1. (1) This Act may be called the Mediation Act, 2023.
(2) It shall extend to the whole of India.
(3) It shall come into force on such date as the Central Government may, by notification,
appoint and different dates may be appointed for different provisions of this Act and any
reference in any such provision to the commencement of this Act shall be construed as a
reference to the coming into force of that provision.

2. 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. In this Act, unless the context otherwise requires,—
(a) "commercial dispute" means a dispute defined in clause (c) of
sub-section (1) of section 2 of the Commercial Courts Act, 2015;
(b) "community mediator" means a mediator for the purposes of conduct of
community mediation under Chapter X;
(c) "Council" means the Mediation Council of India established under
section 31;
(d) "court" means the competent court in India having pecuniary and territorial
jurisdiction and having jurisdiction to decide the disputes forming the subject matter
of mediation, if the same had been the subject matter of a suit or proceeding;
(e) "court-annexed mediation" means mediation including pre-litigation mediation
conducted at the mediation centres established by any court or tribunal;
(f) "institutional mediation" means mediation conducted under the aegis of 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;
(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; and
(y) "specified" means specified by regulations made by the Council under this
Act.

4. (1) A mediation agreement shall be in writing, by or between parties and anyone
claiming through them, to submit to mediation all or certain disputes which have arisen or
which may arise between the parties.
(2) A mediation agreement may be in the form of a mediation clause in a contract or in
the form of a separate agreement.
(3) A mediation agreement is in writing, if it is contained in or recorded as—
(a) any document signed by the parties;
(b) an exchange of communications or letters including through electronic form
as provided under the Information Technology Act, 2000;
(c) any pleadings in a suit or any other proceedings in which existence of
mediation agreement is alleged by one party and not denied by the other.
 (4) A reference in any agreement containing a mediation clause shall constitute a
mediation agreement if the agreement 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. (1) Subject to other provisions of this Act, whether any mediation agreement exists
or not, the parties before filing any suit or proceedings of civil or commercial nature in any
court, may voluntarily and with mutual consent take steps to settle the disputes by
pre-litigation mediation in accordance with the provisions of this Act:
 Provided that pre-litigation mediation in matters of commercial disputes of Specified
Value shall be undertaken in accordance with the provisions of section 12A of the Commercial
Courts Act, 2015, and the rules made thereunder.
 (2) The provisions of sub-section (1) shall be applicable to the tribunals notified by
the Central Government or a State Government, as the case may be.
(3) For the purposes of sub-sections (1) and (2), unless otherwise agreed upon by the
parties, a mediator,—
(i) registered with the Council; or
(ii) empanelled by a court-annexed mediation centre; or
(iii) empanelled by an Authority constituted under the Legal Services Authorities
Act, 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, as
the case may be.
(5) The court-annexed mediation centre and an Authority constituted under the Legal
Services Authorities Act, 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, 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. (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. (1) Notwithstanding the non-settlement of dispute under sub-section (1) of section 5,
the court or tribunal may, at any stage of proceeding, refer the parties to undertake mediation.
(2) If the court or tribunal refers the parties to undertake mediation, it may pass suitable
interim order to protect the interest of any party if deemed appropriate.
(3) The parties shall not be under obligation to come to a settlement in the mediation
pursuant to a reference under sub-section (1)

8. (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. 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. (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. A mediation service provider may terminate the mandate of a mediator upon—
(i) the receipt of application from a party under clause (i) of sub-section (4) of
section 10; or
(ii) the receipt of information about the mediator being involved in a matter of
conflict of interest from participants or any other person; or
(iii) his withdrawal from mediation for any reason:
 Provided that termination under clause (ii) shall be effected if, after giving a hearing to
the mediator, mediation service provider finds that there is justifiable doubt as to the
independence or impartiality of the mediator and that the same has been brought to the
notice of parties and that either party desires to replace the mediator.

12. 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.

13. 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. 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. (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, or the Indian
Evidence Act, 1872.
(6) The mediator with the consent of the parties shall determine the language or
languages to be used in the mediation process.

16. (1) The mediator shall attempt to facilitate voluntary resolution of the dispute by
the parties and communicate the view of each party to the other to the extent agreed to by
them, assist them in identifying issues, advancing better understanding, clarifying priorities,
exploring areas of settlement and generating options in an attempt to resolve the dispute
expeditiously, emphasising that it is the responsibility of the parties to take decision regarding
their claims.
(2) The parties shall be informed expressly by the mediator that he only facilitates in
arriving at a decision to resolve a dispute and that he shall not impose any settlement nor
give any assurance that the mediation may result in a settlement.

