MOTI RAM (D) THR. LRS. & ANR. v.

ASHOK KUMAR & ANR. (Civil Appeal No. 1095 of 2008)

DECEMBER 7, 2010 [Makandey Katju and Gyan Sudha Misra, JJ.]

[2010] 14 (ADDL.) SCR  809

The following Order of the Court was delivered

ORDER

On 31st August, 2010, we had referred the matter for mediation to the Mediation Centre at  

Chandigarh to attempt to resolve the dispute between the parties.

Today, when the matter was called out, our Court Secretary placed before us the Report  

dated 29th September, 2010 received from the Mediator, which is as follows:

“Mr. Ashok Kumar states that he would be ready and willing to vacate the shop on receipt  

of 1/3rd of the value of the shop which according to him is worth approximately 50 Lacs  

and he be paid an amount of 15 Lacs (approx.). The appellant-landlord is not ready and  

willing to offer the said amount and has extended the concession by giving up on the  

pending rent only which according to him is pending for last 28 years. Tenant has also  

expressed his willingness to purchase the property for an amount of Rs. 30 Lacs but the  

landlord has refused to dispose of the same on the ground of personal necessity.

In this connection, we would like to state mediation proceedings are totally confidential  

proceeding. This is unlike proceedings in Court which are conducted openly in the public gaze.  

If the mediation succeeds, by both the parties to the Court without mentioning what transpired  

during the mediation proceedings. If the mediation is unsuccessful, then the mediator should  

only write one sentence in his report and send it to the Court stating that the ‘Mediation has  

been unsuccessful’. Beyond that, the mediator should not write anything which was discussed,  

proposed or done during the mediation proceedings. This is because in mediation, very often,

offers, counter offers and proposals are made by the parties but until and unless the parties  

reach to an agreement signed by them, it will not amount to any concluded contract. If the  

happenings in the mediation proceedings are disclosed, it will destroy the confidentiality of the  

mediation process.

We are  compelled  to  observe  this  because the  mediators  should  know what  kind  of  

reports they should send to the Courts. The report sent in this core should not have mentioned  

the  proposals  made  by  the  parties,  but  should  only  have  stated  that  the  mediation  was  

unsuccessful.

Let a copy of this order be sent to the Supreme Court Mediation Centre and the Mediation  

Centres in all  the High Courts and District  Courts in the country,  including the Chandigarh  

Mediation Centre.

So far as this case is concerned, at the request of the counsel for the appellants, list this matter in  

January 2011.