The Mediation Act, 2023
Administered Ministry: Ministry of Law and Justice / Department of Legal Affairs
Section
Section 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.
(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.
Section 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.
(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.
Section 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 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.
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.
Section 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.
(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.
Section 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.
(2) Unless otherwise agreed by the parties, all costs of mediation, including the fees of the mediator and the charges of the mediation service provider shall be borne equally by the parties.
Section 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).
Section 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.
(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.
Section 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;
(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.
(2) A mediated settlement agreement may be challenged only on all or any of the following grounds, namely:--
(i) fraud;
(ii) corruption;
(iii) impersonation;
(iv) where the mediation was conducted in disputes or matters not fit for mediation under section 6.
(3) An application for challenging the mediated settlement agreement shall not be made after ninety days have elapsed from the date on which the party making that application has received the copy of mediated settlement agreement under sub-section (3) of section 19:
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.
Section 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.
(i) submission of report under section 21; or
(ii) termination of mediation under section 24, shall be excluded.
Section 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.
(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.
Section 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.
(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.
Section 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;
(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[Part-Time Member] shall be entitled to such travelling and other allowances as may be prescribed.
(a) a person of ability, integrity and standing having adequate knowledge and professional experience or shown capacity in dealing with problems relating to law, alternative dispute resolution preferably mediation, public affairs or administration to be appointed by the Central Government---Chairperson;
(b) a person having knowledge and experience in law related to mediation or alternative dispute resolution mechanisms, to be appointed by the Central Government---Member;
(c) an eminent person having experience in research or teaching in the field of mediation and alternative dispute resolution laws, to be appointed by the Central Government---Member;
(d) Secretary to the Government of India in the Department of Legal Affairs, Ministry of Law and Justice or his representative not below the rank of Joint Secretary---Member, 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[Part-Time Member] shall be entitled to such travelling and other allowances as may be prescribed.
1. Subs. by Notification No. S.O. 4506(E), for "Member" (w.e.f. 13-10-2023).
Section 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.
(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.
Section 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.
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.
Section 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
(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.
(a) is an undischarged insolvent; or
(b) has engaged at any time, during his term of office, in any paid employment without the permission of the Central Government; or
(c) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or
(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a Member; or
(e) has so abused his position as to render his continuance in office prejudicial to the public interest; or
(f) has become physically or mentally incapable of acting as a Member:
Provided that where a Member is proposed to be removed on any ground, he shall be informed of charges against him and given an opportunity of being heard in respect of those charges.
Section 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.
Section 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.
(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.
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.
(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.
Section 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.
(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.
Section 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.
(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.