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ARBITRATION, MEDIATION
AND CONCILIATION IN
INDIA
UNDERSTANDING ALTERNATE DISPUTE REDRESSAL
(ADR) MECHANISMS
Introduction:
■ Alternative Dispute Resolution (ADR) refers to a set of methods and techniques
used to resolve legal disputes outside of traditional courtroom litigation.
■ Includes arbitration, mediation, and conciliation
■ Provides parties with flexible and efficient means to address conflicts and
reach mutually acceptable solutions.
■ ADR promotes collaboration, preserves relationships, and often results in
faster and more cost-effective resolutions compared to formal court
proceedings
Importance of ADR in resolving legal
disputes
1. Efficiency
2. Cost effective
3. Flexibility
4. Preservation of relationship
5. Confidentiality
6. Informality
7. Expertise
8. Access to justice
9. Reduced court backlog
10. Compliance and Enforcement
ARBITRATION
■ Black’s Law Dictionary: "Arbitration is the process by which parties to a
dispute submit their differences to the judgment of an impartial person or
group appointed by mutual consent or statutory provision.”
■ Section 2(1)(a) of Arbitration and Conciliation Act, 19:”Arbitration” means any
arbitration whether or not administered by a permanent arbitral institution.
Features of arbitration in India:
1. Voluntary Nature: Parties voluntarily agree to submit their disputes to arbitration.
■ Section 7: Arbitration agreement to be in writing.
2. Neutral Third-Party Decision-Maker: Arbitration is presided over by a neutral arbitrator or panel
of arbitrators.
■ Section 10: Number of arbitrators and appointment procedures.
3. Informal Proceedings: Arbitration proceedings are less formal compared to court litigation.
■ Section 19: Equal treatment of parties; fair and efficient conduct of proceedings.
4. Binding Decision: Arbitrator's decision (award) is final and binding on the parties.
■ Section 35: Finality of arbitral awards.
5. Confidentiality: Arbitration proceedings are usually confidential.
■ Section 75: Confidentiality of proceedings.
6. Enforceability: Arbitral awards are enforceable in courts.
■ Section 36: Enforcement of arbitral awards.
7. Limited judicial interference: Courts have a limited role in arbitral proceedings.
■ Section 5: Extent of judicial intervention.
8. Flexibility in Procedure: Parties have flexibility in determining procedural rules.
■ Section 19: Freedom to determine procedure.
Procedure of arbitration in India
1. Initiation of Arbitration
2. Appointment of Arbitrator(s)
3. Arbitral Tribunal’s Powers
4. Pleadings and Evidence
5. Hearings and Proceedings
6. Interim Measures and Orders
7. Closing of Proceedings
8. Award
9. Enforcement of Award
10. Costs and Expenses
11. Challenge and Set Aside
12. Finality of Award
Case laws:
■ Bharat Aluminum Co. v. Kaiser Aluminum Technical Service, Inc. (BALCO case)
■ BCCI v. Kochi Cricket Pvt. Ltd.
■ World Sport Group (Mauritius) Ltd. V. MSM Satellite (Singapore) Pte. Ltd.
■ O.N.G.C. Ltd. V. Saw Pipes Ltd.
■ Sundaram Finance Ltd. V. NEPC India Ltd.
MEDIATION
■ Black’s Law Dictionary : "Mediation is a method of dispute resolution involving
a neutral third party who tries to help the disputing parties reach a mutually
agreeable solution.”
■ Mediation not explicitly defined in arbitration and conciliation act and
mediation act.
■ In mediation, parties reach a voluntary settlement with the mediator's
assistance, while in arbitration, the arbitrator renders a binding decision.
Legal framework for mediation in
India
■ The Arbitration and Conciliation Act, 1996:While primarily focusing on
arbitration, this Act also includes provisions for conciliation, which is closely
related to mediation.
■ The Civil Procedure Code, 1908 (CPC):Section 89 of the CPC provides for
alternative dispute resolution mechanisms, including mediation.
■ The Mediation Act, 2023:This Act was introduced to enhance the effectiveness
of mediation in India and provide a comprehensive legislative framework for
its implementation. It promotes institutional mediation, provides for the
enforcement of mediated settlement agreements, and establishes a Mediation
Council of India for regulating mediators and mediation institutions.
