NishithDesai-调解印度的商业纠纷（英）

MUMBAISILICONVALLEYBENGALURUSINGAPORENEWDELHINEWYORKGIFTCITY

Research

MediatingCommercial

DisputesinIndia

July2024

Incollaborationwith

©NishithDesaiAssociates2024

Research

MediatingCommercial

DisputesinIndia

July2024

DMSCode:30232.2

©NishithDesaiAssociates2024

Rankedasthe‘MostInnovativeIndianLawFirm’intheprestigiousFTInnovativeLawyersAsiaPacificAwardsformultipleyears.Alsorankedamongstthe‘MostInnovativeAsiaPacificLawFirm’intheseeliteFinancialTimesInnovationrankings.

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MediatingCommercialDisputesinIndia

Disclaimer

ThisreportisacopyrightofNishithDesaiAssociates.Noreadershouldactonthebasisofanystatementcontainedhereinwithoutseekingprofessionaladvice.Theauthorsandthefirmexpresslydisclaimallandanyliabilitytoanypersonwhohasreadthisreport,orotherwise,inrespectofanything,andofconsequencesofanythingdone,oromittedtobedonebyanysuchpersoninrelianceuponthecontentsofthisreport.

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Acknowledgements

SoumyaGulati

soumya.gulati@

ShwetaSahu

shweta.sahu@

SahilKanuga

sahil.kanuga@

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SIMCSingapore

TheSingaporeInternationalMediationCentre(SIMC)isanindependent,not-for-profitorganisationdedicatedtomeetingtheevolvingbusinessneedsofAsia.SIMCwasestablishedon5November2014followingtherecommendationsofaWorkingGroupconvenedbyChiefJusticeSundareshMenonandtheMinistryofLaw,ondevelopingSingaporeintoahubforinternationalcommercialmediation.

Formoreinformation,pleasevisit

.sg

.

SIMCModelClauses:

1.MediationClause

Alldisputes,controversiesordifferencesarisingoutoforinconnectionwiththiscontract,includinganyquestionregardingitsexistence,validityortermination,shallbeforeorafterthecommencementofanyotherproceedings,befirstreferredtomediationinSingaporeattheSingaporeInternationalMediationCentreinaccordancewithitsMediationRulesforthetimebeinginforce,withoutprejudicetoanyrecoursetoapplytoanytribunalorcourtoflawofcompetentjurisdictionforanyformofinterimrelief.

2.TieredMediationClause

Thepartiesagreethatanydispute,controversyorclaimarisingoutoforinconnectionwiththepresentcontract(includinganyquestionregardingitsexistence,validityortermination)(the“Dispute”)shallfirstbereferredtotheSingaporeInternationalMediationCentreformediationinaccordancewiththeSingaporeInternationalMediationCentreMediationRulesforthetimebeinginforce,withoutprejudicetoanyrecoursetoapplytoanytribunalorcourtoflawofcompetentjurisdictionforanyformofinterimrelief.

Ifthedisputecannotberesolvedthroughmediationwithin[8weeksorstatesuchotherpreferredtimeperiod]aftercommencementofmediationattheSingaporeInternationalMediationCentre,orwithinsuchextendedperiodasmaybeagreedbytheparties,thepartiesshallsubmittheDisputeto…[provideothermeansofdisputeresolutione.g.arbitration,litigationetc.]

3.SIAC–SIMCArb-Med-ArbClause

Anydisputearisingoutoforinconnectionwiththiscontract,includinganyquestionregardingitsexistence,validityortermination,shallbereferredtoandfinallyresolvedbyarbitrationadministeredbytheSingaporeInternationalArbitrationCentre(“SIAC”)inaccordancewiththeArbitrationRulesoftheSingaporeInternationalArbitrationCentre(“SIACRules”)forthetimebeinginforce,whichrulesaredeemedtobeincorporatedbyreferenceinthisclause.

