On 12 September, the government issued the Companies (Mediation and Conciliation) Rules, 2016. The salient features of the rules are as follows:
- They define “panel” to mean a mediation and conciliation panel.
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- They state that a regional director shall prepare a panel of experts willing and eligible to be appointed as mediators or conciliators in their respective regions, and shall publish this panel on the Ministry of Corporate Affairs website or on another website notified by the government.
- They prescribe qualifications and disqualifications for persons to be empanelled as mediators/conciliators.
- They lay down the procedure for disposal of matters.
- They state that the mediator/conciliator shall attempt to facilitate voluntary resolution of a dispute by parties and communicate the views of each party to the other. Further, the mediator/conciliator is to assist the parties in identifying issues, reducing misunderstandings, clarifying priorities, exploring areas of compromise and generating options in an attempt to resolve the dispute.
- They further prescribe the time limit for completion of a mediation or conciliation and provisions relating to the execution of a settlement agreement.
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