Mediation Act,2023
■ Promotion of Mediation
■ Institutional Mediation
■ Enforcement of Mediated Settlement Agreements:
■ Registration of Mediators
■ Pre-litigation Mediation
■ Confidentiality
■ Time-Bound Process
■ Flexibility
■ Recognition of Online Mediation
Case laws:
■ S. Gian Singh v. State of Punjab (2012)
■ Salem Advocate Bar Association v. Union of India (2005)
■ Afcons Infrastructure Ltd. V. Cherian Varkey Construction Co. Pvt. Ltd. (2010)
CONCILIATION
■ Black’s Law Dictionary: “a form of alternative dispute resolution in which the
parties to a dispute use a conciliator, who meets with the parties separately in
an attempt to resolve their differences. Unlike mediation, conciliation often
involves the conciliator giving advice to the parties.”
■ Section 61(1) of Arbitration and Conciliation Act, 1996: "conciliation" means a
process in which a conciliator assists the parties in an impartial manner in
their attempt to reach an amicable settlement of their dispute arising out of
or relating to the agreement.
Features of conciliation:
1. Impartial Assistance-S. 61(1)
2. Advisory Role- S. 62
3. Informal Procedure- S. 63
4. Confidentiality- S. 67
5. Non-Binding Outcome- S.73
6. Voluntary Participation-S.62(1)
7. Preservation of Relationship-S.61(3)
Procedure of conciliation:
1. Commencement of Conciliation Proceedings:
■ Section 62: The conciliation proceedings commence when a party sends a written invitation to
the other party to conciliate.
2. Appointment of Conciliator:
■ Section 64: Upon receiving the invitation, the parties jointly appoint a conciliator.
■ Section 64(1)(b): If the parties fail to agree on a conciliator, either party may request the court to
appoint one.
3. Role of Conciliator:
■ Section 65: The conciliator conducts the proceedings in a manner he considers appropriate, taking
into account the circumstances of the case.
■ Section 67: The conciliator assists the parties in identifying issues, exploring settlement options,
and formulating settlement terms.
4. Confidentiality of Proceedings:
■ Section 75: All communications made during conciliation proceedings are confidential, and no
party can rely on them as evidence in any judicial or arbitral proceedings.
5. Settlement Agreement:
■ Section 74: If the parties reach a settlement agreement, the conciliator draws up and signs the
settlement agreement, which becomes binding on the parties.
6. Termination of Conciliation Proceedings:
■ Section 73: Conciliation proceedings terminate upon the execution of a
settlement agreement, or if the parties notify the conciliator of their decision
to terminate the proceedings.
7. Role of Court in Conciliation:
Section 73(5): The court may, on the application of either party or the conciliator,
extend the time for conciliation proceedings if it deems necessary.
8. Enforcement of Settlement Agreement:
Section 74: A settlement agreement reached through conciliation may be enforced
by the court upon application by either party.
Arbitration Mediation Conciliation
Decision-
Making
Authority
make a binding
decision.
Parties control
the outcome;
mediator
facilitates
discussion.
Conciliator may provide advice but does not
make a binding decision.
Formality Formal process
with rules of
evidence.
Informal
process with
flexible rules.
Informal process similar to mediation.
Outcome Binding
decision
(award).
Non-binding;
parties reach a
voluntary
agreement.
Non-binding unless parties agree to formalize
the settlement.
Role of Neutral
Third Party
Arbitrator(s)
act as decision-
makers.
Mediator
facilitates
communication
and
negotiation.
Conciliator may provide advice and suggestions.
Conclusion
■ Arbitration, Mediation, and Conciliation offer effective alternatives to
traditional litigation.
■ Each method has unique features and advantages.
■ Arbitration provides a binding decision by a neutral arbitrator.
■ Mediation and Conciliation focus on facilitating communication and
negotiation.
■ The choice of ADR method depends on the nature of the dispute and parties’
preferences.
■ A well-established legislative framework supports ADR in India.
■ ADR methods play a significant role in easing the burden on courts and
promoting efficient dispute resolution.
