Arbitration and Conciliation Act Section 8B — Power of the court, seized of matters under sections 34 or 37 of the Act, to refer the dispute to Mediation or Conciliation

CHAPTER II — Arbitration agreement

Civil

Summary

Sub-section (1) states that while a petition under section 34 or an appeal under section 37 of the Act is pending, if the court believes there are elements of a settlement that the parties might accept, it may, with the consent of the parties, refer the dispute for resolution through either mediation or conciliation.

Under clause (a) of sub-section (2), when a dispute is referred for mediation, the procedure framed under the Act applies to that mediation.

Under clause (b) of sub-section (2), if the mediation succeeds in resolving the dispute, the mediator must immediately send the mediated settlement to the referral court.

Under clause (c) of sub-section (2), upon receiving the mediated settlement, the referral court must independently apply its judicial mind and record its satisfaction that the settlement is genuine, lawful, voluntary, and entered into without coercion, undue influence, fraud, or misrepresentation, and that there is no other legal impediment to accepting it.

Under clause (d) of sub-section (2), the court must record a statement on oath from the parties or their authorized representatives affirming the mediated settlement, along with a clear undertaking by the parties to abide by the settlement terms and a statement to that effect.

Under clause (e) of sub-section (2), if the court is satisfied, it shall pass an order in terms of the settlement.

Under clause (f) of sub-section (2), if the main petition in which the reference was made is still pending, the referral court shall dispose of it in terms of the settlement.

Under clause (g) of sub-section (2), if the main petition in which the reference was made has already been disposed of, the mediated settlement and the matter shall be listed before the referral court, which shall pass orders in accordance with clauses (iii), (iv), and (v).

Under clause (h) of sub-section (2), such a mediated settlement has the status of a modified arbitral award and may be enforced in the manner specified under section 36 of the Act.

Sub-section (3) states that with respect to a reference of a dispute to conciliation, the provisions of Part III of the Act apply as if the conciliation proceedings were initiated by the parties under the relevant provision of this Act.

Official Text

(1) If during the pendency of a petition under section 34 or an appeal under section 37 of the Act, it appears to the court, that there exists elements of a settlement which may be acceptable to the parties, the court may, with the consent of parties, refer the parties, for resolution of their disputes, to:–

(a) mediation; or

(b) conciliation.

(2) The procedure for reference of a dispute to mediation is as under:-

(a) where a dispute has been referred for resolution by recourse to mediation, the procedure framed under the Act shall apply;

(b) in case of a successful resolution of the dispute, the Mediator shall immediately forward the mediated settlement to the referral court;

(c) on receipt of the mediated settlement, the referral court shall independently apply its judicial mind and record a satisfaction that the mediated settlement is genuine, lawful, voluntary, entered into without coercion, undue influence, fraud or misrepresentation and that there is no other legal impediment in accepting the same;

(d) the court shall record a statement on oath of the parties, or their authorized representatives, affirming the mediated settlement, a clear undertaking of the parties to abide by the terms of the settlement as well as statement to the above effect;

(e) if satisfied, the court shall pass an order in terms of the settlement;

(f) if the main petition, in which the reference was made is pending, it shall be disposed of by the referral court in terms thereof;

(g) if the main petition, in which the reference was made stands disposed of, the mediated settlement and the matter shall be listed before the referral court, which shall pass orders in accordance with clauses (iii),

(iv) and (v);

(h) such a mediated settlement, shall have the status of a modified arbitral award and may be enforced in the manner specified under section 36 of the Act.

(3) With respect to reference of a dispute to conciliation, the provisions of Part III of the Act, shall apply as if the conciliation proceedings were initiated by the parties under the relevant provision of this Act.”[Vide the Jammu and Kashmir Reorganization (Adaptation of Central Laws) Order, 2020, notification No. S.O. 1123(E) dated (18-3-2020)and Vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Order, 2020, notification No. S.O.3774(E), dated (23-10-2020).]