Nearly three years after the law was enacted, the government has set up the Mediation Council of India to regulate mediation proceedings in the country following a nudge from a parliamentary committee.
A Union law ministry notification issued on Thursday night announced the establishment of the council under the Mediation Act, 2023.
The council will regulate and promote institutional dispute resolution. It is also mandated to recognise mediation service providers and institutes that train and certify professionals.
Attorney General R Venkataramani had last year attributed the delay in setting up the Mediation Council of India (MCI) to a shortage of human resources and challenges in finding suitable candidates for statutory bodies.
The department-related Standing Committee on Law and Personnel, in its report on India's arbitration ecosystem, had taken note of the law ministry's clarification that establishing the MCI was a key prerequisite for the full implementation of the Act, along with the formulation of detailed rules and regulations.
Initial provisions relating to the constitution and functioning of the MCI were notified on October 9, 2023, and rules concerning its composition and service conditions have been brought into force.
"While noting the phased implementation strategy, the committee emphasises that expeditious operationalisation of the Mediation Council of India is critical to unlocking the full potential of the Act," the panel had said.
"The Committee, therefore, recommends that concerted efforts be made to fast-track the establishment of the MCI and finalise the necessary regulations within a defined timeline," it said.
Its report was tabled in Parliament earlier this month.
Institutional arbitration and mediation are two of the means being pushed by the government to settle commercial, civil and family disputes outside courtrooms.
While arbitration cases are adjudicated, mediation cases are settled by way of conciliation. An institutional and not an ad-hoc mechanism ensures the settlement is binding on rival parties.
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