Thank you for your time and interest

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Arbitration, mediation and conciliation in India

  • 1. ARBITRATION, MEDIATION AND CONCILIATION IN INDIA UNDERSTANDING ALTERNATE DISPUTE REDRESSAL (ADR) MECHANISMS
  • 2. Introduction: ■ Alternative Dispute Resolution (ADR) refers to a set of methods and techniques used to resolve legal disputes outside of traditional courtroom litigation. ■ Includes arbitration, mediation, and conciliation ■ Provides parties with flexible and efficient means to address conflicts and reach mutually acceptable solutions. ■ ADR promotes collaboration, preserves relationships, and often results in faster and more cost-effective resolutions compared to formal court proceedings
  • 3. Importance of ADR in resolving legal disputes 1. Efficiency 2. Cost effective 3. Flexibility 4. Preservation of relationship 5. Confidentiality 6. Informality 7. Expertise 8. Access to justice 9. Reduced court backlog 10. Compliance and Enforcement
  • 4. ARBITRATION ■ Black’s Law Dictionary: "Arbitration is the process by which parties to a dispute submit their differences to the judgment of an impartial person or group appointed by mutual consent or statutory provision.” ■ Section 2(1)(a) of Arbitration and Conciliation Act, 19:”Arbitration” means any arbitration whether or not administered by a permanent arbitral institution.
  • 5. Features of arbitration in India: 1. Voluntary Nature: Parties voluntarily agree to submit their disputes to arbitration. ■ Section 7: Arbitration agreement to be in writing. 2. Neutral Third-Party Decision-Maker: Arbitration is presided over by a neutral arbitrator or panel of arbitrators. ■ Section 10: Number of arbitrators and appointment procedures. 3. Informal Proceedings: Arbitration proceedings are less formal compared to court litigation. ■ Section 19: Equal treatment of parties; fair and efficient conduct of proceedings. 4. Binding Decision: Arbitrator's decision (award) is final and binding on the parties. ■ Section 35: Finality of arbitral awards. 5. Confidentiality: Arbitration proceedings are usually confidential. ■ Section 75: Confidentiality of proceedings. 6. Enforceability: Arbitral awards are enforceable in courts. ■ Section 36: Enforcement of arbitral awards. 7. Limited judicial interference: Courts have a limited role in arbitral proceedings. ■ Section 5: Extent of judicial intervention. 8. Flexibility in Procedure: Parties have flexibility in determining procedural rules. ■ Section 19: Freedom to determine procedure.
  • 6. Procedure of arbitration in India 1. Initiation of Arbitration 2. Appointment of Arbitrator(s) 3. Arbitral Tribunal’s Powers 4. Pleadings and Evidence 5. Hearings and Proceedings 6. Interim Measures and Orders 7. Closing of Proceedings 8. Award 9. Enforcement of Award 10. Costs and Expenses 11. Challenge and Set Aside 12. Finality of Award
  • 7. Case laws: ■ Bharat Aluminum Co. v. Kaiser Aluminum Technical Service, Inc. (BALCO case) ■ BCCI v. Kochi Cricket Pvt. Ltd. ■ World Sport Group (Mauritius) Ltd. V. MSM Satellite (Singapore) Pte. Ltd. ■ O.N.G.C. Ltd. V. Saw Pipes Ltd. ■ Sundaram Finance Ltd. V. NEPC India Ltd.
  • 8. MEDIATION ■ Black’s Law Dictionary : "Mediation is a method of dispute resolution involving a neutral third party who tries to help the disputing parties reach a mutually agreeable solution.” ■ Mediation not explicitly defined in arbitration and conciliation act and mediation act. ■ In mediation, parties reach a voluntary settlement with the mediator's assistance, while in arbitration, the arbitrator renders a binding decision.
  • 9. Legal framework for mediation in India ■ The Arbitration and Conciliation Act, 1996:While primarily focusing on arbitration, this Act also includes provisions for conciliation, which is closely related to mediation. ■ The Civil Procedure Code, 1908 (CPC):Section 89 of the CPC provides for alternative dispute resolution mechanisms, including mediation. ■ The Mediation Act, 2023:This Act was introduced to enhance the effectiveness of mediation in India and provide a comprehensive legislative framework for its implementation. It promotes institutional mediation, provides for the enforcement of mediated settlement agreements, and establishes a Mediation Council of India for regulating mediators and mediation institutions.
  • 10. Mediation Act,2023 ■ Promotion of Mediation ■ Institutional Mediation ■ Enforcement of Mediated Settlement Agreements: ■ Registration of Mediators ■ Pre-litigation Mediation ■ Confidentiality ■ Time-Bound Process ■ Flexibility ■ Recognition of Online Mediation
  • 11. Case laws: ■ S. Gian Singh v. State of Punjab (2012) ■ Salem Advocate Bar Association v. Union of India (2005) ■ Afcons Infrastructure Ltd. V. Cherian Varkey Construction Co. Pvt. Ltd. (2010)
  • 12. CONCILIATION ■ Black’s Law Dictionary: “a form of alternative dispute resolution in which the parties to a dispute use a conciliator, who meets with the parties separately in an attempt to resolve their differences. Unlike mediation, conciliation often involves the conciliator giving advice to the parties.” ■ Section 61(1) of Arbitration and Conciliation Act, 1996: "conciliation" means a process in which a conciliator assists the parties in an impartial manner in their attempt to reach an amicable settlement of their dispute arising out of or relating to the agreement.
