LatestLaws.

com

No. 171/Rules/DHC Dated: 11th August, 2005

In exercise of the rule making power under Part X of the Code of Civil Procedure,
1908 (5 of 1908) and clause (d) of sub-section (2) of Section 89 of the said Code and all
other powers enabling it in this behalf, the High Court of Delhi hereby makes the
following Rules :-

MEDIATION AND CONCILIATION RULES, 2004

Rule 1 : Title.

These Rules shall be called the Mediation and Conciliation Rules, 2004.

Rule 2 : Appointment of mediator /conciliator .

(a) Parties to a suit or other proceeding may agree on the name of the sole
mediator/conciliator for mediating between them.
(b) Where, there are two or more sets of parties and are unable to agree on a
sole mediator/conciliator, the Court may ask each party to nominate the
mediator/conciliator or may nominate/appoint the mediator/conciliator, as
it deems fit.
(c) Where parties agree on a sole mediator/conciliator under clause (a) or
where the mediator/conciliator is nominate/appointed by the court under
clause (b), the mediator/conciliator need not necessarily be from the panel
of mediators/conciliators referred to in Rule 3 nor bear the qualifications
referred to in Rule 4 but should not be a person who suffers from the
disqualifications referred to in Rule 5.

Rule 3 : Panel of mediator s/conciliator s.

(a) The High Court shall, for the purpose of appointing the
mediator/conciliator between the parties in suits or proceedings, prepare a
panel of the mediators/conciliators and put the same on the Notice Board
within thirty days of coming into force of these Rules, with copy to the
High Court Bar Association.
(b)(i) The District & Sessions Judge shall, for the purpose of appointing the
mediators/conciliators to mediate between the parties in the suits or
proceedings prepare a panel of the mediators/conciliators within a period
of thirty days of the commencement of these rules and shall submit the
same to the High Court for approval. On approval of the said panel by the
High Court,with or without modification, which shall be done within thirty
days of the submission of the panel by the District & Sessions Judge, the
same shall be put on the Notice Board.
(ii) Copies of the said panel referred in clause (i) shall be forwarded to all the
Subordinate Courts by the District & Sessions Judge and to the District
Bar Associations.
(c) The consent of the persons whose names are included in the panel shall be
obtained before empanelling them.
 LatestLaws.com

(d) The panel shall contain Annexure giving details of the qualifications of the
mediators/conciliators and their professional or technical experience in
different fields.
(e) The panel of mediators/conciliators appointed under Clause (a) and clause
(b) (i) shall normally be for a period of three years from the date of
appointment and further extension of the panel of mediators/conciliators or
any mediator/conciliator shall be at the discretion of the High court or the
District & Sessions Judge with the prior approval of the High Court, as the
case may be.

Rule 4 : Qualifications of per sons to be empanelled under Rule 3.

The following persons may be enlisted in the panel of mediators/conciliators under Rule
3, namely :

(a) (i) Retired Judges of the Supreme Court of India;

(ii) Retired Judges of High Courts;
(iii) Retired District & Sessions Judge or retired Officers of Delhi
Higher Judicial Service;
(iv) District & Sessions Judge or Officers of Delhi Higher Judicial
Service.
(b) Legal practitioners with at least ten years standing at the Bar at the level of
the Supreme Court or High Court or the District Courts.
(c) Experts or other professionals with at least fifteen years standing.
(d) Persons who are themselves experts in the mediation/conciliation.

Rule 5 : Disqualifications of per sons.

The following persons shall be deemed to be disqualified for being empanelled as

mediators/conciliators :

(a) any person who has been adjudged as insolvent or persons

(i) against whom criminal charges involving moral turpitude are
framed by a criminal court and are pending or;
(ii) Persons who have been convicted by a criminal court for any
offence involving moral turpitude.
(b) any person against whom disciplinary proceedings have been initiated by
the appropriate disciplinary authority which are pending or have resulted
in a punishment.
(c) any person who is interested or connected with the subject-matter of
dispute(s) or is related to any one of the parties or to those who represent
them, unless such objection is waived by all the parties in writing.
(d) Any legal practitioner who has or is appearing for any of the parties in the
suit or in any other proceedings(s).
(e) Such other categories of persons as may be notified by the High Court.
 LatestLaws.com

Rule 6 : Addition to or deletion fr om panel.

The High Court or the District & Sessions Judge with prior approval of the High Court,
may in its/his discretion, from time to time, add or delete any person in the panel of
mediators/conciliators.

Rule 7 : Pr efer ence.

