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Section 77: Duty of mediator to disclose certain facts

Consumer Protection Act • Official Statutory Text & Practice Guide

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Act 2019
Section 76 All 107 Sections of Consumer Protection Act Section 78

Legal Commentary & Landmark Judgments: Section 77

Section 77 imposes an absolute and continuous statutory duty on the nominated mediator to disclose any conflict of interest, financial stake, or prior relationship that could compromise independence or impartiality.

  • Mandatory Pre-Mediation Written Disclosure: Requires the mediator to disclose in writing any circumstance likely to give rise to justifiable doubts as to impartiality or independence before commencing proceedings.
  • Direct or Indirect Financial/Personal Interest: Extends disclosure obligations to any past or present financial, business, professional, or personal interest in the outcome or subject matter of the dispute.
  • Continuous Statutory Duty of Disclosure: Obligates the mediator to inform the Commission and parties immediately if any conflict or biasing circumstance arises during the course of mediation.
Key Landmark Precedents:
  • TRF Ltd. v. Energo Engineering Projects Ltd. (2017) 8 SCC 877: A 3-Judge Bench held that impartiality and neutrality are the non-negotiable bedrock of statutory dispute resolution; any undisclosed relationship that raises justifiable doubts invalidates the appointment.
  • Perkins Eastman Architects DPC v. HSCC (India) Ltd. (2020) 2 SCC 760: The Supreme Court held that statutory adjudicators and neutrals must not possess any interest or bias in the outcome, reinforcing strict pre-appointment disclosure standards.
  • Voestalpine Schienen GmbH v. Delhi Metro Rail Corpn. Ltd. (2017) 4 SCC 665: The Supreme Court ruled that disclosure requirements under alternative dispute resolution frameworks are absolute, continuing, and designed to eliminate any reasonable perception of bias.
Courtroom Practice & Strategic Litigation Guidance:

Scrutinize the written disclosure statement submitted by the mediator under Section 77. If the mediator has represented the opposite party corporate entity or holds financial investments in its parent group, object immediately under Section 78 before participating in proceedings.

Section 76 All 107 Sections of Consumer Protection Act Section 78