MEDIATION ACT, 2023
[14th September, 2023.]
An Act to promote and facilitate mediation, especially institutional mediation, for resolution of disputes, commercial or otherwise, enforce mediated settlement agreements, provide for a body for registration of mediators, to encourage community mediation and to make online mediation as acceptable and cost effective process and for matters connected therewith or incidental thereto.
BE it enacted by Parliament in the Seventy-fourth Year of the Republic of India as follows:--
(1) This Act may be called the Mediation Act, 2023.
(2) It shall extend to the whole of India.
(3) It shall come into force on such date as the Central Government may, by notification, appoint and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.
This Act shall apply where mediation is conducted in India, and-
(i) all or both parties habitually reside in or are incorporated in or have their place of business in India; or
(ii) the mediation agreement provides that any dispute shall be resolved in accordance with the provisions of this Act; or
(iii) there is an international mediation; or
(iv) wherein one of the parties to the dispute is the Central Government or a State Government or agencies, public bodies, corporations and local bodies, including entities controlled or owned by such Government and where the matter pertains to a commercial dispute; or
(v) to any other kind of dispute if deemed appropriate and notified by the Central Government or a State Government from time to time, for resolution through mediation under this Act, wherein such Governments, or agencies, public bodies, corporations and
In this Act, unless the context otherwise requires,-
(a) "commercial dispute" means a dispute defined in clause (c) of sub-section (1) of section 2 of the Commercial Courts Act, 2015;
(b) "community mediator" means a mediator for the purposes of conduct of community mediation under Chapter X;
(c) "Council" means the Mediation Council of India established under section 31;
(d) "court" means the competent court in India having pecuniary and territorial jurisdiction and having jurisdiction to decide the disputes forming the subject matter of mediation, if the same had been the subject matter of a suit or proceeding;
(e) "court-annexed mediation" means mediation including pre-litigation mediation conducted at the mediation centres established by any court or tribunal;
(f) "institutional mediation" means mediation conducted under the aegis of
(1) A mediation agreement shall be in writing, by or between parties and anyone claiming through them, to submit to mediation all or certain disputes which have arisen or which may arise between the parties.
(2) A mediation agreement may be in the form of a mediation clause in a contract or in the form of a separate agreement.
(3) A mediation agreement is in writing, if it is contained in or recorded as-
(a) any document signed by the parties;
(b) an exchange of communications or letters including through electronic form as provided under the Information Technology Act, 2000;
(c) any pleadings in a suit or any other proceedings in which existence of mediation agreement is alleged by one party and not denied by the other.
(4) A reference in any agreement containing a mediation clause shall constitute a mediation agreement if the agreement
(1) Subject to other provisions of this Act, whether any mediation agreement exists or not, the parties before filing any suit or proceedings of civil or commercial nature in any court, may voluntarily and with mutual consent take steps to settle the disputes by pre-litigation mediation in accordance with the provisions of this Act:
Provided that pre-litigation mediation in matters of commercial disputes of Specified Value shall be undertaken in accordance with the provisions of section 12A of the Commercial Courts Act, 2015, and the rules made thereunder.
(2) The provisions of sub-section (1) shall be applicable to the tribunals notified by the Central Government or a State Government, as the case may be.
(3) For the purposes of sub-sections (1) and (2), unless otherwise agreed upon by the parties, a mediator,-
(i) registered with the Council; or
(ii) empane
(1) A mediation under this Act shall not be conducted for resolution of any dispute or matter contained in the indicative list under the First Schedule:
Provided that nothing contained herein shall prevent any court, if deemed appropriate, from referring any dispute relating to compoundable offences including the matrimonial offences which are compoundable and pending between the parties, to mediation:
Provided further that the outcome of such mediation shall not be deemed to be a judgment or decree of court referred to in sub-section (2) of section 27, and shall be further considered by the court in accordance with the law for the time being in force.
(2) If the Central Government is satisfied that it is necessary or expedient so to do, it may, by notification, amend the First Schedule.
(1) Notwithstanding the non-settlement of dispute under sub-section (1) of section 5, the court or tribunal may, at any stage of proceeding, refer the parties to undertake mediation.
(2) If the court or tribunal refers the parties to undertake mediation, it may pass suitable interim order to protect the interest of any party if deemed appropriate.
(3) The parties shall not be under obligation to come to a settlement in the mediation pursuant to a reference under sub-section (1).
(1) Unless otherwise agreed upon by the parties, a person of any nationality may be Appointment appointed as a mediator: of mediators.
Provided that mediator of any foreign nationality shall possess such qualification, experience and accreditation as may be specified.
(2) The parties shall be free to agree upon the name of mediator and the procedure for their appointment.
(3) If the parties do not reach any agreement on a matter referred to in sub-section (2), then the party seeking initiation of mediation shall make an application to a mediation service provider for the appointment of a mediator.
(4) Upon receiving an application under sub-section (3), the mediation service provider shall, within a period of seven days, appoint,-
(i) the mediator as agreed by the parties; or
(ii) in case the parties are unable to reach agreement as to t
The mediation service provider shall, while appointing any person from the panel of mediators maintained by it, consider his suitability and the preference of the parties for resolving the dispute.
(1) The person appointed as a mediator shall, prior to the conduct of mediation, disclose in writing to the parties regarding any circumstance or potential circumstance, personal, professional, financial, or otherwise, that may constitute any conflict of interest or that is likely to give rise to justifiable doubts as to his independence or impartiality as a mediator.
(2) During the mediation, the mediator shall, without delay, disclose to the parties in writing any conflict of interest, referred to in sub-section (1), that has newly arisen or has come to his knowledge.
(3) Upon disclosure under sub-section (1) or sub-section (2), the parties shall have the option to waive any objection if all of them express in writing, which shall be construed as the consent of parties.
