MEDIATION COUNCIL OF INDIA (MCI) (Syllabus: GS Paper 2 – Dispute redressal mechanisms and institutions)

News-CRUX-10     26th June 2024        

Context: The government is likely to establish the Mediation Council of India (MCI) by the end of this year to improve out of court dispute resolution, and enhance ease of doing business.

Mediation Council of India (MCI)

  • Council Appointment: Council members may be directly appointed by the Centre or through a special search-cum-selection committee.
  • Composition of the Council: The council will consist of three members, including a chairperson, experts in mediation, alongside a chief executive officer and a representative from a recognized commerce and industry body.
  • Formation: The MCI is established under the Mediation Act, recently passed by the government, mandating completion of mediation within 180 days.

oThe Mediation Act, 2023 aims to foster a link between the mediation and the arbitration of commercial disputes, thus reducing the burden on Indian courts

  • Guidelines Issuance: The council will issue guidelines for the mediation process, ensuring consistency and clarity.
  • Training and Certification: The council will oversee training, assessment, and certification of mediators by recognized institutions, setting standards for mediator conduct.
  • Preferred Dispute Resolution: Establishing the council marks a significant step towards promoting mediation, particularly for corporate disputes.