The Mediation Act, 2023

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).

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.