(4) Upon disclosure under sub-section (1) or sub-section (2), if either party desires to replace the mediator, then, in case of-
A mediation service provider may terminate the mandate of a mediator upon-
(i) the receipt of application from a party under clause (i) of sub-section (4) of section 10; or
(ii) the receipt of information about the mediator being involved in a matter of conflict of interest from participants or any other person; or
(iii) his withdrawal from mediation for any reason:
Provided that termination under clause (ii) shall be effected if, after giving a hearing to the mediator, mediation service provider finds that there is justifiable doubt as to the independence or impartiality of the mediator and that the same has been brought to the notice of parties and that either party desires to replace the mediator.
Upon termination of the mandate of mediator-
(i) in case of mediation other than institutional mediation under clause (ii) of sub-section (4) of section 10, the parties may, appoint another mediator within a period of seven days from such termination; and
(ii) under section 11, the mediation service provider shall appoint another mediator from the panel maintained by it within a period of seven days from such termination.
Every mediation under this Act shall be undertaken within the territorial jurisdiction of the court or tribunal of competent jurisdiction to decide the subject matter of dispute:
Provided that on the mutual consent of the parties, mediation may be conducted at any place outside the territorial jurisdiction of the court or tribunal, or by way of online mediation.
Explanation.-For the removal of doubts, it is clarified that where the parties agree to conduct the mediation at any place outside the territorial jurisdiction or online, for the purpose of enforcement, challenge and registration of the mediated settlement agreement, the same shall be deemed to have been undertaken within the territorial jurisdiction of the court or tribunal of competent jurisdiction.
The mediation proceedings with respect to a particular dispute shall be deemed to have commenced-
(a) where there is an existing agreement between the parties to settle the dispute through mediation, the date on which a party or parties receives notice from the party initiating the mediation, to refer such dispute to mediation; or
(b) in other cases-
(i) where the parties have agreed to appoint a mediator of their choice for mediation and settlement of disputes between them on the date the mediator provides his consent to appointment; or
(ii) where one of the parties applies to a mediation service provider for settlement of disputes through mediation, the date of appointment of a mediator.
(1) The mediation process shall be conducted in the manner as may be specified.
(2) The mediator shall assist the parties in an independent, neutral and impartial manner in their attempt to reach an amicable settlement of their dispute.
(3) The mediator shall at all times be guided by the principles of objectivity and fairness and protect the voluntariness, confidentiality and self-determination of the parties, and the standards for professional and ethical conduct as may be specified.
(4) The mediation process may include the mediator taking such measures as may be considered appropriate, taking into account the circumstances of the case, including meeting with parties or participants, jointly or separately, as frequently as deemed fit by the mediator, both in order to convene the mediation, and during the mediation for the orderly and timely conduct of the process and to maintain its integrity.
(1) The mediator shall attempt to facilitate voluntary resolution of the dispute by the parties and communicate the view of each party to the other to the extent agreed to by them, assist them in identifying issues, advancing better understanding, clarifying priorities, exploring areas of settlement and generating options in an attempt to resolve the dispute expeditiously, emphasising that it is the responsibility of the parties to take decision regarding their claims.
(2) The parties shall be informed expressly by the mediator that he only facilitates in arriving at a decision to resolve a dispute and that he shall not impose any settlement nor give any assurance that the mediation may result in a settlement.
The mediator shall not-
(a) act as an arbitrator or as a representative or counsel of a party in any arbitral or judicial proceeding in respect of a dispute that is the subject matter of the mediation proceedings;
(b) be presented by the parties as a witness in any arbitral or judicial proceeding.
(1) Notwithstanding anything contained in any other law for the time being in force, mediation under this Act shall be completed within a period of one hundred and twenty days from the date fixed for the first appearance before the mediator.
(2) The period for mediation mentioned under sub-section (1) may be extended for a further period as agreed by the parties, but not exceeding sixty days.
(1) A mediated settlement agreement includes an agreement in writing between some or all of the parties resulting from mediation, settling some or all of the disputes between such parties, and authenticated by the mediator:
Provided that the terms of the mediated settlement agreement may extend beyond the disputes referred to mediation.
Explanation.-A mediated settlement agreement which is void under the Indian Contract Act, 1872, shall not be deemed to be lawful settlement agreement within the meaning of mediated settlement agreement.
(2) Where a mediated settlement agreement is reached between the parties with regard to all or some of the disputes, the same shall be reduced in to writing and signed by the parties.
(3) Subject to the provisions of section 26, the mediated settlement agreement signed,-
(i) in case of institutional mediation, shall be submitte
The Mediation Act, 2023, aims to promote, facilitate, and enforce mediated settlement agreements as an effective alternative dispute resolution mechanism. Section 19 specifically deals with the nature, validity, and enforceability of mediated settlement agreements, emphasizing their written, signed, and authenticated form, and their binding nature akin to court decrees.
Section 19 defines a mediated settlement agreement as a written agreement resulting from mediation, which is signed by the parties and authenticated by the mediator. It mandates that such agreements are valid, enforceable as if they were judgments or decrees of a court, and provides the procedural framework for their documentation and authentication. It also extends to agreements reached through online mediation, provided they comply with prescribed procedures.
While Section 19 itself does not prescribe specific punishments for breach, enforcement mechanisms are provided, and breach of a mediated settlement agreement can be challenged or penalized under general legal principles. Breach of such an agreement can lead to contempt proceedings or civil enforcement actions, as it is treated as a court decree.
Section 19 of the Mediation Act, 2023, codifies the legal recognition and enforceability of mediated settlement agreements, emphasizing their written, signed, and authenticated nature. It extends to agreements from online mediations, ensures their enforceability akin to court decrees, and aligns with confidentiality principles. These provisions bolster mediation’s role as a credible, efficient, and binding alternative to litigation, contributing to the reduction of court burdens and fostering amicable dispute resolution.
