Lok Sabha Question No. 188 (STARRED), answered on 2016-03-10
Subject: Validity of Settlement through Mediation
Ministry: LAW AND JUSTICE
Asked by: OM PRAKASH YADAV, SUPRIYA SADANAND SULE

## GOVERNMENT OF INDIA MINISTRY OF LAW AND JUSTICE DEPARTMENT OF LEGAL AFFAIRS

## LOK SABHA

## STARRED QUESTION NO 188 TO BE ANSWERED ON 10.03.2016

## Validity of Settlement through Mediation

- *188 SHRI OM PRAKASH YADAV: SHRIMATI SUPRIYA SULE:

Will the Minister of LAW AND JUSTICE be pleased to state:

- (a) whether  the  Government  proposes  to  bring  legislation  to  accord  statutory validity to the disposal of disputes through mediation and  out-of-court settlement process and if so, the details and the present status thereof;
- (b) whether  the  Government  has  examined  the  effectiveness  of  Alternative Dispute Resolution (ADR) mechanism in the settlement of disputes and if so, the details and the present status thereof;
- (c) whether  the  Government  proposes  to  introduce  arbitration  and  mediation clauses in work contracts of various stakeholders and if so, the details and the present status thereof;
- (d) whether  the  Government  has  urged  High  Courts  to  invoke  Section  258  of CrPC and if so, the details thereof; and
- (e) the  other  measures  taken/being  taken  by  the  Government  to  encourage disposal  of  disputes/litigations  through  mediation  and  out-of-court  settlement process?

## ANSWER

MINISTER OF LAW AND JUSTICE (SHRI D. V. SADANANDA GOWDA)

(a) to (e)  A statement is laid on the Table of the House.

## STATEMENT REFFERED TO IN REPLY TO PARTS (a) to (e) OF LOK SABHA STARRED QUESTION NO.188 FOR ANSWER ON 10 TH  MARCH, 2016.

- (a)  No, Madam. There is no such proposal.
- (b)  The subject matter of the question is occupied by statutory provisions i.e. Section 89  of  the  Code  of  Civil  Procedure,  1908  (effective  from  01.07.2002)  which provides  for  settlement  of  disputes  out  of  court  including  settlement  through mediation. The objective of the said section is that where it appears to the court that the settlement of disputes between the parties is possible, it may refer the matter for settlement through           (a) arbitration; (b) conciliation; (c) judicial settlement including settlement through LokAdalat; or (d) mediation.

The  Law  Commission  of  India has examined  the effectiveness  of  ADR mechanism  in  the  settlement  of  disputes  from  time  to  time  including  the  14 th , 100 th ,  176 th and 246 th reports of Law Commission.  Based on the 246 th report, the  Government  has  amended  the  Arbitration  and  Conciliation  Act,  1996 recently.

- (c): In the work contracts executed by the Government, it is the general practice to have an arbitration clause. However, there is no proposal to introduce mediation clause in the work contracts executed by the Government.
- (d): No, Madam.
- (e): Other measures:

LokAdalats:

- (i) LokAdalat is an important Alternative Disputes Resolution  Mechanism available to a common people. It is a forum where the disputes/cases pending in the court of law or at pre-litigation stage are settled/compromised amicably and  within  a  short  period.  The  LokAdalat  has  been  given  statutory  status under  the  Legal  Services  Authorities  Act,  1987.  Under  this  Act,  an  award made by the LokAdalat is deemed to be a decree of a civil court and is final and binding on all parties and no appeal lies against thereto before any court. In  order  to  reduce  the  pendency  of  cases  in  courts,  the  legal  services institutions under the Legal Services Authorities Act, 1987 organise weekly/monthly and also mega LokAdalats during the year. In addition to this, the National LokAdalats on various subject matters, such as, bank matters/Section 138 of the Negotiable Instruments Act, 1881, revenue/MNREGA/Land acquisition cases, Labour and family matters, MACT and insurance claims/electricity/water/telephone/public utility disputes, criminal  compoundable  matters,  traffic/petty  matters,  municipal  matters  are

being  organised  during  the  year  2016  as  per  Calendar  approved  by  the Executive Chairman, NALSA. The State Legal Services Authorities have been issued guidelines/directions by the NALSA under the National Legal Services Authority (LokAdalat) Regulations, 2009 to organise more and more LokAdalats  so  that  pendency  of  cases  can  be  reduced.  The  number  of LokAdalats held and cases settled in the last three years are given below:

| 2013-14                   | 2013-14                 | 2014-15                   | 2014-15                 | 2015-16 (Upto December, 2015)   | 2015-16 (Upto December, 2015)   |
|---------------------------|-------------------------|---------------------------|-------------------------|---------------------------------|---------------------------------|
| Number of LokAdalats held | Number of cases settled | Number of LokAdalats held | Number of cases settled | Number of LokAdalats held       | Number of cases settled         |
| 1,14,231                  | 90,17,100               | 1,81,493                  | 2,75,05,397             | 1,22,037                        | 1,02,45,244                     |

(ii) In addition to the other services, the Government  has  recently  declared, (i) education or educational institutions (ii) housing and real estate service, to be public utility service under section 22 A of the Legal Services Authority Act, so that more and more cases can be taken up for settlement through LokAdalats.