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Mediation

MEDIATION

Mediation is a voluntary, confidential, and non-binding process where a neutral third party, the mediator, facilitates communication between disputing parties to help them reach a mutually acceptable agreement. Unlike a judge or arbitrator, the mediator does not impose a decision but empowers the parties to create their own solution through collaborative dialogue. Mediation in India is now governed by the Mediation Act, 2023, a landmark legislation that provides a unified legal structure for both institutional and community mediation.

Role of a Mediator

A mediator is a neutral and impartial third party who facilitates constructive communication between disputing individuals or entities. Their primary role is not to decide the outcome but to guide the conversation, manage emotions, and help clarify the issues in order to promote mutual understanding. The mediator creates a safe, respectful, and confidential environment where parties can openly explore their concerns, generate options, and work toward a voluntary, mutually agreeable resolution. By maintaining neutrality and encouraging collaboration, the mediator empowers parties to find their own path to settlement.

Provisions of Arbitration and Conciliation Act, 1996

The enactment of Arbitration and Conciliation Act, 1996, has imparted a greater finality to the Arbitration and Conciliation proceedings which has, consequently, found favour with a large number of leading companies which are the members of the Chamber and whose commercial disputes have been arbitrated satisfactorily. The Chamber has a Panel of Arbitrators comprising of eminent senior industry professionals, retired judges of the High Courts and other Courts, and others who possess the requisite expertise.

Arbitration Process

When a dispute is referred to the Chamber for arbitration, the Legal Department prepares a brief of the case. An appropriate notice is sent to the Claimants as well as the Respondents, informing about initiation of the arbitration proceedings. Each party to the dispute is advised to remit Rs.25,000/- as advance payment towards the costs and fill in, sign and return to the Chamber the form ‘A’ prescribed under the Chamber’s Rules of Arbitration and Conciliation.

The matter is thereafter referred to the Chamber’s Arbitration and Conciliation Committee for appointment of the Arbitrator from out of the Confidential panel of arbitrators maintained by the Chamber.

The consent of the Arbitrator so appointed is obtained thereafter and the proceedings initiated. The arbitration proceedings are conducted in the premises of the Chamber under the charge of a senior Chamber officer to assist the Arbitral Tribunal. Secretarial support services, with facility of computerized records, are also provided at a nominal cost.

Notes

  • For more than one Arbitrator, the deposit payable will be proportionate to the number of Arbitrators.
  • The processing charges will be non-refundable and the administrative charges will be paid irrespective of whether the case is finalized or not.
  • The entire arbitration charges are payable to the Chamber by each party to the dispute on equal sharing basis. In the event of either of the parties to the dispute not honouring their commitments, the other party will have to pay the entire amounts for the deposit, administrative and other charges.
  • In the event of the arbitration proceedings during a particular meeting lasting beyond three hours, additional charge for one meeting will be payable.

Arbitration Clause Recommended by Bombay Chamber

The Bombay Chamber of Commerce and Industry recommends to all parties desirous of making reference to Arbitration of the Bombay Chamber, the inclusion of the following arbitration clause in their contracts/agreements:

“All disputes or differences whatsoever arising between the parties out of or relating to the construction, meaning or operation or effect of this contract / agreement or breach thereof shall be settled by arbitration in accordance with the Rules of Arbitration and Conciliation of the Bombay Chamber of Commerce & Industry and the Award made in pursuance thereof shall be binding on the parties”.

Bombay Chamber’s Rules of Arbitration and Conciliation

On the basis of the Arbitration and Conciliation Act, 1996, the Bombay Chamber has made its Rules for Arbitration and Conciliation.

These can be obtained from the Chamber’s Office on payment of Rs.100/- only.

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