Theseatofthearbitrationshallbe[Singapore].

TheTribunalshallconsistofarbitrator(s).

Thelanguageofthearbitrationshallbe.

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MediatingCommercialDisputesinIndia

Thepartiesfurtheragreethatfollowingthecommencementofarbitration,theywillattemptingoodfaithtoresolvetheDisputethroughmediationattheSingaporeInternationalMediationCentre(“SIMC”),inaccordancewiththeSIAC-SIMCArb-Med-ArbProtocolforthetimebeinginforce.AnysettlementreachedinthecourseofthemediationshallbereferredtothearbitraltribunalappointedbySIACandmaybemadeaconsentawardonagreedterms.

IAMCHyderabad,India

TheInternationalArbitrationandMediationCentre,afirst-of-its-kind,islocatedinHyderabad—thecapitalcityofTelangana,India.TheCentreprovidesbothArbitrationandMediationservices,bycombiningworld-classinfrastructure,cutting-edgetechnology,hearingrooms,areputedGoverningCouncil,ateamadeptathandlingawidevarietyofcasesandhighlyexperiencedarbitratorsandmediatorstoprovidetailored,in-person,virtualandhybridconflictresolutionservices.

Formoreinformation,pleasevisit

.in

.

IAMCModelClauses:

1.Mediation/ConciliationClause

Intheeventofanydisputearisingoutoforinconnectionwiththepresentagreement,thepartiesshall,inthefirstinstance,referthedisputetoconciliation(alsoreferredtoasMediation)undertheIAMCMediationRules.Suchreferenceshallbebywayofanoticeinwriting,andwillbeanoticeforthepurposeofcommencementofconciliation.

ThecommencementorpendencyofconciliationundertheIAMCMediationRuleswillnotpreventanypartyfromseekinginterimrelieforreliefsforthepurposeofpreservingtheirrights.

IfthedisputehasnotbeensettledthroughconciliationundertheIAMCMediationRuleswithin daysfollowingthecommencementofconciliationorwithinsuchotherperiodasthepartiesmayagreeinwriting,suchdisputeshallthereafterbefinallyresolvedthrough.

2.Med-ArbClause

Intheeventofanydisputearisingoutoforinconnectionwiththepresentcontract,thepartiesshallfirstreferthedisputetoconciliation(alsoreferredtoasMediation)undertheIAMCMediationRules.Suchreferenceshallbebywayofanoticeinwriting,whichshallalsobedeemedtobeanoticeforthepurposeofcommencementofarbitration.

IfthedisputeisnotsettledpursuanttothesaidRuleswithin45daysfollowingthefilingofaRequestforMediationorwithinsuchfurtherperiodasthepartiesmayagreeinwriting,suchdisputeshallthereafterbereferredtoarbitrationandfinallyresolvedundertheIAMCArbitrationRules.

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MediatingCommercialDisputesinIndia

Fortheavoidanceofdoubt,itisclarifiedthat:

a)alldisputesthatfallwithinthescopeofarbitrationagreementmayberesolvedinsucharbitration;and

b)evenduringthependencyofconciliation,partiesmayseekinterimrelieforEmergencyMeasuresundertheEmergencyArbitratorProvisionsintheIAMCArbitrationRules.

3.Arb-Med–ArbClause

Intheeventofanydisputearisingoutoforinconnectionwiththepresentcontract,includinganyquestionregardingitsexistence,validityortermination,thepartiesshallfirstreferthesameforarbitrationtobefinallyresolvedundertheadministrationofInternationalArbitrationandMediationCentre(“IAMC”)inaccordancewiththeArbitrationRulesofInternationalArbitrationandMediationCentre(“IAMCRules”)forthetimebeinginforce.TheseatofArbitrationshallbe.

TheTribunalshallconsistofoneormorearbitratorsappointedinaccordancewiththesaidRules.ThelanguageofthearbitrationproceedingsshallbeEnglish.Thelawgoverningthearbitrationagreementshallbe.Thelawgoverningthecontractshallbe.

