Mediation Law in India: A Practitioner's Overview
How the Mediation Act, 2023 and its predecessors have shaped a faster, more confidential route to settlement — and how that route now sits alongside arbitration in India's dispute resolution landscape.
What Mediation Means in the Indian Context
Mediation is a voluntary, consensual process in which a neutral third party — the mediator — helps disputing parties negotiate their own settlement. Unlike an arbitrator or a judge, a mediator has no power to impose an outcome; the parties retain full control over whether, and on what terms, they settle. In India, mediation sits alongside arbitration as the other major pillar of alternative dispute resolution, but with a fundamentally different logic: it aims to preserve relationships and reach a mutually acceptable outcome, not to adjudicate who is right.
Mediation is not new to India — community-based resolution through panchayats predates the modern court system by centuries. What changed in 2023 was the arrival of a single, comprehensive statute giving mediation the same kind of institutional backbone that arbitration received in 1996: defined timelines, a regulatory council, and a clear path to enforcing what parties agree to.
The Mediation Act, 2023 is India's first standalone mediation legislation. It recognises pre-litigation, online, and community mediation, establishes the Mediation Council of India, and makes a signed Mediated Settlement Agreement enforceable as a decree of a civil court.
How the Law Has Evolved
Mediation in India grew informally through court-referred and community channels for decades before receiving a dedicated statute — the Mediation Act now ties those threads together.
Section 89, Code of Civil Procedure
Empowered courts to refer pending disputes to arbitration, conciliation, judicial settlement, or mediation — the earliest statutory hook for court-referred mediation in India, though added by amendment in 2002.
Legal Services Authorities Act
Established Lok Adalats and a national network of legal services authorities, building the institutional groundwork for accessible, low-cost dispute resolution that later mediation infrastructure would build on.
Mandatory pre-institution mediation for commercial suits
An amendment to the Commercial Courts Act, 2015 required parties to attempt mediation before filing a commercial suit that does not contemplate urgent interim relief.
Commercial disputesSingapore Convention on Mediation signed
India signed the UN Convention on cross-border enforcement of international mediated settlement agreements. India has signalled support but has not yet ratified the Convention.
Mediation Act enacted
Received presidential assent in September 2023, with core provisions commencing in October. Recognised pre-litigation, online, and community mediation, made settlements enforceable, and provided for a Mediation Council of India.
Standalone statuteMediation Council of India
The government notified the constitution of the MCI, tasked with registering mediators, recognising mediation service providers, and grading institutions. Rules on accreditation and registration continue to be finalised.
Institution buildingThree Ways Disputes Reach Mediation in India
Pre-Litigation Mediation
Parties attempt mediation before filing any civil or commercial suit, whether or not a mediation agreement exists. Voluntary under the Mediation Act, though mandatory in specific contexts such as commercial disputes under the Commercial Courts Act.
Court-Referred Mediation
A court or tribunal refers a pending matter to mediation under Section 89 of the CPC or the Mediation Act, often through a court-annexed centre. The mediation runs alongside the litigation, which can be withdrawn if a settlement is reached.
Online Mediation
Conducted through secure digital platforms with the written consent of all parties, under the Mediation Act's dedicated online mediation provisions. A resulting settlement is equally enforceable as one reached in person.
The Shift Toward Institutional Mediation
India's mediation infrastructure has historically been dominated by court-annexed centres and informal panchayat-style resolution. The Mediation Act pushes toward a more structured, institution-led model — with recognised service providers, published panels, and standardised accreditation.
Administered, Not Ad-hoc
A recognised mediation service provider manages appointment, timelines, and case administration under its own published rules — replacing the informal, provider-by-provider variation that shaped mediation before 2023.
A Nationwide Network
Over 1,394 mediation centres and 452 ADR centres now operate across India, alongside court-annexed facilities run by state and district legal services authorities.
Regulator-Backed Growth
The Mediation Council of India's grading and accreditation mandate is intended to formalise this shift further, giving parties a consistent standard to rely on wherever they file.
The Mediation Process, Step by Step
Referral or Request
A party files a request for mediation, or a court refers a pending matter, with or without a prior mediation agreement.
Mediator Appointment
Parties jointly select a mediator, or the service provider appoints one from its panel where they cannot agree.
Joint & Private Sessions
The mediator holds joint sessions and, where useful, private caucuses to help parties clarify interests and explore options.
Settlement or Closure
The parties sign a Mediated Settlement Agreement, or the mediator issues a Non-Settlement Report if no resolution is reached.
Enforcement
A signed, authenticated settlement is enforceable as a civil court decree, challengeable only on narrow grounds such as fraud or corruption.
The Case for Mediation Over Litigation
Voluntary & Party-Controlled
Either party may withdraw after the first two sessions, and no outcome is imposed — the parties decide whether, and how, to settle.
Confidentiality
Nothing said in mediation — including offers or admissions — is admissible in any later court or arbitral proceeding.
Speed & Cost
Statutory timelines keep mediation to months, not years, at a fraction of the cost of full litigation or arbitration.
Preserves Relationships
A facilitated, non-adversarial process is better suited to disputes between parties who expect to keep doing business together.
Enforceable Settlement
A Mediated Settlement Agreement carries the same force as a civil court decree, without a separate suit to enforce it.
Reduced Court Burden
With over 44 million pending cases across Indian courts, mediation offers a genuine release valve for disputes that don't need a judge.
Advancing Institutional Arbitration & Mediation in India
FEAM works with practitioners, institutions and policymakers to strengthen India's dispute resolution ecosystem — from research and capacity-building to advocacy on reform.
Learn About FEAMThis page is for general informational purposes and does not constitute legal advice. Readers should consult a qualified legal professional for advice specific to their circumstances.