MA Section 3 : Definitions

Explanation using Example

Example 1: Application of "Court-Annexed Mediation" (Section 3(e))

Introduction: Rajiv, a small business owner in India, is involved in a contractual dispute with a supplier over delayed deliveries. The supplier has filed a suit in the local district court to recover damages.

Application: According to Section 3(e) of The Mediation Act, 2023, "court-annexed mediation" refers to mediation conducted at mediation centers established by courts. In this scenario, before proceeding with the litigation, the court suggests that Rajiv and the supplier attempt to resolve their dispute through court-annexed mediation.

Outcome: If both parties agree, they will participate in mediation sessions facilitated by a mediator appointed by the court's mediation center. Successful mediation could lead to an amicable settlement, saving time and legal costs. If mediation fails, the case will proceed in court.

Conclusion: Compliance with the mediation process can expedite dispute resolution and reduce court backlog. Non-compliance might lead to procedural delays and increased litigation costs.

Example 2: Understanding "International Mediation" (Section 3(g))

Introduction: A German company, TechSolutions GmbH, has a contractual agreement with an Indian software firm, SoftTech Pvt. Ltd., to develop a custom software solution. A dispute arises regarding the software's functionality.

Application: As per Section 3(g) of The Mediation Act, 2023, "international mediation" involves mediation for commercial disputes where at least one party is from outside India....

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