Thepartiesfurtheragreethatfollowingthecommencementofarbitration,theywillattemptingoodfaithtoresolvetheDisputethroughmediationatInternationalArbitrationandMediationCentre(“IAMC”),inaccordancewiththeIAMCArb-Med-ArbProtocolforthetimebeinginforce.AnysettlementarrivedinrespectofsomeoralltheirdisputesinthecourseofmediationshallbereferredtothearbitraltribunalappointedbyIAMCandmayberecordedasanarbitrationaward(interimorfinal,asthecasemaybe)onagreedterms.

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MediatingCommercialDisputesinIndia

Contents

2

Introduction

1

TheIndianPerspective:Pre-MediationAct

HistoryoftheLegalFramework2

4

CodificationofMediationinIndia:TheMediationAct

A.‘Mediation’asDefinedundertheMediationAct5

B.ApplicabilityoftheMediationAct5

C.MattersnotFittobeResolvedbyMediation6

D.MediationAgreement6

E.Pre-LitigationMediationandthePowerofCourtstoReferthePartiestoMediation6

F.InterimOrdersforProtection7

G.AppointmentofMediators7

H.MediationProceedings:AnOverview9

I.MediatedSettlementAgreements:Form,Registration,EnforcementandChallenge11

J.InstitutionalMediationundertheMediationAct12

13

EnforcingMediatedSettlementAgreements:

UnitedNationsConventiononInternationalSettlement

AgreementsResultingfromMediation

A.IntroductionandScope13

B.GenesisoftheSingaporeConvention13

C.SomeKeyProvisions14

D.GlobalStatusoftheSingaporeConvention14

19

LookingForward

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MediatingCommercialDisputesinIndia

Introduction

MediationhasemergedasoneofthemostpreferredmodeofalternativedisputeresolutionandpotentiallyevenmoresowiththeenactmentoftheMediationAct,2023(“MediationAct”).Itallowspartiestorelookatmutualinterestsandcomeupwithinnovativesolutionsthroughaninteractiveandfacilitativeprocess.Mediationisvoluntaryandnon-bindinguponthepartiesandissuesareresolvedthroughdiscussionsusingpropercommunicationtechniques.Themediatorsuggestsoptionsbutdoesnotcompelthepartiestoattendthemediationorconsidertheoptionsiftheyarenotinterested.

Amediator’sjobremainsrestrictedtofacilitatingthepartiestoarriveattheirself-designedsolution(facilitativemodel)orevaluatingtheclaimsofthepartiesusinghislegalandcommercialexpertise(evaluativemodel),withoutgivingabindingdecision.1WhilethepartiesoscillatebetweentheBestAvailableAlternativetoNegotiationAgreement(BATNA)andWorstAvailableAlternativetoNegotiationAgreement(WATNA),themediatortriestosteerthepartiestoarriveataMostLikelyAlternativetoNegotiatedAgreement(MLATNA).2

Partiesareactivelyconsideringmediation,forabunchofreasons,primarilyduetocostsandpreservingbusinessrelationships.Thereisanunderstandingthattheglobaleconomyhasbeentoughonanumberofbusinesses.Ifone’straditionalbusinesscounterpartisfacinggenuinedifficultiesinperformingcertaincontractualobligations,theideaistoworkoutamicablesolutionswithouttarnishingtheworkingrelationship.Thegoalistoensurethatthebridgebetweenthepartiesdoesnotgetburntandthatisabigplustoabusiness.

1MediationTrainingManualofIndia,MediationandConciliationProjectCommittee,SupremeCourtofIndia,ChapterVII,37,availableat:

.in/pdf/mediation/MT%20MANUAL%20OF%20INDIA.pdf

.

2Ibid,ChapterVI,Stage3,Page31.

