THE MEDIATION ACT, 2023 

________ 

ARRANGEMENT OF SECTIONS 

________ 

CHAPTER I  

PRELIMINARY 

SECTIONS.   

      1. Short title, extent and commencement. 

2. Application. 

          3. Definitions. 

 CHAPTER II  

APPLICATION 

CHAPTER III 

MEDIATION 

4.  Mediation agreement. 
5.  Pre-litigation mediation. 
6. Disputes or matters not fit for mediation. 
7. Power of court or tribunal to refer parties to mediation.  

CHAPTER IV  

MEDIATORS 

8. Appointment of mediators. 
9. Preference of parties. 
10. Conflict of interest and disclosure. 
11. Termination of mandate of mediator.  
12. Replacement of mediator. 

 CHAPTER V 

MEDIATION PROCEEDINGS 

13.  Territorial jurisdiction to undertake mediation. 
14. Commencement of mediation. 

     15. Conduct of mediation. 
16.  Role of mediator. 
17. Role of mediator in other proceedings. 
18. Time-limit for completion of mediation. 
19. Mediated settlement agreement. 

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SECTIONS. 

20. Registration of mediated settlement agreement. 
21. Non-settlement report. 
22. Confidentiality.  
23. Admissibility and privilege against disclosure. 
24. Termination of mediation. 
25. Cost of mediation.     
26. Proceedings of Lok Adalat and Permanent Lok Adalat not to be affected.  

CHAPTER VI 

ENFORCEMENT OF MEDIATED SETTLEMENT AGREEMENT 

27. Enforcement of mediated settlement agreement. 
28. Challenge to mediated settlement agreement.    
29. Limitation. 

     30. Online mediation. 

 CHAPTER VII 

ONLINE MEDIATION 

 CHAPTER VIII 

MEDIATION COUNCIL OF INDIA 

31. Establishment and incorporation of Mediation Council. 
32. Composition of Council. 
33. Vacancies, etc., not to invalidate proceedings of Council. 
34. Resignation. 
35.  Removal. 
36. Appointment of experts and constitution of Committees. 
37. Secretariat and Chief Executive Officer of Council. 
38.  Duties and functions of Council.  
39. Monitoring and reporting.  

CHAPTER IX 

MEDIATION SERVICE PROVIDERS AND MEDIATION INSTITUTES 

40. Mediation service provider. 
41. Functions of mediation service providers.  
42. Mediation institutes.  

CHAPTER X 

COMMUNITY MEDIATION 

43. Community mediation.  
44.  Procedure for community mediation. 

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SECTIONS.  

 CHAPTER XI 

MISCELLANEOUS 

45. Mediation Fund.  
46. Accounts and audit. 
47.  Power of Central Government to issue directions. 
48.  Power to frame schemes or guidelines. 
49.  Mediated settlement agreement where Government or its, agency, etc., is a party.  
50. Protection of action taken in good faith. 
51.  Power to make rules. 
52.  Power to make regulations. 
53.  Laying. 
54.  Power to remove difficulties. 
55.    Provisions  of  Act  to  have  overriding  effect  on  mediation  or  conciliation  contained  in  other 

laws.  

56. Act not to apply to pending proceedings.  
57.  Transitory provision. 
58. Amendment of Act 9 of 1872.  
59. Amendment of Act 5 of 1908.  
60. Amendment of 39 of 1987. 
61. Amendment of 26 of 1996.  
62. Amendment of 27 of 2006.  
63. Amendment of 18 of 2013.  
64. Amendment of 4 of 2016.  
65. Amendment of 35 of 2019. 
      THE FIRST SCHEDULE.   
     THE SECOND SCHEDULE.   
     THE THIRD SCHEDULE . 
     THE FOURTH SCHEDULE.  
     THE FIFTH SCHEDULE.         
     THE SIXTH SCHEDULE.    
     THE SEVENTH SCHEDULE.  
     THE EIGHTH SCHEDULE.         
     THE NINTH SCHEDULE.     
     THE TENTH SCHEDULE. 

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THE MEDIATION ACT, 2023  

 [ACT NO. 32 OF 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:–– 

CHAPTER I  

PRELIMINARY 

1. Short title, extent and commencement.—(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 date1

 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.  

CHAPTER II  

APPLICATION 

2. Application.—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  local  bodies  including  entities 
controlled or owned by them, is a party. 

