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santosh (engineer)     25 November 2013

Mediator fess- how much

In hearing an SLP the Supreme court handed over the matter to Justice B N Agrawal, Retired Supreme Court Judge for mediation. In the order the court did not fix any mediation fees. 

Now on first hearing before the arbitrator the arbitrator has fixed his fees as

"Mediation Fee etc.:

10.

In consultation with Learned Counsel for the parties, I fix a fee of Rs. 3,00,000/- [Rupees three lac] per day payable to the Mediator. Parties further agreed that Rs. 15000/- per day shall be payable for providing Secretarial Assistance to the Mediator. Today's fee of Rs. 3 lac for the Mediator and Rs. 15,000/- towards Secretarial Allowance shall be shared equally by the three Associations and Air India, which shall be paid by cheque/draft in the name of the Mediator [Mediator's Fee] and in the name of “Sangita Sharma” [Secretarial Allowance] within four weeks. Mediation Fee and Secretarial Allowance for future dates of hearing shall be paid on the date of hearing itself and shared equally by "[Second Party} and [First party]."

 

I want to know whether the fees of 3,00,000 is justified and whether the said fees is governed under any rules or not and if so what is the guiding rule under which is charging such a huge fees per hearing which I hope more than even monthly salary of Supreme Court chief Justice. Pertinent to note the SLP arose from a Writ petition in Mumbai High Court, however the mediation proceeding are carried out at Delhi.



Learning

 1 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     25 November 2013

The Mediator fees are managed by IIAM and fixed on the basis of the relevant Fee schedule, taking into consideration the time spent, the rapidity of the proceedings and the complexity of the dispute. The Fee schedule provides a minimum and a maximum for one mediator. The fees of the Mediator shall be calculated on the basis of the time reasonably spent by the Mediator in the mediation proceedings. Such rate shall be reasonable in amount and shall be determined in light of the complexity of the dispute and any other relevant circumstances. Separate fee arrangements between the parties and the mediator(s) are contrary to the Rules. 


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