Enhancing The Resolution Framework Of The IBC Through Mediation: A Comprehensive Analysis

Sruthi Chandramohan, National Law University, Delhi

ABSTRACT

Mediation being one of the alternate dispute resolution methods, in its nascent stages in India has created contours of discussion to be included amongst other national legislations. The report released by the Insolvency and Bankruptcy Board in January 2024 has proposed nuances of how Mediation is viable to resolve insolvency disputes. The framework involves the legislative process of Corporate Insolvency Resolution Proceedings (hereinafter ‘CIRP’) along with the efficiency of involving mediation as an alternate to the arduous process of litigation. Pursuant to this, in order to bridge the proposed interplay, an isolated study of the Mediation Act, 2023(hereinafter ‘the act’) and the Insolvency and Bankruptcy Code, 2016 (hereinafter ‘the code’) are to be carried out. This paper discusses the report on the basis of its extent of applicability of mediation to insolvency and other national legislations and attempts to evaluate the process of ascertaining the applicability of mediation to insolvency disputes. Further, the paper delves into Mediation’s scope in other jurisdictions as a practice for insolvency disputes and determine facets and characteristics suitable to be incorporated in India’s dispute resolution landscape.