The Court shall, while nominating any person from the panel of mediators/conciliators
referred to in Rule 3, consider his suitability for resolving the dispute(s) involved and
shall give preference to those who have proven record of successful
mediation/conciliation or who have special qualification or experience in the
mediation/conciliation.

Rule 8 : Duty of mediator /conciliator to disclose cer tain facts.

(a) When a person is approached in connection with his proposed

appointment as mediator/conciliator, he shall disclose any circumstance
likely to give rise to a reasonable doubt as to his independence or
impartiality.
(b) Every Mediator/conciliator shall from the time of his appointment and
throughout continuance of the mediation/conciliation proceedings, without
delay, disclose to the parties, about the existence of any circumstance
referred to in Clause (a).

Rule 9 : Withdr awal of appointment.

Upon information furnished by the mediator/conciliator under Rule 8 or upon any other
information received from the parties or other persons, if the Court, in which the suit or
proceeding is pending, is satisfied, that the said information has raised a reasonable doubt
as to the mediator/conciliator's independence or impartiality, it may withdraw the
appointment and replace him by another mediator/conciliator.

Rule 10 : Pr ocedur e of mediation/conciliation.

(a) The parties may agree on the procedure to be followed by the

mediator/conciliator in the conduct of the mediation/conciliation
proceedings.
(b) Where the parties do not agree on any particular procedure to be followed
by the mediator/conciliator, the mediator/conciliator shall follow the
procedure hereinafter mentioned, namely :

(i) he shall fix, in consultation with the parties, a time schedule, the
dates and the time of each mediation/conciliation session, where all
parties have to be present;
 LatestLaws.com

(ii) he shall hold the mediation/conciliation at the place prescribed by

the High Court or the District & Sessions Judge or the place where
the parties and the mediator/conciliator jointly agree;
(iii) he may conduct joint or separate meetings with the parties;
(iv) each party shall, ten days before a session, provide to the
mediator/conciliator a brief memorandum setting forth the issues,
which according to it, need to be resolved, and its position in
respect of those issues and all information reasonably required for
the mediator/conciliator to understand the issue; such memoranda
shall also be mutually exchanged between the parties. However, in
suitable/appropriate cases, the period of ten days may be curtailed
in the discretion of the mediator/conciliator.
(v) each party shall furnish to the mediator/conciliator such other
information as may be required by him in connection with the
issues to be resolved.

(c) Where there is more than one mediator/conciliator, the

mediator/conciliator nominated by each party may first confer with the
party that nominated him and thereafter interact with the other
mediator/conciliator, with a view to resolve the dispute(s).

Rule 11 : Mediator /conciliator not bound by Indian Evidence Act, 1872 or Code of
Civil Pr ocedur e, 1908.

The mediator/conciliator shall not be bound by the Code of Civil Procedure, 1908 or the
Indian Evidence Act, 1872, but shall be guided by the principles of fairness and justice,
having regards to the rights and obligations of the parties, usages of trade, if any, and the
circumstances of the dispute(s).

Rule 12 : Repr esentation of par ties.

The parties shall ordinarily be present personally or through constituted attorney at the
sessions or meetings notified by the mediator/conciliator. However, they may be
represented by the counsel with permission of the mediator/conciliator in such sessions
or meetings.

The party not residing in India, may be represented by the constituted attorney at the
sessions or meetings. However, it may be represented by the counsel with permission of
the mediator/conciliator in such sessions or meetings.

Rule 13 : Consequences of non-attendance of par ties at sessions or meetings on due

dates.

If a party fails to attend a session or a meeting notified by the mediator/conciliator on

account of deliberate or willful act, the other party or the mediator/conciliator can apply
to the Court in which the suit or proceeding is pending, in that case Court may issue the
appropriate directions having regard to the facts and circumstances of the case.
 LatestLaws.com

Rule 14 : Administr ative assistance.

In order to facilitate the conduct of mediation/conciliation proceedings, the parties, or the

mediator/conciliator with the consent of the parties, may arrange for administrative
assistance by a suitable institution or person.

Rule 15 : Offer of settlement by par ties.

(a) Any party to the suit may, 'without prejudice', offer a settlement to the
other party at any stage of the proceedings, with notice to the
mediator/conciliator.

(b) Any party to the suit may make a, 'with prejudice' offer, to the other party
at any stage of the proceedings, with notice to the mediator/conciliator.

Rule 16 : Role of mediator /conciliator .

