top of page
Contact Us - PC and Associates
Search

Benefits and Why Indian Courts are encouraging Mediation Centre?

Updated: Mar 8

People resolving their disputes at Mediation Centre
Benefits and Why Indian Courts are encouraging Mediation Centre

Mediation is fast emerging as a preferred method of resolving disputes in India, offering an alternative to the conventional adversarial process. It provides a flexible, non-confrontational approach to conflict resolution, not just this that Indian Courts are encouraging Mediation Centre in recent years. Through mediation, parties can reach mutually acceptable solutions without undergoing the time-consuming and often costly process of litigation. Recent judgments by Indian courts have highlighted the role mediation plays in addressing a variety of disputes, thereby alleviating the burden on the judiciary.

Benefits and Why Indian Courts are encouraging Mediation Centre

There are social and as well as economic benefits that Indian court encouraging mediation centre. Firstly, Mediation involves a neutral third party who assists disputing parties in negotiating a settlement. Secondly, unlike court trials, mediation is a confidential process, encouraging open dialogue and collaboration to reach a solution that satisfies all parties. It can be applied to diverse matters, including family disputes, commercial conflicts, and property issues.

Economic Benefits of Mediations in India

Several factors involve that allows for encouragements of mediation centre in India:

  • Judicial Overload: Indian courts are dealing with over 47 million pending cases, which makes the need for alternative resolution mechanisms more pressing than ever. Mediation offers an effective solution to help clear the judicial backlog.

  • Cost Efficiency: Mediation tends to be more cost-effective compared to lengthy court cases, benefiting both individuals and businesses.

  • Confidentiality and Flexibility: Disputes resolved through mediation remain confidential, unlike court proceedings that are public. Furthermore, mediation allows parties to maintain control over the process and outcome.

Noteworthy Indian Judgments Promoting Mediation

In recent years, Indian courts have increasingly advocated for mediation, especially in cases that involve sensitive issues or where a quicker resolution would be beneficial. Here are some significant judgments that have helped shape the role of mediation in India:

  1. M.R. Krishna Murthi v. New India Assurance Co. Ltd. (2019)In this case, the Supreme Court underscored the necessity of pre-litigation mediation for commercial disputes under Section 12A of the Commercial Courts Act, 2015. This judgment promotes the idea that before a lawsuit is initiated, parties should explore mediation to resolve disputes efficiently. It highlights the role of mediation in reducing court caseloads and expediting the resolution process.

  2. Saluja Industries v. Municipal Corporation of Delhi (2020)In this case, the Delhi High Court emphasized mediation's role in resolving public disputes, particularly civic matters. The court's reliance on mediation centres to facilitate settlements illustrates the judiciary’s preference for ADR mechanisms over prolonged court battles, particularly in cases involving public interest.

  3. Afcons Infrastructure Ltd. v. Cherian Varkey Construction Co. (2010)This earlier judgment laid the foundation for the judicial recognition of mediation in India. The Supreme Court categorized disputes that can be referred to mediation and other forms of ADR, highlighting that civil disputes involving contracts, family matters, and commerce are well-suited for mediation.

  4. S. P. Bansal v. State of Haryana (2022)The Punjab and Haryana High Court referred a contentious family property dispute to mediation, advocating that mediation could facilitate a more amicable resolution. This case demonstrates how mediation is increasingly used in family disputes to preserve relationships while reaching a legal settlement.

  5. Shakuntala Devi v. Kamla Devi (2021)In this case, the Delhi High Court directed matrimonial disputes to be settled through mediation. The court emphasized the sensitive nature of family and matrimonial cases and how mediation can help parties arrive at a solution in a less confrontational manner. This judgment reinforces the trend of using mediation in emotionally charged cases, reducing the negative impact of prolonged litigation on family relationships.

Legislative Push for Mediation

India’s legislative framework is also evolving to promote mediation. The Mediation Bill, 2021, currently under review, seeks to institutionalize mediation as the first step before resorting to litigation. The bill proposes mandatory mediation in specific commercial and civil disputes, fostering a culture of out-of-court settlements and reducing the load on the judiciary.

Additionally, amendments to the Commercial Courts Act, 2015, have made it compulsory to attempt mediation before filing a suit in select commercial disputes. This legislative backing underscores the government's commitment to promoting mediation as a primary tool for resolving disputes.

The Impact of Mediation on Dispute Resolution in India

Mediation is transforming the dispute resolution landscape in India in several ways:

  • Time-Efficient Resolutions: By encouraging mediation at the pre-litigation stage, courts are facilitating faster dispute resolution and reducing case backlogs.

  • Cost-Effective: Mediation helps parties save on litigation costs, making it a more accessible form of justice, especially in commercial disputes.

  • Relationship Preservation: In cases involving personal relationships, such as family or matrimonial disputes, mediation helps preserve relationships by avoiding the bitterness that often accompanies court trials.

  • Institutional Mediation Growth: Court-annexed mediation centres and private mediation organizations are growing, providing parties with professional mediators trained to handle complex disputes.

Conclusion

Mediation is fast becoming an integral part of India’s legal framework. The courts' proactive stance, combined with supportive legislation, signals a shift towards ADR mechanisms like mediation. This move benefits not only the judiciary by reducing the case load, but also the parties involved, who can settle disputes more amicably and efficiently.

With increasing emphasis on mediation, India is moving towards a more collaborative and less adversarial legal culture, offering a promising future for dispute resolution outside traditional courtroom battles.

Comments

bottom of page