PRIME LEGAL | Centre Sets Up Mediation Council Of India To Strengthen Dispute Resolution Under The Mediation Act, 2023
INTRODUCTION
The Union Ministry of Law and Justice has formally brought into existence the Mediation Council of India, the apex statutory body envisaged under the Mediation Act, 2023, to steer the growth and regulation of institutional mediation in the country. The notification was issued by the Department of Legal Affairs on August 27 invoking Section 31(1) of the Act to constitute a legal entity to be referred to as the Mediation Council of India with its head office at Delhi. The order, released in the Gazette of India, puts an end to a three-year waiting period since the Act received presidential assent and indicates the government’s intention to provide India’s mediation ecosystem with an institutional foundation it has long missed.
BACKGROUND
The Mediation Act, 2023, was created against the backdrop of an overburdened judiciary with long periods of delay, with multiple law commissions referring to mediation as an underutilised escape option for disputes that need not take up court dockets. The Bill was introduced in the Parliament in December 2021 and was referred to a Standing Committee before being passed by both Houses in August 2023. The legislation sought to promote and facilitate mediation, especially institutional mediation, for the resolution of commercial and other disputes. It also intended to provide a mechanism for enforcement of mediated settlement agreements, registration of mediators and promotion of mediation at the community level. Chapter VIII specifically contemplated a permanent Council to carry this mandate forward, yet its constitution remained pending for nearly two years after the statute took effect, leaving mediation practitioners without a central regulatory anchor and contributing to inconsistent standards across the handful of institutional mediation centres that had sprung up meanwhile.
KEY POINTS
- Under Section 31, the Council has been constituted as a body corporate with perpetual succession, empowered to acquire, hold and dispose of property, enter into contracts, and sue or be sued in its own name.
- Its composition, under Section 32, envisages a Chairperson of demonstrated standing in law, ADR, public affairs or administration, two members with expertise in mediation law or in research and teaching, ex officio representation from the Secretaries of Legal Affairs and Expenditure, a Member-Secretary who also serves as Chief Executive Officer, and one part-time member from industry or commerce.
- Non-ex officio members serve four-year terms, subject to an upper age limit of seventy years for the Chairperson and sixty-seven for other members.
- The Council’s functions under Section 38 include promoting domestic and international mediation through guidelines, developing India into a hub for cross-border mediation, and laying down norms for certification and accreditation of mediators and service providers.
- Its mandate also covers recognising mediation institutes and maintaining a repository of mediated settlement agreements.
- The present notification, however, is confined to the Council’s formal establishment and its Delhi headquarters; it does not name the Chairperson or members, nor specify when functioning will commence.
RECENT DEVELOPMENTS
Legal experts have reacted quickly to the notification, saying the Council’s credibility will depend on how fast the government appoints its leaders and gets its office up and running. Some practitioners have suggested a practical shortcut: letting the Council operate temporarily out of the India International Arbitration Centre’s existing offices, so it can start registering service providers and setting training standards right away instead of waiting for its own building to be ready. Private mediation and arbitration organisations have also welcomed the move, seeing it as a sign that India is moving toward a more organised, institution-based system for resolving disputes, rather than relying only on mediation ordered by courts or arranged informally. The next things to watch for are who gets appointed as Chairperson and members, and when the Council will actually start carrying out its registration and accreditation work.
CONCLUSION
The formal establishment of the Mediation Council of India closes a long gap between legislative intent and institutional reality, giving the Mediation Act, 2023 the regulatory body it was designed to operate through. Whether the Council fulfils its promise will depend less on the notification itself than on the speed with which the government appoints its leadership, frames operational rules, and equips it to certify mediators and institutions at scale. For a justice system still seeking credible alternatives to prolonged litigation, the Council’s progress in the coming months will test whether India’s mediation ambitions can move from statute book to settlement table.
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WRITTEN BY : HARSHMEET KAUR SUDAN
