Procedure for Conducting Mediation Under the Mediation Act, 2023

Mediation under the Mediation Act, 2023 follows a structured yet flexible procedure that enables parties to resolve disputes through mutual discussion with the assistance of a neutral mediator. 

The Act lays down clear rules regarding the commencement of mediation, appointment of the mediator, conduct of proceedings, confidentiality, timelines, settlement agreements and termination of mediation. The objective is to encourage voluntary, efficient and legally recognised dispute resolution without the complexities of a formal court trial.

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What Is the Procedure for Conducting Mediation?

The procedure for conducting mediation refers to the series of steps followed from the time mediation begins until the dispute is either settled or the proceedings are terminated. Unlike court proceedings, mediation does not follow a rigid procedural framework. Instead, it focuses on flexibility, cooperation and voluntary participation while ensuring fairness to all parties.

The Mediation Act, 2023 provides a legal framework for conducting mediation in India. It balances procedural certainty with the flexibility required for productive negotiations. Although mediators are not bound by strict procedural laws applicable to courts, they must conduct the proceedings fairly, impartially and in accordance with the provisions of the Act.

The procedure applies to both pre-litigation mediation and mediation conducted after disputes have reached a court or tribunal.

When Does the Mediation Process Begin?

The commencement of mediation is governed by Section 14 of the Mediation Act, 2023.

The date on which mediation commences is important because several legal consequences, including timelines for completion of mediation, are calculated from this date.

Generally, mediation commences in the following situations:

• Where the parties have already entered into a mediation agreement, mediation begins according to the terms of that agreement.
• Where no mediation agreement exists, mediation commences after both parties agree to refer their dispute to mediation.
• If mediation is administered through a recognised mediation service provider, the commencement may take place once the mediator is appointed and both parties are notified.
• In court-referred mediation, the commencement generally follows the referral order and appointment of the mediator.

The commencement date marks the formal beginning of the mediation proceedings.

What Happens Before the First Mediation Session?

Before substantive discussions begin, certain preliminary steps are completed to ensure that the mediation proceeds smoothly.

These generally include:

• Appointment of the mediator.
• Acceptance of the appointment by the mediator.
• Disclosure of any circumstances that may affect impartiality or independence.
• Fixing the venue, date and mode of mediation.
• Informing parties about the procedure.
• Obtaining consent regarding the language of mediation where necessary.

These preparatory steps help create confidence in the neutrality and transparency of the mediation process.

How Is Mediation Conducted?

Section 15 of the Mediation Act, 2023 governs the conduct of mediation proceedings.

One of the distinguishing features of mediation is that it is not governed by the rigid procedural requirements applicable to civil litigation. Instead, the mediator has the flexibility to conduct proceedings in a manner appropriate to the nature of the dispute while ensuring fairness and equal opportunity to every participant.

The mediator must always maintain:

• Independence from both parties.
• Neutrality throughout the proceedings.
• Impartiality while facilitating discussions.
• Fair treatment of every participant.
• Respect for voluntary participation.

The mediator cannot favour one party over another or allow the mediation process to become coercive.

Is the Mediator Bound by the Civil Procedure Code or Evidence Law?

No.

One of the major advantages of mediation is procedural flexibility.

The mediator is not bound by:

• The Code of Civil Procedure, 1908.
• The Indian Evidence Act, 1872.

As a result, mediation discussions are considerably less formal than courtroom proceedings. Parties may freely explain their concerns, discuss commercial or personal interests and propose practical solutions without being restricted by technical rules of evidence.

However, the mediator must still ensure that the process remains fair, orderly and transparent.

Can the Mediator Decide the Language of Mediation?

Yes, but the decision should be taken with the consent of the parties.

The language selected should enable every participant to communicate effectively and fully understand the proceedings. This promotes meaningful participation and reduces misunderstandings during negotiations.

What Is the Role of the Mediator During the Proceedings?

The mediator acts as a neutral facilitator rather than a judge or arbitrator.

The purpose of mediation is not to determine which party is legally correct but to assist the parties in identifying mutually acceptable solutions.

