordance with the provisions of Code of Civil Procedure, 1908, in the same manner as if it were a judgment or decree of a Court; (viii) establishment of Mediation Council of India, objects of which would be, inter alia, to promote mediation and to develop India as a robust centre for domestic and international mediation, make regulations for registration of mediators, grade mediation service providers, specify criteria for recognition of mediation institutes and mediation service providers, to hold training workshops and courses in the area of mediation, etc.; and (ix) conduct of community mediation with consent of parties for disputes which are likely to affect peace, harmony and tranquility amongst the residents or families of any area or locality. 4. The Bill seeks to achieve the above objectives. NEW DELHI; KIREN RIJIJU. The 14th December, 2021.SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 31 Notes on clauses Clause 1 of the Bill provides for short title, extent and commencement of the Act. Clause 2 of the Bill provides for applicability of the Act. Clause 3 of the Bill provides definition of various expressions used in the Bill. Clause 4 of the Bill provides that mediation shall be a process whereby party or parties, request a third person referred to as mediator or mediation service provider to assist in the attempt to reach an amicable settlement of dispute. Clause 5 of the Bill provides that mediation agreement shall be in writing, by or between parties and anyone claiming through them, to submit to mediation all or certain disputes which have arisen or which may arise between the parties. It further provides that mediation agreement may be in the form of a mediation clause in a contract or in the form of a separate agreement. Clause 6 of the Bill provides that whether any mediation agreement exists or not, any party before filing any suit or proceedings of civil or commercial nature in any Court shall, take steps to settle the disputes by pre-litigation mediation in accordance with the provisions of the new law. It further provides that pre-litigation mediation in matters of commercial disputes of Specified Value, shall be undertaken in accordance with the provisions of section 12A of the Commercial Courts Act, 2015, and the rules made thereunder. Clause 7 of the Bill provides an indicative list of disputes or matters which cannot be referred to mediation except some compoundable offences or matrimonial offences connected with or arising out of civil proceedings which can be referred to mediation by Court, if deemed appropriate. Settlement arrived in these cases not to have effect of decree or judgement of Court. Clause 8 of the Bill provides that if exceptional circumstances exist, a party may, before the commencement of or during the continuation of mediation proceedings, file appropriate proceedings before a court or tribunal of competent jurisdiction for seeking urgent interim measures. Clause 9 of the Bill provides that court or tribunal may, at any stage of pending proceeding, refer the parties to undertake mediation if a request to this effect is made by them. Clause 10 of the Bill provides for the appointment of mediator. Clause 11 of the Bill provides that mediation service provider while appointing mediator shall consider his suitability and the preference of the parties for resolving the dispute. Clause 12 of the Bill provides that when a person is appointed as a mediator, he shall disclose in writing to the parties about any circumstances or potential circumstances, personal, professional or financial, that may constitute conflict of interest or that is likely to give rise to justifiable doubts as to such mediator's independence or impartiality in the conduct of the mediation process. Clause 13 of the Bill provides for the termination of mandate of mediator. Clause 14 of the Bill provides for the replacement of mediator. Clause 15 of the Bill provides that mediation under this Act shall take place within the territorial jurisdiction of the court or tribunal of competent jurisdiction unless parties agree to conduct mediation outside the said territorial jurisdiction or by way of online mediation. Clause 16 of the Bill provides that mediation proceedings with respect to a particular dispute shall be deemed to have commenced on the date on which a party issues notice toS3\F\BILL 2021\GI\1675GI\1675GI THE MEDIATION 3 32 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— the other party in case of prior mediation agreement and in other cases on the day the parties have agreed to appoint a mediator of their choice or on the day when a party applies to a mediation service provider for mediation. Clause 17 of the Bill provides that the mediator shall assist the parties in an independent, neutral and impartial manner in their attempt to reach an amicable settlement of their dispute. It further provides that mediator shall not be bound by the Code of Civil Procedure, 1908 or the Indian Evidence Act, 1872. Clause 18 of the Bill provides that mediator shall attempt to facilitate voluntary resolution of the dispute by the parties, and communicate the view of each party to the other to the extent agreed to by them, assist them in identifying issues, reducing misunderstandings, clarifying priorities, exploring areas of compromise and generating options in an attempt to resolve the dispute. Clause 19 of the Bill provides that mediator shall not act as an arbitrator or as a representative or counsel of a party in any arbitral or judicial proceeding in respect of a dispute that is the subject of the mediation proceedings and he shall not be presented by the parties as a witness in