Report by IBBI’s Expert Committee on Framework for Use of Mediation under the Insolvency and Bankruptcy Code (IBC), 2016

Posted 16 Feb 2024

Updated 22 Mar 2024

2 min read

Expert committee was constituted by Insolvency and Bankruptcy Board of India (IBBI) with T.K. Vishwanathan as Chairperson to examine the scope of using mediation in various processes under the IBC 2016.
- Currently, there are no specific provisions for mediation of insolvency and bankruptcy disputes under IBC.
Mediation is use of a neutral third party to facilitate the negotiated settlement of a dispute between two or more parties.
- Typically, it is initiated by mutual consent of the parties, or pre-agreed contract, or court reference or law-mandated requirement.

Mediation framework in India
- The Mediation Act, 2023 aims to facilitate mediation, especially institutional mediation.
- Provisions in other legislations: Civil Procedure Code, 1908, Companies Act, 2013, Commercial Courts Act, 2015 and Consumer Protection Act, 2019.
- India is signatory to the Singapore Convention on Mediation.
Recommendations of the Committee
- Phased introduction of voluntary mediation as a dispute resolution mechanism under IBC.
- Centre may by rules prescribe structure of insolvency mediation framework with specifying categories of mediable disputes.
- IBBI to specify procedures for conduct of mediations and their enforcement.
- Costs for the mediation to be borne equally between parties or as mutually agreed.

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