17. 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. (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. (1) A mediated settlement agreement includes an agreement in writing between
some or all of the parties resulting from mediation, settling some or all of the disputes
between such parties, and authenticated by the mediator:
Provided that the terms of the mediated settlement agreement may extend beyond the
disputes referred to mediation.
Explanation.—A mediated settlement agreement which is void under the Indian
Contract Act, 1872, shall not be deemed to be lawful settlement agreement within the meaning
of mediated settlement agreement.
(2) Where a mediated settlement agreement is reached between the parties with regard
to all or some of the disputes, the same shall be reduced in to writing and signed by the
parties.
(3) Subject to the provisions of section 26, the mediated settlement agreement signed,—
(i) in case of institutional mediation, shall be 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. (1) For the purposes of record, mediated settlement agreement arrived at between
the parties, other than those arrived in a court or tribunal referred mediation or award of Lok
Adalat or final award of the Permanent Lok Adalat under section 21 or section 22E of the
Legal Services Authorities Act, 1987, may, at the option of parties, be registered with an
Authority constituted under the said Act, or any other body as may be notified by the
Central Government, in such manner as may be specified and such Authority or body shall
issue a unique registration number to such settlement agreements:
Provided that the mediated settlement agreement under this section may be registered
with such Authority or the body situated within the territorial jurisdiction of the court or
tribunal of competent jurisdiction to decide the subject matter of dispute.
Explanation.—For the removal of doubts, it is clarified that nothing contained in this
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. 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 nonsettlement, or any other matter or thing referring to their conduct, during mediation

22. (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. (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.

24. 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. (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. 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.

27. (1) A mediated settlement agreement resulting from a mediation signed by the
parties and authenticated by the mediator shall be final and binding on the parties and
persons claiming under them respectively and enforceable as per the provisions of
sub-section (2).
(2) Subject to the provisions of section 28, the mediated settlement agreement shall be
enforced in accordance with the provisions of the Code of Civil Procedure, 1908, in the same
manner as if it were a judgment or decree passed by a court, and may, accordingly, be relied
on by any of the parties or persons claiming through them, by way of defence, set off or
otherwise in any legal proceeding.

28. (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.

29. Notwithstanding anything contained in the Limitation Act, 1963 or in any other law
for the time being in force, in computing the period of limitation fixed for any proceeding
relating to disputes in respect of which a mediation has been undertaken under this Act, the
period from the date of commencement of mediation under section 14, and up to—
(i) submission of report under section 21; or
(ii) termination of mediation under section 24,
shall be excluded.

30. (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.

31. (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. (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 Member shall be entitled to such travelling and other allowances as may be
prescribed

33. 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. 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. 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.

36. 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. (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. 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.

39. (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.

40. (1) "mediation service provider" includes—
(a) a body or an organisation that provides for the conduct of mediation under
this Act and the rules and regulations made thereunder and is recognised by the
Council; or
(b) an Authority constituted under the Legal Services Authorities Act, 1987; or
(c) a court-annexed mediation centre; or
(d) any other body as may be notified by the Central Government:
Provided that the bodies referred to in clauses (b), (c) and (d) shall be deemed to be
mediation service providers recognised by the Council.
(2) The mediation service provider shall be recognised by the Council in the manner as
may be specified.

41. 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. The Council shall recognise mediation institutes to perform such duties and exercise
such functions as may be specified.

 43. (1) Any dispute likely to affect peace, harmony and tranquillity amongst the
residents or families of any area or locality may be settled through community mediation with
prior mutual consent of the parties to the dispute.
 (2) For the purposes of sub-section (1), any of the parties shall make an application
before the concerned Authority constituted under the Legal Services Authorities Act, 1987
or District Magistrate or Sub-Divisional Magistrate in areas where no such Authority has
been constituted, for referring the dispute to mediation.
 (3) In order to facilitate settlement of a dispute for which an application has been
received under sub-section (2), the concerned Authority constituted under the Legal Services
Authorities Act, 1987 or the District Magistrate or Sub-Divisional Magistrate, as the case
may be, shall constitute panel of three community mediators.
 (4) For the purposes of this section, 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. (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.

