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Understanding the Mediation Bill 2021: Essential Features and Implications

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Disagreement between two or more people is as natural as cooperation. While we humans are social creatures that have advanced so far due to mutual cooperation, disputes are an unremovable part of our society too as we also possess individuality. Which leads to differences in opinion that spin out of control and become disputes. When such disputes happen, people approach courts to come to settle them once and for all.

Now, if the Indian Judiciary is well known for one thing, it is definitely its inefficiency to solve cases on time. No surprise there too, as our judiciary is grossly overburdened by the amazon of cases that are filed on a regular basis by our huge population. The process of litigation, i.e., fighting a case in court, is also very resource intensive – financially and in terms of time. Hence, ADR (Alternative Dispute Resolution) methods are gaining popularity in India, one of which is mediation.

This blog examines the Mediation Bill 2021 – a new bill that has been introduced by the Central Government to lay down a framework for mandatory mediation for civil cases in our country. Read on to find out about ADR techniques, and the essential features and implications of this new bill.

ADR in Indian Law

In Indian law, there is no separate mediation act as you might find in the laws of several countries like Singapore, Australia, Ireland, or Belgium. However,  there have historically been five types of mediation techniques – Negotiation, Mediation, Conciliation, Arbitration, and Lok Adalats in practice in our country. These practices are supported by the flowing acts:

  • The Code of Civil Procedure of 1908
  • The Companies Act of 2013
  • The Consumer Protection Act of 2019
  • The Commercial Courts Act of 2015, and
  • The Arbitration, Mediation and Conciliation Act of 1996.

Mediation - Meaning and Principles

Mediation is one of the most common alternate dispute resolution techniques that were used by corporations and tech behemoths to settle disputes among each other. This is simply due to the fact that cases involving these large companies always end in huge payouts to the other party, on top of incurring an insane amount of fees. The mediation process is usually always cheaper and quicker than settling a dispute in court too and its outcome is still legally binding.

Mediation refers to a process in which the two parties in a disagreement or dispute are guided to reach a mutually agreeable and beneficial settlement through the help of an impartial third party. This third party is called the mediator. Let us now look at a few principles that are prerequisites to mediation in law:

  • Voluntary participation
  • Confidentiality
  • Impartial mediators
  • Mutual Satisfaction of the Parties

Also Read: The Key Features Of The Mediation Bill 2021

Essential Features of the Mediation Bill 2021

The Rajya Sabha of the Indian Parliament, in December 2020, introduced the Mediation Bill, 2021. After that, it was sent to the Parliamentary Standing Committee on Personal, Public Grievances, Law & Justice for further deliberations when it got vicious opposition upon introduction. Let us now look at a few main features of the mediation bill now.

1. The bill provides uniform definitions of pre-litigation mediation, mediators, and other associated legal terms while outlining the obligations of mediators.

2. It also lists conflicts that fall outside its purview, such as criminal cases.

3. It also provides the framework for the hiring, dismissing, and replacement of mediators and calls for the establishment of a Mediation Council of India to govern them. The bill also provides guidelines for mediation service providers who will provide dispute resolution lawyers.

4. It makes the process of institutional mediation mandatory for all cases that don’t fall outside its jurisdiction.

5. The bill specifies the process of how pre-litigation mediation will be conducted and gives courts and tribunals the authority to suggest mediation for a case.

6. It also allows the parties that take part in a mediation session to withdraw from mediation procedures if they are not satisfied with the impartiality of the appointed mediator or request a different mediator.

7. It states that the agreement reached between both parties after a successful mediation session will be legally binding, just like a court sentence. However, it also considers the difficulties that might arise in enforcing a mediated settlement agreement.

8. The mediation bill goes into detail on the idea of community mediation and its processes.

9. The process of membership of the Mediation Council of India, its incorporation, the retirement of its members, termination of duty, etc, are all thoroughly outlined in the bill.

