Government of India has released a Draft Mediation Bill 2021 for promotion and strengthening of Alternative Dispute Resolution (ADR) mechanisms in India. In this article, we look at existing landscape of ADR in India and the significance of changes proposed by the Draft Bill. Mediation is a process where an impartial third party is appointed to facilitate structured negotiation between disputing parties and help them reach a mutually agreeable settlement. It is known as an Alternative Dispute Resolution (ADR) mechanism, in other words, an alternative for litigation in courts. In addition to saving time and reducing litigation costs, mediation helps maintain relationships by promoting an amicable agreement. In India, the laws on mediation are contained in several enactments. The present Draft Mediation Bill 2021 is an umbrella legislation with the objective to promote, encourage and facilitate mediation especially institutional mediation for resolution of commercial disputes and otherwise. The Bill takes into contemplation the international practice of using the terms ‘conciliation’ and ‘mediation’ interchangeably. The Draft bill envisions to enforce domestic and international mediation settlement agreements, provide for a body for the registration of mediators, encourage community mediation and make online mediation an acceptable and cost-effective process. Court-mediation cells, Lok Adalats, & Private ADR systems in India To adequately execute the ADR mechanism, organizations like the Indian Council of Arbitration (ICA) and the International Center for Alternate Dispute Resolution (ICADR) were established as specialized arbitral body at the national level under the initiatives of the Government of India and apex business organizations like Federation of Indian Chambers of Commerce & Industry (FICCI), etc. The ICA was established in 1965 with the fundamental target to advance the genial and fast settlement of industrial and exchange disputes by arbitration. The ICADR is an autonomous association, working under the aegis of the Ministry of Law and Justice, to advance and create ADR facilities and techniques in India. To promote the adoption of ADR mechanisms, the Legal Services Authorities Act, 1987 was revised to endorse the use of ADR methods. The Arbitration Act, 1940 was also revoked and the arbitration system was further promoted by the establishment of The Arbitration and Conciliation Act, 1996. In 2002, the Code of Civil Procedure (CPC), 1908 was amended to introduce Section 89. The amendment was instrumental in promoting alternative dispute resolution (ADR) processes in India, including mediation. Post this amendment, courts can refer disputes which are capable of being settled between parties to alternate dispute resolution (Code of Civil Procedure, Section 89). On several occasions, the Supreme Court has emphasised the importance of mediation, especially in commercial matters, and observed that this type of Alternative Dispute Resolution (ADR) is ideal for parties faced with complex issues that they are willing to resolve through negotiations. Mediation, conciliation, negotiation, small-scale trial, consumer forums, Lok Adalats and Banking Ombudsman have just been acknowledged and perceived as powerful elective dispute-resolution methodologies. Initially started in Gujarat in 1982, Lok Adalats have become one of the most popular Alternative Dispute Resolution (ADR) techniques in India, under the Legal Services Authorities Act, 1987. Lok Adalats have set the conciliation process in motion and have extended all over the country. Lok Adalats are organized with financial assistance from the Government and monitored by the Judiciary. Every award of the Lok Adalat is deemed to be a decree of a civil court. Similar is the condition in cases settled in the mediation cell referred through courts. The establishment of court-annexed mediation programmes has gradually led the path for the establishment of private mediation institutions throughout the country — such as the Indian Institute of Arbitration and Mediation (IIAM), Centre for Advanced Mediation Practice (CAMP), and Foundation for Comprehensive Dispute Resolution (FCDR). In recent years, mediation has been given further impetus by the inclusion of a provision in the Companies Act, 2013, which makes it mandatory for the central government to maintain a mediation and conciliation panel, comprising experts for mediating commercial disputes between the parties. Further, tribunals under the Companies Act or the central government may also refer a dispute to mediation where it deems it appropriate.