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CS Professional · Arbitration, Mediation and Conciliation · Various Modes and Scope of Mediation including Role of Mediation in other ADR Domains

Anand Pharma and Bhatia Distributors completed mediation, and the mediation service provider raised a bill that includes the mediator's fee and its own administrative charges. They had made no cost agreement. Which statement is correct under Section 25 of the Mediation Act, 2023?

Both the mediator's fee and the service provider's charges are shared equally. Section 25(2) covers all costs of mediation, expressly including both items, and equal sharing applies by default when the parties have made no different agreement.

  1. AOnly the mediator's fee is shared equally; the provider's charges fall on the claimant
  2. BBoth the mediator's fee and the provider's charges are shared equallyCorrect
  3. COnly the provider's charges are shared equally; the mediator's fee is paid by the respondent
  4. DCosts are shared in proportion to each party's claim

Explanation

Section 25(2) says all costs of mediation, expressly including the mediator's fees and the mediation service provider's charges, are borne equally unless otherwise agreed. So both components are split equally. Splitting only one component is wrong because the word 'all' covers both.

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