(1) For the purposes of record, mediated settlement agreement arrived at between the parties, other than those arrived in a court or tribunal referred mediation or award of Lok Adalat or final award of the Permanent Lok Adalat under section 21 or section 22E of the Legal Services Authorities Act, 1987, may, at the option of parties, be registered with an Authority constituted under the said Act, or any other body as may be notified by the Central Government, in such manner as may be specified and such Authority or body shall issue a unique registration number to such settlement agreements:
Provided that the mediated settlement agreement under this section may be registered with such Authority or the body situated within the territorial jurisdiction of the court or tribunal of competent jurisdiction to decide the subject matter of dispute.
Explanation.-For the removal of doubts, it is clarified that nothing contained in this
Subject to the provisions of section 26, where no agreement is arrived at between the parties, within the time period as provided under section 18, or where, the mediator is of the view that no settlement is possible, he shall,-
(i) in the case of institutional mediation, submit a non-settlement report to the mediation service provider in writing;
(ii) in all other cases, prepare a non-settlement report and provide a signed copy to all the parties:
Provided that the report referred to in this section shall not disclose the cause of non-settlement, or any other matter or thing referring to their conduct, during mediation.
(1) Subject to the other provisions of this Act, the mediator, mediation service provider, the parties and participants in the mediation shall keep confidential all the following matters relating to the mediation proceedings, namely:-
(i) acknowledgements, opinions, suggestions, promises, proposals, apologies and admissions made during the mediation;
(ii) acceptance of, or willingness to, accept proposals made or exchanged in the mediation;
(iii) documents prepared solely for the conduct of mediation or in relation thereto;
(iv) any other mediation communication.
(2) No audio or video recording of the mediation proceedings shall be made or maintained by the parties or the participants including the mediator and mediation service provider, whether conducted in person or online to ensure confidentiality of the conduct of mediation proceedings.
(1) No mediator or participant in the mediation, including experts and advisers engaged for the purpose of the mediation and persons involved in the administration of the mediation, shall at any time be permitted, or compelled to disclose to any court or tribunal, or in any adjudicatory proceedings, by whatever description, any communication in mediation, or to state the contents or conditions of any document or nature or conduct of parties during mediation including the content of negotiations or offers or counter offers with which they have become acquainted during the mediation:
Provided that nothing in this section and section 22 shall protect from disclosure, information sought or provided to prove or dispute a claim or complaint of professional misconduct of mediator or malpractice based on conduct occurring during the mediation.
(2) There shall be no privilege or confidentiality that will attach to-
The mediation proceedings under this Act shall be deemed to terminate-
(a) on the date of signing and authentication of the mediated settlement agreement; or
(b) on the date of the written declaration of the mediator, after consultation with the parties or otherwise, to the effect that further efforts at mediation are no longer justified; or
(c) on the date of the communication by a party or parties in writing, addressed to the mediator and the other parties to the effect that the party wishes to opt out of mediation;
(d) on the expiry of time limit under section 18.
The Mediation Act, 2023, represents a significant step towards formalizing and promoting mediation as a preferred method of dispute resolution in India. Section 24 specifically addresses the termination of mediation proceedings, outlining the conditions under which mediation can be concluded.
Section 24 of the Mediation Act, 2023, stipulates that mediation proceedings shall be deemed to terminate under specific circumstances, including the signing and authentication of a mediated settlement agreement.
(1) The cost of mediation, other than community mediation shall be such as may be specified.
(2) Unless otherwise agreed by the parties, all costs of mediation, including the fees of the mediator and the charges of the mediation service provider shall be borne equally by the parties.
Section 25 of the Mediation Act, 2023 serves as a critical financial safeguard for the mediation process. By mandating the pro-rata cost-sharing between parties, the legislature aims to ensure that the expense of alternative dispute resolution (ADR) does not become a barrier to access justice. This provision reinforces the principle of mutuality and fairness, ensuring that the costs of the facilitator's time and expertise are not unilaterally borne by one party unless agreed otherwise.
Section 25 of the Mediation Act, 2023 explicitly stipulates that all costs involved in the mediation process shall be borne equally by the parties, unless they have mutually agreed to a different arrangement. This encompasses specific expenses such as the fees of the mediator and the operational charges of the mediation service provider.
To invoke or comply with Section 25, the following elements are essential:* Existence of Mediation: There must be an ongoing or concluded mediation proceeding mediated under the Act or applicable rules.* Absence of Specific Agreement: The default position applies only if the parties have not entered into a distinct, prior, or concurrent agreement regarding the division of costs.* Incurring of Costs: There must be identifiable expenses, specifically covering the mediator's honorarium and the administrative or infrastructure charges of the mediation service provider.* Equality Principle: In the absence of a contrary pact, the ratio of sharing is presumptively 50:50 between the disputing parties.
The scope of Section 25 extends to all types of mediation proceedings covered under the Act, including institutional mediation, community mediation, and pre-litigation mediation referred by arbitrators or courts. It applies regardless of the underlying dispute nature (civil, commercial, or family), provided the formalities of the Act are observed.
The text of Section 25 itself does not prescribe any specific punishment, penalty, or fine for non-compliance or breach regarding the cost sharing mechanism. It is a directive for allocation of expenses rather than a penal provision. Remedies for non-payment of agreed or statutory costs would typically be sought under the Code of Civil Procedure or specific rules of the mediation institution, rather than through a criminal penalty attached to Section 25.
The provisions of this Act shall not apply to the proceedings conducted by Lok Adalat and Permanent Lok Adalat under the Legal Services Authorities Act, 1987.
(1) A mediated settlement agreement resulting from a mediation signed by the parties and authenticated by the mediator shall be final and binding on the parties and persons claiming under them respectively and enforceable as per the provisions of sub-section (2).