any arbitral or judicial proceeding. Clause 20 of the Bill provides that parties may withdraw from mediation at any time after the first two mediation sessions. The court or tribunal can however, impose cost in subsequent litigation if a party fails to attend the first two mediation sessions without any reasonable cause thereby resulting in the failure of mediation. Clause 21 of the Bill provides that mediation under this Act shall be completed within a period of one hundred and eighty days from the date fixed for the first appearance before the mediator and the period can be extended by further period of one hundred and eighty days with the mutual consent of the parties. Clause 22 of the Bill provides that mediated settlement agreement means and includes an agreement in writing between some or all of the parties resulting from mediation including online mediation, settling some or all of the disputes between such parties, and authenticated by the mediator. It further provides that mediated settlement agreement arrived at between the parties other than those arrived in court annexed mediation centres or under sections 21 and 22E of the Legal Services Authorities Act, 1987 shall be registered with the Authority constituted under the Legal Services Authorities Act, 1987 within a period of one hundred and eighty days. However, registration is not mandatory till the time regulations specifying the manner of registration are made by the Council. Clause 23 of the Bill provides that the mediator, mediation service provider, the 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, rely on or introduce as evidence any such information or communication. However, confidentiality shall not apply to the mediated settlement agreement where its disclosure is necessary for the purpose of registration, implementation, enforcement and challenge. Clause 24 of the Bill provides immunity to the participants including experts and advisers engaged for the purpose of the mediation and persons involved in the administration of the mediation from disclosing by whatever description, any communication in mediation, or to state the contents or conditions of any document or nature or conduct of parties during mediation including the content of negotiations or offers or counter offers with which they have become acquainted during the mediation. Clause 25 of the Bill provides for termination of mediation proceedings in certain circumstances. Clause 26 of the Bill provides that court annexed mediation including pre-litigation mediation in court annexed mediation centre shall be conducted in accordance with theSEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 33 practice directions or rules by whatever name called by the Supreme Court or the High Courts. Also, Supreme Court or the High Court to constitute mediation committee for the empanelment of mediators who shall conduct mediation in all courts. Clause 27 of the Bill provides that the provisions of the proposed Act shall not apply to the proceedings conducted by Lok Adalat and Permanent Lok Adalat under the Legal Services Authorities Act, 1987. Clause 28 of the Bill provides that mediated settlement agreement resulting from mediation is final and binding and is enforceable in accordance with the provisions of Code of Civil Procedure, 1908, in the same manner as if it were a judgement or decree passed by a court. Clause 29 of the Bill provides that mediated settlement agreement can be challenged on the grounds of fraud, corruption, impersonation or where mediation is conducted in a dispute or matter not fit for mediation and that such challenge can be made within a period of ninety days from the date of receipt of copy of mediated settlement agreement by the parties. Clause 30 of the Bill provides that all costs of mediation, including the fees of the mediator and the charges of the mediation service provider shall be borne equally by the parties unless otherwise agreed by the parties. Clause 31 of the Bill provides that the period during which the parties were engaged in the mediation shall be excluded for computing the period of limitation specified for any proceedings. Clause 32 of the Bill provides that the online mediation including pre-litigation mediation may be conducted at any stage of mediation with the written consent of the parties and that such online mediation shall be conducted in the manner specified by the Council. Clause 33 of the Bill provides for the establishment of Mediation Council of India as a body corporate having perpetual succession and a common seal, with power to acquire, hold and dispose of property, both movable and immovable, and to enter into contract, and shall, by the said name, sue or be sued. Clause 34 of the Bill provides for the composition of Council and appointment and qualifications, term of office, salary and allowances, etc., of Chairperson, Full-Time Member and Part-Time Member. Clause 35 of the Bill provides that any vacancy, defect in the appointment or any irregularity in procedure shall not invalidate the proceedings of the Council. Clause 36 of the Bill provides for the procedure for resignation of Chairperson or the Full-Time Member and Part-Time Member by notice in writing, addressed to the Central Government. Clause 37 of the Bill specifies the circumstances in which the Central Government may, remove Chairperson or a Full-Time Member or a Part-Time Member of the Council. Clause 38 of the Bill provides for the appointment of experts and constitution of committees of experts as Council may consider necessary for the effective discharge of its functions. Clause 39 of the Bill provides for the Chief Executive Officer of