Changes to mediation bill approved by Cabinet ahead of Parliament session

Key amendments to the Mediation Bill, 2021 -- including the removal of a provision that made pre-litigation mediation mandatory before parties could file any suit or proceedings in court, regardless of the existence of a mediation agreement between them -- were cleared by the Union Cabinet on Wednesday, according to people aware of the matter.

The Cabinet also cleared the Registration of Press and Periodicals Bill, and both pieces of litigation are likely to be tabled in the Monsoon session of Parliament starting on Thursday, the people added.

The mediation bill, moved by the Union ministry of law and justice, seeks to institutionalise mediation for civil and commercial disputes and establish a Mediation Council of India (MCI). It was first introduced in the Rajya Sabha in December 2021, and was sent to a parliamentary standing committee, which submitted its report in July 2022.

The amended bill makes pre-litigation voluntary, leaving parties with the choice to participate in a pre-litigation mediation process instead of litigating, the people said.

The change is in line with the suggestions of the standing committee, which had said that mediation must remain voluntary, and that restraining parties from approaching courts or tribunals may amount to denial of access to justice.

Another important amendment in the 2021 bill includes reducing the time period of concluding the process, the people cited above bill. While the 2021 draft contemplated a period of 180 days with a further extension for an additional period of 180 days with the consent of parties, the amendment brings this down to 180 days in total. The parliamnetary panel had recommended reducing the time limit from180 days to 90 days, and further an extension period of 60 days.

The proposed law, aiming at introducing the first standalone legislation for mediation in India, envisages setting up an MCI, which will be tasked with registering mediators, and recognising mediation service providers and mediation institutes which train and certify mediators.

The Registration of Press and Periodicals Bill was first drafted in 2019. It was listed during the Monsoon session last year as the Registration of Press and Periodicals Bill, 2022, but did not make it to the floor of the House. The new bill seeks to replace the Press and Registration of Books (PRB) Act, 1867.

“The bill has been cleared by the cabinet,” an official familiar with the matter said. “It will focus on ease of doing business and decriminalise offences introducing monetary penalties instead.”

Online news media will not be included in the new bill.

In an interview to HT last year, Union minister for information & broadcasting Anurag Thakur stressed that a focus of the new bill will be on increasing the ease of doing business and decriminalisation some earlier provisions.