3.  Definitions.—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 (4 of 2016); 

1. 9th day of October, 2023, vide notification No. S.O. 4384(E), for Ss.1, 3, 26, Ss.31 to 38 (both inclusive), Ss. 45 to 47 (both 
inclusive),  Ss.  50  to 54  (both  inclusive),  and  Ss.56  to 57  (both  inclusive),  dated  9th  October,  2023  see  Gazette  of  India, 
Extraordinary, Part II, sec. 3(ii). 

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(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  a  mediation  service 

provider;  

(g)  “international  mediation”  means  mediation  undertaken  under  this  Act  and  relates  to  a 
commercial dispute arising out of a legal relationship, contractual or otherwise, under any law for the 
time being in force in India, and where at least one of the parties, is.— 

(i) an individual who is a national of, or habitually resides in, any country other than India; or 

(ii) a body corporate including a Limited Liability Partnership of any nature, with its place of 

business outside India; or 

(iii) an association or body of individuals whose place of business is outside India; or 

(iv) the Government of a foreign country; 

(h) “mediation” includes a process, whether referred to by the expression mediation, pre-litigation 
mediation,  online  mediation,  community  mediation,  conciliation  or  an  expression  of  similar  import, 
whereby parties attempt to reach an amicable settlement of their dispute with the assistance of a third 
person referred to as mediator, who does not have the authority to impose a settlement upon the parties 
to the dispute; 

(i) “mediator” means a person who is appointed to be a mediator, by the parties or by a mediation 
service  provider,  to  undertake  mediation,  and  includes  a  person  registered  as  mediator  with  the 
Council. 

Explanation.—Where more than one mediator is appointed for a mediation, reference to a mediator 

under this Act shall be a reference to all the mediators; 

(j)  “mediation  agreement”  means  a  mediation  agreement  referred  to  in  sub-section  (1)  of               

section 4; 

(k)  “mediation  communication”  means  communication  made,  whether  in  electronic  form  or 

otherwise, through— 

(i) anything said or done; 

(ii) any document; or 

(iii) any information provided, 

 for  the  purposes  of,  or  in  relation  to,  or  in  the  course  of  mediation,  and  includes  a  mediation 
agreement or a mediated settlement agreement; 

(l) “mediation institute” means a body or organisation that provides training, continuous education 

and certification of mediators and carries out such other functions under this Act; 

(m) “mediation service provider” means a mediation service provider referred to in sub-section (1) 

of section 40; 

(n)  “mediated  settlement  agreement”  means  mediated  settlement  agreement  referred  to  in           

sub-section (1) of section 19; 

(o)  “Member”  means  a  Full-Time  or  Part-Time  Member  of  the  Council  and  includes  the 

Chairperson; 

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(p)  “notification”  means  notification  published  in  the  Official  Gazette  and  the  expression 

‘‘notified’’ with its cognate meanings and grammatical variations shall be construed accordingly; 

(q) “online mediation” means online mediation referred to in section 30; 

(r)  “participants”  means  persons  other  than  the  parties  who  participate  in  the  mediation  and 

includes advisers, advocates, consultants and any technical experts and observers; 

(s) “party” means a party to a mediation agreement or mediation proceeding whose agreement or 

consent is necessary to resolve the dispute and includes their successors; 

(t) “place of business” includes— 

 (a)  a  place  from  where  the  business  is  ordinarily  carried  on,  and  includes  a  warehouse,  a 
godown or any other place where a party stores it's goods, supplies or receives goods or services or 
both; or 

(b) a place where a party maintains its books of account; or 

(c) a place where a party is engaged in business through an agent, by whatever name called; 

(u)  “pre-litigation  mediation”  means  a  process  of  undertaking  mediation,  as  provided  under   
section 5, for settlement of disputes prior to the filing of a suit or proceeding of civil or commercial 
nature in respect thereof, before a court or notified tribunal under sub-section (2) of section 5; 

(v) “prescribed” means prescribed by rules made by the Central Government under this Act; 

(w) “Schedule” means the Schedule annexed to this Act; 

(x)  “secure  electronic  signature”  with  reference  to  online  mediation  means,  electronic  signatures 

referred to in section 15 of the Information Technology Act, 2000 (21 of 2000); and 

(y) “specified” means specified by regulations made by the Council under this Act. 

