Mediation under the Act

In one line

A Commission may send a consumer dispute to a mediator attached to it, and if the parties settle, the Commission records the settlement and disposes of the case.

In the wording a student can write in an exam: section 37 empowers a Commission, at the first hearing after admission or at any later stage, where it appears that there exist elements of a settlement which may be acceptable to the parties, to direct them to give their written consent within five days to have the dispute settled by mediation, and to refer the matter within five days of receiving that consent; Chapter V, sections 74 to 81, provides for consumer mediation cells attached to each Commission, the empanelment and nomination of mediators, their duty to disclose conflicts, the procedure, the settlement and the recording of it.

The reference: section 37

When. At the first hearing of the complaint after its admission, or at any later stage.

On what footing. Where it appears to the Commission that there exist elements of a settlement which may be acceptable to the parties, except in such cases as may be prescribed.

How. It directs the parties to give in writing, within five days, their consent to have the dispute settled by mediation.

Then. Where the parties agree and give written consent, the Commission shall within five days of receipt of that consent refer the matter for mediation, and Chapter V applies.

Mediation is consensual. The Commission may propose it; it cannot compel a settlement, and if consent is not given the complaint proceeds under section 38.

The machinery: Chapter V

Section 74: consumer mediation cells. The State Government shall establish a consumer mediation cell attached to each District Commission and to the State Commission of that State, and the Central Government shall establish one attached to the National Commission and to each of its regional Benches.

Section 75: empanelment of mediators. The National Commission or the State Commission shall prepare a panel of mediators, and the qualifications, experience, procedure for empanelment, the term and the fees are as prescribed.

Section 76: nomination from the panel. The Commission nominates a mediator from the panel.

Section 77: the mediator's duty to disclose. He must disclose any personal, professional or financial interest in the outcome, any circumstance giving rise to a justifiable doubt as to his independence or impartiality, and any other fact likely to create a doubt.

Section 78: replacement. Where such facts appear, or a party objects on that ground, the Commission replaces the mediator.

Section 79: the procedure. Mediation is held in the consumer mediation cell attached to the Commission, and the mediator conducts it in the prescribed manner, hearing the parties, examining the issues, and communicating his view.