the Council as well as the Secretariat of the council, which shall comprise of such number of officers and employees as may be specified by the Council. Clause 40 of the Bill provides the duties and functions of the Council. Clause 41 of the Bill provides for the recognition and grading of mediation service provider by the Council. Clause 42 of the Bill provides the functions to be performed by the mediation service provider.S3\F\BILL 2021\GI\1675GI\1675GI THE MEDIATION 3 34 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— Clause 43 of the Bill provides for the recognition of mediation institutes by the Council and the functions and duties to be performed by such mediation institutes as may be specified by the Council. Clause 44 of the Bill provides for community mediation, with prior mutual consent of parties, for resolution of disputes which are likely to affect peace, harmony and tranquility amongst the residents or families of any area or locality and empowers the concerned Authority or District Magistrate or Sub-Divisional Magistrate to constitute a panel of three mediators for conducting the community mediation. Clause 45 of the Bill provides that a panel of three community mediators shall conduct community mediation in accordance with the procedure to be devise by them for resolving the dispute. Clause 46 of the Bill provides that there shall be a fund to be called "Mediation Fund" for the purposes of promotion, facilitation and encouragement of mediation and empowers the Council to administer the Fund. Clause 47 of the Bill provides that Council shall maintain proper accounts and other relevant records and prepare an annual statement of accounts, including the balance sheet, in such form and manner as may be made by rules in consultation with the Comptroller and Auditor-General of India. It further provides that the accounts of the Council shall be audited by the Comptroller and Auditor-General of India. Clause 48 of the Bill empowers the Central Government to issue directions to the Council on questions of policy which shall be binding on the Council. Clause 49 of the Bill provides that Central Government or State Government may frame any scheme or guidelines for resolution of any dispute through mediation or conciliation in cases where the Central Government or State Government or any of its entity or agencies is a party. Clause 50 of the Bill provides that the settlement agreement arrived at in a dispute including a commercial dispute, wherein the Central Government or State Government or any of its agencies, public bodies, corporations and local bodies including entities is a party shall be signed only after obtaining the prior written consent of the competent authority. Clause 51 of the Bill provides that no suit, prosecution or other legal proceedings shall lie against the Central Government or a State Government or any officer of such Government, or the Chairperson, Full-Time Member or Part-Time Member or Officer or employee of the Council or a mediator, mediation institutes, mediation service providers, which is done or is intended to be done in good faith. Clause 52 of the Bill empowers the Central Government to make rules to carry out the provisions of this Act. Clause 53 of the Bill empowers the Council to make regulations, by notification, with the previous approval of the Central Government. It further provides that the regulations shall be consistent with the provisions of the Act and the rules made thereunder. Clause 54 of the Bill provides for laying of every notification issued under sub-clause (2) of clause 7 and sub-clause (2) of clause 56 and every rule made by the Central Government and every regulation made by the Council, as soon as may be, after it is made, before each House of Parliament. Clause 55 of the Bill seeks to provide that, if any difficulty arises in giving effect to the provisions of the Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of the Act, as may appear to it to be necessary for removing the difficulty.SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 35 Clause 56 of the Bill provides that the provisions of the Act to have overriding effect on mediation or conciliation contained in other laws except those mentioned in the Second Schedule. It further provides that the Central Government may amend the Schedule by notification in the Official Gazette. Clause 57 of the Bill provides that the Act shall not apply to, or in relation to, any mediation or conciliation commenced before the coming into force of this Act. Clause 58 of the Bill amends the Indian Contract Act, 1872 in the manner specified in the Third Schedule. Clause 59 of the Bill amends the Code of Civil Procedure, 1908 in the manner specified in the Fourth Schedule. Clause 60 of the Bill amends the Legal Service Authorities Act, 1987 in the manner specified in the Fifth Schedule. Clause 61 of the Bill amends the Arbitration and Conciliation Act, 1996 in the manner specified in the Sixth Schedule. Clause 62 of the Bill amends the Micro, Small and Medium Enterprises Development Act, 2006 in the manner specified in the Seventh Schedule. Clause 63 of the Bill amends the Companies Act, 2013 in the manner specified in the Eighth Schedule. Clause 64 of the Bill amends the Commercial Courts Act, 2015 in the manner specified in the Ninth Schedule. Clause 65 of the Bill amends the Consumer Protection Act, 2019 in the manner specified in the Tenth Schedule.S3\F\BILL 2021\GI\1675GI\1675GI THE MEDIATION 4 36 THE GAZETTE OF INDIA EXTRAORDINARY [PART II— FINANCIAL MEMORANDUM Sub-clause (1) of clause 33 of the Bill provides for establishment of Mediation Council of India. 