Mediation as a Resolution Technique for Complaints under the Consumer Protection Act, 2019

The study focus on alternate resolution technique i.e Mediation. The paper starts with a brief introduction of mediation and proceed with discussing the methods of mediation. Further, we have analysed the role, appointment and replacement of the mediator. We too have a small discussion of the advantages of the entire method. The paper ends with a brief conclusion.

Introduction

For a very long time, the alternate way to resolve the consumer dispute has been a topic for discussion and debate, as there were coming huge number of cases alone for the National Consumer Dispute Redressal Commission(NCDRC). Thus, the government bought an alternative measure to resolve the customer dispute by amending Consumer Protection Act,2019, which came into effect in July 2020.

The term mediation means, settlement of the dispute without entering court with the help of the mediator, where it is in the hand of parties to decide the process of proceeding which undergoes with their consent.

The Consumer Protection Act,2019, had introduced the term “mediation”, to lessen the burden of NDRC.Section-74 of the act, which talks about mediation, that the consumer mediation cell is established by the government, to each district and state commission of that state.Section-37(2), states )  “Where the parties agree for settlement by mediation and give their consent in writing, the District Commission shall, within five days of receipt of such consent, refer the matter for mediation, and in such case, the provisions of Chapter V, relating to mediation, shall apply.”

Methods of Mediation Proceeding

^[1]Following are the methods of mediation-

1. The proceeding of mediation will be held in the consumer mediation cell, which consists of a panel of mediators, who will solve the dispute i.e in sec-79 of the consumer protection act,2019.
2. The mediator which is appointed by the commission has all rights and obligations of the parties.
3. The mediator shall be given a limit to settle the dispute and have to be done within the limit. Both the parties are entitled to present at the proceeding.
4. The mediator will strictly follow the principle of natural justice and the principle of fair play. The mediators are not obligated to follow the Indian Evidence Act or CPC.
5. The mediator will make the draft of the proceeding, on each day and the draft will be signed by the parties or their respective counsel.
6. The mediator after sufficient proceeding shall make a “settlement report”, within 3 months with the consent of the parties and will further forward to the commission with their signatures.
7. Within 7 days of receiving the report, the commission shall pass an order.
8. If the mediator, comes to the conclusion that the dispute cannot be resolved by mediation, then he will make a report accordingly and will submit it to the commission.
9. If only a part of the consumer dispute had been settled, then the settlement shall be recorded to the extent it had been settled and the rest unsettled dispute will continue into the hearing.
10. If the consumer dispute is unable to settle by the method of mediation, then the District Commission or the state commission or the national commission will hear the case.

Duties of Consumer Mediation Cell

The mediation cell is responsible for keeping track of

1. Empanelled mediator’s list
2. Cases handled by the cell
3. Proceeding’s record
4. All that information is specified by the regulations.

Empanelled Mediator

The mediation cell consists of a panel of mediators which include members and the President. The National Commission or the state commission or district commission prepare a panel of mediators which has to be maintained by the consumer mediation cell, with the selection committee’s recommendation.

^[2]Appointment of Mediators

The parties who are involved in the dispute have to mutually decide the mediator, and the commission shall only interfere and appoint the same (i.e. mediator) when the parties are unable to conclude mutually.

Role of Mediator

^[3]The most significant role of the mediator is to resolve the dispute between the parties. To achieve that, the mediator has to understand the perspective of both the parties and try to convince each party to understand the other’s point of view as well, while respecting his (i.e the party) own view. The mediator initially listens to each parties perspective and tries to understand them and further help the parties by assisting them to understand the other parties perspective, finding out the main dispute, trying to reduce the clash as much as he can and finally helping both the parties to come into a mutual conclusion as much as both can. The mediator’s main responsibility is to make them come to a conclusion and settle the dispute within the given period.

Replacement of Mediator

The mediator can be replaced by another mediator if the National commission or state commission or district commission receives any complaint from either of the parties or any third party.

Complaints that cannot be Settled by Mediation

^[4]The following complaints cannot be settled through the process of mediation according to Consumer Protection (mediation) rule,2020 –

1. All those matters are related to medical negligence which resulted in either grievous hurt or death.
2. All those matters related to fraud, coercion, forgery, fabrication of documents, impersonation.
3. Compounding of offences applications may be filed by any party. This implies that until the violation has been committed three times in three years, procedures involving these offences can be handled between the parties by paying a fine.
4. Matters which involve public interest. For example, violation of privacy in terms of electronic bank transactions on e-commerce platforms.
5. Matters regarding the criminal trial and non-compoundable offences.