(2) Subject to the provisions of section 28, the mediated settlement agreement shall be enforced in accordance with the provisions of the Code of Civil Procedure, 1908, in the same manner as if it were a judgment or decree passed by a court, and may, accordingly, be relied on by any of the parties or persons claiming through them, by way of defence, set off or otherwise in any legal proceeding.
Section 27 of the Mediation Act, 2023, establishes the legal enforceability of mediated settlement agreements, emphasizing their finality and binding nature, akin to a court decree. This provision aims to promote mediation as a reliable and effective dispute resolution mechanism, ensuring that agreements reached are not only consensual but also legally enforceable, thereby reducing litigation and expediting justice.
Section 27 states that:- A mediated settlement agreement signed by the parties and authenticated by the mediator shall be final and binding on the parties and persons claiming under them.- Such agreements shall be enforceable in accordance with the provisions of the Civil Procedure Code (CPC), as if it were a judgment or decree passed by a court.- The section aims to elevate mediated agreements to the status of court decrees, ensuring their legal enforceability and finality.
Note: The section aims to promote mediation as a final and binding process, aligning with global best practices, and ensures legal enforceability comparable to a court decree, thus strengthening the dispute resolution framework in India.
(1) Notwithstanding anything contained in any other law for the time being in force, in any case in which the mediated settlement agreement is arrived at between the parties and is sought to be challenged by either of the parties, such party may file an application before the court or tribunal of competent jurisdiction.
(2) A mediated settlement agreement may be challenged only on all or any of the following grounds, namely:-
(i) fraud;
(ii) corruption;
(iii) impersonation;
(iv) where the mediation was conducted in disputes or matters not fit for mediation under section 6.
(3) An application for challenging the mediated settlement agreement shall not be made after ninety days have elapsed from the date on which the party making that application has received the copy of mediated settlement agreement under sub-section (3) of section 19:
Notwithstanding anything contained in the Limitation Act, 1963 or in any other law for the time being in force, in computing the period of limitation fixed for any proceeding relating to disputes in respect of which a mediation has been undertaken under this Act, the period from the date of commencement of mediation under section 14, and up to-
(i) submission of report under section 21; or
(ii) termination of mediation under section 24, shall be excluded.
(1) Online mediation including pre-litigation mediation may be conducted at any stage of mediation under this Act, with the written consent of the parties including by the use of electronic form or computer networks but not limited to an encrypted electronic mail service, secure chat rooms or conferencing by video or audio mode or both.
(2) The process of online mediation shall be in such manner as may be specified.
(3) The conduct of online mediation shall be in the circumstances, which ensure that the essential elements of integrity of proceedings and confidentiality are maintained at all times and the mediator may take such appropriate steps in this regard as he deems fit.
(4) Subject to the other provisions of this Act, the mediation communications in the case of online mediation shall, ensure confidentiality of mediation.
(1) The Central Government shall, by notification, establish for the purposes of this Act, a Council to be known as the Mediation Council of India to perform the duties and discharge the functions under this Act.
(2) The Council shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to enter into contract, and shall, by the said name, sue or be sued.
(3) The head office of the Council shall be at Delhi or at such other place as may be notified by the Central Government.
(4) The Council may, in consultation with the Central Government, establish offices at other places in India and abroad.
(1) The Council shall consist of the following members, namely:-
(a) a person of ability, integrity and standing having adequate knowledge and professional experience or shown capacity in dealing with problems relating to law, alternative dispute resolution preferably mediation, public affairs or administration to be appointed by the Central Government-Chairperson;
(b) a person having knowledge and experience in law related to mediation or alternative dispute resolution mechanisms, to be appointed by the Central Government-Member;
(c) an eminent person having experience in research or teaching in the field of mediation and alternative dispute resolution laws, to be appointed by the Central Government-Member;
(d) Secretary to the Government of India in the Department of Legal Affairs, Ministry of Law and Justice or his representative not below the rank of Joint Secretary- Member, e
No act or proceeding of the Council shall be invalid merely by reason of-
(a) any vacancy or any defect, in the constitution of the Council;
(b) any defect in the appointment of a person as a Member of the Council; or
(c) any irregularity in the procedure of the Council not affecting the merits of the case.
The Member may, by notice in writing, under his hand addressed to the Central Government, resign his office:
Provided that the Member shall, unless he is permitted by the Central Government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is earlier.
The Central Government may, remove any Member from his office, if he-
(a) is an undischarged insolvent; or
(b) has engaged at any time, during his term of office, in any paid employment without the permission of the Central Government; or
(c) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or
(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a Member; or
(e) has so abused his position as to render his continuance in office prejudicial to the public interest; or
(f) has become physically or mentally incapable of acting as a Member:
Provided that where a Member is proposed to be removed on any ground, he shall be informed of charges against him and given an opportunity of being heard in respect of those ch
The Council may, appoint such experts and constitute such committees of experts as it may consider necessary to discharge its functions on such terms and conditions as may be specified.
(1) There shall be a Chief Executive Officer of the Council, who shall be responsible for the day to day administration and implementation of the decisions of the Council.
(2) The qualification, appointment and other terms and conditions of service of the Chief Executive Officer shall be such as may be specified.
(3) There shall be a Secretariat to the Council consisting of such number of officers and employees as may be specified.
(4) The qualification, appointment and other terms and conditions of the service of the employees and other officers of the Council shall be such as may be specified.
(5) The Central Government shall provide such number of officers and employees as may be necessary for the functioning of the Council till regulations are made under this section.