10. Lastly, the bill also includes provisions for the process of online mediation in a Digital India.

Application of the Mediation Bill

The Mediation Bill of 2021 clearly states that its provisions will only apply to mediation proceedings if they meet the following conditions:

  • The parties reside permanently or habitually in India
  • The dispute is commercial in nature and at least one party is a foreign national
  • The mediation agreement states the mediation proceedings fall under the bill
  • The bill will apply to federal and state governments if the dispute is of a commercial nature or it belongs to any other dispute as notified in the bill.

Also Read: How Will The Mediation Bill 2021 Help Reduce Conflict?

Implications of the Mediation Bill

There are many implications for the Mediation Bill 2021. The main reason why it faced so much opposition even though the Indian Judicial system is in dire need of a standardized mediation law to decrease its load is because of these implications. Let us look at a few of them now:

  • The very idea of mandatory mediation goes against its principle of voluntary participation, which many argue is why it works so well.
  • The members of the Mediation Council are not professional mediators, which raises questions as to why they must govern the body.
  • The bill has no provision for the settlement of disputes that occur outside of India.

So even though the mediation bill is seen as a step in the right direction by many, there are many shortcomings or oversights that must be dealt with before it comes into effect as an act. Even if it’s not court-mandated yet, mediation is a great way to solve disputes whether commercial, marital, or others, as it is always less time-consuming than litigation. A mediation lawyer from Lex Solution will also come in cheaper than the expenses that you might have to incur fighting a case in court over years or decades.

FAQs

1. What is the minimum number of days a mediation session can go on for?

According to the Mediation Bill 2021, the mediation process should be completed within 180 days. If it doesn’t lead to a settlement, the court may propose another session. The parties can wish for a 180-day extension on a session if they wish to too.

2. Which law allows for the enforcement of mediated settlement agreements?

The Code of Civil Procedure, 1908 allows for the enforcement of mediated settlement agreements.

3. What has been said about community mediation in the Bill?

In the mediation bill, community mediation has been provisioned to be used for disputes that affect a local community. This has to be done with a panel of three mediators, who are well-respected in the community and impartial.

4. What is the mediation fund?

The mediation fund is a fund that is to be maintained by the Mediation council of India for promoting, facilitating, and encouraging the use of mediation for dispute resolution in India.

According to estimates, 65% of people living in urban areas around the world are tenants. This is also true in India due to the sky-high prices of real estate in the major cities and the large population of migrant workers who live there. Nevertheless, living as a renter can be a peaceful arrangement, but occasionally there are situations where one can run into rental problems and other connected issues, such as receiving an unauthorized eviction notice or the erratic behaviour of the landlord.

Are you, however, a renter who is experiencing such problems or simply curious about what to do if you ever find yourself in a similar situation? In that case, allow us to help you through this blog, which will briefly discuss about the several protections against landowner harassment.

What does illegal eviction of tenants mean?

An illegal eviction, also known as an unlawful termination of tenancy, typically happens when a landowner forbids a tenant from entering a rental property or removes the tenant’s belongings from the property through the use of force, intimidation, or other methods (such as cutting off utilities or changing the locks). However, if the landowners evict you without taking the proper legal action, they are breaking the law.

How Do You Respond When Your Landlord Forcibly Evicts You?

Almost every state has rental control legislation pertaining to tenant protection, and each state has established specific circumstances for which the landlord may lawfully evict the renter. Additionally, a tenant has a legal right under the law to appear in court and defend himself against unlawful eviction, and some of those accessible remedies for tenants are discussed below:

Grounds for eviction

Non-payment of rent, breach of the lease, property damage, and illegal activity are the most typical grounds for evicting a renter. The tenant must therefore review the provisions of the State Rent Control Act to ascertain the grounds for eviction specified in the Act. In addition, if the tenant is being evicted for any reason other than those specified in the Act—which is considered wrongful eviction—they must seek the help of an eviction lawyer and the enforcement agencies to halt this.

Suit for injunction

A renter might be unable to leave a property when asked to do so for a number of reasons, such as having a medical emergency or having his elderly parents live with him. When this happens, the tenant has the option to file a case in the appropriate court to obtain an injunction that will prevent them from being evicted for any other grounds (other than those listed in the State’s Rent Act). Along with the assistance of housing rental lawyers, the renter should take this action, if they are violently evicted without providing them with adequate notice.

