MA Sixth Schedule : Amendment to Arbitration and Conciliation Act, 1996

Explanation using Example

Example 1: Transition from Conciliation to Mediation

Introduction: Imagine a scenario where two companies, Alpha Corp and Beta Ltd, are in a dispute over a breach of contract. The contract includes a clause that mandates dispute resolution through conciliation as per the Arbitration and Conciliation Act, 1996.

Application: With the enactment of the Mediation Act, 2023, Section 61(1) of the amended Arbitration and Conciliation Act now interprets any reference to conciliation as mediation. Therefore, Alpha Corp and Beta Ltd must now resolve their dispute through mediation instead of conciliation.

Outcome: The legal consequence of this transition is that the parties must engage a mediator instead of a conciliator, which may involve different procedural rules and expectations. If they fail to comply with this change, any resolution reached may not be legally binding, potentially leading to further legal disputes.

Conclusion: Compliance with the new mediation requirement ensures that the dispute resolution process is legally recognized, providing a clear path to resolving the conflict efficiently.

Example 2: Continuation of Existing Conciliation Proceedings

Introduction: Consider a situation where a tenant, Mr. Sharma, and his landlord, Ms. Gupta, are engaged in conciliation proceedings over a rental dispute. These proceedings were initiated under the provisions of the Arbitration and Conciliation Act, 1996, before the Mediation Act, 2023, came into force.

Application: According to Section 62 of the amended Act, the ongoing conciliation proceedings will continue as if the Mediation Act, 2023, had not been enacted. This means that Mr. Sharma and Ms. Gupta will complete ...

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