CHAPTER III  

MEDIATION 

4. Mediation agreement.—(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 (21 of 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 is in writing and the reference is such as to make the mediation clause as 
part of the agreement. 

(5)  The  parties  may  agree  to  submit  to  mediation  any  dispute  arising  between  them  under  an 

agreement, whether entered prior to arising of the dispute or subsequent thereto. 

(6)  A  mediation  agreement  in  case  of  international  mediation  shall  refer  to  an  agreement  for 

resolution in matters of commercial disputes referred to in clause (a) of section 3.  

5. Pre-litigation mediation.—(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 

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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 (4 of 2016), 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) empanelled by a court-annexed mediation centre; or 

(iii)  empanelled  by  an  Authority  constituted  under  the  Legal  Services  Authorities  Act,         

1987 (39 of 1987); or 

(iv) empanelled by a mediation service provider recognised under this Act,  

shall conduct pre-litigation mediation. 

 (4) For conducting pre-litigation mediation under clauses (ii) and (iii) of sub-section (3), a party 
may request any person designated for this purpose by the High Courts, or an Authority constituted 
under the Legal Services Authorities Act, 1987 (39 of 1987), as the case may be. 

(5)  The  court-annexed  mediation  centre  and  an  Authority  constituted  under  the  Legal  Services 

Authorities  Act,  1987  (39  of  1987),  shall  maintain  a  panel  of  mediators  for  the  purposes  of               
pre-litigation mediation. 

(6)  Notwithstanding  anything  contained  in  sub-sections  (1)  and  (2)  and  the  Motor  Vehicles  Act, 
1988 (59 of 1988), when an application for compensation arising out of an accident is made before the 
Claims Tribunal, if the settlement as provided for in section 149 of that Act is not arrived at between 
the parties, the Claims Tribunal shall refer the parties for mediation to a mediator or mediation service 
provider under this Act. 

(7)  Where  the  parties  arrive  at  a  settlement  agreement  under  sub-section  (6),  it  shall  be  placed 

before the Claims Tribunal for its consideration. 

(8)  If  the  parties  do  not  reach  to  settlement  agreement  under  sub-section  (6),  a  non-settlement 
report  prepared  by  the  mediator  shall  be  forwarded  to  the  Claims  Tribunal,  which  has  referred  the 
matter for mediation, for adjudication. 

6.  Disputes  or  matters  not  fit  for  mediation.—(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.   

7.  Power  of  court  or  tribunal  to  refer  parties  to  mediation.—(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. 

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(3) The parties shall not be under obligation to come to a settlement in the mediation pursuant to a 

reference under sub-section (1).  

CHAPTER IV  

MEDIATORS 

8. Appointment of mediators.—(1) Unless otherwise agreed upon by the parties, a person of any 

nationality may be appointed as a mediator: 

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  the  appointment  of  mediator  or 
mediator agreed  by  them  refuses to  act  as  mediator, a  mediator  from  the  panel maintained  by  it, 
with his consent. 

(5) The person appointed under clause (i) of sub-section (4) shall communicate his willingness or 
otherwise  within  a  period  of  seven  days  from  the  date  of  receipt  of  communication  of  such 
appointment.   

9. Preference of parties.—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. 

10. Conflict of interest and disclosure.—(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— 

 (i)  institutional  mediation,  such  party  shall  apply  to  the  mediation  service  provider  for 

termination of the mandate of mediator; 

(ii)  mediation  other  than  institutional  mediation,  such  party  shall  terminate  the  mandate  of 

mediator.   

11.  Termination  of  mandate  of  mediator.—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 

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(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.  

12. Replacement of 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.  

CHAPTER V 

MEDIATION PROCEEDINGS 

13.Territorial  jurisdiction  to  undertake  mediation.—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. 

14.  Commencement  of  mediation.—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.   

15. Conduct of mediation.—(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. 

(5)  The  mediator  shall  not  be  bound  by  the  Code  of  Civil  Procedure,  1908  (5  of  1908),  or  the 
Indian Evidence Act, 1872 (1 of 1872). 

(6) The mediator with the consent of the parties shall determine the language or languages to be 
used in the mediation process. 

16.  Role  of  mediator.—(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 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.   

