Consumer Protection (Mediation) Rules, 2020

The Department of Consumer Affairs, Ministry of Consumer Affairs, Food And Public Distribution vide notification G.S.R. 450(E). has notified the Consumer Protection (Mediation) Rules, 2020 which have come in force w.e.f. 20th July 2020.

As per these rules, Every Mediation Cell set up in a Commission (District Commission, State Commission or National Commission), shall have a panel of mediators on the recommendation of a selection committee consisting of the President and a member of that Commission.

No mediation in certain matters

The following matters shall not be referred to mediation, namely:—

  • the matters relating to proceedings in respect of medical negligence resulting in grievous injury or death;
  • matters which relate to defaults or offences for which applications for compounding of offences have been made by one or more parties;
  • cases involving serious and specific allegations of fraud, fabrication of documents, forgery, impersonation, coercion;
  • cases relating to prosecution for criminal and non-compoundable offences;
  • cases which involve public interest or the interest of numerous persons who are not parties before the Commission.

Provided that, in any case other than those mentioned above, the Commission before which the case is pending may choose not to refer it to mediation if it appears to the Commission that no elements of a settlement exist which may be acceptable to the parties or that mediation is otherwise not appropriate having regard to the circumstances of the case and the respective positions of the parties.

Refund of fee

Where the Commission refers the parties to mediation, the complainant shall be entitled to receive full amount of application fee paid in respect of such complaint, if a settlement is reached between such parties.

Bar on arbitral or judicial proceedings

The parties shall not initiate any arbitral or judicial proceedings in respect of a matter which is the subject-matter of the mediation and also when such parties have expressly undertaken not to initiate any such proceeding.

Enforcement of Settlement agreement against LRs

A settlement agreement shall not be discharged by the death of any party thereto and shall be enforceable by or against the legal representative of the deceased party. However, this rule shall affect the operation of any law by virtue of which any right of action is extinguished by the death of a person.

Copy of notification: G.S.R. 450(E)

-Adv. Tushar Kaushik

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