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CS Professional · Arbitration, Mediation and Conciliation · Mediation: An Introduction and its Process along with Rules

A claimant, Rashmi, was injured in a road accident and applied to the Motor Accident Claims Tribunal for compensation. The settlement contemplated under section 149 of the Motor Vehicles Act, 1988 was not reached. Under the Mediation Act, 2023, what must the Claims Tribunal do?

The Claims Tribunal must refer the parties for mediation to a mediator or mediation service provider under the Act. This duty arises when the settlement under section 149 of the Motor Vehicles Act is not reached. It does not depend on a party's request.

  1. AProceed to adjudicate and refer to mediation only if Rashmi asks
  2. BRefer the parties for mediation to a mediator or mediation service provider under the ActCorrect
  3. CDismiss the application as mediation is barred in accident claims
  4. DDirect the parties to approach the Council for a settlement

Explanation

Section 5(6) provides that where the section 149 settlement is not arrived at, the Claims Tribunal shall refer the parties for mediation to a mediator or mediation service provider. It is mandatory, not dependent on a request. If mediation fails, a non-settlement report goes back to the Tribunal for adjudication.

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