2. Sub-clause (1) of clause 34 of the Bill provides for the composition of the Mediation Council of India. 3. Sub-clauses (3) and (4) of clause 34 provides for the terms and conditions, salary and allowances payable to the Chairperson, Full-Time Member and Part-Time Member. 4. Clause 38 of the Bill provides for appointment of such experts and constitution of such committees of experts by the Mediation Council as it may consider necessary to discharge its functions. 5. Sub-clause (1) of clause 39 provides for appointment of a Chief Executive Officer, who shall be responsible for the day to day administration of the Council. 6. Sub-clause (2) of clause 39 provides for the qualification, appointment and other terms and conditions of Chief Executive Officer. 7. Sub-clause (4) of clause 39 provides for Secretariat to the Council consisting of such number of officers and employees. Further, sub-section (5) provides for qualification, appointment and other terms and conditions of the service of the employees and other officers of the Council. 8. Clause 46 of the Bill provides for maintenance of a Fund called "Mediation Fund" for crediting all monies provided by the Central Government; all fees and other charges received from mediation service provider, mediation institutes or bodies or persons; all monies received by the Council in the form of donations, grants, contributions and income from other sources; grants made by the Central Government or the State Government for the purposes of the Fund; amounts deposited by persons as contributions to the Fund; amounts received in the Fund from any other source; interest on the above or other income received out of the investment made from the Fund. 9. Sub-clause (3) of clause 46 provides that the Fund shall be applied towards meeting the salaries and other allowances of Chairperson, Full-Time Member, Part-Time Member, Chief Executive Officer, Officers and employees and the expenses of the Council including expenses incurred in the exercise of its powers and discharge of its duties under this Act. 10. It is estimated that the proposed law when passed would entail an expenditure of approximately twenty-one crores one lakh fifteen thousand thirty-six rupees in the first year, twenty crores ninety-nine lakhs nine thousand forty in the second year, twenty-three crores sixteen lakhs seven thousand one hundred ninety-four in the third year of establishment of Council as initial establishment expenses, including salaries and allowances and other remuneration of Chairperson, Full-Time Member, Part-Time Member and its officers and other employees. 11. The Bill if enacted and brought into operation would not involve any other expenditure of a recurring or non-recurring nature from the Consolidated Fund of India.SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 37 MEMORANDUM REGARDING DELEGATED LEGISLATION Sub-clause (2) of clause 7 of the Bill provides for amendment of the First Schedule by notification by the Central Government. 2. Clause 33 of the Bill provides for the establishment of Mediation Council of India. 3. Clause 52 of the Bill empowers the Central Government to make rules with respect to the matters which relate to the terms and conditions and the salaries and allowances payable to the Chairperson and Full-Time Members; the travelling and other allowances payable to the Part-Time Members; the form and manner of annual statement of accounts, including the balance sheet and any other matter which is to be, or may be prescribed. 4. Clause 53 of the Bill provides for the Mediation Council of India, with the previous approval of the Central Government, to make regulations consistent with the Act and the rules made thereunder to carry out the provisions of this Act which, inter alia relate to qualification, experience and accreditation for mediators of foreign nationality; manner of registration of mediated settlement agreement; fees for registration of mediated settlement agreement; manner of process of conducting online mediation; the terms and conditions of experts and committees of experts; qualifications, appointment and other terms and conditions of service of the Chief Executive Officer; functions and duties to be performed by the Chief Executive Officer; the number of officers and employees of the Secretariat of the Council; the qualification, appointment and other terms and conditions of the employees and other officers of the Council; conditions for registration of mediators and renewal, withdrawal, suspension or cancellations of such registrations; standards for professional and ethical conduct of mediators; criteria for recognition of mediation institutes and mediation service providers; manner of maintenance of electronic depository of mediated settlement agreement; manner for grading of mediation service provider; functions of mediation service provider; duties and functions to be performed by mediation institutes; any other matter in respect of which provision is necessary for the performance of functions of the Council under this Act. 5. Sub-clause (2) of clause 56 provides for the amendment of the Second Schedule by notification to be issued by the Central Government. 6. The matters in respect of which notification, rules and regulations may be made under the aforesaid provisions are matters of procedure and administrative details and it is not practical to provide for them in the Bill itself. The delegation of legislative power is, therefore, of a normal character. ———— P. C. MODY, Secretary-General. PUBLISHED BY THE SECRETARY-GENERAL, RAJYA SABHA, UNDER RULE 68 OF THE RULES OF PROCEDURE AND CONDUCT OF BUSINESS IN THE RAJYA SABHA. MGIPMRND—1675GI(S3)—21-12-2021.