Rent Controller

In the event that the tenant receives a notice of eviction on pretences, they should go see the rent controller of the relevant jurisdiction and explain why they believe the notice of eviction is invalid. Additionally, following the tenant eviction laws, the court will summon the tenant, who will then be forced to submit his or her case and the arguments supporting the necessary evidence.

Notice of rent payment

If the landowner claims that he has not received the required rent and lists this as the reason for serving the notice of eviction, the tenant may legitimately ask him or her to send the information to his bank account so that he can conduct the transaction and deposit the outstanding rent. Moreover, after agreeing to it, the landowner must give the tenant the information within 10 days of the date they received the notice.

Also Read: Lex Solutions – Your One-Stop Destination For All Things Legal

Steps that you must follow to legally evict a tenant in India

Because eviction laws differ from state to state, the following are typical recommendations for evicting a renter. Nevertheless, you can contact the tenants lawyer of Lex Solutions if you need any assistance.

Serve the Tenant With a Termination Notice

The tenancy must be terminated before a landlord can evict a tenant for cause, and the landowner shall provide the tenant with the required notice before taking legal action to do so. Three different kinds of termination notices are generally available:

  • Pay Rent or Quit: The tenant is required to pay the rent within a predetermined period (often three to five days) or leave the rented property.
  • Cure or Quit: A breach of the rental agreement or lease must be remedied by the tenant within a set amount of time.
  • Unconditional Quit: Without a chance to correct the offense or pay the rent, the tenant must leave the property.

But to evict a tenant without good reason, the landlord must give the renter a 30- or 60-day notice to leave the premises.

File an Eviction Lawsuit

If the renter does not correct the issue or quit the property within the allotted time, the landowner must initiate an unlawful detainer case in small claims court. Following this, landlords have the right to evict tenants by serving a legal notice to tenants to vacate their premises.

Wait for the Tenant’s Answer

Within the time frame given on the summons, the tenant may “answer” the complaint. The renter may, however, use the response to refute the charges or present a defence. And, for instance, a tenant might claim that the eviction was carried out in retaliation or that the unpaid rent was used to pay for repairs the landlord refused to undertake.

Receive a Judgment for Possession

A default judgment is granted to the landowner if the tenant ignores the eviction notice India. Moreover, the landowner is entitled to take ownership of the property if the renter replies with an answer but the court rules in his or her favor.

Remove the Tenant

Despite having the right to reclaim the property, the landlord is unable to evict a renter without the help of a law enforcement official. Nevertheless, the tenant will be informed of the legal eviction and the number of days they have to leave once such an official receives the judgment and the cost. Moreover, the law enforcement authority may physically evict the tenant if they don’t leave the property in the allotted period.

Also Read: Introduction To The Indian Judicial System And Court Hierarchy

Summing Up

Now that you are aware of the characteristics of evictions and how to deal with them in a nation like India, you must use them as needed. Additionally, as a landowner, you must evict a problematic renter per the law. And, to ensure that you are acting legally, consult a local landlord-tenant law attorney in your area. For such assistance, a legal firm in Chandigarh, lexsolution can offer you a one-stop solution.

FAQs

  • Can a tenant seek an injunction against the landlord?

According to the state rental rules present in India, a tenant does not have the right to issue an injunction against the landlord. Moreover, injunction procedures are always discretionary, and a court of law cannot grant a perpetual injunction in favour of the plaintiff against the right owner if the plaintiff is only a trespasser.

  • Can police evict a tenant in India?

Even if the renters behave disrespectfully, the police cannot assist in reclaiming the property. However, the only court with the authority to order the eviction of a tenant is the court of the rent controller under whose jurisdiction the property is located. 

  • When a tenant can get the benefit of protection against eviction?

If the tenant can show that the landlord gave his written approval to the subtenant, he is entitled to protection from eviction. Additionally, it disallows any other consent, including implied or oral permission.