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IndiaCode Laws
Act32
Enacted 2023

The Mediation Act, 2023

In force 65 sections Law and Justice

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.

Act 32 of 2023 Enacted 14 Sep 2023 In force 09 Oct 2023 Department Department of Legal Affairs

Administered by. Ministry of Law and Justice, Department of Legal Affairs · Other Acts of 2023

Preamble

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:---

What this Act covers

Summary of Mediation Act, 2023,

Key Provisions

1. Scope and Application

• Governs mediations in India, with specified conditions (Section 2).

• Excludes disputes listed in the First Schedule (e.g., criminal prosecutions, certain third-party rights, environmental/competition law, tax disputes, and cases involving minors, mental illness, or professional discipline).

2. Mediation Agreement and Pre-Litigation Mediation

• Agreement: Must be in writing (Section 4).

• Pre-Litigation: Mandatory for certain commercial suits unless exempt (Section 12A of the Commercial Courts Act, 2015, as amended).

3. Mediation Proceedings

• Conduct and Neutrality: Mediator facilitates settlement impartially (Section 15).

• Duration: Typically 120 days, extendable by 60 days with consent (Section 18).

• Confidentiality: Strict confidentiality obligations (Sections 22 & 23).

4. Mediated Settlement Agreement (MSA)

• Form and Authentication: Written and authenticated by the mediator (Section 19).

• Registration and Enforcement: Voluntary registration; enforceable as a court order if registered (Section 20).

5. Mediator’s Role and Responsibilities

• Facilitation: Assists in reaching a voluntary settlement (Section 16).

• Conflicts and Prohibitions: Cannot later act as an arbitrator or witness in the same matter (Section 17).

6. Costs and Fees

• Sharing: Equally borne by parties unless otherwise agreed (Section 25).

• Mediator’s Fee: As prescribed (Section 25 and amendments to other Acts).

7. Overriding Clause and Amendments

• Precedence: This Act overrides conflicting provisions in other laws (Section 55).

• Amendments: Modifies the Arbitration and Conciliation Act, 1996; the Commercial Courts Act, 2015; the Consumer Protection Act, 2019; and others to align with mediation principles.

8. Mediation Council of India

• Establishment: Body corporate for promoting and regulating mediation (Section 31).

• Functions: Includes setting guidelines, accrediting mediators, and maintaining standards (Section 38).

9. Mediation Service Providers and Institutes

• Recognition and Roles: Providers accredited by the Mediation Council; responsibilities include facilitating mediation and maintaining mediator panels (Sections 40-42).

Sections

Type to filter. 65 sections.

  1. 1Short title, extent and commencement
  2. 2Application
  3. 3Definitions
  4. 4Mediation agreement
  5. 5Pre-litigation mediation
  6. 6Disputes or matters not fit for mediation
  7. 7Power of court or tribunal to refer parties to mediation
  8. 8Appointment of mediators
  9. 9Preference of parties
  10. 10Conflict of interest and disclosure
  11. 11Termination of mandate of mediator
  12. 12Replacement of mediator
  13. 13Territorial jurisdiction to undertake mediation
  14. 14Commencement of mediation
  15. 15Conduct of mediation
  16. 16Role of mediator
  17. 17Role of mediator in other proceedings
  18. 18Time-limit for completion of mediation
  19. 19Mediated settlement agreement
  20. 20Registration of mediated settlement agreement
  21. 21Non-settlement report
  22. 22Confidentiality
  23. 23Admissibility and privilege against disclosure
  24. 24Termination of mediation
  25. 25Cost of mediation
  26. 26Proceedings of Lok Adalat and Permanent Lok Adalat not to be affected
  27. 27Enforcement of mediated settlement agreement
  28. 28Challenge to mediated settlement agreement
  29. 29Limitation
  30. 30Online mediation
  31. 31Establishment and incorporation of Mediation Council
  32. 32Composition of Council
  33. 33Vacancies, etc., not to invalidate proceedings of Council
  34. 34Resignation
  35. 35Removal
  36. 36Appointment of experts and constitution of Committees
  37. 37Secretariat and Chief Executive Officer of Council
  38. 38Duties and functions of Council
  39. 39Monitoring and reporting
  40. 40Mediation service provider
  41. 41Functions of mediation service providers
  42. 42Mediation institutes
  43. 43Community mediation
  44. 44Procedure for community mediation
  45. 45Mediation Fund
  46. 46Accounts and audit
  47. 47Power of Central Government to issue directions
  48. 48Power to frame schemes or guidelines
  49. 49Mediated settlement agreement where Government or its, agency, etc., is a party
  50. 50Protection of action taken in good faith
  51. 51Power to make rules
  52. 52Power to make regulations
  53. 53Laying
  54. 54Power to remove difficulties
  55. 55Provisions of Act to have overriding effect on mediation or conciliation contained in other laws
  56. 56Act not to apply to pending proceedings
  57. 57Transitory provision
  58. 58Amendment of Act 9 of 1872
  59. 59Amendment of Act 5 of 1908
  60. 60Amendment of 39 of 1987
  61. 61Amendment of 26 of 1996
  62. 62Amendment of 27 of 2006
  63. 63Amendment of 18 of 2013
  64. 64Amendment of 4 of 2016
  65. 65Amendment of 35 of 2019

Legislative history

Legislative History: The Mediation Act, 2023 Source: Official Record of Parliament, India Code, and Ministry of Law and Justice Act Title- The Mediation Act, 2023 Act Number - Act No. 32 of 2023 Act ID (India Code) - 202332 Presidential Assent date - September 14, 2023. Enforcement Date - October 09, 2023 Nodal Ministry - Ministry of Law and Justice Precedent & Historical Rationale ● First Standalone Mediation Framework: Replaces fragmented provisions scattered across statutes like Section 89 of the Code of Civil Procedure, 1908, establishing India's first comprehensive standalone law to encourage, govern, and enforce civil and commercial mediation. ● Establishment of MCI & Statutory Enforceability: Creates the Mediation Council of India (MCI) to regulate mediation service providers and institutes, while granting Mediated Settlement Agreements (MSAs) the same legal status and enforceability as a civil court decree. Parliamentary Trajectory & Enactment ● Formulation: Introduced by the Ministry of Law and Justice to promote institutional mediation, reduce judicial pendency across Indian courts, and strengthen India's position as a hub for international and domestic alternative dispute resolution. ● Parliamentary Passage: Introduced in the Rajya Sabha on December 20, 2021; referred to the Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice; passed by the Rajya Sabha on August 1, 2023; and passed by the Lok Sabha on August 7, 2023. ● Presidential Assent: Received the assent of the President of India on September 14, 2023. ● Enforcement: Enforced on October 09, 2023.

Schedules

This Act has 10 schedules. A schedule is published as a document of its own; the text is reproduced on its page where it has been read, and the document is mirrored here either way.

Related Acts

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Every one of the 65 sections of this Act has its own page. This page is not a substitute for legal advice.