  • 13. Features of conciliation: 1. Impartial Assistance-S. 61(1) 2. Advisory Role- S. 62 3. Informal Procedure- S. 63 4. Confidentiality- S. 67 5. Non-Binding Outcome- S.73 6. Voluntary Participation-S.62(1) 7. Preservation of Relationship-S.61(3)
  • 14. Procedure of conciliation: 1. Commencement of Conciliation Proceedings: ■ Section 62: The conciliation proceedings commence when a party sends a written invitation to the other party to conciliate. 2. Appointment of Conciliator: ■ Section 64: Upon receiving the invitation, the parties jointly appoint a conciliator. ■ Section 64(1)(b): If the parties fail to agree on a conciliator, either party may request the court to appoint one. 3. Role of Conciliator: ■ Section 65: The conciliator conducts the proceedings in a manner he considers appropriate, taking into account the circumstances of the case. ■ Section 67: The conciliator assists the parties in identifying issues, exploring settlement options, and formulating settlement terms. 4. Confidentiality of Proceedings: ■ Section 75: All communications made during conciliation proceedings are confidential, and no party can rely on them as evidence in any judicial or arbitral proceedings. 5. Settlement Agreement: ■ Section 74: If the parties reach a settlement agreement, the conciliator draws up and signs the settlement agreement, which becomes binding on the parties.
  • 15. 6. Termination of Conciliation Proceedings: ■ Section 73: Conciliation proceedings terminate upon the execution of a settlement agreement, or if the parties notify the conciliator of their decision to terminate the proceedings. 7. Role of Court in Conciliation: Section 73(5): The court may, on the application of either party or the conciliator, extend the time for conciliation proceedings if it deems necessary. 8. Enforcement of Settlement Agreement: Section 74: A settlement agreement reached through conciliation may be enforced by the court upon application by either party.
  • 16. Arbitration Mediation Conciliation Decision- Making Authority make a binding decision. Parties control the outcome; mediator facilitates discussion. Conciliator may provide advice but does not make a binding decision. Formality Formal process with rules of evidence. Informal process with flexible rules. Informal process similar to mediation. Outcome Binding decision (award). Non-binding; parties reach a voluntary agreement. Non-binding unless parties agree to formalize the settlement. Role of Neutral Third Party Arbitrator(s) act as decision- makers. Mediator facilitates communication and negotiation. Conciliator may provide advice and suggestions.
  • 17. Conclusion ■ Arbitration, Mediation, and Conciliation offer effective alternatives to traditional litigation. ■ Each method has unique features and advantages. ■ Arbitration provides a binding decision by a neutral arbitrator. ■ Mediation and Conciliation focus on facilitating communication and negotiation. ■ The choice of ADR method depends on the nature of the dispute and parties’ preferences. ■ A well-established legislative framework supports ADR in India. ■ ADR methods play a significant role in easing the burden on courts and promoting efficient dispute resolution.
  • 18. Thank you for your time and interest

Editor's Notes

  1. Case pending stat-njdg National judicial data grig- 0-1 yr -28.65% both civil and criminal. 1-3 yrs-26.73%. Total no. Of cases pending adding up to 44305944. **History of ADR in India:** - Alternative Dispute Resolution (ADR) mechanisms in India have ancient roots, with references to mediation and arbitration dating back to ancient texts such as the Vedas. - During British colonial rule, ADR methods continued to be used, albeit with Western legal influences. - The modern era of ADR in India began with the enactment of the Arbitration Act, 1940, which provided a legal framework for arbitration proceedings. - However, it was the Arbitration and Conciliation Act, 1996, that revolutionized ADR in India by providing a comprehensive framework for both domestic and international arbitration and mediation. - This Act was enacted to align India’s arbitration laws with international standards, promote institutional arbitration, and streamline the dispute resolution process. - Over the years, there has been a growing recognition and acceptance of ADR methods in India, with the judiciary actively encouraging parties to explore mediation and arbitration as alternatives to traditional litigation. - Additionally, India has witnessed the establishment of various arbitral institutions and mediation centers, further promoting the use of ADR mechanisms. - Today, ADR continues to play a crucial role in the Indian legal system, offering parties a faster, cost-effective, and more flexible means of resolving disputes. New York Convention:** - The New York Convention, formally known as the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards, is an international treaty. - It was adopted in 1958 and entered into force in 1959, with the aim of promoting the use of arbitration for the resolution of international commercial disputes. - The convention provides a framework for the recognition and enforcement of arbitral awards made in other contracting states. - It has been widely adopted, with over 160 countries as signatories, making it one of the most successful treaties in the field of international dispute resolution. - India acceded to the New York Convention in 1960, which was later enacted into domestic law under the Arbitration and Conciliation Act, 1996. - The New York Convention has played a significant role in promoting international arbitration and facilitating the enforcement of arbitral awards across borders.