17. Role of mediator in other proceedings.—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.  

18.  Time-limit  for  completion  of  mediation.—(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. 

19.  Mediated  settlement  agreement.—(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  (9  of  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  submitted  to  the  mediator,  who  shall,  after 
authenticating the same, forward it with a covering letter signed by him, to the mediation service 
provider and also provide a copy to the parties; 

(ii)  in  all  other  cases,  shall  be  submitted  to  the  mediator  who  shall,  after  authenticating  the 

mediated settlement agreement, provide a copy to all the parties. 

(4) The parties, may, at any time during the mediation process, make an agreement with respect to 

any of the disputes which is the subject matter of mediation. 

(5) Any mediated settlement agreement under this section includes a settlement agreement resulting 

from online mediation.  

20. Registration of mediated settlement agreement.—(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 (39 of 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: 

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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 sub-section 
shall  affect  the  rights  of  parties  to  enforce  the  mediated  settlement  agreement  under  section  27  or 
challenge the same under section 28. 

(2) The registration referred to in sub-section (1) may be made by the parties or mediation service 
provider within a period of one hundred and eighty days from the date of receipt of authenticated copy 
of mediated settlement agreement: 

Provided that mediated settlement agreement may be allowed to be registered after the expiry of 
period  of  one  hundred  and  eighty  days  on  payment  of  such  fee  as  may  be  specified  in  consultation 
with the Authority or any other body referred to in sub-section (1).  

21.  Non-settlement  report.—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. 

22.  Confidentiality.—(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. 

(3) No party to the mediation shall in any proceeding before a court or tribunal including arbitral 
tribunal, rely on or introduce as evidence any information or communication set forth in clauses (i) to 
(iv) of sub-section (1), including any information in electronic form, or verbal communication and the 
court or tribunal including arbitral tribunal shall not take cognizance of such information or evidence. 

(4)  The  provisions  of  this  section  shall  not  prevent  the  mediator  from  compiling  or  disclosing 
general information concerning matters that have been subject of mediation, for research, reporting or 
training purposes, if the information does not expressly or indirectly identify a party or participants or 
the specific disputes in the mediation. 

Explanation.—For  the  removal  of  doubts,  it  is  hereby  clarified  that  nothing  contained  in  this 
section  shall  apply  to  the  mediated  settlement  agreement  where  its  disclosure  is  necessary  for  the 
purpose of registration, enforcement and challenge. 

23.  Admissibility  and  privilege  against  disclosure.—(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 

11 

 
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— 

(a)  a threat  or  statement  of  a  plan  to  commit  an  offence  punishable  under any  law  for  the 

time being in force; 

(b) information relating to domestic violence or child abuse; and 

(c)  statements  made  during  a  mediation  showing  a  significant  imminent  threat  to  public 

health or safety. 

24.  Termination  of  mediation.—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.  

25.  Cost  of  mediation.—(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.  

26. Proceedings  of  Lok  Adalat  and  Permanent  Lok  Adalat  not  to  be  affected.—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 (39 of 1987).  

CHAPTER VI 

ENFORCEMENT OF MEDIATED SETTLEMENT AGREEMENT 

27.  Enforcement  of  mediated  settlement  agreement.—(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 (5 of 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. 

28.  Challenge  to  mediated  settlement  agreement.—(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; 

12 

 
(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: 

Provided  that  if  the  court  or  tribunal,  as  the  case  may  be,  is  satisfied  that  the  applicant  was 
prevented by sufficient cause from making the application within the said period of ninety days, it may 
entertain the application within a further period of ninety days.  

29. Limitation.—Notwithstanding anything contained in the Limitation Act, 1963 (36 of 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. 

CHAPTER VII 

ONLINE MEDIATION 

30. Online mediation.—(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. 

CHAPTER VIII 

MEDIATION COUNCIL OF INDIA 

31.  Establishment  and  incorporation  of  Mediation  Council.—(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.  

32.  Composition  of  Council.—(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; 

13 

 
(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, ex officio;  

(e) Secretary to the Government of India in the Department of Expenditure, Ministry of Finance 

or his representative not below the rank of Joint Secretary—Member, ex officio; 

 (f) Chief Executive Officer—Member-Secretary, ex officio; and 

 (g) one representative of a recognised body of commerce and industry, chosen by the Central 

Government—Part-Time Member. 