The Council shall-
(a) endeavour to promote domestic and international mediation in India through appropriate guidelines;
(b) endeavour to develop India to be a robust centre for domestic and international mediation;
(c) lay down the guidelines for the continuous education, certification and assessment of mediators by the recognised mediation institutes;
(d) provide for the manner of conduct of mediation proceedings, under sub-section (1) of section 15;
(e) provide for manner of registration of mediators and renew, withdraw, suspend or cancel registration on the basis of conditions as may be specified;
(f) lay down standards for professional and ethical conduct of mediators under sub-section (3) of section 15;
(g) hold trainings, workshops and courses in the area of mediation in collaboration with mediation service
(1) The Council shall, as soon as practicable after the end of each year or at such other intervals as directed by the Central Government, prepare a report on the implementation of the provisions of this Act during the year or such interval and forward a copy thereof to the Central Government.
(2) The Central Government may take such additional measures as it deems necessary to supplement the functioning of the Council and for the effective implementation of the provisions of the Act.
(1) "mediation service provider" includes-
(a) a body or an organisation that provides for the conduct of mediation under this Act and the rules and regulations made thereunder and is recognised by the Council; or
(b) an Authority constituted under the Legal Services Authorities Act, 1987; or
(c) a court-annexed mediation centre; or
(d) any other body as may be notified by the Central Government:
Provided that the bodies referred to in clauses (b), (c) and (d) shall be deemed to be mediation service providers recognised by the Council.
(2) The mediation service provider shall be recognised by the Council in the manner as may be specified.
The mediation service providers shall perform the following functions, namely:-
(a) accredit mediators and maintain panel of mediators;
(b) provide the services of mediator for conduct of mediation;
(c) provide all facilities, secretarial assistance and infrastructure for the efficient conduct of mediation;
(d) promote professional and ethical conduct amongst mediators;
(e) facilitate registration of mediated settlement agreements in accordance with the provisions of section 20; and
(f) such other functions as may be specified.
The Council shall recognise mediation institutes to perform such duties and exercise such functions as may be specified.
(1) Any dispute likely to affect peace, harmony and tranquillity amongst the residents or families of any area or locality may be settled through community mediation with prior mutual consent of the parties to the dispute.
(2) For the purposes of sub-section (1), any of the parties shall make an application before the concerned Authority constituted under the Legal Services Authorities Act, 1987 or District Magistrate or Sub-Divisional Magistrate in areas where no such Authority has been constituted, for referring the dispute to mediation.
(3) In order to facilitate settlement of a dispute for which an application has been received under sub-section (2), the concerned Authority constituted under the Legal Services Authorities Act, 1987 or the District Magistrate or Sub-Divisional Magistrate, as the case may be, shall constitute panel of three community mediators.
(4) For the purposes of this section, t
(1) Any community mediation shall be conducted by the panel of three community mediators referred to in sub-section (3) of section 43 who shall devise suitable procedure for the purpose of resolving the dispute.
(2) The community mediators shall endeavour to resolve disputes through community mediation and provide assistance to parties for resolving disputes amicably.
(3) In every case where a settlement agreement is arrived at through community mediation under this Act, the same may be reduced into writing with the signature of the parties and authenticated by the community mediators, a copy of which be provided to the parties and in cases where no settlement agreement is arrived at, a non-settlement report may be submitted by the community mediators to the Authority or the District Magistrate or the Sub-Divisional Magistrate, as the case may be, and to the parties.
(4) Any settlement agreement arrive
The Mediation Act, 2023 aims to promote and facilitate mediation as a preferred method for resolving disputes, particularly focusing on institutional and community mediation. Section 44 specifically addresses the procedure for community mediation, establishing a framework for resolving disputes that may affect local peace and harmony.
Section 44 outlines the procedure for community mediation, mandating that such mediation be conducted by a panel of three community mediators. The section emphasizes the importance of resolving disputes amicably and provides a structured approach to community mediation.
The scope of Section 44 extends to community disputes that may disrupt local tranquility. It is designed to address conflicts arising within communities, thereby promoting social harmony and cooperation among residents.
The text does not specify any punitive measures directly associated with Section 44. However, the overall framework of the Mediation Act may imply consequences for non-compliance with mediation procedures.
(1) There shall be a fund to be called "Mediation Fund" (hereinafter referred to as the "Fund") for the purposes of promotion, facilitation and encouragement of mediation under this Act, which shall be administered by the Council.
(2) There shall be credited to the Fund the following, namely:-
(a) all monies provided by the Central Government;
(b) all fees and other charges received from mediation service provider, mediation institutes or bodies or persons;
(c) all monies received by the Council in the form of donations, grants, contributions and income from other sources;
(d) grants made by the Central Government or the State Government for the purposes of the Fund;
(e) amounts deposited by persons as contributions to the Fund;
(f) amounts received in the Fund from any other source; and
(g) in
(1) The Council shall maintain proper accounts and other relevant records and prepare an annual statement of accounts, including the balance sheet, in such form and manner as may be prescribed in consultation with the Comptroller and Auditor-General of India.
(2) The accounts of the Council shall be audited by the Comptroller and Auditor-General of India and any expenditure incurred by him in connection with such audit shall be payable by the Council to the Comptroller and Auditor-General of India.
(3) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Council shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General of India has in connection with the audit of the Government accounts, and, in particular, shall have the right to demand the production of books, accounts, connected vouc
(1) Without prejudice to the foregoing provisions of this Act, the Council shall, in exercise of its powers or the performance of its functions under this Act, be bound by such directions on questions of policy as the Central Government may give in writing to it from time to time:
Provided that the views of the Council shall be taken into consideration before any direction is given under this sub-section.
(2) The decision of the Central Government whether a question is one of policy or not shall be final.
Subject to the provisions of this Act, the Central Government or the State Government or any of its entity or agency, as the case may be, may frame any schemes or guidelines, for resolution of any dispute through mediation or conciliation in cases where the Central Government or the State Government or any of its entity or agency is one of the parties and in such cases mediation or conciliation may be conducted in accordance with such schemes or guidelines.
