Mediation as a way of resolving Consumer Disputes

Considering the current scenario of a huge backlog of consumer cases, the Legislation has included mediation as a way to resolve consumer disputes. Mediation as a consumer dispute resolver has been introduced by the Consumer Protection Act, 2019. This gives the parties an option to settle disputes by way of mediation after the admission of a complaint or at any later stage. The government has also notified the Consumer Protection Mediation Rules, 2020.

The Act has provided for the creation of mediation cells at three levels – National, State, and District with all three being attached to the respective commissions.
The mediation cells have to compulsorily create a panel of mediators and this panel is to be updated on a regular basis. The duties and responsibilities of the mediator in the process of mediation are given under Section 77 especially with regards to the duty to disclose necessary information to either of the parties.
The Act also talks about the procedure for mediation and how to reach the settlement for the same. The Act also provides for the recording of the settlements by the respective commissions.
The process of mediation in consumer protection is a new concept and is set up with an intention to deal with the cases quickly.
The inclusion of mediation as an alternative mechanism follows the recent shift in the legal system to ensure faster addressing of cases and faster provision of justice.
The District Commission if thinks appropriate can direct the dispute to be settled through mediation at the stage of admission or at any later stage. The parties need to give their consent within 5 days from such direction.[1]
In case the parties agree to the same, the matter is to be refer for mediation within a period of 5 days from the date of such consent by the District Commission.[2]

What cannot be referred to as Mediation?

Matters that cannot be referred to mediation are as follows:

Matters that relate to medical negligence resulting in grievous injury or death;
It matters relating to defaults or offenses for which applications for compounding have been made by one or more parties;
The matters that involve serious and specific allegations of fraud, fabrication of documents, forgery, impersonation, coercion;
matters that relate to prosecution for criminal and non-compoundable offenses;
It Matters that involve public interest or the interest of society at large who are not parties before the Commission:
Matters where the Commission feels that no chance of settlement exists between the parties or that mediation is not an appropriate way of resolving
disputes in the given facts of the case.[3]

The Manner for Initiation of Mediation Proceedings

In the beginning, a written request is require to be make to the concern authorities (i.e. District/State/National Commission) depending upon the facts. The request should contain the following heads:

An explanation of the nature of the dispute,
The estimated value of any disputed amount,
Relief to be claim or sought by the requesting party,
Names and address, e-mail address, and contact numbers of all the parties (inclusive of any legal or other representative involved) to the dispute.
A proposal for the appointment of a mediator, inclusive of suggested qualifications such as language, skills, or mediation experience on the subject matter has to be mentioned.

The party or parties that initiate the proceedings or file. The request shall simultaneously have to send a copy of the request to all other parties, until

and unless the request has been made jointly by all the parties. Such a request has to be accompanied by a fee amounting to Rs. 500/-.[4]

Role and duty of the mediator

The duties of the mediator are as follows:

The mediator should try and facilitate a voluntary resolution of the dispute between the parties,
Should communicate the view of each party to the other,
It Should assist them in identifying the issues, reducing the clashes, glorifying the priorities, enunciating on the areas of compromise and lastly, generating options in an attempt to solve the disputes,
Should constantly press on the point that is the duty/responsibility of the parties to make a decision and that he shall not impose any terms of settlement on the parties.
Mediator should also disclose the following facts:
any personal, professional or financial interest in the outcome of the consumer dispute;
the circumstances giving rise to a justifiable doubt as to his independence or impartiality; and
such other facts as may be specified by regulations.[5]

Settlement by Mediation

If an agreement is reach between the parties through mediation for all the issues involve or some of the issues, the terms for the same shall be reduce to writing and should be sign by the parties or
their authorized representatives.
The mediator should make a report of settlement and should forward it to the concerned commission along with the signed agreement.
In case the parties could not reach an agreement within the stipulated time, or
the mediator opines that settlement is not possible between
the parties, a report should be prepare
by the mediator regarding the same and should be submit to the concern commission.[6]
The concerned commission, depending upon the case shall, within 7 days of the receipt of the settlement report, pass suitable order recording such settlement
In case the dispute is settle only in part, the concern Commission, depending upon the case, shall
record settlement of the issues which have been settle and
continue to hear the other issue.
In case of dispute could not be settle by mediation, the concern commission, depending upon the case, shall continue
to hear all the issues involved in the case.[7]

Conclusion

The Act tries to protect consumer rights by establishing and recruiting the concerned authorities from time to time by an effective administrative system in order to settle the consumer disputes with minimum amount making it flexible to the aggrieved parties. Further, it is also dependent upon the consumers how effectively and efficiently

they use the rights given to them in the Act, which have not only improved the dispute resolution mechanism but have also reduced the pressure on consumer commissions, who

already have numerous cases pending for adjudication before them.[8]