(c) "The establishment of 'Consumer Mediation Cell' and procedure for mediation in the Consumer Protection Act, 2019 is a step towards alternative dispute resolution in consumer cases.” Discuss.

The Need for Alternative Dispute Resolution in Consumer Cases

India's judicial system has long grappled with a substantial backlog of cases. Consumer disputes, often involving relatively smaller claims but high volumes, contribute significantly to this backlog. Traditional litigation is often time-consuming, expensive, and adversarial, which can be daunting for the average consumer. Recognizing these challenges, the CPA 2019 strongly advocates for ADR, with mediation taking center stage.

Establishment of Consumer Mediation Cells

Section 74 of the Consumer Protection Act, 2019, mandates the establishment of Consumer Mediation Cells. These cells are designed to function as an integral part of the consumer dispute redressal system:

• Attachment to Commissions: State Governments are required to establish a Consumer Mediation Cell attached to each District Commission and State Commission. Similarly, the Central Government establishes these cells for the National Commission and its regional benches.
• Panel of Mediators: Each mediation cell maintains a panel of qualified mediators, recommended by a selection committee comprising the President and a member of the respective Commission (Section 75). These mediators are expected to be impartial and facilitate a voluntary resolution.
• Record Keeping: Mediation cells are responsible for maintaining a list of empaneled mediators, a record of cases handled, proceedings, and other specified information (Section 74). They also submit quarterly reports to their respective Commissions.

Procedure for Mediation under CPA 2019

The CPA 2019 outlines a structured procedure for mediation, ensuring fairness and efficiency (Section 79):

1. Reference for Mediation: A consumer commission (District, State, or National) can refer a case for mediation at any stage of the proceedings if it believes a mutual settlement is possible. This can only happen with the written consent of both parties (Section 37(1)). The parties have 5 days to accept or reject the mediation process.
2. Conduction of Mediation: The mediation takes place in the Consumer Mediation Cell attached to the referring commission. The nominated mediator guides the parties, considering their rights, obligations, trade usages, and other relevant factors, while adhering to principles of natural justice.
3. Time Limit: The mediation process is generally to be completed within three months from the date of the first appearance before the mediator, with a possible extension by the Consumer Commission (Regulation 10 of Consumer Protection (Mediation) Regulations, 2020).
4. Confidentiality: The proceedings are confidential, and mediators are prohibited from disclosing information to anyone, including the Commission, except for their report (Regulation 13).
5. Settlement Report: If a settlement is reached, the terms are reduced to writing, signed by both parties, and forwarded to the concerned Commission along with a settlement report (Section 76). This settlement has the same status as an order of the Commission.
6. Failure of Mediation: If mediation fails, the dispute is referred back to the relevant Commission for adjudication in accordance with the Act.

Significance as a Step Towards ADR

The integration of Consumer Mediation Cells and a formal mediation procedure represents a significant advancement in ADR for consumer cases due to several reasons:

• Expeditious Resolution: Mediation offers a faster resolution compared to lengthy court proceedings, addressing the issue of judicial delays. This is crucial for consumer disputes where quick redressal is often desired.
• Cost-Effectiveness: It reduces the financial burden on consumers who might otherwise incur substantial legal fees. If a civil suit has been filed, court fees can even be refunded upon a successful mediation (Section 16 of the Court Fees Act, 1870).
• Party Autonomy and Mutually Acceptable Solutions: Mediation is a voluntary process where parties retain control over the outcome. It fosters a "win-win" situation, promoting amicable solutions that consider the long-term interests and relationships between consumers and businesses.
• Reduced Burden on Judiciary: By diverting suitable cases to mediation, the Act aims to alleviate the pressure on consumer commissions, allowing them to focus on more complex disputes.
• Informal and Flexible: The process is less formal and rigid than litigation, creating a more relaxed environment conducive to open communication and negotiation.
• Confidentiality: The confidential nature of mediation protects the reputation of businesses and the privacy of consumers, which is often a concern in public court proceedings.
• High Compliance Rate: Settlements arrived at through mutual agreement are generally more likely to be complied with voluntarily by the parties.

Challenges and Way Forward

Despite the positive intent, the effective implementation of consumer mediation faces certain challenges:

• Lack of Awareness: Many consumers are still unaware of mediation as a viable dispute resolution option, preferring traditional litigation.
• Unequal Bargaining Power: In some cases, there might be an imbalance in bargaining power between an individual consumer and a large corporate entity, which could affect the fairness of the mediation outcome.
• Infrastructure and Training: Adequate infrastructure for mediation cells and properly trained, impartial mediators are crucial for the success of the initiative.
• Voluntary Nature: The requirement of mutual consent for mediation means that a resistant party can still opt for prolonged litigation.

To overcome these challenges, continuous efforts are needed for:

• Public Awareness Campaigns: Extensive campaigns like "Jago Grahak Jago" should highlight the benefits of mediation.
• Capacity Building: Investing in training and empanelment of skilled mediators and improving infrastructure of mediation cells.
• Monitoring and Evaluation: Regular assessment of the mediation process to identify bottlenecks and ensure its effectiveness.
• Technological Integration: Leveraging online mediation platforms to enhance accessibility and efficiency, especially in remote areas.