FAQs Mediation

Mediation is a form of alternative dispute resolution in which a neutral intermediary, the mediator, helps the parties to reach a mutually satisfactory settlement of their dispute. Any settlement is recorded and signed by the parties, which then becomes an enforceable contract. Because mediation is non-binding and confidential, it involves minimal risk for the parties and generates significant benefits.

Mediation is a voluntary process and is contingent on the consent of the parties. It is a non-binding procedure controlled by the parties. Even when the parties have agreed to submit a dispute to mediation, they are free to abandon the process at any time after the first meeting if they find that its continuation does not meet their interests.
Mediation is a voluntary, confidential and privileged process. The parties to the mediation provide solutions for settlements themselves, and the mediator only acts as a neutral third party facilitating the negotiations and guiding the parties to an amicable settlement.
Mediation can be initiated at any stage of a dispute. Disputing parties can choose mediation as the first step towards seeking resolution even after any negotiations conducted by the parties themselves have failed. It may also be used as a pre-dispute mechanism to forestall the escalation of an issue or disagreement between the parties into a dispute. Parties can also mutually decide to opt out of an ongoing litigation or arbitration and initiate mediation.
ILSCA is a neutral, independent, non-profit Arbitral and Mediation institution, which administers arbitraland mediation proceedings. It provides facilities for ad-hoc and institutional arbitrations and mediations, both in domestic andinternational spheres. It is first-of-its-kind arbitral and mediation institution in India, attached to a LawCollege, the ILS Law College, a premier institution in the country, acclaimed for quality legal educationwith a prodigious history of nearly 100 glorious years.
No; ILSCA is an independent and neutral arbitral and mediation institution, and thus, does not provide any legal adviceto the parties.
Any person, company or organization can submit a dispute to ILSCA for mediation pursuant to an agreement to mediatewhich refers disputes to ILSCA, or if the parties subsequently agree to mediation under the ILSCA (IM)Rules.
The differences between mediation and arbitration all stem from the fact that, in a mediation, the parties retain responsibility for and control over the dispute and do not transfer decision-making power to the mediator. Arbitration involves an impartial outsider making a firm decision on a dispute, based on the evidence presented by the parties. In arbitration both parties must agree in advance that they will abide by the arbitrators decision.

In contrast, a mediator assists the parties in reaching a solution that is acceptable to each of them without imposing a decision. A mediator will not make judgments or determine outcomes—they simply ask questions that help to uncover underlying problems, assist the parties to understand the issues and help them to clarify the options for resolving their conflict.

In view of these differences, mediation is a more informal procedure than arbitration.
Mediation can be used at any time when the working relationship of two or more individuals has broken down. This may be before, during or after formal proceedings as long as both parties genuinely want to see an end to the dispute.

Parties may choose mediation as a standalone process, or in connection with an arbitration, either prior to, during or following the arbitration proceeding.
The parties to the mediation must attend the sessions. They may be accompanied by their counsels or other external parties, whose presence would benefit the mediation.
All civil disputes can be mediated. The ILSCA provides mediation services for commercial disputes across sectors.
There are some instances where mediation is not suitable.The following are some instances:

  1. A point of law needs to be resolved;
  2. Injunctive relief is required;
  3. Allegations of serious and specific fraud, fabrication of documents, forgery, impersonation, coercion;
  4. Policy and public interest issues and in criminal cases;
  5. Disputes relating to claims against minors, deities, persons with intellectual disabilities, persons with mental illness, and persons of unsound mind;
  6. Prosecution for criminal offences;
  7. Disputes which have an effect on rights of a third party who is not a party to the mediation proceedings;
  8. Disputes which by virtue of any law for the time being in force may not be submitted for mediation.
Mediation is appropriate when the individuals:
  • Have voluntarily chosen to take part in the mediation process and do not feel pushed into it.
  • Are committed to the process and want to solve their problems.
  • Need help from an external party to work things out.
  • Have to work together and cannot avoid the conflict between them.
It may not be appropriate when:
  • One party has no genuine interest in reaching an agreement.
  • A decision about right or wrong is needed, for example where there is a possible disciplinary offence.
  • The parties do not have the power to settle the dispute.
A mediator does not resolve the parties dispute through a binding decision. Instead, the mediator assists the parties in finding settlement options. Ultimately, the parties decide whether to enter into a mediated settlement agreement, and define the scope of such settlement and its terms.
The results of a successful mediation are binding on the parties in the form of an agreement which is signed by both the parties. However, if the mediation is not successful, the parties are free to approach the Courts or proceed with Arbitration.
The main role of the mediator is to facilitate an effective negotiation between the parties. The mediator is independent of the parties and completely impartial. They help the parties realise their best interests and help them reach a settlement.

The mediators role is to assist the parties in reaching a settlement of the dispute.Mediators are not judges or adjudicators, they simply seek to assist the parties in arriving at a settlement.
The parties shall be free to agree upon the name of mediator from the ILSCA Panel of Mediators. The party/parties requesting the commencement of mediation under ILSCA (IM) Rules can nominate a mediator from the ILSCA Panel of Mediators at the time of submitting such request.

