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

At the first session of a mediation between Kaveri Textiles and Rathi Dyes over an unpaid invoice, the mediator tells both parties that she will help them reach a decision but will not impose any settlement and cannot promise that the mediation will end in a settlement. Under Section 16 of the Mediation Act, 2023, this statement is:

The statement is required. Section 16(2) of the Mediation Act, 2023 obliges the mediator to tell the parties expressly that she only facilitates a decision, will not impose any settlement and gives no assurance of settlement. The duty applies regardless of counsel or dispute type.

  1. ARequired, because the parties must be expressly informed that the mediator only facilitates and does not impose a settlement or assure oneCorrect
  2. BImproper, because a mediator must assure the parties that a settlement will result
  3. CRequired only if the parties have not been represented by counsel
  4. DOptional, and needed only when the dispute is a commercial dispute

Explanation

Section 16(2) requires the mediator to inform the parties expressly that she only facilitates a decision, will not impose a settlement and gives no assurance that a settlement will result. The statement is therefore required, not improper. The duty does not depend on representation by counsel or on the type of dispute.

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