Dought related to mediation and conciliation

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This discussion clarifies that a mediator already providing services to a client cannot then mediate for them, as it constitutes a conflict of interest. While there isn't a specific legal section for this, it's a general principle. The advice given is to use a neutral mediator and declare the outstanding loan amount. The distinction between mediation, which facilitates agreement, and arbitration, which makes a binding decision, is also highlighted.

vankayalapati nayana

vankayalapati nayana (Querist)

19 March 2021 can a mediator is already rendering services to the client can mediate? whether it amounts to a conflict of interest

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

19 March 2021 Yes, it amounts to conflict of interest. He can't mediate.

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vankayalapati nayana

vankayalapati nayana (Querist)

19 March 2021 thank you sir for your reply. Is there any other way to mediate

vankayalapati nayana

vankayalapati nayana (Querist)

19 March 2021 one more dought. in one company there are unsecured loans taken from its members and paid off some amount, in the declaration form which amount we should write

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

19 March 2021 Go for one neutral person to mediate.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

19 March 2021 Site the outstanding amount.

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vankayalapati nayana

vankayalapati nayana (Querist)

19 March 2021 Sir may i know as per which rule and section he can't mediate

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

19 March 2021 It's a general rule.

vankayalapati nayana

vankayalapati nayana (Querist)

19 March 2021 means no specific section for this

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

19 March 2021 Yes, no specific section.
In an arbitration, the arbitrator looks into the legal rights and wrongs of a dispute and makes a decision. ... In a mediation, the mediator, essentially, helps parties to settle their disputes by a process of discussion and narrowing differences. The mediator helps the parties to arrive at an agreed solution.

Arbitration laws are there but mediation no laws are there.

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