If the party requesting the commencement of mediation does not nominate a mediator or if the opposite party objects to the nomination of the mediator or if the parties fail to agree on the appointment of a mediator, the Appointing Authority, ILSCA shall appoint a mediator from the ILSCA Panel of Mediators.
Yes. The process of mediation is entirely confidential; thus, all mediations conducted under the ILSCA (IM) Rules are confidential.
The ILSCA (IM) Rules contain detailed provisions directed at preserving confidentiality in relation to the proceedings and outcome of the mediation. (See Rule 24 of ILSCA (IM) Rules).
Yes. ILSCA is situated in a separate building which has state-of-the-art hearing rooms,breakout rooms, mediator’s lounge and a business centre for the smooth running of the proceedings.

It comprises of three big hearing rooms (Samata, Vivachan, Mimansa) that can seat up to 14 peoplearound the table and 6 audiences, as well as three small hearing rooms (Nyay, Neeti, Sudharma) thatcan seat up to 7 people around the table and 4 audiences. The big hearing rooms havevideoconferencing facility. All hearing rooms are air-conditioned and have wi-fi connectivity.

On request, the ILSCA may also provide for facilities such asprinting, photocopy, services of astenographer, translator/interpreter and food arrangements upon payment of additional charges at actuals.

Apart from this, the building also has a Conference Hall that can seat up to 100 people, and Guest Roomsto facilitate accommodation of the guests.
Yes, it is possible to use the ILSCA premises for ad hoc mediations against the payment of room chargesspecified under the ILSCA Fee Schedule - Mediation.
No. Unless there is an agreement to mediate to referthe dispute to mediation at ILSCA or for mediation in accordance with the ILSCA (IM) Rules, ILSCA shall not administer the mediation.
Yes. ILSCA (IA) Rules provide for juridical seat of arbitration which is by default Pune.
No. It is not necessary for mediators to be lawyers or to have alegal background, unless the parties choose otherwise. They can also be engineers, Chartered Accountants, financial experts, among otherexperts that may be appointed to the ILSCA Panel of Mediators.
No. Parties to a dispute do not necessarily need to be represented by legal counsels in ILSCA-administered mediations.
Yes. There is one-time non-refundable ILSCA Case Filing Fee.
Yes. There is an ILSCA administrative fee payable by both parties. The amount of fee dependson the total amount of the claim. For details, see ILSCA Fee Schedule – Mediation.

The parties are jointly and severally liable for the payment of the ILSCA Administrative Fee.
The Case Filing Fee and the Administrative Fee can be paid either by Cheque, Demand Draft or PayOrder drawn in favor of ‘Indian Law Society Centre for Arbitration’ or through bank transfer. (Bankdetails are provided in the ILSCA Fee Schedule - Mediation).
No. An agreement to mediate or mediation clause referring to “mediation in Pune” shall not sufficiently provide for ILSCAadministered mediation. To ensure that theintention of parties for mediation at ILSCA under the ILSCA (IM) Rules is reflected in the agreement,parties may incorporate the ILSCA Model Clause in their agreement.
Yes. ILSCA maintains a Panel of Mediators comprised of experienced, qualified and well-known mediators from around the country.
The standard operating hours of the ILSCA is 9 a.m. to 6 p.m. from Monday to Saturday. However, this isextendable on request by the parties.
Yes; ILSCA recommends using any of the following model clauses for disputes to be resolved in accordance with ILSCA (IM) Rules
The following are some of the advantages which mediation under the ILSCA (IM) Rules offers over ad-hoc mediation proceedings:
  1. A mediation conducted under the ILSCA (IM) Rules enables the parties to take advantage of asophisticated set of institutional mediation rules which incorporate international best practicesfor the efficient conduct of mediation proceedings.
  2. The ILSCA (IM) Rules contain an efficient procedure for the appointment of the mediator, which is more convenient and expeditious than an ad hoc mediation.
  3. ILSCA provides administrative assistance in ILSCA- administered mediation proceedings which eases theadministrative burden on the parties and the mediator. The ILSCA Secretariat will alsosupervise the mediation process to facilitate expeditious completion of the mediation proceedings.
  4. The ILSCA (IM) Rules contain a schedule of costs so the likely costs of the proceedings can becalculated in advance, thereby ensuring a cost-efficient and transparent mediation process.
Costs of mediation includes –
  1. ILSCA Filing Fee;
  2. the ILSCA administrative fee;
  3. the mediator’s fees and expenses;
  4. the travel and other expenses of the mediator;
  5. the expenses for any expert advice or opinion requested by the mediator with the consent of the parties; and
  6. the travel and other expenses of witnesses requested by the mediator with the consent of the parties.
In the event that the mediator:
  1. has been involved in the dispute in any manner even if it has been in an advisory capacity;
  2. he has advised either party in the circumstances giving rise to the dispute or relating to the dispute is known to hold an office of interest or office of profit in either of the disputing parties or related entities (this is on the understanding that the disputants are corporates);
  3. has a substantial shareholding in the disputing or related entity or has any beneficial interest in the subject matter of the dispute or disputants.