  2. 1. Efficiency: ADR methods such as arbitration, mediation, and conciliation offer quicker resolution of disputes compared to traditional litigation, saving time and resources for all parties involved. 2. Cost-effectiveness: ADR processes are generally less expensive than going to court, as they involve fewer procedural formalities and legal fees. 3. Flexibility: allows parties to customize the resolution process to suit their specific needs and preferences, providing greater control over the outcome. 4. Preservation of Relationships: Unlike adversarial litigation, ADR methods focus on collaboration and communication, helping parties maintain or even strengthen their relationships while resolving disputes. 5. Confidentiality: ADR proceedings are often conducted in private, offering parties confidentiality and protecting sensitive information from becoming public record. 6. Informality: These processes are less formal than courtroom proceedings, which can help reduce tension and facilitate open dialogue between parties. 7. Expertise: ADR allows parties to select neutral third-party facilitators or decision-makers with specialized knowledge or expertise relevant to the dispute, ensuring fair and informed outcomes. 8. Access to Justice: ADR provides a forum for resolving disputes that may not be suitable for litigation due to factors such as complexity, confidentiality, or the desire for a more collaborative solution.(justice delayed is justice denied) 9. Reduced Court Backlog: By diverting cases away from overloaded court dockets, ADR helps alleviate pressure on the judicial system and promotes more efficient use of court resources. 10. Compliance and Enforcement: Agreements reached through ADR processes, such as arbitration awards or mediated settlements, are legally binding and enforceable, providing parties with a reliable mechanism for ensuring compliance with agreed-upon terms.
  3. Section 7 in The Arbitration And Conciliation Act, 1996 7. Arbitration agreement. (1)In this Part, arbitration agreement means an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not. (3)An arbitration agreement shall be in writing. Section 10 in The Arbitration And Conciliation Act, 1996 10. Number of arbitrators. (1) The parties are free to determine the number of arbitrators, provided that such number shall not be an even number. (2) Failing the determination referred to in sub-section (1), the arbitral tribunal shall consist of a sole arbitrator. Section 35 in The Arbitration And Conciliation Act, 1996 35. Finality of arbitral awards. - Subject to this Part an arbitral award shall be final and binding on the parties and persons claiming under them respectively. Section 75 in The Arbitration And Conciliation Act, 1996 75. Confidentiality. - Notwithstanding anything contained in any other law for the time being in force, the conciliator and the parties shall keep confidential all matters relating to the conciliation proceedings. Confidentiality shall extend also to the settlement agreement, except where its disclosure is necessary for purposes of implementation and enforcement Section 36 of the Arbitration and Conciliation Act lays that Enforcement of an arbitral award in a Domestic Arbitration is to be carried out in the same manner as done in a decree passed by the court. Upon expiry of limitation for moving Objection Petition under Section 34 of the 1996 Act had expired or the Objection Petition has been dismissed, the execution process can be initiated.Originally the Arbitration Act did not specify as to whether the operation of a domestic arbitral award would be stayed while the Objection Petition under Section 34 of the Arbitration Act is pending disposal. On this aspect Supreme Court, had in National Aluminum Company Ltd. (NALCO) v. Pressteel & Fabrications (P) Ltd. And Anr. (2004) 1 SCC 540 held that once a domestic arbitral award is challanged under Section 34 of the 1996 Act it becomes unexecutable. It was through the Arbitration & Conciliation (Amendment) Act, 2015, which sought to emd the era of the automatic stay rule. The amended Section 36 stipulated that the mere filing of a challenge under Section 34 would not render a domestic arbitral award unenforceable, and a stay of the operation of the award would have to be specifically sought from and granted by the relevant court. Section 5 in The Arbitration And Conciliation Act, 1996 5. Extent of judicial intervention. - Notwithstanding anything contained in any other law for the time being in force, in matters governed by this Part, no judicial authority shall intervene except where so provided in this Part. Section 19 in The Arbitration And Conciliation Act, 1996 19. Determination of rules of procedure. (2) Subject to this Part, the parties are free to agree on the procedure to be followed by the arbitral tribunal in conducting its proceedings. (3) Failing any agreement referred to in sub-section (2), the arbitral tribunal may, subject to this Part, conduct the proceedings in the manner it considers appropriate. (4) The power of the arbitral tribunal under sub-section (3) includes the power to determine the admissibility, relevance, materiality and weight of any evidence.
