Mediation and conciliation are out of court dispute settlement mechanisms that focus on the commercial interests of the parties rather than what is ‘fair’ and who is ‘wrong’. Mediation is a voluntary and non-binding negotiation process. The outcome of a mediation is a settlement agreement which the parties to mediation execute. Internationally, most mediation settlement agreements are enforced voluntarily without court proceedings because parties decide the terms of settlement and do not sign the agreement till they are convinced they wish to settle the dispute. Such a settlement agreement in a conciliation proceeding is enforceable by law as an arbitration award under Section 74 of Arbitration and Conciliation Act, 1996. United Nations Commission on International Trade Law (UNCITRAL) is in the process of ratifying convention and model law for enforcement of international commercial settlement agreements resulting from mediation. With this convention, international dispute settlements arising from mediation shall be enforceable using a uniform international process prescribed under the convention and model law.
The Centre provides mediation services for all commercial disputes- shareholder disputes, board consensus building, supplier disputes, employment disputes to name a few. The CMC deals with several sectors such as
- Infrastructure, Engineering and Construction, Logistics,
- Banking, Financial Services and Insurance (BFSI),
- Fast Moving Consumer Goods (FMCG),
- Intellectual Property Rights, etc.
Since, CMC has mediators empanelled by the High Court, disputes already being litigated may be referred by judges to the CMC. The terms of settlement may be recorded in the form of consent terms to be presented before the Court which will record the same as a consent decree and make it enforceable like a court decree.