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CS Executive · Jurisprudence, Interpretation and General Laws · Law relating to Arbitration, Mediation and Conciliation

A claimant files an application for compensation for a road accident before a Claims Tribunal. The settlement contemplated in section 149 of the Motor Vehicles Act, 1988 is not arrived at between the parties. What does the Mediation Act, 2023 require the Tribunal to do?

The Claims Tribunal must refer the parties for mediation to a mediator or mediation service provider under the Act. Section 5(6) uses the word shall, overriding the voluntary character of pre-litigation mediation, when no settlement under section 149 of the Motor Vehicles Act is reached.

  1. ARefer the parties for mediation to a mediator or mediation service provider under the ActCorrect
  2. BDismiss the application as premature
  3. CWait for both parties to apply for mediation voluntarily
  4. DRefer the matter to arbitration under the Arbitration and Conciliation Act, 1996

Explanation

Section 5(6) provides that, notwithstanding the voluntary nature of sub-sections (1) and (2), if no settlement under section 149 is reached, the Claims Tribunal shall refer the parties for mediation. The word 'shall' makes it mandatory, not voluntary.

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