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MediatingCommercialDisputesinIndia

TheIndianPerspective:Pre-MediationAct

Mediationhasbeenprevalentforcenturiesasadisputeresolutionmechanism.HistoricaluseofmediationthroughPanchayatsforcommunityconflictresolutioniswell-knownandstillpreferred.ThepracticeofmediationlostgroundduringBritishrule,leadingtoincreaseddisputesanddelaysintheadversariallegalsystem.1Mediationhasalsobeentraditionallyusedandcontinuestobeusedpopularlyinfamilydisputes.

HistoryoftheLegalFramework

In1987,theLegalServicesAuthoritiesAct1987introducedtheconceptofLokAdalatswhichprovidesaplatformtoresolvedisputesinthepre-litigationstagebywayofamicablesettlement.Theconceptof

mediationasprovidedundertheCodeofCivilProcedure,1908[“Code”]wasamendedbytheintroductionofSection89(2)(d),empoweringcourtstodirectsettlementofdisputesbymediationamongstothermeans.Section89(2)(d)oftheCodecontemplatedscenarioswherethecourtcouldrefermatterstomediation.

Ifpartiesagreedtothetermsofsettlement,themediatorwouldreporttothecourtandthecourt,aftergivingnoticeandhearingtheparties,wouldgive‘effect’tothecompromiseandpassadecreeinaccordancewiththetermsofsettlementacceptedbytheparties,therebyrenderingfinalitytothesituation.Thiswasspecificallyinthecontextofcourtannexedmediation.Partiescouldlitigateincaseoffailuretosettledisputesbywayofmediation.ThisledtotheframingofthedraftCivilProcedure—AlternativeDisputeResolutionandMediationRules2003(“ADRRules”).

ThiswasfollowedbytheSupremeCourtestablishingMediationandConciliationProjectCommittee(“MCPC”)inApril2005tooverseetheeffectiveimplementationofmediation.Theobjectivewastoencouragepre-litigationmediationanddevelopmediationas‘anothereffectivemodeofdisputeresolution’.Severalhighcourtsacrossthecountry,takingcuefromtheADRRules,framedacomprehensivesetofprinciplesforundertakingmediation.Forinstance,theTamilNaduMediationandConciliationCentreofMadrasHighCourtwasinauguratedon9thApril2005todealwithfamilymatters,contractsandcivildisputes,propertyandpartitionssuits,companypetitionsandarbitrationcases.2

1Department-RelatedParliamentaryStandingCommitteeonPersonnel,PublicGrievances,LawandJustice,“OneHundredSeventeenth

ReportonTheMediationBill,2021”.:

/files/bills_acts/bills_parliament/2021/SC%20Report_Mediation%20bill.pdf,

(13thJuly,2022).(“117thReport”).

2

.in/about-tnmcc/about-us/.

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2

MediatingCommercialDisputesinIndia

TheIndianPerspective:Pre-MediationAct

Similarly,theDelhiHighCourtMediationandConciliationCentre,knownasSamadhan,wasestablishedinMay2006.SamadhanhandlescasesreferredtoitbytheDelhiHighCourt,itssubordinatecourts,andtheSupremeCourtofIndia,coveringmattersrelatingtobusinesscontracts/transactions,realestateandconstruction,consumerissues,employmentandserviceissues,industrialdisputes,bankingandinsurancecases,trademarkandcopyrightdisputes,accident-relatedclaims,landlord-tenantdisputes,partnershipdisputes,familyandmatrimonialdisputes,childcustodyandvisitationrights,verificationinhabeascorpusmattersetc.3

TheSupremeCourtofIndia,inAfconsInfrastructureLtdv.CherianVarkeyConstructionCo.(P)Ltd.,4heldthatallcasesrelatingtotrade,commerce,contracts,consumerdisputesandeventortiousliabilitycouldbemediated.Inthesameyear,theSupremeCourt,inMotiRam(D)Tr.LRsandAnr.Vs.AshokKumarandAnr.,5heldthatmediationproceedingsareconfidentialtakingastepforwardinrelationtocourt-directedmediation.

