Union Cabinet approves recommendations of Parl panel on Mediation Bill

The Union Cabinet on Wednesday approved amendments to the Mediation Bill including reducing the maximum timeline for completing mediation proceedings from 360 to 180 days.

The official amendments to the law ministry bill are likely to be tabled in the Monsoon session of Parliament beginning Thursday.

The Mediation Bill, 2021 was introduced in Rajya Sabha in December 2021. Later it was referred to the parliamentary committee on law and personnel which gave its report.

The official amendments cleared by the cabinet are based largely on the recommendations made by the parliamentary panel, sources said.

Under the other key recommendation of the panel accepted by the government, pre-litigation mediation has been made voluntary instead of mandatory.

According to the bill pending in the upper house, compulsory pre-litigation mediation in matters of civil or commercial disputes has been provided for before parties approach a court or tribunals.

In case of exceptional circumstances, a party can seek interim relief from the court or tribunal not only before the commencement of mediation proceedings but also during the continuation of proceedings.

Disputes, other than commercial disputes, in which the central government and state government are a party, cannot be mediated unless the nature of disputes which can be referred to mediation are notified.