The Mediation Act, 2023: What It Changes and What It Means for You

Until 2023, mediation in India rested on a patchwork: court-annexed mediation under the Code of Civil Procedure, conciliation under Part III of the Arbitration and Conciliation Act, 1996, and pre-institution mediation under the Commercial Courts Act, 2015. The Mediation Act, 2023 brings mediation under one law for the first time, and gives a settlement reached in mediation real legal force.

Pre-litigation mediation

Before filing a civil or commercial suit, the parties may, voluntarily and by mutual consent, try to settle the dispute through pre-litigation mediation — whether or not their contract contains a mediation clause. The aim is to resolve disputes before they reach an already crowded court system.

Time limits

A mediation under the Act must be completed within 120 days from the date the parties first appear before the mediator. The parties may extend this by consent for a further period of up to 60 days. The fixed window keeps mediation from becoming a delaying tactic.

Confidentiality

Everything said, shown, or offered in mediation is confidential. The mediator, the parties, and everyone else involved may not disclose it, and it cannot be relied on as evidence in later arbitral or court proceedings. This is what lets parties speak candidly in private sessions.

The mediated settlement agreement

If the parties settle, they sign a mediated settlement agreement, which the mediator authenticates. Under the Act it is final and binding on the parties, and it can be enforced in the same manner as a judgment or decree of a court.

A challenge is allowed only on narrow grounds — fraud, corruption, impersonation, or that the dispute was not fit for mediation — and must be brought within a limited period after the settlement is received.

Online and community mediation

The Act recognises online mediation, conducted through electronic means with the parties' consent, on the same footing as mediation in person. It also provides for community mediation, to settle disputes likely to affect peace and harmony among residents of a locality.

What cannot be mediated

A schedule to the Act lists disputes not fit for mediation — among them criminal prosecutions, matters affecting the rights of third parties who are not part of the mediation, and certain disputes reserved for statutory bodies. When in doubt, the free consultation at Adjudix will tell you whether your dispute qualifies.

The Mediation Council of India

The Act establishes the Mediation Council of India to register mediators, recognise mediation service providers and mediation institutes, and set standards for training and conduct. Its provisions are being brought into force in stages, so always check which parts apply on the date of your mediation.

Mediation at Adjudix

Adjudix mediation follows the Mediation Act, 2023 and the Adjudix Code of ADR Procedure. And where the parties want a guaranteed outcome, Hybrid Med-Arb adds an arbitration phase if mediation does not settle the dispute.