Separately,therehavebeenafewspecificsectorsandlawsincludingtheIndustrialDisputesAct,1947,newlyamendedConsumerProtectionAct,2019aswellastheCompaniesMediationRules,2016whichhaveincorporatedprovisionsonmediationwithinthestatuteprovidingitisasoneofthemodesofamicableresolutionofdisputes;however,theirapplicabilityisrestrictedtocasesofindustrialdisputes,disputespendingbeforethecompanylawtribunalsandconsumerdisputes,respectively.Lastly,therewasalsoprivatemediationofferedbymediatorsorinstitutionalmediationcenters,beyondthereferenceofthecourt.

TheeffortsofthejudiciaryfinallysawlightattheendofthetunnelinformofamendmentstotheCommercialCourtsAct,2015,whichmademediationmandatorybeforetheinstitutionofasuitwhichdoesnot

contemplateanyurgentinterimrelief.TheMinistryofLawandJusticegavemediationthenecessaryboostwhenSection12AwasintroducedintheCommercialCourtsAct,2015.Section12Amadepre-institutionmediationmandatory.

Inadditiontothis,therehavebeensuggestionsbytheHigh-LevelCommittee,chairedbyJusticeB.N.Srikrishna(“SrikrishnaCommittee”),toreviewtheinstitutionalizationofarbitrationmechanismssoastoincorporate‘Med-Arb’or‘Arb-Med’clausesintheprocedureofarbitralinstitutionsinIndia.TheSrikrishnaCommitteehasalsorecommendedthateacharbitralinstitutionmustmandatorilymaintainamediationcell,withapanelofmediators,wherepartiesmustbepromptedtoresorttomediationwithinalimitedtimeframe.Astothestageatwhichpartiesshouldresorttomediation—theSrikrishnaCommitteehasrecommendedthat“thepossibilityofpartiesseekingmediation,beforeorduringthecourseofthearbitralproceedings,maybethroughalimitedstayofarbitralproceedings(barringhearingsoninterimmeasures)foraspecifiedtime,whenthepartiesshouldmakeintensiveeffortstoarriveatamutuallyacceptablesettlement.”6

However,theabsenceofunifiedandconsolidatedlegislationinplaceledtoalackofseriousnessbeingaccordedtothismechanism.Onequestionthatoftenconfusedandhauntedthelitigantswastheeffectivenessand

enforceabilityofadecisionmutuallyreachedbypartieswiththeassistanceofthemediator.Privatemediationlackedstructureandlegalrecognition,discouragingparticipation.Toaddressthis,theMediationBill2021wasproposedtoenhancetheeffectivenessofmediationandprovideacomprehensivelegalframeworkforit.7

3

https://dhcmediation.nic.in/about-us

.

4M/s.AfconsInfra.Ltd.&AnrvsM/SCherianVarkeyConstructions(P)Limited&Ors.(2010)8SCC24.

5MotiRam(D)Tr.LRsandAnr.Vs.AshokKumarandAnr.,2010SCCOnLineSC1398.

6MinistryofLawandJustice,GovernmentofIndia,ReportoftheHighLevelCommitteetoReviewtheInstitutionalisationofArbitrationMechanisminIndia(30July2017):

.in/sites/default/files/Report-HLC.pdf,

accessedMay22,2024.

7117thReport,Para1.7,Page4,VolumeI.

