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Moti Ram(D) Tr.Lrs.& Anr vs Ashok Kumar & Anr

Supreme Court7 December 2010Makandey Katju · Gyan Sudha Misra

Ratio decidendi

The rule this decision rests on

Mediation proceedings are confidential, and mediators must not disclose in their reports to courts the proposals, offers, counter-offers, or discussions that occur during mediation unless the parties themselves choose to inform the court; when mediation is unsuccessful, the mediator's report to the court should state only that mediation has been unsuccessful, without disclosing the substance of what was discussed or proposed during the process.

Written by Miss Lucy from the judgment below, not taken from a headnote.

Judgment

As delivered

MOTI RAM (D) THR. LRS. & ANR.
v.
ASHOK KUMAR & ANR.
(Civil Appeal No. 1095 of 2008)
DECEMBER 7, 2010
[Makandey Katju and Gyan Sudha Misra, JJ.]
[2010] 14 (ADDL.) SCR 809
The following Order of the Court was delivered
ORDER

On 31st August, 2010, we had referred the matter for mediation to the Mediation Centre at

Chandigarh to attempt to resolve the dispute between the parties.

Today, when the matter was called out, our Court Secretary placed before us the Report

dated 29th September, 2010 received from the Mediator, which is as follows:

"Mr. Ashok Kumar states that he would be ready and willing to vacate the shop on receipt

of 1/3rd of the value of the shop which according to him is worth approximately 50 Lacs

and he be paid an amount of 15 Lacs (approx.). The appellant-landlord is not ready and

willing to offer the said amount and has extended the concession by giving up on the

pending rent only which according to him is pending for last 28 years. Tenant has also

expressed his willingness to purchase the property for an amount of Rs. 30 Lacs but the

landlord has refused to dispose of the same on the ground of personal necessity.

In this connection, we would like to state mediation proceedings are totally confidential

proceeding. This is unlike proceedings in Court which are conducted openly in the public gaze.

If the mediation succeeds, by both the parties to the Court without mentioning what transpired

during the mediation proceedings. If the mediation is unsuccessful, then the mediator should

only write one sentence in his report and send it to the Court stating that the `Mediation has

been unsuccessful'. Beyond that, the mediator should not write anything which was discussed,

proposed or done during the mediation proceedings. This is because in mediation, very often,

offers, counter offers and proposals are made by the parties but until and unless the parties

reach to an agreement signed by them, it will not amount to any concluded contract. If the

happenings in the mediation proceedings are disclosed, it will destroy the confidentiality of the

mediation process.

We are compelled to observe this because the mediators should know what kind of

reports they should send to the Courts. The report sent in this core should not have mentioned

the proposals made by the parties, but should only have stated that the mediation was

unsuccessful.

Let a copy of this order be sent to the Supreme Court Mediation Centre and the Mediation

Centres in all the High Courts and District Courts in the country, including the Chandigarh

Mediation Centre.

So far as this case is concerned, at the request of the counsel for the appellants, list this matter in

January 2011.

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