Draft Rules as on 11.11.
2019
The Consumer Protection (Mediation) Rules, 2019
In exercise of powers conferred by sub-section (2) of section 101 read with clauses
(r) and (zf) of the Consumer Protection Act, 2019 (35 of 2019), the Central Government
hereby makes the following rules , namely:—
1. Short title and commencement.--
(1) These Rules may be called the Consumer Protection (Mediation) Rules, 2019.
(2) They shall come into force on the date of their publication in the official Gazette.
2. Definitions-
(1) "Act" means the Consumer Protection Act, 2019 (35 of 2019);
(2) “Consumer” means a consumer as defined under the Consumer Protection Act
2019.
(3) “Commission” means District Commission, State Commission or National
Commission, as the case may be;
(4) ‘Mediation’ means mediation as defined under the Consumer Protection Act 2019.
(5) ‘Mediator’ means a mediator as defined under the Consumer Protection Act,
2019.
(6) “Panel” means the panel of mediators set up by the National Commission, the
State Commission and the District Commission as per sub-section (1) of Section
75 of the Act.
(7) “Party/Parties” means parties to the dispute and such person/persons having
authority to represent the parties and settle the dispute.
(8) “Settlement" means a settlement arrived at in the course of mediation proceeding
in regard to all the issues in the suit or proceeding or some of the issues and
includes a written agreement between the parties where such agreement has been
signed by the parties thereto in such manner as may be prescribed under the
Regulations notified by the National Commission and a copy thereof has been sent
to an officer authorised in this behalf by the appropriate Commission and the
mediator.
3. Mediation Cell.__
(1) The Mediation Cell set up by the National Commission shall have a panel of
mediators appointed by the National Commission and supporting staff comprising
of a Coordinator, and such other supporting staff as the National Commission may
deem fit and will be provided with all administrative assistance and infrastructure
facilities by the National Commission.
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(2) A Mediation Cell shall have jurisdiction to determine and to arrive at a compromise
or settlement between the parties to a dispute in respect of
(i) any case pending before; or
(ii) any matter which is falling within the jurisdiction of, and is not brought
before, any Commission for which the Mediation Cell is attached:
Provided that the Mediation Cell shall have no jurisdiction in respect of any case
or matter relating to an offence not compoundable under any law as mentioned
under Rule 4.
4. Matters not to be referred to mediation.__The following matters shall not be
referred to mediation, namely:—
a) the matters relating to proceedings in respect of medical negligence resulting in
grievous injury or death;
b) the matters which relate to defaults or offences for which applications for
compounding have been made by one or more parties;
c) cases involving serious and specific allegations of fraud, fabrication of documents
forgery, impersonation, coercion etc;
d) cases involving prosecution for criminal and non-compoundable offences.
e) cases which involve public interest or interest of numerous persons who are not
parties before the Commission
Explanation: The above enumeration of cases is not exhaustive but illustrative
which can be subjected to just exceptions or addition by the Commissions
exercising its jurisdiction/discretion in referring a dispute/case to an ADR process.
5. Immunity.-- No mediator shall be held liable for anything bona-fide done or
omitted to be done by him during the mediation proceedings for civil or criminal action nor
shall he be summoned by any party to the suit or proceeding to appear in a Court of law
to testify in regard to information received by him or action taken by him or in respect of
drafts or records prepared by him or shown to him during the mediation proceedings.
6. Status and effect of settlement agreement.-- Every order made by the Commission
endorsing the Settlement Agreement shall be deemed to be a decree of a civil court and
shall be final and binding on all the parties to the dispute, and no appeal shall lie to any
court against the Order.
7. Communication between mediator and the Commission.--
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(1) In order to preserve the confidence of parties in the Court and the neutrality of the
mediator, there should be no communication between the mediator and the
Commission, except as stated in clauses (b) and (c) of this Rule.
(2) If any communication between the mediator/conciliator and the Commission is
necessary, it shall be in writing and copies of the same shall be given to the parties
or the constituted attorney or the counsel.
(3) Communication between the mediator and the National Commission shall be
limited to communication by the mediator:
(i) about the failure of the party to attend;
(ii) about the consent of the parties;
(iii) regarding his assessment that the case is not suited for settlement through
the mediation;
(iv) that the parties have settled the dispute(s).
8. Refund of fee._ Where the Commission refers the parties to the suit to Mediation, the
plaintiff shall be entitled to a certificate from the Commission authorising him to receive
back, the full amount of application fee paid in respect of such complaint, where a
settlement is reached between the parties.
9. Resort to arbitral or judicial proceedings.__ The parties shall not initiate, during
the mediation under these rules, any arbitral or judicial proceedings in respect of a matter
that is the subject-matter of the mediation, except that a party may initiate arbitral or
Judicial proceedings, where, in his, opinion, such proceedings are necessary for protecting
his rights.
10. A settlement Agreement not to be discharged by death of party thereto. –
(1) A settlement Agreement shall not be discharged by the death of any party thereto
either as respects the deceased or as respects any other party, but shall in such event be
enforceable by or against the legal representative of the deceased.
(2) The mandate of a Mediator shall not be terminated by the death of any party by whom
he was appointed.
(3) Nothing in this section shall affect the operation of any law by virtue of which any right
of action is extinguished by the death of a person.
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