 (2) The Members  of the Council,  other than ex  officio  members,  shall  hold  office  as  such, for  a 

term  of  four  years  from  the  date  on  which  they  enter  upon  their  office  and  shall  be  eligible  for           
re-appointment: 

 Provided that no Member other than ex officio Member shall hold office after he has attained the 
age of seventy years, in the case of Chairperson, and sixty-seven years, in the case of other Members:  

Provided further that if the Chairperson is appointed on Part-Time basis, then, at least one of the 

Members appointed under clauses (b) or (c) shall be a Full-Time Member. 

(3)  The  salaries,  allowances  and  other  terms  and  conditions  of  Members  other  than  ex  officio 

Members shall be such as may be prescribed.  

(4) The  1
prescribed. 

[Part-Time Member] shall be entitled to such travelling and other allowances as may be 

33.  Vacancies,  etc.,  not  to  invalidate  proceedings  of  Council.—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. 

34. Resignation.—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.  

35.Removal.—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  

1. Subs. by Notification No. S.O. 4506(E), for “ Member” (w.e.f. 13-10-2023). 

14 

 
                                                           
(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 charges.  

36. Appointment of experts and constitution of Committees.—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. 

37. Secretariat and Chief Executive Officer of Council.—(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. 

38.  Duties and functions of Council.—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  providers,  law  firms  and  universities  and  other  stakeholders,  both  Indian  and 
international, and any other mediation institutes; 

 (h)  enter  into  memoranda  of  understanding  or  agreements  with  domestic  and  international 

bodies or organisations or institutions; 

 (i)  recognise  mediation  institutes  and  mediation  service  providers  and  renew,  withdraw, 

suspend or cancel such recognition; 

 (j) specify the criteria for recognition of mediation institutes and mediation service providers; 

 (k) call for any information or record of mediation institutes and mediation service providers; 

 (l)  lay  down  standards  for  professional  and  ethical  conduct  of  the  mediation  institutes  and 

mediation service providers;  

(m)  publish  such  information,  data,  research  studies  and  such  other  information  as  may  be 

required;  

(n) maintain an electronic depository of the mediated settlement agreements made in India and 

for such other records related thereto in such manner as may be specified; and 

 (o) perform any other function as may be assigned to it by the Central Government.  

15 

 
39. Monitoring and reporting.—(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. 

CHAPTER IX 

MEDIATION SERVICE PROVIDERS AND MEDIATION INSTITUTES 

40. Mediation service provider.—(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 (39 of 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. 

41.  Functions  of  mediation  service  providers.—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.  

42.  Mediation  institutes.—The  Council  shall  recognize    mediation  institutes  to  perform  such 

duties and exercise such functions as may be specified.  

CHAPTER X 

COMMUNITY MEDIATION 

43.  Community  mediation.—(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  (39  of  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                  
(39  of  1987)  or  the  District  Magistrate  or  Sub-Divisional  Magistrate,  as  the  case  may  be,  shall 
constitute panel of three community mediators.  

16 

 
(4)  For  the  purposes  of  this  section,  the  Authority  or  District  Magistrate  or  the  Sub-Divisional 
Magistrate, as the case may be, shall notify a permanent panel of community mediators, which may be 
revised from time to time.  

(5) The following persons may be included in the panel referred to in sub-section (4)— 

 (a) person of standing and integrity who are respectable in the community;  

 (b) any local person whose contribution to the society has been recognised;  

 (c) representative of area or resident welfare associations;  

(d) person having experience in the field of mediation; and  

(e) any other person deemed appropriate.  

(6)  While  making  panel  referred  to  in  sub-section  (4)  the  representation  of  women  or  any  other 

class or category of persons may be considered.  

44. Procedure for community mediation.—(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 arrived at under this Chapter shall be for the purpose of maintaining 
the peace, harmony and tranquillity amongst the residents or families of any area or locality but shall 
not be enforceable as a judgment or decree of a civil court.  

(5)  The  provisions  of  section  20  shall,  mutatis  mutandis  apply,  in  relation  to  the  registration  of 

mediated settlement agreement under this section. 

CHAPTER XI 

MISCELLANEOUS 

45.  Mediation  Fund.—(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) interest on the above or other income received out of the investment made from the Fund.  

