‘Mediation Act 2023 has the potential to be a game-changer for dispute resolution in India’

A law graduate from Mangalore University, she founded Lex Situs with a vision to establish a law firm encompassing all aspects of Indian law ranging from corporate, to commercial and even real-estate laws. Under her stewardship, Bangalore-headquartered Lex Situs is already a leading corporate law and property advisory firm. With the mission to be a leading global law firm delivering quality services with high standards, her firm strives to set new track records in the sphere of law and its applications by providing pragmatic, solution-oriented and technically feasible advice to its clients in India and abroad.

Speaking to Bizz Buzz exclusively, Roopa Shetty, Founder of Lex Situs, delves at length on the vexed issue of large number of pending cases in India and alternative dispute resolution method to resolve various commercial and corporate disputes in general, and the impacts of the Mediation Act, 2023 in particular and if it would turn out to be a game changer in Indian dispute resolution mechanism

“Justice delayed is justice denied”, so they say. And yet, innumerable cases are pending at different stages at various courts of law across the country. Could you please throw some light on the extend and degree of pending cases in India and the importance of alternative dispute resolution method?

India with its dense population sees innumerable disputes, be they civil or commercial, that remain backlogged in the already burdened judiciary system. Arresting timely justice delivery, reportedly, the District Judiciary alone bore the weight of approximately 44.79 million pending cases in January 2024, while the High Courts had a backlog of 6.2 million cases during the same period. The Supreme Court of India, not immune to this dilemma, had 69,766 cases pending as of July 1, 2023. This dire situation emphasizes an urgent need for alternative dispute resolution (ADR) methods that are quicker, less costly, and more flexible than the traditional adversarial system.

What is your take on the Mediation Act, 2023 in industrial and corporate dispute resolution? What role has it been playing?

The Mediation Act 2023 represents a significant evolution in India's approach to dispute resolution which further leverages technology to enhance access to justice. India's journey towards recognizing mediation in its legal framework dates back to the Industrial Disputes Act of 1947, which introduced the concept of conciliators to resolve industrial disputes. Subsequent legal reforms, such as the Legal Services Authorities Act of 1987 and the Arbitration and Conciliation Act of 1996, in the following years further strengthened the recognition of mediation.

Do you think that all commercial disputes (or for that matter, civil disputes, as well) should undergo mediation before entering into the court arena?

Mind you that, the Mediation Bill of 2021 laid the foundation for the comprehensive Mediation Act 2023. The Bill aimed at introducing a thoughtfully curated institutional dispute-resolution mechanism which is backed by collaborative problem-solving and the preservation of relationships. It mandated that all civil and commercial disputes undergo mediation before entering the court arena, underscoring the significance of exhausting alternative remedies before resorting to litigation. This made the standing committee question the consent and voluntary nature of mediation.

What does the new Act primarily aim at?

Bringing in strategic amends to the bill, at its core, the Mediation Act 2023 aims to induce a culture of amicable settlement while alleviating the burden on the overburdened judicial system. It provides a more structured framework for mediation, both offline and online, allowing disputing parties to resolve their issues with the assistance of a neutral third party, the mediator.

What are the key provisions of the Act to meet these objectives?

Key provisions of the Act include mandating mediation as a prerequisite for civil and commercial disputes before resorting to litigation; setting clear guidelines for mediator qualifications, procedural norms, and confidentiality aspects; including online mediation to leverage technology and bridge geographical barriers, and establishing a regulatory body for mediator registration and oversight.

How does it help in serving the broader purposes?

The Mediation Act 2023 hence stands in the continuum in revolutionizing India's dispute resolution landscape. By promoting the use of mediation, the Act will help expedite the resolution process and also empower disputants to shape their outcomes collaboratively. The Act’s additional feature of online mediation further addresses logistical barriers and improves access to justice, especially in remote regions.

Also, the Act's focus on quality assurance through mediator accreditation and oversight cements the integrity of the mediation process. By validating mediation as a credible and effective mechanism, the Act induces confidence in stakeholders and encourages greater adoption of alternative dispute resolution methods.

In the ultimate analysis, do you think that an Act like this would help in resolving disputes and issues efficiently, amicably and impartially?

Lastly, the Mediation Act 2023 heralds a new dawn of dispute resolution in India. One that is characterized by efficiency, accessibility, and fairness. By accepting mediation and leveraging technology, India is on the brink of overcoming the daunting challenges that have long obstructed its judicial system. As The Mediation Act 2023 comes into effect and its provisions are implemented, it is a transformative reform in the direction of invoking harmony and equality in society.

In the journey towards justice, the Mediation Act 2023 will certainly play a crucial role in helping guide India towards a future where disputes are resolved amicably, efficiently, and impartially.