Para 9.7.4 - Mediation Process | KartavyaDesk
Original Rule Text
6. The Process: a) The Mediator independently and impartially encourages open communication and cooperation between disputing parties to reach an amicable settlement, but he does not have the authority to impose a settlement upon the parties to the dispute. The parties shall be informed expressly by the mediator that he only facilitates in arriving at a resolution of the dispute and that he shall not impose any settlement nor give any assurance that the mediation may result in a settlement. b) Unlike court proceedings, Mediation is informal and flexible and allows for creative problem-solving and exploration of various solutions. The Code of Civil Procedure or the Bhartiya Sakshya Adhiniyam (BS), 2023 shall not be binding on the mediator. The parties can determine the mediation’s venue, manner, and language. c) Confidentiality: All the acknowledgements, opinions, suggestions, promises, proposals, apologies, and admissions made during the mediation; acceptance/ willingness to accept proposals in the mediation; documents prepared solely for the conduct of mediation are strictly confidential. These can neither be relied upon as evidence in any subsequent court proceedings nor be asked to be disclosed by any court/ tribunal. 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 the confidentiality of the mediation proceedings. d) Online Mediation: The Act allows parties to opt for online/ virtual Mediation, which shall be deemed to occur within the jurisdiction of a competent court. The Act also requires online mediation communication mechanisms to ensure confidentiality. e) The mediator initially meets the parties separately and communicates the view of each party to the other to the extent agreed upon by them. He assists them in identifying issues, advancing better understanding, clarifying priorities, exploring areas of the parties’ responsibility, identifying common interests, and encouraging compromise. He then meets them jointly to encourage a mutually acceptable resolution. At any stage of the mediation proceedings, at the parties’ request, the mediator may suggest a dispute settlement in writing. f) Termination of Mediation: The process must be completed within 120 days, though parties can extend it by another 60 days through mutual consent. If Mediation is not completed within this timeline, the Mediator shall prepare a non-settlement report without disclosing the cause of non-settlement or any other matter or thing referring to their conduct during mediation for the parties or the Mediation Service Provider (MSP). Mediation shall also stand terminated on a declaration of the mediator, after consultation with the parties or otherwise, that further efforts at mediation are no longer justified or on communication by a party(ies) in writing, addressed to the mediator and the other parties that they wish to opt out of mediation. On termination of Mediation, if the dispute is still alive, the aggrieved party shall be free to invoke Arbitration. g) Mediated Settlement Agreement (MSA): If the parties resolve the dispute and execute a mediated settlement agreement (“MSA”), then the Mediation is successful.
What This Means
Para 9.7.4 of the Manual for Procurement of Non-Consultancy Services outlines the process for mediation in case of disputes. It essentially describes how a mediator helps parties reach an agreement without forcing a solution. The mediator's role is to facilitate communication, explore options, and encourage compromise. Think of it like a neutral guide helping two sides find common ground. This process is designed to be informal and confidential, offering a flexible alternative to formal legal proceedings. The goal is to resolve disputes quickly and efficiently, saving time and resources for everyone involved.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Mediation is a voluntary process where a neutral third party (the mediator) helps disputing parties reach a mutually agreeable settlement.
- •The mediator does not have the authority to impose a settlement.
- •Mediation is informal and flexible, not bound by strict legal procedures.
- •All communications during mediation are confidential and cannot be used as evidence in court.
- •The mediation process has a time limit: 120 days, extendable by 60 days with mutual consent.
Practical Example
The Ministry of Textiles contracted 'WeaveWell Ltd.' to supply 5000 handloom sarees. A dispute arose regarding the quality of the sarees delivered. Instead of immediately resorting to legal action, both parties agreed to mediation as per Para 9.7.4. A retired IAS officer, Mr. Sharma, was appointed as the mediator. He met with representatives from both the Ministry and WeaveWell Ltd. separately, then jointly, facilitating discussions and helping them identify areas of compromise. Eventually, they agreed that WeaveWell Ltd. would provide a discount of 10% on the total contract value, and the Ministry would accept the sarees. This saved both parties significant legal costs and time.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What happens if mediation fails?▼
Is mediation mandatory?▼
Who pays for the mediator?▼
What kind of disputes are suitable for mediation under this rule?▼
Can the mediator be called as a witness in court if mediation fails?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Test Your Knowledge
Question 1 of 3
According to Para 9.7.4 of the Manual for Procurement of Non-Consultancy Services, what is the primary role of the mediator in dispute resolution?
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