17 

 
(3) The Fund shall be applied towards meeting the salaries and other allowances of Member, Chief 
Executive  Officer,  Officers  and  employees  and  the  expenses  of  the  Council  including  expenses 
incurred in the exercise of its powers and discharge of its duties under this Act.  

46.  Accounts  and  audit.—(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 vouchers and other documents and papers and to inspect the offices of the 
Council.  

(4) The accounts of the Council as certified by the Comptroller and Auditor-General of India or any 
other person appointed by him in this behalf together with the audit report thereon shall be forwarded 
annually to the Central Government and that Government shall cause the same to be laid before each 
House of Parliament. 

47.  Power of Central Government to issue directions.—(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.  

48.  Power  to  frame  schemes  or  guidelines.—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. 

49.  Mediated  settlement  agreement  where  Government  or 

its,  agency,  etc., 

is  a                               

party.—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.  

50. Protection of action taken in good faith.—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.  

51.  Power  to  make  rules.—(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— 

18 

 
 (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  1

[Part-Time  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.  

52. Power to make regulations.—(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;  

(c)  standards  for  professional  and  ethical  conduct  of  mediators  under  sub-section  (3)  of     

section 15; 

(d) manner of registration of mediated settlement agreement under sub-section (1) of section 20;  

(e) fees for registration of mediated settlement agreement under the proviso to sub-section (2) of 

section 20; 

 (f) cost of mediation under sub-section (1) of section 25; 

 (g) manner of process of conducting online mediation under sub-section (2) of section 30;  

(h) the terms and conditions of experts and committees of experts under section 36;  

(i) qualifications, appointment and other terms and conditions of service of the Chief Executive 

Officer under sub-section (2) of section 37;  

(j) the number of officers and employees of the Secretariat of the Council under sub-section (3) 

of section 37;  

(k)  the  qualification,  appointment  and  other  terms  and  conditions  of  the  employees  and  other 

officers of the Council under sub-section (4) of section 37;  

(l) conditions for registration of mediators and renewal, withdrawal, suspension or cancellations 

of such registrations under clause (e) of section 38;  

(m)  criteria  for  recognition  of  mediation  institutes  and  mediation  service  providers  under                    

clause (j) of section 38;  

(n)  manner  of  maintenance  of  electronic  depository  of  mediated  settlement  agreement  under                

clause (n) of section 38; 

 (o) manner for recognition of mediation service provider under sub-section (2) of section 40; 

 (p) such other functions of mediation service provider under clause (f) of section 41;  

(q) duties and functions to be performed by mediation institutes under section 42; and 

 (r) any other matter in respect of which provision is necessary for the performance of functions 

of the Council under this Act. 

53.  Laying.—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 

1. Subs. by Notification No. S.O. 4506(E), for “Member” (w.e.f. 13-10-2023). 

19 

 
                                                           
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.  

54. Power to remove difficulties.—(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.    

55. Provisions of Act to have overriding effect on mediation or conciliation contained in other 
laws.—(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. 

56. Act not to apply to pending proceedings.—This Act shall not apply to, or in relation to, any 

mediation or conciliation commenced before the coming into force of this Act.  

57. Transitory provision.—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.  

58.  Amendment  of  Act  9  of  1872.—The  Indian  Contract  Act,  1872,  shall  be  amended  in  the 

manner specified in the Third Schedule.  

59. Amendment of Act 5 of 1908.—The Code of Civil Procedure, 1908, shall be amended in the 

manner specified in the Fourth Schedule.  

60. Amendment of 39 of 1987.— The Legal Services Authorities Act, 1987,shall be amended in 

the manner specified in the Fifth Schedule.  

61. Amendment of 26 of 1996.—The Arbitration and Conciliation Act, 1996, shall be amended in 

the manner specified in the Sixth Schedule. 

62.Amendment  of  27  of  2006.—The  Micro,  Small  and  Medium  Enterprises  Development  Act, 

2006, shall be amended in the manner specified in the Seventh Schedule.  

63.Amendment  of  18  of  2013.—The  Companies  Act,  2013,  shall  be  amended  in  the  manner 

specified in the Eighth Schedule.  

64.  Amendment  of  4  of  2016.—The  Commercial  Courts  Act,  2015,  shall  be  amended  in  the 

manner specified in the Ninth Schedule.  