  4. Initiation of Arbitration: Arbitration is initiated by a party sending a notice to the other party invoking arbitration. Section 21: Commencement of arbitration proceedings. A appointment of Arbitrator(s):Parties may agree on the number and appointment of arbitrators. S Section 11: Appointment of arbitrators; default procedure if parties fail to agree. Arbitral Tribunal’s Powers: Arbitral tribunal has the authority to conduct proceedings, administer oaths, and issue interim orders.S section 16: Competence of arbitral tribunal to rule on its jurisdiction . Pleadings and Evidence: Parties submit their claims and defenses along with supporting evidence. Section 19: Equal treatment of parties; determination of rules of procedure. hearings and Proceedings: Arbitral tribunal conducts hearings and receives evidence from both parties. Section 24: Hearings and written proceedings. Interim Measures and Orders:Arbitral tribunal may grant interim measures to preserve assets or prevent harm . Section 17: Interim measures by arbitral tribunal. Closing of Proceedings:Once parties have presented their cases, the arbitral tribunal closes the proceedings. Section 23: Statements of claim and defense; counterclaim.Aw Award:The arbitral tribunal renders its final decision, known as the award, resolving the dispute. Section 31: Form and contents of arbitral award. enforcement of Award:The award is enforceable in courts and binding on the parties . Section 36: Enforcement of arbitral awards. Costs and Expenses:Each party bears its own costs, and the tribunal may allocate costs in the final award. Section 31: Costs. Challenge and Set Aside:Parties may challenge the arbitral award in court under limited grounds . Section 34: Application for setting aside arbitral award . Finality of Award: Arbitral awards are final and not subject to appeal except on limited grounds. Section 35: Finality of arbitral awards.
  5. Bharat Aluminium Co. v. Kaiser Aluminium Technical Service, Inc. (BALCO case )Facts: Dispute arose between Bharat Aluminium Co. (BALCO) and Kaiser Aluminium Technical Service regarding termination of an agreement. BALCO initiated arbitration in India, but Kaiser sought to challenge the arbitration agreement in Indian courts. Ratio: Supreme Court held that Part I of the Arbitration and Conciliation Act, 1996, applies only to arbitrations seated in India. Parties can choose a foreign seat and exclude the applicability of Part I. BCCI v. Kochi Cricket Pvt. Ltd . Facts: Kochi Cricket Pvt. Ltd. (Kochi Tuskers Kerala) challenged its termination from the Indian Premier League (IPL) by the Board of Control for Cricket in India (BCCI). Kochi initiated arbitration seeking reinstateme nt. Ratio: Supreme Court upheld the validity of the arbitration clause and directed the parties to resolve the dispute through arbitration, emphasizing the importance of alternative dispute resolution in sports disputes . World Sport Group (Mauritius) Ltd. V. MSM Satellite (Singapore) Pte. Lt d. Facts: Dispute arose regarding a media rights agreement for broadcasting Indian Premier League (IPL) matches. The arbitration clause provided for arbitration in Singapore. Ratio: Supreme Court held that when parties choose a foreign seat of arbitration, Indian courts have limited jurisdiction to interfere with arbitration proceedings and enforcement of awards .O.N.G.C. Ltd. V. Saw Pipes Ltd. F acts: Dispute arose between O.N.G.C. Ltd. And Saw Pipes Ltd. Regarding a contract for supply of pipes. Arbitration clause provided for arbitration in accordance with UNCITRAL Rules. Ratio: Supreme Court emphasized the autonomy of arbitral tribunals in conducting proceedings and interpreting contracts, limiting the scope of judicial intervention . Sundaram Finance Ltd. V. NEPC India Ltd . Facts: Dispute arose regarding a lease agreement between Sundaram Finance Ltd. And NEPC India Ltd. NEPC sought to challenge the arbitral award in Indian courts . Ratio: Supreme Court held that courts should not interfere with arbitral awards unless there is a fundamental error of law or public policy violation, promoting finality and enforcement of awards.