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MediatingCommercialDisputesinIndia

CodificationofMediationinIndia:TheMediationAct

InJanuary2020,theSupremeCourtsetupapanelheadedbyarenownedmediatorShriNiranjanBhattofirmupadraftlegislationtogivelegalsanctitytodisputessettledthroughmediation.Subsequently,itwassenttotheUnionGovernmentasasuggestionfromtheapexcourt.Thereafter,theGovernmentuploadedthedraftbillonmediationonitswebsiteforpublicconsultationon5November2021.1

TheMediationBill2021wastabledintheRajyaSabhaon20December2021andwasreferredtotheStandingCommitteeonPersonnel,PublicGrievances,Law&Justiceforreviewon21December2021(“StandingCommittee”).TheStandingCommitteeissuedits117thReportontheMediationBill(“117thReport”)makingcertainrecommendationstotheprovisionson13July2022.TheUnionCabinetapprovedsomeoftheserecommendationsandtheMediationBill2023(“MediationBill”)waspassedbytheRajyaSabhaon02August2023andbytheLokSabhaon07August2023.TheMediationBillreceivedpresidentialassenton15September2023,tobeknownastheMediationAct.

On09October2023,certainprovisionsoftheMediationActwerebroughtintoforcebynotification,whichinteralia,includeprovisionsrelatingto:(i)non-applicabilityoftheMediationActtotheproceedingsconductedbyLokAdalatandPermanentLokAdalat;2(ii)MediationCouncilofIndia;3(iii)MediationFund;4and

(iv)ShortTitle,extentandcommencementoftheMediationAct;5iv)Definitions;6v)Provisionspertainingtopowertomakerulesandregulations,powertoremovedifficultiesandtheMediationActnotapplicabletopendingproceedings.7

Referredto

StandingCommittee

21December2021

117thReportontheMediationBill

13July2022

PassedbyRajyaSabha

02August2023

>

IntroducedintheRajyaSabha

20December2021

PassedbyLokSabha

07August2023

PresidentialAssent

15September2023

TheMediationAct,2023

<

Notificationof

Sections1,3,26,

31-38,45-47,50-54

andSection56-57

09October2023

Inessence,theMediationActaims“topromoteandfacilitatemediation”withaspecialfocusoninstitutionalmediation,onlinemediation,andcommunitymediation,inordertofacilitateresolutionofdisputesinatimeboundmanner.

1Report,Para1.1,Page1,VolumeI.

2TheMediationAct,2023,Section26.

3TheMediationAct,2023,Section31to38.

4TheMediationAct,2023,Section45to47.

5TheMediationAct,2023,Section1.

6TheMediationAct,2023,Section3.

7TheMediationAct,2023,Section50-54andSection56-57.

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MediatingCommercialDisputesinIndia

CodificationofMediationinIndia:TheMediationAct

TheMediationActalsoprovidesforenforcementofmediatedsettlementagreementsandestablishmentofaregulatorybodyforregistrationofmediatorsandinstitutions.

AnanalysisofthekeyprovisionsoftheMediationActisasunder:

A.‘Mediation’asDefinedundertheMediationAct

Thedefinitionof“mediation”clarifiesthatmediationisaprocesswherebypartiesattempttoreachanamicablesettlementoftheirdisputewiththeassistanceofathirdpersonreferredtoasmediatorwhodoesnothavetheauthoritytoimposeasettlementuponthepartiestothedispute.Further,theMediationActaimstoexpandthescopeandstatutorilyrecognizepre-litigationmediation,onlinemediation,communitymediation,conciliationunderthedefinitionof‘mediation’.8Thiswouldhavetheeffectofdispensingwiththeconceptofconciliation,inlinewiththeinternationalpracticeofusingtheterms‘mediation’and

‘conciliation’interchangeablyasdonepreviouslybytheSupremeCourtofIndiaandasdocumentedintheSingaporeConvention.9PartIIIoftheArbitrationandConciliationAct1996(“A&CAct”)whichdealswithconciliationisthusrenderedotioseandconsequently,theMediationActseekstoremovetheprovisionsonconciliationfromtheA&CAct.10

B.ApplicabilityoftheMediationAct

Onbeingnotified,theMediationActshallapplytomediationsconductedinIndia.Itwou