65.Amendment  of  35  of  2019.—  The  Consumer  Protection  Act,  2019,  shall  be  amended  in  the 

manner specified in the Tenth Schedule. 

20 

 
 
 
THE FIRST 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.  

4.  Complaints  or  proceedings,  initiated  before  any  statutory  authority  or  body  in  relation  to 
registration, discipline, misconduct of any practitioner, or other registered professional, such as legal 
practitioner,  medical  practitioner,  dentist,  architect,  chartered  accountant,  or  in  relation  to  any  other 
profession of whatever description, which is regulated under any law for the time being in force.  

5. Disputes which have the effect on rights of a third party who are not a party to the mediation 

proceedings except only in matrimonial disputes where the interest of a child is involved. 

 6. Any proceeding in relation to any subject matter, falling within any enactment, over which the 

Tribunal constituted under the National Green Tribunal Act, 2010 (19 of 2010), has jurisdiction.  

7. Any dispute relating to levy, collection, penalties or offences, in relation to any direct or indirect 

tax or refunds, enacted by any State legislature or the Parliament.  

8.  Any  investigation,  inquiry  or  proceeding,  under  the  Competition  Act,  2002  (12  of  2003), 
including  proceedings  before  the  Director  General,  under  the  Act;  proceedings  before  the  Telecom 
Regulatory  Authority  of  India,  under  the  Telecom  Regulatory  Authority  of  India  Act,  1997  (24  of 
1997) or the Telecom Disputes Settlement and Appellate Tribunal established under section 14 of that 
Act.  

9. Proceedings before appropriate Commissions, and the Appellate Tribunal for Electricity, under 

the Electricity Act, 2003 (36 of 2003).  

10.  Proceedings  before  the  Petroleum  and  Natural  Gas  Regulatory  Board,  and  appeals therefrom 
before the Appellate Tribunal under the Petroleum and Natural Gas Regulatory Board Act, 2006 (19 of 
2006).  

11.  Proceedings  before the  Securities and  Exchange Board of  India, and the  Securities  Appellate 

Tribunal, under the Securities and Exchange Board of India Act, 1992 (15 of 1992). 

 12.  Land  acquisition  and  determination  of  compensation  under  land  acquisition  laws,  or  any 

provision of law providing for land acquisition.  

13. Any other subject matter of dispute which may be notified by the Central Government. 

21 

 
 
 
 
 
 
 
 
THE SECOND SCHEDULE 

(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 Citizens 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). 

22 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 THE THIRD SCHEDULE 

(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.”. 

23 

 
 
 
THE FOURTH SCHEDULE 

 (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 per the option of the parties, and thereafter the 
provisions  of  the  Mediation  Act,  2023  shall  apply  as  if  the  proceedings  for  mediation  were 
referred for settlement under the provisions of that Act; or 

(c) refer the dispute to Lok Adalat, in accordance with the provisions of sub-section (1) of 
section  20  of  the  Legal  Services  Authorities  Act,  1987  (39  of  1987)  and  thereafter,  all  other 
provisions of that Act shall apply in respect of the dispute;  

(d) effect compromise between the parties and shall follow such procedure as deemed fit for 

judicial settlement. 

24 

 
 
 
THE FIFTH SCHEDULE 

(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;”. 

25 

 
 
 
THE SIXTH SCHEDULE 

(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 in clause (h) of section 3 of the Mediation Act, 2023.  

62. Saving.—Notwithstanding anything contained in section 61, any conciliation proceeding 
initiated in pursuance of sections 61 to 81 of this Act as in force before the commencement of the 
Mediation Act, 2023, shall be continued as such, as if the Mediation Act, 2023, had not been enacted. 

26 

 
 
 
THE SEVENTH SCHEDULE 

(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 
without  any  settlement  between  the  parties,  the  Council  shall  either  itself  take  up  the  dispute  for 
arbitration or refer it to any institution or centre providing alternative dispute resolution services for 
such arbitration and the provisions of the Arbitration and Conciliation Act, 1996 (26 of 1996), shall, 
then apply to the dispute as if the arbitration was in pursuance of an arbitration agreement referred to 
in sub-section (1) of section 7 of that Act.  

(5) Notwithstanding anything contained in any other law for the time being in force, the Micro and 
Small  Enterprises  Facilitation  Council  or  the centre providing  alternative  dispute  resolution  services 
shall have jurisdiction to act as an Arbitrator or mediator under this section in a dispute between the 
supplier located within its jurisdiction and a buyer located anywhere in India.". 

