48. Power to frame schemes or guidelines.—
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. Mediated settlement agreement where Government or its, agency, etc., is a
party.—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. Protection of action taken in good faith.—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. Power to make rules.—
(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—
18
(a) the salaries and allowances and the terms and conditions of the Members under
sub-section
(3) of section 32;
1
(b) the travelling and other allowances payable to the [Part-Time 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. Power to make regulations.—
(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 25;
(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
(3)
of section 37;
(k) the qualification, appointment and other terms and conditions of the employees and other
officers of the Council under sub-section
(4) of section 37;
(l) conditions for registration of mediators and renewal, withdrawal, suspension or cancellations
of such registrations under clause
(e) of section 38;
(m) criteria for recognition of mediation institutes and mediation service providers under
clause
(j) of section 38;
(n) manner of maintenance of electronic depository of mediated settlement agreement under
clause
(n) 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. Laying.—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
1. Subs. by Notification No. S.O. 4506(E), for “Member” (w.e.f. 13-10-2023).
19
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. Power to remove difficulties.—
(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. Provisions of Act to have overriding effect on mediation or conciliation contained in other
laws.—
(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. Act not to apply to pending proceedings.—This Act shall not apply to, or in relation to, any
mediation or conciliation commenced before the coming into force of this Act.
57. Transitory provision.—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. Amendment of Act 9 of 1872.—The Indian Contract Act, 1872, shall be amended in the
manner specified in the Third Schedule.
59. Amendment of Act 5 of 1908.—The Code of Civil Procedure, 1908, shall be amended in the
manner specified in the Fourth Schedule.
60. Amendment of 39 of 1987.— The Legal Services Authorities Act, 1987,shall be amended in
the manner specified in the Fifth Schedule.
61. Amendment of 26 of 1996.—The Arbitration and Conciliation Act, 1996, shall be amended in
the manner specified in the Sixth Schedule.
62.Amendment of 27 of 2006.—The Micro, Small and Medium Enterprises Development Act,
2006, shall be amended in the manner specified in the Seventh Schedule.
63.Amendment of 18 of 2013.—The Companies Act, 2013, shall be amended in the manner
specified in the Eighth Schedule.
64. Amendment of 4 of 2016.—The Commercial Courts Act, 2015, shall be amended in the
manner specified in the Ninth Schedule.
65.Amendment of 35 of 2019.— The Consumer Protection Act, 2019, shall be amended in the
manner specified in the Tenth Schedule.
20
THE FIRST SCHEDULE
(See section 6)
DISPUTES OR MATTERS NOT FIT FOR MEDIATION
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.
21
THE SECOND SCHEDULE
(See section 55)
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 Citizens 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).
22
THE THIRD SCHEDULE
(See section 58)
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.”.
23
THE FOURTH SCHEDULE
(See section 59)
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 the 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.
24
THE FIFTH SCHEDULE
(See section 60)
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;”.
25
THE SIXTH SCHEDULE
(See section 61)
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.
26
THE SEVENTH SCHEDULE
(See section 62)
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.".
27
THE EIGHTH SCHEDULE
(See section 63)
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.”
28
THE NINTH SCHEDULE
(See section 64)
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;”.
29
THE TENTH SCHEDULE
(See section 65)
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, 1[may] 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.
————
1. Subs. by Notification no. S.O. 4506(E) for “shall either on an application by the parties” (w.e.f. 13-10-2023).
30