  6. In the Arbitration and Conciliation Act, 1996, mediation is not explicitly defined as a separate term. However, Section 30 of the Act mentions "conciliation" as one of the methods for settlement of disputes. The Mediation Act, 2023,Also does not explicitly provide a separate definition of mediation. However, mediation can be understood within the context of the Act as a voluntary and confidential process in which a neutral third party, known as the mediator, facilitates communication and negotiation between parties to a dispute, with the aim of reaching a mutually acceptable settlement. Like arbitration mediation have similar features including Voluntary Process:Parties willingly participate in mediation proceedings. Neutral Third Party:Mediation involves a neutral mediator who facilitates discussions. Confidentiality:Discussions and documents in mediation are confidential.Section 70 of the Mediation Act ensures confidentiality of mediation proceedings .Informality:Mediation proceedings are less formal than court proceedings.Parties have more flexibility in shaping the process. Mutually Agreed Settlement:Parties work together to reach a mutually acceptable resolution. .Cost-Effective:Mediation is generally quicker and less expensive than litigation.Section 87 of the Mediation Act encourages cost-effective dispute resolution methods.
  7. The Mediation Act, 2023, introduced in India, encompasses several significant features aimed at enhancing the effectiveness of mediation and providing a comprehensive framework for its implementation. Some key features of the Mediation Act, 2023, include: Promotion of Mediation:The Act aims to promote and facilitate mediation as a means of resolving disputes, both commercial and non-commercial, in India. Institutional Mediation:The Act emphasizes the establishment and recognition of institutional mediation, providing a structured framework for mediation proceedings. E enforcement of Mediated Settlement Agreements:It provides for the enforcement of mediated settlement agreements, making them legally binding and enforceable in accordance with the provisions of the Act .Registration of Mediators:The Act establishes a Mediation Council of India to regulate and accredit mediators and mediation institutions, ensuring their competency and adherence to professional standards .Pre-litigation Mediation:Parties are encouraged to engage in pre-litigation mediation, allowing them to resolve disputes before initiating formal legal proceedings.C Confidentiality:The Act ensures confidentiality of mediation proceedings, protecting the privacy of the parties involved and promoting open communication during mediation .Time-Bound Process:It stipulates a time-bound process for mediation proceedings, encouraging timely resolution of disputes and avoiding unnecessary delays .Flexibility:The Act provides flexibility in the conduct of mediation proceedings, allowing parties to customize the process according to their needs and preferences. Recognition of Online Mediation:It recognizes online mediation as an acceptable and cost-effective method of dispute resolution, especially in cases where physical presence is impractical .Amendments to Existing Laws:The Act introduces amendments to existing statutes, such as the Indian Contract Act, 1872, to align them with the new mediation framework and promote consistency in legal principles.
  8. S. Gian Singh v. State of Punjab (2012):Facts: The case involved a criminal matter where the parties reached a settlement during mediation proceedings. However, the trial court refused to quash the criminal proceedings despite the settlement .Ratio: The Supreme Court held that in criminal cases, if the parties reach a settlement and the victim or complainant agrees to compound the offense, the High Court can quash the criminal proceedings under Section 482 of the Code of Criminal Procedure Salem Advocate Bar Association v. Union of India (2005):Facts: The case dealt with the constitutionality of Section 89 of the Civil Procedure Code, which provides for alternative dispute resolution methods, including mediation. Ratio: The Supreme Court upheld the constitutional validity of Section 89, emphasizing the importance of alternative dispute resolution mechanisms in reducing the burden on courts and promoting speedy resolution of disputes. Afcons Infrastructure Ltd. v. Cherian Varkey Construction Co. Pvt. Ltd. (2010):Facts: The case involved a construction contract dispute referred to mediation under Section 89 of the Civil Procedure Code. The mediator prepared a settlement agreement, but one party refused to sign it. Ratio: The Supreme Court held that once parties agree to mediation, they are bound by the terms of the settlement agreement reached through the process, and courts can enforce such agreements.