The mediator performs several important functions, including:

• Facilitating communication between the parties.
• Identifying the real issues behind the dispute.
• Encouraging constructive dialogue.
• Assisting parties in understanding each other’s concerns.
• Exploring possible settlement options.
• Helping parties evaluate practical solutions.
• Managing discussions respectfully and efficiently.
• Maintaining neutrality throughout the proceedings.

Importantly, the mediator cannot impose a settlement or compel either party to accept any proposal.

The final decision always remains with the parties themselves.

What Are the Different Stages of a Typical Mediation Session?

Although every mediation is different, the proceedings generally follow a logical sequence.

Opening Session

The mediator welcomes the parties and explains:

• The purpose of mediation.
• The voluntary nature of the process.
• Confidentiality obligations.
• Ground rules for communication.
• The role of the mediator.

This stage establishes trust and sets expectations for the discussions.

Statements by the Parties

Each party is given an opportunity to explain:

• The background of the dispute.
• The issues involved.
• Their concerns.
• Their expectations from mediation.

The mediator ensures that each party receives adequate time to present its perspective without interruption.

Identification of Issues

After hearing both sides, the mediator identifies the principal issues requiring resolution.

These may include:

• Legal disputes.
• Commercial disagreements.
• Financial claims.
• Relationship issues.
• Practical concerns affecting settlement.

Identifying the real issues often helps narrow the scope of disagreement.

Joint Discussions

The mediator facilitates discussions where all parties participate together.

Joint meetings enable parties to:

• Clarify misunderstandings.
• Respond to concerns.
• Discuss possible solutions.
• Build consensus.

Many disputes are resolved through productive joint discussions alone.

Private Meetings (Caucuses)

Where necessary, the mediator may conduct separate meetings with individual parties.

Private meetings help:

• Understand confidential concerns.
• Explore settlement flexibility.
• Discuss sensitive issues.
• Evaluate possible settlement proposals.

Information disclosed during private meetings is generally not shared with the other party without permission.

Negotiation and Settlement Discussions

Once the issues become clear, the mediator assists the parties in negotiating possible solutions.

The discussions may involve:

• Financial settlements.
• Future obligations.
• Timelines.
• Performance conditions.
• Relationship management.
• Practical arrangements.

The mediator encourages realistic and workable outcomes that satisfy both parties.

What Principles Govern the Mediation Process?

Several fundamental principles guide mediation under the Mediation Act, 2023.

Voluntary Participation

Participation in mediation is based primarily on consent.

Even where mediation is court-referred, parties retain the freedom to negotiate and decide whether to settle.

Party Autonomy

The parties control:

• Whether to settle.
• The terms of settlement.
• The pace of negotiations.
• The final outcome.

The mediator merely facilitates discussions.

Neutrality

The mediator must remain completely neutral throughout the proceedings.

Neutrality ensures confidence in the fairness of the process.

Fairness

Every party must receive equal opportunity to present its views.

The mediator should prevent unfair pressure or unequal treatment.

Confidentiality

Confidentiality forms one of the strongest foundations of mediation.

The discussions remain private, encouraging open and honest communication.

How Is Confidentiality Maintained During Mediation?

The Mediation Act places significant emphasis on confidentiality.

Generally, mediation communications cannot be disclosed or used outside the mediation proceedings except in limited circumstances recognised by law.

Confidentiality extends to:

• Statements made during mediation.
• Admissions.
• Settlement proposals.
• Documents prepared solely for mediation.
• Communications between the mediator and parties.

This protection allows parties to negotiate freely without fear that unsuccessful negotiations may later be used against them in court.

What Responsibilities Do the Parties Have During Mediation?

Successful mediation depends upon active cooperation by all participants.

The parties are expected to:

• Participate honestly.
• Attend mediation sessions.
• Respect each other’s viewpoints.
• Cooperate with the mediator.
• Make genuine efforts to resolve the dispute.
• Maintain confidentiality.
• Avoid unnecessary delays.

Constructive participation often increases the likelihood of a successful settlement.

