26th June 2024 (15 Topics)

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Government to Establish Mediation Council of India

Context

The Indian government plans to set up the Mediation Council of India (MCI) by the end of this year to improve out-of-court dispute resolution and enhance ease of doing business.

1: Dimension- Structure and Functions of MCI

Composition: The council will have three members, including a chairperson, who are experts in mediation.
Appointments: Council members may be directly appointed by the Centre or on the advice of a special search-cum-selection committee.
Regulatory role: MCI will lay down standards for the conduct of mediators and oversee their training and certification.

2: Dimension- Impact on Dispute Resolution

Faster resolution: Mandated 180-day timeline for mediation proceedings to encourage quicker settlements.
Business-friendly approach: Enhancing ease of doing business by providing an alternative to lengthy court processes.
Standardization: Issuing guidelines for the mediation process to ensure consistency and quality.

3: Dimension- Potential Benefits and Challenges

Corporate preference: Mediation may become a preferred method for dispute resolution, especially for businesses.
Online mediation growth: Formation of MCI expected to boost the momentum of online dispute resolution (ODR) services.
Implementation challenges: Success will depend on effective execution and acceptance by stakeholders.

Types of alternative dispute resolution in india :

In India, various types of Alternative Dispute Resolution (ADR) mechanisms are employed to resolve disputes outside of traditional court litigation. Some of the prominent types of ADR in India include:
Arbitration: Arbitration involves the resolution of disputes by one or more arbitrators appointed by the parties. The decision of the arbitrator(s), known as the arbitral award, is binding on the parties. Arbitration in India is governed by the Arbitration and Conciliation Act, 1996.
Mediation: Mediation is a voluntary and confidential process in which a neutral third party, the mediator, assists the disputing parties in reaching a mutually acceptable resolution. The mediator facilitates communication and negotiation between the parties but does not impose a decision.
Conciliation: Conciliation is similar to mediation but involves a more active role by the conciliator, who may suggest solutions and make recommendations for resolving the dispute. Like mediation, conciliation is also a voluntary process.
Negotiation: Negotiation is a direct discussion between the parties involved in the dispute, often facilitated by their legal representatives or advisors. The parties attempt to reach a mutually satisfactory settlement without the involvement of a neutral third party.
Lok Adalat: Lok Adalat, or People's Court, is an informal dispute resolution mechanism in which retired judges, social activists, or legal professionals act as conciliators to settle disputes outside the formal court system. Lok Adalats emphasize conciliation and compromise.
Online Dispute Resolution (ODR): ODR involves the use of technology, such as online platforms and video conferencing, to facilitate the resolution of disputes. ODR mechanisms aim to make dispute resolution more accessible, efficient, and cost-effective.
Fast Track Arbitration: Fast track arbitration is a specialized form of arbitration designed to expedite the resolution of disputes, particularly commercial disputes. It involves streamlined procedures and time-bound processes to ensure quicker outcomes.
Expert Determination: Expert determination involves the appointment of a neutral expert to resolve specific technical or factual issues in a dispute. The expert's decision is binding on the parties and is often used in disputes involving complex technical matters.
Adjudication: Adjudication involves the appointment of a neutral adjudicator to make a binding decision on a dispute, typically within a fixed timeframe. Adjudication is commonly used in construction and infrastructure projects to resolve disputes quickly.

PYQ

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Critically examine the Supreme Court's judgment on the constitutionality of the National Judicial Appointments Commission Act, 2014 with reference to the appointment of judges of higher judiciary in India. (UPSC 2017)

Mains Practice Question

Q. Evaluate the potential impact of the Mediation Council of India on the Indian judicial system and business environment. How can it contribute to improving the ease of doing business in the country?

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Government to Establish Mediation Council of India

1: Dimension- Structure and Functions of MCI

2: Dimension- Impact on Dispute Resolution

3: Dimension- Potential Benefits and Challenges

Types of alternative dispute resolution in india :

PYQ

Mains Practice Question

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