45. (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.
 (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. (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 AuditorGeneral
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. (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. 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. 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. 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. (1) The Central Government may, by notification, make rules for carrying out the
provisions of this Act.
 (2) In particular, and without prejudice to the generality of the foregoing power, such
rules may make provision for—
(a) the salaries and allowances and the terms and conditions of the Members
under sub-section (3) of section 32;
(b) the travelling and other allowances payable to the Member under
sub-section (4) of section 32;
(c) the form and manner of annual statement of accounts, including the balance
sheet under sub-section (1) of section 46; and
(d) any other matter which is to be, or may be prescribed.

52. (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 26;
(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 (4) of section 37;
(k) the qualification, appointment and other terms and conditions of the
employees and other officers of the Council under sub-section (5) of section 37;
(l) conditions for registration of mediators and renewal, withdrawal, suspension
or cancellations of such registrations under clause (d) of section 38;
(m) criteria for recognition of mediation institutes and mediation service providers
under clause (i) of section 38;
(n) manner of maintenance of electronic depository of mediated settlement
agreement under clause (m) 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. Every notification issued under sub-section (2) of section 6, sub-section (2) of
section 55, rule and regulation made under this Act shall be laid, as soon as may be after it is
issued or made, before each House of Parliament, while it is in session, for a total period of
thirty days which may be comprised in one session or in two or more successive sessions,
and if, before the expiry of the session immediately following the session or the successive
sessions aforesaid, both Houses agree in making any modification in the notification, rule or
regulation or both Houses agree that the notification, rule or regulation should not be issued
or made, the notification, rule or regulation shall thereafter have effect only in such modified
form or be of no effect, as the case may be; so, however, that any such modification or
annulment shall be without prejudice to the validity of anything previously done under that
notification, rule or regulation.

54. (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. (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. This Act shall not apply to, or in relation to, any mediation or conciliation commenced
before the coming into force of this Act.

57. 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. The Indian Contract Act, 1872, shall be amended in the manner specified in the
Third Schedule.

59. The Code of Civil Procedure, 1908, shall be amended in the manner specified in the
Fourth Schedule.

 60. The Legal Service Authorities Act, 1987, shall be amended in the manner specified
in the Fifth Schedule.

61. The Arbitration and Conciliation Act, 1996, shall be amended in the manner specified
in the Sixth Schedule.

62. The Micro, Small and Medium Enterprises Development Act, 2006, shall be amended
in the manner specified in the Seventh Schedule.

63. The Companies Act, 2013, shall be amended in the manner specified in the Eighth
Schedule.

64. The Commercial Courts Act, 2015, shall be amended in the manner specified in the
Ninth Schedule.

65. The Consumer Protection Act, 2019, shall be amended in the manner specified in
the Tenth Schedule

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.
 

1. The Industrial Disputes Act, 1947 (14 of 1947).
2. The Brahmaputra Board Act, 1980 (46 of 1980).
3. The Cine-Workers and Cinema Theatre Workers (Regulation of Employment)
Act, 1981 (50 of 1981).
4. The Family Courts Act, 1984 (66 of 1984).
5. The Legal Services Authorities Act, 1987 (39 of 1987).
6. The Maintenance and Welfare of Parents and Senior Citizen Act, 2007 (56 of 2007).
7. The Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013 (14 of 2013).
8. The Finance Act, 20l6 (28 of 2016).
9. The Industrial Relations Code, 2020 (35 of 2020).
 

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.".
 

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 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.".
 

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;".
 

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.".
 

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.".
 

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.".
 

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;".

In the Consumer Protection Act, 2019 (35 of 2019),—
(a) in section 2, clauses (25) and (26) shall be omitted;
(b) for section 37, the following sections shall be substituted, namely:—
"37. Reference to mediation.—The District Commission or State Commission
or the National Commission, as the case may be, shall either on an application by
the parties at any stage of proceedings refer the disputes for settlement by
mediation under the Mediation Act, 2023.
37A. Settlement through mediation.—(1) Pursuant to mediation, if an
agreement is reached between the parties with respect to all of the issues involved
in the consumer dispute or with respect to only some of the issues, the terms of
such agreement shall be reduced to writing accordingly, and signed by the
parties to such dispute or their authorised representatives.
(2) The 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.

DR. REETA VASISHTA, Secretary to the Govt. of India