  9. :1. **Impartial Assistance:** In conciliation, a neutral third party, known as the conciliator, assists the parties in reaching a settlement, but unlike mediation, the conciliator may actively propose solutions to the dispute.Section 61(1) defines conciliation as a process in which a conciliator assists the parties impartially in reaching an amicable settlement. e.2. **Advisory Role:** Unlike arbitration where the arbitrator renders a binding decision, and mediation where the mediator facilitates negotiation without proposing solutions, the conciliator may provide advisory opinions and suggestions to the parties.Section 62 empowers the conciliator to make proposals for settlement at any stage of the conciliation proceedings. 3. **Informal Procedure:** Conciliation proceedings are typically less formal compared to arbitration. While arbitration follows a structured legal process akin to litigation, conciliation allows for more flexible and informal discussions. Section 63 provides that the conciliator may conduct the proceedings in a manner suitable to the circumstances, allowing for flexibility and informality. 4. **Confidentiality:** Similar to mediation, conciliation proceedings are confidential. The discussions and proposals made during conciliation cannot be disclosed to third parties or used as evidence in subsequent proceedingS.Section 67 ensures that the conciliation proceedings and communications made during conciliation are confidential and cannot be disclosed in any subsequent proceedings. s.5. **Non-Binding Outcome:** The outcome of conciliation is non-binding unless the parties voluntarily agree to formalize the settlement reached during conciliation into a binding agreement.Section 73 clarifies that any settlement agreement reached through conciliation is non-binding unless the parties agree to its enforcement under Section 74. 6. **Voluntary Participation:** Parties participate in conciliation voluntarily, and they can withdraw from the process at any time. Unlike arbitration, where parties are bound by the arbitration agreement, participation in conciliation is entirely voluntary.Section 62(1) states that the parties must consent to conciliation voluntarily, and they have the freedom to withdraw from the process at any time. .7. **Preservation of Relationship:** Conciliation aims to preserve the relationship between the parties, making it particularly suitable for disputes where ongoing collaboration or cooperation is desirable.These distinctive features of conciliation make it a valuable alternative dispute resolution mechanism, offering parties flexibility, confidentiality, and the opportunity to reach a mutually acceptable resolution with the assistance of a neutral facilitator.Section 61(3) emphasizes the conciliator’s role in facilitating communication and understanding between the parties to preserve their relationship.
  10. Certainly! Here’s an elaboration of the procedure of conciliation based on the provided text: 1. **Commencement of Conciliation Proceedings:** - Conciliation proceedings begin when one party sends a written invitation to the other party to participate in conciliation. This invitation formally initiates the process. 2. **Appointment of Conciliator:** - Upon receiving the invitation, both parties jointly appoint a conciliator. The conciliator is a neutral third party who facilitates the conciliation process. - If the parties fail to agree on a conciliator, either party may request the court to appoint one. 3. **Role of Conciliator:** - The conciliator conducts the proceedings in a manner he deems appropriate, considering the circumstances of the case. This involves managing the discussions, facilitating communication, and guiding the parties towards a resolution. - The conciliator assists the parties in identifying the issues in dispute, exploring potential settlement options, and formulating terms of settlement that are mutually acceptable. 4. **Confidentiality of Proceedings:** - All communications made during conciliation proceedings are strictly confidential. This ensures that parties can openly discuss their concerns and interests without fear of their statements being used against them in future legal proceedings. - Confidentiality promotes a more open and candid exchange of information, which is essential for reaching a successful resolution. 5. **Settlement Agreement:** - If the parties reach a settlement agreement during conciliation, the conciliator prepares and signs the agreement on behalf of the parties. This settlement agreement becomes legally binding once executed. - The agreement outlines the terms and conditions agreed upon by the parties for resolving their dispute. 6. **Termination of Conciliation Proceedings:** - Conciliation proceedings conclude either upon the execution of a settlement agreement by the parties or if the parties inform the conciliator of their decision to terminate the process. - In some cases, the court may extend the time for conciliation proceedings if necessary, upon the application of either party or the conciliator. 7. **Role of Court in Conciliation:** - The court plays a limited role in the conciliation process, primarily concerning the extension of time for proceedings if requested by the parties or the conciliator. 8. **Enforcement of Settlement Agreement:** - A settlement agreement reached through conciliation may be enforced by the court upon application by either party. This ensures that the terms of the agreement are upheld and complied with by both parties. By following these procedural steps, parties can effectively engage in the conciliation process to resolve their disputes amicably and efficiently.