27 

 
 
 
THE EIGHTH SCHEDULE 

(See section 63) 

 In  the  Companies  Act,  20l3  (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 conducted under the provisions of the Mediation Act, 2023 as 
the Central Government, Tribunal or the Appellate Tribunal, deems fit.  

(3) The mediator or mediation service provider shall file the mediated settlement agreement arrived 
at between the parties with the Central Government or the Tribunal or the Appellate Tribunal under 
the Act.  

(4)  The  Central  Government  or  the  Tribunal  or  the  Appellate  Tribunal  shall  pass  an  order  or 

judgment making the said mediated settlement agreement as part thereof. 

 (5) The fee of the mediator shall be such as may be prescribed.” 

28 

 
 
 
THE NINTH SCHEDULE 

(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  Mediation                      

Act, 2023.  

(3) Notwithstanding anything contained in the Legal Services Authorities Act, 1987 (39 of 1987), 

the  Authority  or  mediation  service  provider  authorised  by  the  Central  Government  under                
sub-section  (2)  shall  complete  the  process  of  mediation  within  a  period  of  one  hundred  and  twenty 
days from the date of application made by the plaintiff under sub-section (1): 

Provided that the period of mediation may be extended for a further period of sixty days with the 

consent of the parties: 

Provided  further  that,  the  period  during  which  the  parties  spent  for  pre-litigation  mediation  shall 

not be computed for the purposes of limitation under the Limitation Act, 1963 (36 of 1963). 

 (4)  If  the  parties  to  the  commercial  dispute  arrive  at  a  settlement,  the  same  shall  be  reduced  into 

writing and shall be signed by the parties and the mediator. 

 (5) The mediated settlement agreement arrived at under this section shall be dealt with in accordance 

with the provisions of sections 27 and 28 of the Mediation Act, 2023.”; 

 (b)  in  section  21A,  in  sub-section  (2),  for  clause  (a),  the  following  clause  shall  be  substituted, 

namely:— 

 “(a)  the  manner  and  procedure  of  pre-litigation  mediation  under  sub-section  (1)  of            

section 12A;”. 

29 

 
 
 
THE TENTH SCHEDULE 

(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 
[may]  at  any  stage  of  proceedings  refer  the  disputes  for 

Commission,  as  the  case  may  be,  1
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  mediator  shall  prepare  a  settlement  report  of  the  settlement  and  forward  the  signed 

agreement along with such report to the concerned Commission.  

(3) Where no agreement is reached between the parties within the specified time or the mediator 
is of the opinion that settlement is not possible, he shall prepare his report accordingly and submit 
the same to the concerned Commission.  

37B.  Recording  settlement  and  passing  of  order.—(1)  The  District  Commission  or  the  State 
Commission  or  the  National  Commission,  as  the  case  may  be,  shall,  within  seven  days  of  the 
receipt of the settlement report, pass suitable order recording such settlement of consumer dispute 
and dispose of the matter accordingly. 

 (2)  Where  the  consumer  dispute  is  settled  only  in  part,  the  District  Commission  or  the  State 
Commission or the National Commission, as the case may be, shall record settlement of the issues 
which have been so settled and continue to hear other issues involved in such consumer dispute. 

 (3) Where the consumer dispute could not be settled by mediation, the District Commission or 
the State Commission or the National Commission, as the case may be, shall continue to hear all 
the issues involved in such consumer dispute.";  

(c)  in  section  38,  in  sub-section  (1),  the  words  “or  in  respect  of  cases  referred  for  mediation  on 

failure of settlement by mediation,” shall be omitted;  

(d) in section 41, the third proviso shall be omitted;  

(e) Chapter V shall be omitted;  

(f) in section 101, in sub-section (2),— 

 (i) clause (r) shall be omitted; 

 (ii) clause (zf) shall be omitted; 

 (g) in section 102, in sub-section (2), clause (p) shall be omitted;  

(h) in section 103, in sub-section (2), clauses (c) to (h) shall be omitted. 

———— 

1. Subs. by Notification no. S.O. 4506(E) for “shall either on an application by the parties” (w.e.f. 13-10-2023). 

30 

 
                                                           
 
 
           
