The Lok Sabha on Monday passed a bill that seeks to provide a legal framework for mediation and reduce the burden on courts. Introducing the Mediation Bill, 2021, in the Lower House, Law Minister Arjun Ram Meghwal said it provides the legal backbone” to mediation.
The Rajya Sabha has already passed the bill on August 1.
The bill will also promote ease of doing business as many petty disputes will be cleared through this alternative dispute resolution mechanism, Meghwal said, adding that this will be a «cost-effective means» of dispute resolution. During the debate on the bill, the minister said the legislation has provision for penal action if the parties fail to comply with the agreed mediation.