CONSUMER DISPUTES REDRESSAL COMMISSIONCentral
Section 37 of The Consumer Protection Act, 2019
Reference to mediation.
- (1)At the first hearing of the complaint after its admission, or at any later stage, if it appears to the District Commission that there exists elements of a settlement which may be acceptable to the parties, except in such cases as may be prescribed, it may direct the parties to give in writing, within five days, consent to have their dispute settled by mediation in accordance with the provisions of Chapter V.
- (2)Where the parties agree for settlement by mediation and give their consent in writing, the District Commission shall, within five days of receipt of such consent, refer the matter for mediation, and in such case, the provisions of Chapter V, relating to mediation, shall apply
Summary
- This section of the consumer law allows the District Commission to suggest an out of court settlement.
- It identifies that some disputes have elements of a settlement that both sides might find acceptable.
- It requires the Commission to ask both parties if they are willing to try mediation to solve their problem.
- It ensures that any mediation started under this rule follows the specific procedures found in Chapter V of the Act.
Practical examples
1Geeta sues a builder for a three week delay in finishing her house. At the first hearing on February 1, 2024, the Commission sees that the builder is willing to pay a small fine and Geeta is willing to accept it. The Commission gives them until February 6 to submit written consent to settle the matter through mediation.
2A shop owner and a customer named Rahul are fighting over a 5,000 rupee refund. On Monday, the Commission suggests they use a mediator to avoid a long trial. Both Rahul and the shop owner sign a consent form on Wednesday. By Friday, the Commission officially sends their case to the local mediation cell.
FAQ
1. When can the Commission suggest mediation under Section 37 of The Consumer Protection Act, 2019?
Under Section 37 of The Consumer Protection Act, 2019, the Commission can suggest mediation at the first hearing or at any later stage of the case.
Test yourself
1.Under Section 37 of The Consumer Protection Act, 2019, how many days do parties have to give their written consent for mediation?
2.When is the Commission authorized to suggest mediation according to Section 37 of The Consumer Protection Act, 2019?
3.What must be provided by the parties for a case to be referred to mediation under Section 37 of The Consumer Protection Act, 2019?
4.Under Section 37 of The Consumer Protection Act, 2019, what happens if parties do not consent to mediation after a complaint is admitted under Section 36?