consumer protection mediation

Ministry of Consumer Affairs has notified the Consumer Protection (Mediation) Rules, 2020 on 15th July, 2020.

Mediation has been provided for in section 74 of the Consumer Protection Act, 2019. There will be a Mediation Cell in each District Commission and State Commission. Each Mediation Cell shall have a panel of mediators who shall be appointed on the recommendations of a selection committee comprising of the President and member of that commission. Each mediation cell shall have support staff and administrative assistance. 

What matters cannot be referred to mediation is specified. These are

(a) the matters relating to proceedings in respect of medical negligence resulting in grievous injury or death; 

(b) matters which relate to defaults or offences for which applications for compounding of offences have been made by one or more parties; 

(c) cases involving serious and specific allegations of fraud, fabrication of documents, forgery, impersonation, coercion; 

(d) cases relating to prosecution for criminal and non-compoundable offences; 

(e) cases which involve public interest or the interest of numerous persons who are not parties before the Commission: 

Even outside these specified cases, the Commission can decide to not to refer such cases to mediation, if it appears to the Commission that any settlement is impossible to obtain in a particular case or that mediation is not the appropriate remedy considering the circumstances of the case concerned. 

In case settlement is reached at pursuant to mediation, then the parties shall be entitled to receive refund of their full application fees in respect of that complaint. 

While the mediation is in progress the parties have no power to resort to arbitral or judicial proceedings to decide the same case. 

Any settlement arrived at shall not be discharged upon the death of any of the parties. It shall be carried forward and enforced against the heirs and successors therein. 

Copy of the said notification can be found at the Ministry website i.e. at here

 

Arbitration

The Arbitration and Conciliation (Amendment) Act, 2019 was notified on 9^th August, 2019. Sub-Section 2 of Section 1 of the Arbitration and Conciliation (Amendment) Act, 2019 provides as under:-

“(2) Save as otherwise provided in this Act, it shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.”

2.         The Central Government by exercising powers conferred under sub-section 1 of the Arbitration and Conciliation (Amendment) Act, 2019, appoints the 30^th August, 2019, for enforcement of the following Sections of the  Arbitration and Conciliation (Amendment) Act, 2019:-

(i)         Section 1;

(ii)        Section 4 to 9 [both inclusive];

(iii)       Section 11 to Section 13 [both inclusive];

(iv)       Section 15.

3.         Necessary Gazette Notification in this regard has been issued by the Central Government. In pursuance of the above notification, the section 17, 23,29A, 34, 37, 45 and 50 of the Arbitration and Conciliation Act, 1996 (the Act) stand amended. Also three new sections namely 42A, 42B, and 87 stand inserted in the Act. The insertion of section 87 is with retrospective effect i.e. 23^rd October, 2015, with a view to clarify the applicability of the said cut-off date on arbitration and related court proceedings.

arbitration

PIB press release dated 28th February, 2019

The Union Cabinet, chaired by the Prime Minister Narendra Modi has approved promulgation of an Ordinance for establishing the New Delhi International Arbitration Centre (NDIAC) for the purpose of creating an independent and autonomous regime for institutionalised arbitration.

Benefits

The benefits of institutionalized arbitration will accrue to Government and its agency and to the parties to a dispute.  This shall be to the advantage of the public and the public institutions in terms of quality of expertise and costs incurred and will facilitate India becoming a hub for Institutional Arbitration.

Objective

The NDAIC shall be established with an aim to:-

(a)      to   bring   targeted   reforms   to   develop   itself   as   a   flagship institution for conducting international and domestic arbitration

(b)     provide facilities and administrative assistance for conciliation mediation and arbitral proceedings;

(c)     maintain panels of accredited arbitrators, conciliators and mediators both at national and international level or specialists such as surveyors and investigators;

(d)     facilitate conducting of international and domestic arbitrations and conciliation in the most professional manner;

(e)      provide cost effective and timely services for the conduct of arbitrations and conciliations at Domestic and International level;

(f)    promote studies in the field of alternative dispute resolution and related matters, and to promote reforms in the system of settlement of disputes; and

(g)    co-operate with other societies, institutions and organisations, national or international for promoting alternative dispute resolution.

In order to facilitate the setting up of NDIAC, the Ordinance envisages the transfer and vesting of the undertakings of the ICADR in the Central Government. The Central Government will subsequently vest the undertakings in NDIAC.

Salient Features:

• New Delhi International Arbitration Centre (NDIAC) will be headed by a chairperson who has been a Judge of the Supreme Court or a Judge of a High Court or an eminent person, having special knowledge and experience in the conduct or administration of arbitration law or management, to be appointed by the Central Government in consultation with the Chief Justice of India.
• There will be two Full time or Part time Members from amongst eminent persons having substantial knowledge and experience in institutional arbitration, both domestic and international.
• Also, one representative of a recognised body of commerce and industry shall be chosen on rotational basis as Part time Member.
• Secretary, Department of Legal Affairs, Financial Adviser nominated by the Department of Expenditure and Chief Executive Officer, NDIAC shall be ex-officio Members.

Background:

The New Delhi International Arbitration Centre Bill, 2019, could not be taken up for consideration and passing by the Rajya Sabha in the recently concluded 248^th Session. Further the Parliament has been adjourned sine die on 13th February, 2019. As per the provisions of Article 107(5) of the Constitution of India, a Bill, which has been passed by the Lok Sabha but is still pending in the Rajya Sabha, shall lapse on dissolution of the Lok Sabha, which is likely to take place in near future.

Therefore, the Government in view of the urgency to make India a hub of institutionalised arbitration and promote 'ease of doing business' has decided to promulgate an Ordinance namely "The New Delhi International Arbitration Centre Ordinance, 2019".