The Mediation Act, 2023 (“Act”) has received the assent of the President on the 14th September, 2023. However, the commencement notification will be published by the Central Government later.

Object of the Act:

1. to promote and facilitate mediation, especially institutional mediation, for resolution of disputes, commercial or otherwise,
2. enforce mediated settlement agreements,
3. provide for a body for registration of mediators,
4. to encourage community mediation and
5. to make online mediation as acceptable and cost-effective process and for matters connected therewith or incidental thereto.

Key Highlights:

1. Definition of Mediation: 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.
2. Definition of Institutional Mediation: Institutional Mediation means mediation conducted under the aegis of a mediation service provider.
3. Definition of International Mediation: 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
   • an individual who is a national of, or habitually resides in, any country other than India; or
   • a body corporate including a Limited Liability Partnership of any nature, with its place of business outside India; or
   • an association or body of individuals whose place of business is outside India; or
   • the Government of a foreign country.
4. Disputes or matters not fit for mediation: A separate schedule i.e., “First Schedule” has been provided under the Act which lists down the type of disputes or matters which are not fit for mediation. Such matters include the following:
   • 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.
   • Proceedings before appropriate Commissions, and the Appellate Tribunal for Electricity, under the Electricity Act, 2003.
   • 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.
   • Proceedings before the Securities and Exchange Board of India, and the Securities Appellate Tribunal, under the Securities and Exchange Board of India Act, 1992.
5. Section 61 to Section 81 of the Arbitration and Conciliation Act, 1996 would stand amended and substituted to inter alia reflect that where conciliation is referred in any enactment, it would mean a reference to the Mediation Act. However, all ongoing conciliation proceedings will continue under the existing provisions as if they had not been amended.
6. Also, there are other legislations which are getting amended by virtue of this Act being notified such as:
   • Indian Contract Act, 1872
   • Code of Civil Procedure, 1908
   • Legal Service Authorities Act, 1987
   • Micro, Small and Medium Enterprises Development Act, 2006
   • The Companies Act, 2013
   • The Commercial Courts Act, 2015
   • The Consumer Protection Act, 2019

Details of the said amendments to specific legislations have been provided under Thirds, Fourth , Fifth, Seventh, Eighth, Ninth and Tenth Schedule of the Act.

A copy of the Notification is linked below for reference.

Source: Ministry of Law and Justice

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