The mediator/conciliator shall attempt to facilitate voluntary resolution of the dispute(s)

by the parties, and communicate the view of each party to the other, assist them in
identifying issues, reducing misunderstandings, clarifying priorities, exploring areas of
compromise and generating options in an attempt to solve the dispute(s), emphasizing
that it is the responsibility of the party to take decision which effect them; he shall not
impose any terms of settlement on the parties.

Rule 17 : Par ties alone r esponsible for taking decision.

The parties shall be made to understand that the mediator/conciliator only facilitates in
arriving at a decision to resolve dispute(s) and that he will not and cannot impose any
settlement nor does the mediator/conciliator give any assurance that the
mediation/conciliation will result in a settlement. The mediator/conciliator shall not
impose any decision on the parties.

Rule 18 : Time limit for completion of mediation/conciliation.

On the expiry of ninety days from the date fixed for the first appearance of the parties
before the mediator/conciliator, the mediation/conciliation shall stand terminated, unless
the Court, which referred the matter, either suo motu, or upon request by any of the
parties, and upon hearing all the parties, is of the view that extension of time is necessary
or may be useful; but such extension shall not be beyond a further period of thirty days.

Rule 19 : Par ties to act in good faith.

All the parties shall commit to participate in the proceedings in good faith with the
intention to settle the dispute(s), if possible.
 LatestLaws.com

Rule 20 : Confidentiality, disclosur e and inadmissibility of infor mation.

(a) When a mediator/conciliator receives factual information concerning the

dispute(s) from any party, he shall disclose the substance of that
information to the other party, so that the other party may have an
opportunity to present such explanation as it may consider appropriate.
Provided that, when a party give information to the
mediator/conciliator subject to a specific condition that it be kept
confidential, the mediator/conciliator shall not disclose that information to
the other party.
(b) Receipt or perusal, or preparation of records, reports or other documents
by the mediator/conciliator, while serving in that capacity shall be
confidential and mediator/conciliator shall not be compelled to divulge
information regarding those documents nor as to what transpired during
the mediation/conciliation before any court of tribunal or any other
authority or any person or group of persons.
(c) Parties shall maintain confidentiality in respect of events that transpired
during the mediation/conciliation and shall not rely on or introduce the the
said information in other proceedings as to :
(i) views expressed by a party in the course of the
mediation/conciliation proceedings;
(ii) documents obtained during the mediation/conciliation which are
expressly required to be treated as confidential or other notes,
drafts or information given by the parties or the
mediator/conciliator;
(iii) proposals made or views expressed by the mediator/conciliator;
(iv) admission made by a party in the course of mediation/conciliation
proceedings;
(v) that fact that a party had or had not indicated willingness to accept
a proposal;
(d) There shall be no audio or video recording of the mediation/conciliation
proceedings.
(e) No statement of parties or the witnesses shall be recorded by the
mediator/conciliator.

Rule 21 : Pr ivacy.

The Mediation/conciliation sessions of meetings would be conducted in privacy where

the persons as mentioned in Rule 12 shall be entitled to represent parties. However, other
persons may attend only with the permission of the parties and with the consent of the
mediator/conciliator.

Rule 22 : Immunity.

No mediator/conciliator shall be held liable for anything bonafide done or omitted to be

done by him during the mediation/conciliation proceedings for civil or criminal action
nor shall he be summoned by any party to the suit or proceeding to appear in a Court of
law to testify in regard to information received by him or action taken by him or in
 LatestLaws.com

respect of drafts or records prepared by him or shown to him during the

mediation/conciliation proceedings.

Rule 23 : Communication between mediator/conciliator and the Cour t.

(a) In order to preserve the confidence of parties in the Court and the
neutrality of the mediator/conciliator, there should be no communication
between the mediator/conciliator and the Court, except as stated in clause
(b) and (c) of this Rule.

(b) If any communication between the mediator/conciliator and the Court is

necessary, it shall be in writing and copies of the same shall be given to
the parties or the constituted attorney or the counsel.

(c) Communication between the mediator/conciliator and the Court shall be

limited to communication by the mediator/conciliator:

(i) with the Court about the failure of the party to attend;
(ii) with the Court about the consent of the parties;
(iii) regarding his assessment that the case is not suited for settlement
through the mediation/conciliation;
(iv) that the parties have settled the dispute(s).

Rule 24 : Settlement Agr eement.

