Short FAQs for CMC
Mediation is a voluntary, confidential and privileged process. The parties to the mediation provide solutions for settlements themselves, and the mediator only acts as a neutral third party facilitating the negotiations and guiding the parties to an amicable settlement.
Mediation costs significantly less than arbitration or litigation. The details of the costs of mediation are given in the fee structure.
|Dispute Value Slab (INR)||(All values in INR)|
|Minimum||Maximum||Filing Fee (To be paid by the referring party)||Initial Fees for Mediation (To be paid by both the parties equally)||Maximum Initial Fees for Mediation (Capped at – 10,00,000)||Maximum Additional Fee on Settlement (Capped at – 10,00,000) (To be paid by both the parties equally)|
|1||0||4,99,999||2000||15,000||15,000||1% of Settlement Value (Max – 4,999)|
|2||5,00,000||9,99,999||2000||15,000 + 2% of amount exceeding 5,00,000||24,999||1% of Settlement Value (Max – 9,999)|
|3||10,00,000||99,99,999||5000||25000 + 1% of amount exceeding 1,000,000||1,14,000||1% of Settlement Value (Max – 99,999)|
|4||1,00,00,000||9,99,99,999||5000||1,15,000 + 0.5% of amount exceeding 1,00,00,000||5,65,000||0.5% of Settlement Value (Max – 4,99,999)|
|5||10,00,00,000||99,99,99,999||5000||5,65,000 + 0.1% of amount
(Capped at 10,00,000)
|0.5% of Settlement Value (Capped at – 10,00,000)|
Total Cost of Mediation = Filing Fee + Initial Fees for Mediation + Additional Fee on Settlement (if any)
- The filing fees are payable at the time of referring a dispute to CMC.
- Amount towards Initial Fees for Mediation has to be paid in advance once the parties agree for mediation.
- The total fee from Mediation services (excluding filing fee) is shared between the CMC and the Mediator in the ratio of 40:60.
- The above rates are exclusive of GST
- Above fees are lump sum irrespective of the number of sittings required for mediation.
- Special proposals to be worked out for : Larger disputes, Volume disputes/Retainer arrangements, Eminent mediators.
- Disclaimer : CMC reserves the rights to modify the fee schedule as and when deemed necessary.
The results of a successful mediation are binding on to the parties in the form of an agreement which is signed by both the parties. However, if the mediation is not successful, the parties are free to approach the Courts or proceed with Arbitration.
The main role of the mediator is to facilitate an effective negotiation between the parties. The mediator is independent of the parties and completely impartial. They help the parties realise their best interests and help them reach a settlement.
The mediator is usually selected by joint agreement between the parties, although if they cannot agree or do not know whom to select, the parties can ask a third person or an independent body to select a suitable mediator.
The Centre’s Mediation Rules contain detailed provisions directed at preserving confidentiality in relation to the proceedings and outcome of the mediation.
FAQs for General Public
Mediation is a form of alternative dispute resolution in which a neutral third party (the mediator) meets the parties in dispute to help them negotiate a settlement of their dispute, while maintaining confidentiality. Mediation is a voluntary process and is contingent on the consent of the parties. Mediators are not judges or adjudicators, they simply seek to assist the parties in arriving at a settlement.
Mediation can be initiated at any stage of a dispute. Disputing parties can choose mediation as the first step towards seeking resolution even after any negotiations conducted by the parties themselves have failed. It may also be used as a pre-dispute mechanism to forestall the escalation of an issue or disagreement between the parties into a dispute. Parties can also mutually decide to opt out of an ongoing litigation or arbitration and initiate mediation.
Two factors make mediation the ideal form of dispute resolution – Firstly, Mediation has shown remarkably high rates of success, given its flexible nature. This entails that the parties stand a higher chance of being satisfied with the results of the mediation. Secondly, the commitment to mediation involves a low risk. The parties remain in control of the dispute, and they may leave the mediation as per their convenience. If mediation, as the first choice , attempt to dispute resolution fails, the parties can always choose other mainstream forms of dispute resolution.
The process of mediation begins from the step when either or both parties propose mediation and select a mediator, who would take charge of the case. Before the mediation begins, a mediator may have a preliminary discussion with the parties to plan for the mediation.
A typical mediation begins with arranging whatever the participants need to be comfortable. This is followed by signing an undertaking to voluntarily mediate, and other pertinent documents. The parties then give their opening statements.
This sets the process off, and the mediator may hold sessions at his/her discretion.
For people in conflict, the prospect of being at the same table with an adversary can be daunting. In the hands of our skilled mediators, the conversation follows a constructive pattern without subjecting anyone to discomfort. Participation is challenging, but most people leave a successful mediation with a great sense of relief.
A mediator is not a judge or arbitrator, as the mediator does not pass any judgment, or even have an opinion on who is right or wrong. He/She is a neutral third party who simply assists the disputants to discover and reach creative solutions in resolving the dispute.
Mediation has a high success rate. Centre for Effective Dispute Resolution (CEDR,is the largest conflict management and resolution consultancy in the world) has recorded that the aggregate settlement rate from mediations was 86% in 2016. This is 67% of disputes settling on the day of the mediation and 19% shortly afterwards.
The parties to the mediation must attend the sessions. They may be accompanied by their counsels or other external parties, whose presence would benefit the mediation.
All civil disputes can be mediated. The Centre provides mediation services for commercial disputes across sectors.
There are some instances where mediation may not be appropriate, these are cases where a point of law needs to be resolved; injunctive relief is required; there are allegations of fraud; there is need for a precedent; there are policy and public interest issues and in criminal cases.
FAQs for Mediators
Persons who wish to get empaneled as mediators need to complete 40-Hours Mediation Training and 10 actual mediations, in order to be entrusted with the task of mediating disputes.
Empanelment into the CMC as a mediator is based completely on invitations provided by the Centre.
CMC handles all types on civil commercial disputes. Examples of dispute areas CMC works in are real estate, insurance, contractual claims etc.
In the event that the mediator: has been involved in the dispute in any manner even if it has been in a advisory capacity, where he has advised either party in the circumstances giving rise to the dispute or relating to the dispute is known to hold an office of interest or office of profit in either of the disputing parties or related entities (this is on the understanding that the disputants are corporates). Has a substantial shareholding in the disputing or related entity or has any beneficial interest in the subject matter of the dispute or disputants.