Notwithstanding anything contained in this Act, no dispute including a commercial dispute, wherein the Central Government or State Government or any of its agencies, public bodies, corporations and local bodies including entities controlled or owned by them is a party, the settlement agreement arrived at shall be signed only after obtaining the prior written consent of the competent authority of such Government or any of its entity or agencies, public bodies, corporations and local bodies, as the case may be.
No suit, prosecution or other legal proceeding shall lie against the Central Government or a State Government or any officer of such Government, or the Member or Officer or employee of the Council or a mediator, mediation institutes, mediation service providers, which is done or is intended to be done in good faith under this Act or the rules or regulations made thereunder.
(1) The Central Government may, by notification, make rules for carrying out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may make provision for-
(a) the salaries and allowances and the terms and conditions of the Members under sub-section (3) of section 32;
(b) the travelling and other allowances payable to the Member under sub-section (4) of section 32;
(c) the form and manner of annual statement of accounts, including the balance sheet under sub-section (1) of section 46; and
(d) any other matter which is to be, or may be prescribed.
(1) The Council may, with the previous approval of the Central Government, by notification, make regulations consistent with this Act and the rules made thereunder to carry out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may make provision for-
(a) qualification, experience and accreditation for mediators of foreign nationality under the proviso to sub-section (1) of section 8;
(b) manner of conducting mediation proceeding under sub-section (1) of section15;
(e) standards for professional and ethical conduct of mediators under sub-section (3) of section 15;
(f) manner of registration of mediated settlement agreement under sub-section (1) of section 20;
(g) fees for registration of mediated settlement agreement under the proviso to sub-section (2) of secti
Every notification issued under sub-section (2) of section 6, sub-section (2) of section 55, rule and regulation made under this Act shall be laid, as soon as may be after it is issued or made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the notification, rule or regulation or both Houses agree that the notification, rule or regulation should not be issued or made, the notification, rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that notification, rule or regulation.
(1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as may appear to it to be necessary for removing the difficulty:
Provided that no such order shall be made under this section after the expiry of a period of five years from the date of commencement of this Act.
(2) Every order made under sub-section (1) shall be laid, as soon as may be after it is made, before each House of Parliament.
(1) Subject to the enactments mentioned in the Second Schedule, the provisions of this Act shall have overriding effect for conduct of mediation or conciliation notwithstanding anything inconsistent therewith contained in any other law for the time being in force, and any instrument having force of law.
(2) If the Central Government is satisfied that it is necessary or expedient so to do, it may, by notification, amend the Second Schedule and thereupon it shall be deemed to have been amended accordingly.
This Act shall not apply to, or in relation to, any mediation or conciliation commenced before the coming into force of this Act.
The rules in force governing the conduct of court-annexed mediation shall continue to apply until regulations are made under sub-section (1) of section 15:
Provided that the rules shall continue to apply in all court-annexed mediation pending as on the date of coming into force of the regulations.
The Indian Contract Act, 1872, shall be amended in the manner specified in the Third Schedule.
The Code of Civil Procedure, 1908, shall be amended in the manner specified in the Fourth Schedule.
The Legal Service Authorities Act, 1987, shall be amended in the manner specified in the Fifth Schedule.
The Arbitration and Conciliation Act, 1996, shall be amended in the manner specified in the Sixth Schedule.
The Micro, Small and Medium Enterprises Development Act, 2006, shall be amended in the manner specified in the Seventh Schedule.
The Companies Act, 2013, shall be amended in the manner specified in the Eighth Schedule.
The Commercial Courts Act, 2015, shall be amended in the manner specified in the Ninth Schedule.
The Consumer Protection Act, 2019, shall be amended in the manner specified in the Tenth Schedule.
(See section 6)
DISPUTES OR MATTERS NOT FIT FOR MEDIATION
1. Disputes which by virtue of any law for the time being in force may not be submitted for mediation.
2. Disputes relating to claims against minors, deities; persons with intellectual disabilities under paragraph 2 of the Schedule and person with disability having high support needs as defined in clause (t) of section 2 of the Rights of Persons with Disabilities Act, 2016 (49 of 2016); persons with mental illness as defined in clause (s) of sub-section (1) of section 2 of the Mental Healthcare Act, 2017 (10 of 2017); persons of unsound mind, in relation to whom proceedings are to be conducted under Order XXXII of the Code of Civil Procedure, 1908 (5 of 1908); and suits for declaration of title against Government; declaration having effect of right in rem.
3. Disputes involving prosecution for criminal offences.
(See section 55)
1. The Industrial Disputes Act, 1947 (14 of 1947).
2. The Brahmaputra Board Act, 1980 (46 of 1980).
3. The Cine-Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981 (50 of 1981).
4. The Family Courts Act, 1984 (66 of 1984).
5. The Legal Services Authorities Act, 1987 (39 of 1987).
6. The Maintenance and Welfare of Parents and Senior Citizen Act, 2007 (56 of 2007).
7. The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (14 of 2013).
8. The Finance Act, 20l6 (28 of 2016).
9. The Industrial Relations Code, 2020 (35 of 2020).
(See section 58)
In section 28 of the Indian Contract Act, 1872 (9 of 1872), for Exception 1 and Exception 2, the following shall be substituted, namely:-
"Exception 1.-Saving of contract to refer to arbitration or mediation dispute that may arise.-This section shall not render illegal a contract, by which two or more persons agree that any dispute which may arise between them in respect of any subject or class of subjects shall be referred to resolution through arbitration or mediation.
Exception 2.-Saving of contract to refer questions that have already arisen.- Nor shall this section render illegal any contract in writing, by which two or more persons agree to refer to arbitration or mediation any question between them which has already arisen, or affect any provision of any law in force for the time being as to references to arbitration or mediation.".