(a) Where an agreement is reached between the parties in regard to all the
issues in the suit or proceeding or some of the issues, the same shall be
reduced to writing and signed by the parties or their constituted attorney.
If any counsel has represented the parties, the conciliator/mediator may
obtain his signature also on the settlement agreement.
(b) The agreement of the parties so signed shall be submitted to the
mediator/conciliator who shall, with a covering letter signed by him,
forward the same to the Court in which the suit or proceeding is pending.
(c) Where no agreement is arrived at between the parties, before the time limit
stated in Rule 18 or where, the mediator/conciliator is of the view that no
settlement is possible, he shall report the same to the Court in writing.

Rule 25 : Cour t to fix a date for r ecor ding settlement and passing decr ee.

(a) On receipt of any settlement, the court shall fix a date of hearing normally
within seven days but in any case not beyond a period of fourteen days.
On such date of hearing, if the court is satisfied that the parties have
settled their dispute(s), it shall pass a decree in accordance with terms
thereof.

(b) If the settlement dispose of only certain issues arising in the suit or
proceeding, on the basis of which any decree is passed as stated in Clause
(a), the court shall proceed further to decide remaining issues.
 LatestLaws.com

Rule 26 : Fee of mediator /conciliator and costs.

(a) At the time of referring the dispute(s) to the mediation/conciliation, the

Court may, fix the fee of the mediator/conciliator.

(b) As far as possible, a consolidated sum may be fixed rather than for each
session or meeting.

(c) Where that are two mediators/conciliators as in clause (b) of Rule 2, the
Court shall fix the fee payable to the mediators/conciliators, which shall be
shared equally by the two sets of parties.

(d) The expense of the mediation/conciliation including the fee of the

mediator/conciliator, costs of administrative assistance, and other ancillary
expenses concerned, shall be borne equally by the various contesting
parties or as may be otherwise directed by the Court.

(e) Each party shall bear the costs for production of witnesses on his side
including experts, or for production of documents.

(f) The mediator/conciliator may, before the commencement of the

mediation/conciliation, direct the parties to deposit equal sums,
tentatively, to the extent of 40% of the probable costs of the
mediation/conciliation, as referred to in clause (d), including his fee. The
remaining 60% shall be deposited with the mediator/conciliator, after the
conclusion of the mediation/conciliation. The amount deposited towards
costs shall be expended by the mediator/conciliator by obtaining receipts
and a settlement of account shall be filed, by the mediator/conciliator in
the Court.

(g) If any party or parties do not pay the amount referred to Clause (e), the
Court shall, on the application of the mediator/conciliator, or any party,
issue appropriate directions to the concerned parties.
(h) The expense of the mediation/conciliation including fee, if not paid by the
parties, the Court shall, on the application of the mediator/conciliator or
the parties, direct the concerned parties to pay, and if they do not pay, the
Court shall recover the said amounts as if there was a decree for the said
amount.

Rule 27 : Ethics to be followed by mediator /conciliator .

The mediator/conciliator shall :

(a) follow and observe these Rules strictly and with due diligence;
(b) not carry on any activity or conduct which could reasonably be considered
as conduct unbecoming of a mediator/conciliator;
(c) uphold the integrity and fairness of the mediation/conciliation process;
(d) ensure that the parties involved in the mediation/conciliation and fairly
informed and have an adequate understanding of the procedural aspects of
the process;
 LatestLaws.com

(e) satisfy himself/herself that he/she is qualified to undertake and complete

the assignment in a professional manner;
(f) disclose any interest or relationship likely to affect impartiality or which
might seek an appearance of partiality or bias;
(g) avoid, while communicating with the parties, any impropriety or
appearance of impropriety;
(h) be faithful to the relationship of trust and confidentiality imposed in the
office or mediator/conciliator;
(i) conduct all proceedings related to the resolutions of a dispute, in
accordance with the applicable law;
(j) recognize that the mediation/conciliation is based on principles of self-
determination by the parties and that the mediation/conciliation process
relies upon the ability of parties to reach a voluntary, undisclosed
agreement;
(k) maintain the reasonable expectations of the parties as to confidentiality,
refrain from promises or guarantees of results.

Rule 28 : Tr ansitor y pr ovisions.

Until a panel of Mediators/Conciliators is prepared by the High Court and the District &
Sessions Judge as stated in Rule 3, the Courts, may nominate a mediator/conciliator of
their choice if the mediator/conciliator belongs to the various classes of persons referred
to in Rule 4 and is duly qualified and is not disqualified, taking into account the
suitability of the mediator/conciliator for resolving the particular dispute(s).

BY ORDER OF THE COURT

Sd/-
(V B GUPTA)
REGISTRAR GENERAL