MA Section 2 : Applicability of the Act

Explanation using Example

Example 1: Domestic Mediation between Indian Corporations

Introduction: ABC Pvt. Ltd., a company incorporated in India, enters into a business contract with XYZ Ltd., another Indian company. A dispute arises regarding the quality of goods supplied under the contract.

Application: According to Section 2(i) of The Mediation Act, 2023, since both parties are incorporated in India, the mediation process can be conducted under this Act. The companies agree to resolve their dispute through mediation as per their contract's dispute resolution clause.

Outcome: The mediation is conducted in India, and both parties reach a mutually agreeable settlement. This avoids lengthy litigation and preserves their business relationship. Non-compliance with the mediation agreement could result in the dispute being escalated to court, where the mediation agreement may be enforced.

Conclusion: Compliance with the mediation process under the Act allows for a cost-effective and amicable resolution, demonstrating the Act's applicability to domestic corporate disputes.

Example 2: International Mediation Involving a Foreign Party

Introduction: An Indian software company, Tech Solutions Ltd., enters into a service agreement with a US-based firm, Global Tech Inc. A dispute arises over the scope of services provided.

Application: Section 2(iii) o...

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