The Mediation Act 2023, which came into force on 9 September 2024, provides India\'s first comprehensive statutory framework for mediation. The Act covers institutional and ad hoc mediation, prescribes the conduct of mediation proceedings, governs the enforceability of mediated settlement agreements and establishes the Mediation Council of India as the regulatory body.
The Mediation Act 2023 introduces several foundational changes: it provides for pre-litigation mediation (parties must consider mediation before filing certain suits), establishes the concept of a mediated settlement agreement that is enforceable as a judgment or decree of a court under Section 27, creates the Mediation Council of India to regulate mediators and mediation service providers, recognises online mediation as a valid mode, and provides for community mediation for disputes likely to affect the peace and harmony of a locality. The Act applies to mediations where all parties reside in or are incorporated in India, and to international mediations seated in India.
AMLEGALS advises parties, institutions and mediators on the operation of the Mediation Act 2023 — from designing mediation clauses in contracts to representing parties in institutional and ad hoc mediation proceedings, advising on the enforceability and challenge of mediated settlement agreements and assisting in the transition from litigation or arbitration to mediation.
Drafting mediation clauses in commercial contracts compliant with the Mediation Act 2023 and institutional mediation rules.
Representing parties in mediation administered by recognised mediation service providers.
Advising on and conducting pre-litigation mediation where mandated or appropriate.
Advising on the enforceability of mediated settlement agreements under Section 27 and challenging or defending non-compliance.
Representing parties in online mediation proceedings conducted through electronic means.
Advising mediation institutions and mediators on registration and compliance with Mediation Council of India regulations.
The Mediation Act 2023 received Presidential assent on 15 September 2023. It was brought into force on 9 September 2024 by notification of the Central Government.
Yes. Under Section 27 of the Mediation Act 2023, a mediated settlement agreement resulting from mediation conducted under the Act is enforceable as if it were a judgment or decree of a court. A party may apply for enforcement to any court having jurisdiction.
Section 28 provides limited grounds for challenge: the agreement was affected by fraud, corruption, impersonation or relates to disputes not fit for mediation (such as criminal compounding that is not permissible). The challenge must be filed within 90 days of receiving the authenticated copy of the settlement agreement.
The Mediation Act 2023 provides that parties shall take steps to settle civil or commercial disputes by mediation before filing any suit or proceeding in a court, as specified by the Central Government by notification. However, this obligation does not apply where urgent interim relief is sought or where the dispute involves specified categories.
The Mediation Council of India, established under Section 31, regulates the practice of mediation: it recognises mediation service providers, registers mediators, prescribes standards and qualifications, and promotes mediation as a mode of dispute resolution. The Council also maintains a panel of mediators and may frame regulations on the conduct of mediation.
No. No engagement is treated as accepted until conflicts, scope and terms are confirmed in writing.
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