Rapid Fire
India’s Mediation Act Lies Unused
- 25 Sep 2024
- 1 min read
The delay in implementing the Mediation Act, 2023 is hindering India’s alternative dispute redressal (ADR) framework.
- A working committee chaired by P.K. Malhotra to draft the rules for the Mediation Council of India submitted its report. However, the government is yet to notify these rules.
- Significance of Mediation Act, 2023:
- Reducing Judicial Overload: Nearly 76.98 million civil dispute cases are pending in Indian courts. Of this, commercial suits account for 0.36% and arbitration contributes 0.77% which can be dealt under the Mediation Act, 2023.
- Family Matters: It can help curb the "third-generation curse," where less than 10% of family businesses survive beyond the third generation due to disputes.
- Banking: Helpful in resolving loan defaults and non-performing assets (NPAs) related disputes.
- Real Estate Sector: Quicker resolution of disputes over project delays and buyer-developer contracts.
- Aligning with Global Standards: It will help India aligning with international mediation standards, which are vital for resolving cross-border business disputes.