(See section 59)
In the Code of Civil Procedure, 1908 (5 of 1908),-
(i) under Part V, under the heading SPECIAL PROCEEDINGS, the sub-heading "ARBITRATION" shall be omitted;
(ii) for section 89, the following section shall be substituted, namely:-
"89. Settlement of disputes outside the Court.-Where it appears to the Court that the dispute between the parties may be settled and there exists elements of settlement which may be acceptable to the parties, the Court may-
(a) refer the dispute to arbitration, and thereafter, the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996) shall apply as if the proceedings for arbitration were referred for settlement under the provisions of that Act; or
(b) refer the parties to mediation, to the court-annexed mediation centre or any other mediation service provider or any mediator, as
(See section 60)
In the Legal Services Authorities Act, 1987 (39 of 1987), in section 4, for clause (f), the following clause shall be substituted, namely:-
"(f) encourage the settlement of disputes, including online by way of negotiations, arbitration, mediation and conciliation;".
(See section 61)
In the Arbitration and Conciliation Act, 1996 (26 of 1996),-
(a) in section 43D,-
(i) in sub-section (1), the words "mediation, conciliation" shall be omitted;
(ii) in sub-section (2), in clauses (e), (f) and (i), the words "and conciliation" wherever they occur shall be omitted;
(b) for sections 61 to 81, the following sections shall be substituted, namely:-
"61. Reference of conciliation in enactments.-(1) Any provision, in any other enactment for the time being in force, providing for resolution of disputes through conciliation in accordance with the provisions of this Act, shall be construed as reference to mediation as provided under the Mediation Act, 2023.
(2) Conciliation as provided under this Act and the Code of Civil Procedure, 1908 (5 of 1908), shall be construed as mediation referred to
Section 6 of the Mediation Act, 2023, delineates the types of disputes or matters that are not suitable for resolution through mediation. It functions as a crucial provision to define the boundaries of mediation as an alternative dispute resolution mechanism, ensuring that certain disputes remain within the purview of other legal processes.
Section 6 states that mediation shall not be conducted for disputes or matters listed in the First Schedule, which enumerates disputes considered unfit for mediation. The section, in conjunction with the First Schedule, explicitly excludes certain categories of disputes from being resolved via mediation under the Act.
This commentary synthesizes the available sources to provide a comprehensive legal analysis of Section 6 of the Mediation Act, 2023.
(See section 62)
In the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), for section 18, the following section shall be substituted, namely:-
"18. Reference to Micro and Small Enterprises Facilitation Council.-(1) Notwithstanding anything contained in any other law for the time being in force, any party to a dispute may, with regard to any amount due under section 17, make a reference to the Micro and Small Enterprises Facilitation Council.
(2) On receipt of a reference under sub-section (1), the Council shall either conduct mediation itself or refer the matter to any mediation service provider as provided under the Mediation Act, 2023.
(3) The conduct of mediation under this section shall be as per the provisions of the Mediation Act, 2023.
(4) Where the mediation initiated under sub-section (3) is not successful and stands terminated
Legal Comments
"Scope of Sch.7" - Seventh Schedule empowers the Council to either conduct mediation itself or refer the matter to a mediation service provider, establishing the mechanism for institutional mediation under the Mediation Act, 2023. - [ "" ]
"Core purpose of Sch.7" - To operationalize mediation by giving the Council flexible options (internal mediation or referral) to facilitate amicable dispute resolution within the Act’s framework. - [ "" ]
"Relation to First Schedule" - Sch.7 operates within the Act’s broader schema; First Schedule lists disputes not fit for mediation, while Seventh Schedule governs who and how mediation can be triggered or referred. - [ "" ]
"Council's discretionary power" - The Council has discretion to select whether to mediate directly or to delegate to an MSP, balancing judicial efficiency with accessibility to mediation. - [ "" ]
"Interim measures during mediation" - Section 7(2) empowers courts/tribunals to pass suitable interim orders to protect the parties’ interests when mediation is underway. - [ "" ]
"Confidentiality framework" - Section 22 ensures confidentiality of mediation communications, with the mediator, provider and participants bound to preserve confidentiality; communications cannot be relied upon as evidence in subsequent proceedings except as permitted by the Act. - [ "Raju Sanga, S/o Santu Sanga vs Rajendra Agrawal, S/o Late Sharwan Agarwal" ]
"Admissibility of mediation materials" - Mediation records and communications are generally not admissible in court as evidence unless the mediated settlement is recorded and given the force of a decree; confidentiality preserves the non-disclosure of mediation content. - [ "Raju Sanga, S/o Santu Sanga vs Rajendra Agrawal, S/o Late Sharwan Agarwal" ]
"Role of mediation service providers" - The Act contemplates referring matters to MSPs (mediation service providers) under Central Government authorization, promoting standardized mediation services. - [ "Abhijith V Shet, S/o. Late Venugopal Shet vs State Of Karnataka, Basavangudi Women PS, Represented By State Public Prosecutor" ]
"Timeframe for completion" - The Act envisions timely mediation, commonly cited as a 120-day window from the date of application or first appearance, with possible extensions by up to 60 days with consent. - [ "" ]
"Online mediation option" - Section 30 contemplates online mediation, with Section 57 and related rules indicating ongoing alignment with existing mediation regimes until online mediation rules are framed; venue flexibility is allowed under the rules. - [ "Nanda Kishore Kolluru vs Madhulika Maddipudi" ]
"Enforceability of mediated settlements" - Settlements reached through mediation can be written and signed by the parties and mediator, and, if properly decreed, may have enforceability similar to court decrees or arbitral awards; settlements can be binding and recorded as a decree. - [ "Sangeetha Yanamandra VS Shanta Sriram Constructions Pvt. Ltd. " ], - [ "KALPANA MAJUMDER VS LAKSHMI PRIYA SHAW" ]
