Can mediation or conciliation be used for recovering money in India?

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Use of Mediation or Conciliation for Money Recovery in India Yes, mediation and conciliation can be used for recovering money in India as alternative dispute resolution (ADR) mechanisms. These methods help parties settle disputes outside of court, saving time and legal costs. 1. Mediation for Money Recovery Mediation is a voluntary process where a neutral third party (mediator) helps parties negotiate a settlement. It is useful for commercial disputes, loan recoveries, and unpaid invoices. The agreement reached is legally binding if signed by both parties and recorded in court. Governed by the Mediation Act, 2023, and supported by Section 89 of the CPC. 2. Conciliation for Money Recovery Conciliation is similar to mediation but involves a conciliator who plays a more active role in suggesting solutions. Used in commercial transactions, banking disputes, and business debt recovery. Governed by the Arbitration and Conciliation Act, 1996. The settlement agreement is enforceable like a court decree under Section 74. 3. When Can Mediation or Conciliation Be Used? Business Disputes: Unpaid bills, service payments, and contract breaches. Bank Loan Defaults: Some banks use conciliation before initiating legal action. Cheque Bounce Cases: Courts may suggest mediation to avoid criminal proceedings under Section 138 of the NI Act. 4. Advantages Over Court Cases Faster resolution compared to lengthy court cases. Confidential and helps maintain business relationships. Cost-effective with fewer legal expenses. Court-enforceable if properly documented. Conclusion Mediation and conciliation are effective legal tools for recovering money in India, especially in commercial and business disputes. Settlement agreements reached through these methods are legally binding and can be enforced like a court decree.

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