What Is the Time Limit for Completing Mediation?

Section 18 of the Mediation Act, 2023 prescribes a time-bound process.

Ordinarily, mediation should be completed within 120 days from the date of commencement.

However, if additional time is necessary, the parties may mutually agree to extend the mediation by a further period of 60 days.

These timelines ensure that mediation remains a speedy alternative to prolonged litigation.

What Happens If the Parties Reach a Settlement?

Where the parties successfully resolve their dispute, the terms are recorded in a Mediated Settlement Agreement.

The agreement should:

• Be in writing.
• Clearly record the terms of settlement.
• Be signed by all parties.
• Be authenticated by the mediator.

The settlement may resolve:

• The entire dispute.
• Only specific issues, resulting in a partial settlement.

A properly executed Mediated Settlement Agreement carries legal recognition under the Mediation Act, 2023 and may be enforced in accordance with law.

Can a Mediated Settlement Agreement Be Registered?

Yes.

The Mediation Act permits registration of a Mediated Settlement Agreement in accordance with applicable legal provisions.

Registration may provide additional evidentiary value and facilitate enforcement where required under law.

Whether registration becomes necessary depends upon the nature of the settlement and the applicable statutory requirements governing the subject matter.

What Happens If No Settlement Is Reached?

Not every mediation results in a settlement.

If the parties fail to reach an agreement, the mediator prepares a non-settlement report indicating that mediation has concluded without resolution.

The report does not disclose:

• The discussions held.
• Settlement proposals.
• Admissions made during mediation.
• Confidential communications.

Its purpose is only to record that mediation was unsuccessful.

Following the non-settlement report, the parties remain free to pursue other legal remedies available under law.

When Does Mediation Come to an End?

Section 24 of the Mediation Act, 2023 provides for termination of mediation proceedings.

Mediation may terminate in several situations, including:

• Successful execution of a Mediated Settlement Agreement.
• Preparation of a non-settlement report.
• Withdrawal from mediation in accordance with law.
• Declaration by the mediator that further mediation is unlikely to produce a settlement.
• Expiry of the prescribed statutory time limit.

Termination formally concludes the mediation process.

Who Bears the Cost of Mediation?

The Mediation Act also addresses mediation costs.

Generally, the parties may mutually decide how the expenses are to be shared.

The costs may include:

• Mediator’s fees.
• Administrative charges.
• Institutional fees.
• Venue expenses.
• Other procedural costs.

Where mediation is conducted through a mediation service provider, the applicable institutional rules generally govern the fee structure.

Can Mediation Be Conducted Online?

Yes.

The Mediation Act, 2023 expressly recognises online mediation.

With the written consent of the parties, mediation may be conducted using secure electronic communication platforms.

Online mediation offers several advantages:

• Reduced travel costs.
• Faster scheduling.
• Convenience for parties located in different places.
• Improved accessibility.
• Greater flexibility in conducting sessions.

Even in online mediation, confidentiality, privacy and procedural fairness must be maintained throughout the proceedings.

Why Is the Mediation Procedure Considered Effective?

The procedure established under the Mediation Act combines legal certainty with procedural flexibility.

Its major strengths include:

• Faster dispute resolution compared to litigation.
• Confidential negotiations.
• Preservation of personal and commercial relationships.
• Reduced legal costs.
• Greater control retained by the parties.
• Flexible discussions focused on practical solutions.
• Legally recognised settlement agreements.
• Time-bound completion.
• Reduced burden on courts.
• Promotion of consensual dispute resolution.

These features make mediation an increasingly preferred method for resolving civil and commercial disputes in India.

Conclusion

The procedure for conducting mediation under the Mediation Act, 2023 provides a comprehensive legal framework for resolving disputes through cooperation rather than confrontation. From commencement of mediation to settlement or termination, every stage is designed to promote fairness, neutrality, confidentiality and party autonomy. By combining procedural flexibility with statutory safeguards and enforceable settlement agreements, the Act strengthens mediation as an efficient, cost-effective and legally recognised alternative to traditional litigation in India.