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

In Rashmi's accident claim, the parties referred by the Claims Tribunal attend mediation but fail to settle. What follows under the Mediation Act, 2023?

The mediator prepares a non-settlement report and forwards it to the Claims Tribunal that referred the matter, and the Tribunal then adjudicates. The mediator cannot impose a settlement, and the claim does not lapse because mediation failed.

  1. AThe mediator prepares a non-settlement report and forwards it to the Claims Tribunal for adjudicationCorrect
  2. BThe mediator decides the compensation and the Tribunal must accept it
  3. CThe matter ends and Rashmi cannot pursue the claim further
  4. DThe parties must start pre-litigation mediation again before any court

Explanation

Section 5(8) says that if no settlement agreement is reached, a non-settlement report prepared by the mediator is forwarded to the referring Claims Tribunal for adjudication. A mediator has no authority to impose a settlement, so deciding compensation is wrong. Where a settlement is reached, it is placed before the Tribunal for consideration.

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