For the past few days, everything has been going on well in terms of reducing the strain on Indian courts and providing relief to litigating and disputing parties, particularly those in the MSME sector. However, the programmes should go as planned and as launched with zest and spirit. But pessimism is unavoidable given that the establishment and operationalisation of two major entities to provide guidance and govern institutional arbitration and mediation in India remain a non-starter, despite the fact that essential legislation has been enacted for more than three years.
A mediation drive, enthusiastically proposed by the National Legal Service Authority (NALSA) and the Mediation and Conciliation Project Committee (MCPC) of the Supreme Court of India, began on 1 July 2025 throughout India and will last 90 days to resolve pending litigations and disputes in courts that are mediatable and can be settled through dialogue.
The jointly released circular states “the eligible categories of cases for mediation are matrimonial disputes, accident claims, domestic violence, cheque bounce, commercial disputes, service matters, criminal compoundable matters, consumer disputes, debt recovery, partition, eviction, land acquisition, and other suitable civil matters. The identified cases would be listed in the cause list under the heading “For Referral to the Special Mediation Drive” and all such cases which have an element of settlement shall be referred for mediation. Mediation Settlement efforts will take place throughout the week, at the convenience of the parties.
An action plan for all courts has been distributed around the country, and the courts have been directed to use the services of available mediators; mediators who have recently received 40 hours of mediation training, and, in specific circumstances, specialised experts.
The circular deliberately fails to mention the private mediation and arbitration institutes that operate in India and employ professionally educated, competent mediators. It is not unknown that the drive will not produce the desired results if only mediators appointed by the courts are involved, and relying solely on lawyer mediators is not always desirable in all cases of family, matrimonial, and domestic violence.
Historically, trained non-lawyer mediators have outperformed trained lawyers. As a result, organisers of the drive should use the services of well-known Alternative Dispute Resolution (ADR) institutions such as Amika Arbitration and Mediation Council, International Arbitration and Mediation Centre, Hyderabad, Mumbai Centre for International Arbitration, Madhyam, CAMP, Missing Bridge, KD Lex Chambers, Indian Institute of Arbitration and Mediation, and others.
These institutions have not only been recognised for their brilliance, but have also earned the distinction of being consulted by the Government of India and its various authorities for advice and input whenever there was a suggestion to change the ADR bills or write new legislation.
Ignoring these institutions’ participation in this commendable initiative does not give the impression that India is on a 90-day campaign to resolve disputes through alternative dispute resolution mechanisms.
Another commendable initiative by the Union government was the establishment of an Online Dispute Resolution (ODR) portal on MSME Day, 27 June 2025. President Droupadi Murmu has inaugurated an online dispute resolution platform to expedite the resolution of payment delay complaints involving MSMEs across the country. The newly established website is not completely functional, and the process of enrolling ADR institutions is taking its own time. The central government should keep with it the responsibility and authority of empanelling the institutions instead of transferring it to the state governments. Once the panel is consolidated, it can be shared with the states.
Again, it appears that the government did not consult with all of the country’s ADR institutions before creating the website, and neither were letters issued to all asking them to get empanelled. Many people are unaware of the empanelment circular released in April 2025, and only one private institution is listed on the site as an empanelled institution, despite the fact that at least one institution from each state should have been included.
Ironically, some commercial agencies have commemorated MSME Day on their own, without aligning with the MSME Ministry, Government of India, or taking part in the programme hosted at Vigyan Bhavan or via online.
The bottom line is that, while the Government of India advocates for public-private partnerships at every opportunity, it is unclear why the government is not involving the existing ADR institutions in its efforts to reduce the burden on the courts.
(The writer is former Senior International Advisor, United Nations Development Programme.)