"Mediation leading to quashing of proceedings" - Courts have repeatedly recognized mediated settlements as valid grounds to quash related criminal or civil proceedings when reconcilable disputes are resolved; mediation can terminate or suspend ongoing actions. - [ "Abhijith V Shet, S/o. Late Venugopal Shet vs State Of Karnataka, Basavangudi Women PS, Represented By State Public Prosecutor" ]
"Voluntary and non-coercive nature of mediation" - Mediation requires voluntariness and genuine settlement terms; courts stress that settlements achieved through mediation are binding when entered into freely and without coercion. - [ "Aman Bhagat VS Ankita Jaiswal" ], - [ "Executive Trading Company Private Limited VS Grow Well Mercantile Private Limited" ]
"Mediation as a tool for matrimonial/dispute resolution" - Numerous precedents illustrate mediation driving amicable settlements in matrimonial and family disputes, sometimes resulting in decrees or quashing related proceedings. - [ "Aman Bhagat VS Ankita Jaiswal" ], - [ "Executive Trading Company Private Limited VS Grow Well Mercantile Private Limited" ]
"Confidentiality carve-outs for research/training" - The Act (via Section 22) permits certain disclosures for research, reporting or training, provided identifiability and dispute specifics are not revealed; the default is strict confidentiality. - [ "Raju Sanga, S/o Santu Sanga vs Rajendra Agrawal, S/o Late Sharwan Agarwal" ]
"Mediation as part of the court’s toolkit" - Courts routinely refer disputes to mediation centers (e.g., DHCMC, High Courts) and dispose of matters in light of mediation settlements, underscoring mediation’s role as a complementary path to litigation. - [ "Declutter Technologies LLP vs Ranjit Jayaratnam" ], [ "01100053321" ]
"Limitations on applicability" - Not all disputes are suitable for mediation; the Act’s First Schedule identifies types of disputes not fit for mediation, ensuring Sch.7 does not override statutory prohibitions. - [ "" ]
"Legal precedent on pre-litigation mediation framework" - Several judgments reiterate that pre-institution mediation is mandatory in commercial disputes and that settlements achieved there may be treated akin to arbitral settlements or decrees, reinforcing the framework within which Sch.7 operates. - [ "Yamini Manohar VS T. K. D. Keerthi" ], [ "Dhanbad Fuels Ltd VS Union Of India" ]
"Practical takeaway for practitioners" - When seeking resolution under Mediation Act, 2023, advise clients on the Council’s option to mediate directly or refer to MSPs, emphasize confidentiality, monitor timeframes (120 days), and document settlement terms meticulously for court decree. - [ "" ]
(See section 63)
In the Companies Act, 2013 (18 of 2013), for section 442, the following section shall be substituted, namely:-
"442. Reference to mediation.-(1) Any of the parties to a proceedings before the Central Government, Tribunal or the Appellate Tribunal may, at any time apply to the Central Government, Tribunal or the Appellate Tribunal, as the case may be, in such form along with such fees, if any, as may be prescribed, for referring the matter pertaining to such proceedings for mediation and the Central Government, Tribunal or the Appellate Tribunal, as the case may be, shall refer the matter to mediation to be conducted under the provisions of the Mediation Act, 2023.
(2) Nothing in this section shall prevent the Central Government, Tribunal or the Appellate Tribunal before which any proceeding is pending from referring any matter pertaining to such proceeding suo motu to mediation to be c
(See section 64)
In the Commercial Courts Act, 2015 (4 of 2016),-
(a) for Chapter IIIA, the following Chapter shall be substituted, namely:-
"CHAPTER IIIA
PRE-LITIGATION MEDIATION AND SETTLEMENT
12A. Pre-litigation Mediation and Settlement.-(1) A suit, which does not contemplate any urgent interim relief under this Act, shall not be instituted unless the plaintiff exhausts the remedy of pre-litigation mediation in accordance with such manner and procedure as may be prescribed by rules made by the Central Government.
(2) For the purposes of pre-litigation mediation, the Central Government may, by notification, authorise-
(i) the Authority, constituted under the Legal Services Authorities Act, 1987 (39 of 1987); or
(ii) a mediation service provider as defined under clause (m) of section 3 of the
The Mediation Act, 2023, represents a significant legislative effort to promote mediation as a primary method for resolving disputes in India. It aims to streamline the mediation process, enhance its accessibility, and encourage its use across various sectors, including commercial, civil, and family disputes.
Section Sch.9 of the Mediation Act, 2023, specifically addresses the amendments to the Commercial Courts Act, 2015, introducing provisions for pre-litigation mediation. This section mandates that certain disputes must undergo mediation before they can be litigated in court.
The scope of Section Sch.9 extends to various commercial disputes, ensuring that parties explore mediation as a first step in dispute resolution. It aims to reduce the burden on courts by encouraging early resolution of conflicts.
While the section itself does not specify punishments, failure to comply with the pre-litigation mediation requirement may result in the dismissal of the case or other procedural consequences in court.
(See section 65)
In the Consumer Protection Act, 2019 (35 of 2019),-
(a) in section 2, clauses (25) and (26) shall be omitted;
(b) for section 37, the following sections shall be substituted, namely:-
"37. Reference to mediation.-The District Commission or State Commission or the National Commission, as the case may be, shall either on an application by the parties at any stage of proceedings refer the disputes for settlement by mediation under the Mediation Act, 2023.
37A. Settlement through mediation.-(1) Pursuant to mediation, if an agreement is reached between the parties with respect to all of the issues involved in the consumer dispute or with respect to only some of the issues, the terms of such agreement shall be reduced to writing accordingly, and signed by the parties to such dispute or their authorised representatives.
(2) The
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