Mediation as a New Tool and its Advantages

“In ^[5]SpiceJet Ltd. v. Ranju Aery, the consumer had to fight its case from the district forum to State Commission to National Commission and then finally to the Supreme Court regarding the contract of service entered through the internet and the cause of action of the complaint”. Because the adjudication process in consumer courts is sluggish, the establishment of mediation centres at District, State, and National Commissions attached to consumer courts had helped in speeding up the process.

^[6]Following are the advantages of mediation-

1. Flexible: There is no one-size-fits-all approach to mediation. Different styles are used by different mediators. Methods are frequently altered to meet the needs of a unique circumstance. Even during a trial or before any official legal processes, mediation might take place.
2. Cost: Mediation is always less expensive than other forms of conflict resolution since it involves less preparation, is less formal than trial or arbitration, and may occur at an early stage of the issue. The cost of the entire process is cannot exceed 2000/-
3. Control: It is very convenient for the parties to have complete control over the entire proceeding i.e time, location, and duration of the proceedings to a large extent.
4. Alternate of Arbitration: Resolutions that aren’t achievable through arbitration or court decision might be found in other ways. A good Mediator helps the parties see options that might not be obvious – or even possible – during the traditional conflict settlement procedure. 
5. Confidentiality: Much of what is stated during mediation is kept private. Parties that want to keep their disagreements low-key and intimate might employ mediation to escape the spotlight. Statements are frequently made to the Mediator that can’t be utilised for anything other than assisting the Mediator in comprehending a conflict settlement. Confidentiality fosters candour, which is more likely to result in a resolution.
6. Direct Communication: There is direct communication between the parties during the procedure of mediation. If the parties or one of them is represented by an advocate, the parties at least expect being heard by the Mediators.

Conclusion

Mediation is the need of great importance for the fast and productive removal of buyer cases and it’s exemplary taking a gander at the manner in which the public authority has an unmistakable arrangement to utilize go-betweens who can settle debates, accordingly, including less weight the legal executive. Then again, intervention additionally makes an elective wellspring of income for individuals who can likewise utilize it as an elective type of revenue and is, accordingly, a welcome advance/move towards the list of occupations in the new occasions of vulnerability. Finally, mediation is crucial for the quick and successful settlement of consumer complaints, and it’s commendable that the government has a policy in place to engage mediators who can resolve disagreements and relieve the judicial system of its burden. The new Consumer Protection Act of 2019 allows consumers to submit complaints electronically as well as in consumer commissioners that have jurisdiction over their (i.e. Complainant’s) home, thereby nullifying the former practice under the Act (i.e. A case can only be filed at the place of purchase or where the seller has its registered office).

To finish the procedures productively a timetable has been given for example mediation will stand ended on expiry of 90 days from the date of the principal appearance except if and until it is reached out by the Consumer Commission itself. It should be noticed that no sound and video recording of the intercession procedures will be held to keep up with the secrecy.

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References:

[1] MEDIATION UNDER CONSUMER PROTECTION LAW, , https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=9377 (last visited Dec 11, 2021).

[2] Mediation of consumer disputes; opening new avenues for redressal, , https://www.99acres.com/articles/mediation-of-consumer-disputes-opening-new-avenues-for-redressal.html (last visited Dec 11, 2021).

[3] Consumer Protection Act 2019- Role of Mediation and E-commerce platform | Webnyay website, , https://www.webnyay.in/blog/19 (last visited Dec 11, 2021).

[4] Mediation: A Resolution To Complaints Under The Consumer Protection Act, 2019 – Consumer Protection – India, , https://www.mondaq.com/india/dodd-frank-consumer-protection-act/975302/mediation-a-resolution-to-complaints-under-the-consumer-protection-act-2019 (last visited Dec 11, 2021).

[5] Spicejet Ltd. vs Ranju Aery on 7 February, 2017, , https://indiankanoon.org/doc/34316162/ (last visited Dec 11, 2021).

[6] Mediation: A Resolution To Complaints Under The Consumer Protection Act, 2019 – Consumer Protection – India, supra note 4.