Moti Ram (D) Thr. Lrs. & Anr. versus Ashok Kumar & Anr. — Supreme Court (2010) — LawSathi Research

Moti Ram (D) Thr. Lrs. & Anr. versus Ashok Kumar & Anr. — Supreme Court (2010) — LawSathi Research

What the court decided

AI extract

Outcome

No final relief in the appeal. The Court directed that a copy of the 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; at the request of the appellants' counsel the matter was listed for January 2011 and adjourned.

Issue for consideration

Whether mediation proceedings are confidential, and what a mediator should communicate to the court in his report where the mediation succeeds or fails.

Court's answer

Mediation proceedings are totally confidential proceedings, unlike proceedings in court which are conducted openly in the public gaze.

Ratio / Principle

If the mediation succeeds, the mediator should send the agreement signed by both parties to the court without mentioning what transpired during the mediation proceedings.

Key takeaways

If the mediation is unsuccessful, the mediator should write only one sentence in his report to the Court - that the 'Mediation has been unsuccessful' - and should not write anything about what was discussed, proposed or done during the mediation.ratio¶32
Offers, counter-offers and proposals made in mediation do not amount to a concluded contract until the parties reach an agreement signed by them; if the happenings of the mediation are disclosed, the confidentiality of the mediation process will be destroyed.ratio¶33
The mediator's report in the present case should not have mentioned the proposals made by the parties; it should only have stated that the mediation was unsuccessful.

Detailed headnote1 paragraphs

Mediation - Confidentiality of mediation proceedings - Form of mediator's report to the court - Landlord-tenant civil appeal referred to Mediation Centre at Chandigarh; mediation unsuccessful and mediator's report disclosed the parties' settlement proposals - Held: mediation proceedings are totally confidential, unlike open court proceedings; if mediation succeeds, the mediator must send only the agreement signed by both parties to the court without disclosing what transpired; if it fails, the report must state only that the 'Mediation has been unsuccessful' and nothing more, since offers, counter-offers and proposals in mediation do not amount to a concluded contract until a signed agreement is reached, and their disclosure destroys the confidentiality of the process - The report in the present case ought not to have mentioned the parties' proposals - Copy of the order directed to be sent to the Supreme Court Mediation Centre and Mediation Centres of all High Courts and District Courts, including Chandigarh - Matter listed for January 2011 and adjourned (CPC, s.89(2) referenced in the reported headnote).

[2010] 14 (ADDL.) S.C.R. 809

MOTi RAM (D) THR. LRS. & ANR.

A

v.

ASHOK KUMAR & ANR.

(Civil Appeal No. 1095 of 2008)

DECEMBER 7, 2010

B

[MAKANDEY KAT JU AND GYAN SUDHA MISRA, JJ.]

ALTERNATIVE DISPUTE REDRESSAL - Mediation - Landlord-tenant matter pending before Supreme Court, referred to Mediator - Mediation remained unsuccessful - Report by mediator - HELD: Unlike the proceedings in court, mediation proceedings are totally confidential proceedings - If the mediation succeeds, then the mediator should send the agreement signed by both the parties to the court without mentioning what transpired during the mediation proceedings - Otherwise, the mediator should send his report only stating that the 'Mediation has been unsuccessful, and nothing else - Code of Civil Procedure, 1908 - s.89 (2).

CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1095 of 2008.

C

D

E

From the Judgment & Order dated 19.10.2007 of the High Court of Punjab & Haryana at Chandigarh in RSA No. 1959 of 1994 (0 & M).

F

Harkesh Singh (for Kamal Mohan Gupta) for the Appellants.

Manoj Swarup, Ankit Swarup, Shivinder Swaroop, Ashok Anand (for Gagan Gupta) for the Respondents.

G

The following Order of the Court was delivered

809

H

810 SUPREME COURT REPORTS [2010] 14 (ADDL.) S.C.R.

A.

ORDER

On 31⁸¹ August, 2010, we had referred the matter for mediation to the Mediation Centre at Chandigarh to attempt to resolve the dispute between the parties.

B

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 foliows:

"Mr. Ashok Kumar states that he would be ready and willing c 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 D 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.

E

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

F 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'. BeyondJhat, the mediator should not write anything which was discussed, proposed or done during the mediation

G 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

H confidentiality of the mediation process.

MOTi RAM (D) THR. LRS. & ANR. v. ASHOK KUMAR 811 &ANR.

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 Di~trict Courts in the country, including the Chandigarh Mediation Centre

A

B

So far as this case is concerned, at the request of the counsel for tile appellants, list this matter in January 2011.

R.P.

Matter adjourned.