Mediation process under the Consumer Protection Act 2019

In the modern days, due to the rapid increase in the commercial disputes, the interest in alternative dispute resolution like mediation has increased sharply. The increased interest in mediation is directly attributable to dissatisfaction with the cost, time consumed and lengthy &complicated procedures with the cost, time consumed and lengthy & complicated procedures adopted in traditional dispute resolution systems. This has made people & business entities focus and consider the advantages of mediation, particularly its simple and easy procedure that offers parties full control over both the process of resolution and the outcome of the process.

Since mediation is the amicable settlement of disputes, using mediation to settle disputes has been proven very satisfactory because of very high rates of success. Parties themselves deciding the Mediation under Chapter V of the Consumer Protection Act, 2019 have empowered the consumers to negotiate on their own for what they deserve. 

 The Consumer Protection Act specifies mediation as a dispute resolution method. An application for mediation can be made by either a consumer or a business, and the concerned Consumer Commission or Authority will submit the case to a Mediation Cell formed by the Act.

The process of mediation is as follows:

A relevant Commission, such as the National Commission, State Commission, or District Commission, can refer a consumer dispute to mediation. The mediator may conduct joint or separate meetings with the parties. The mediator sets a schedule for the mediation sessions, including the dates and times, in consultation with the parties.

The parties to the dispute have five days to accept or reject the mediation process.

The Commission sets up a Mediation Cell with a panel of mediators and supporting staff. The commission nominates a mediator who considers the rights and obligations of the parties, trade usages, and other relevant factors.

The mediator conducts the mediation in a manner and within a time frame specified by regulations.

If a dispute is referred to mediation, any fee paid to the Commission for dispute redressal is refunded to the parties.

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