The enactment of the Mediation Act, 2023 marked a significant shift in India’s dispute resolution landscape. For the first time, India now has a comprehensive, standalone legislation dedicated exclusively to mediation, aiming to encourage amicable settlement of disputes, reduce court burdens, and promote a culture of consensual conflict resolution.
But the real question remains: Has the Act truly transformed dispute resolution? Or does mediation still remain an underused mechanism in India?
Let’s explore.
Why the Mediation Act 2023 Was Needed
Before the Act, mediation in India was scattered across various statutes—CPC, Arbitration and Conciliation Act, Consumer Protection Act, Companies Act, and Commercial Courts Act.
The Mediation Act 2023 brings uniformity and creates a structured framework, ensuring:
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Clear definitions
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Institutional mediation
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Time-bound processes
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Enforceability of mediated settlement agreements
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Confidentiality protections
This legal clarity was long overdue.
Key Highlights of the Mediation Act 2023
1. Pre-Litigation Mediation Made Mandatory
Before approaching courts/tribunals (except in non-compoundable criminal matters), parties must attempt pre-litigation mediation.
This can significantly reduce court congestion if implemented effectively.
2. Enforceability of Mediated Settlement Agreements
The Act finally gives settlements the status of legally enforceable agreements, akin to arbitral awards.
This boosts confidence in mediation as a serious dispute-resolution mechanism.
3. Institutional Mediation Backed by a Mediation Council of India
The Act introduces:
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Accredited mediators
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Registered mediation service providers
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Mediation institutions
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A regulatory council overseeing standards
This moves India towards global best practices.
4. Time-Bound Proceedings
Mediation must be completed within 120 days, extendable by 60 days.
Speed + efficiency are key advantages compared to litigation.
5. Confidentiality
All mediation communications are confidential and cannot be used in court.
6. Online Mediation
Recognising modern needs, the Act allows ODR (Online Dispute Resolution) for flexibility and accessibility.
Where the Act Shines: A Potential Game-Changer
1. Reduced Court Burden
With over 5 crore pending cases, mediation could offer massive relief to courts.
2. Saves Time and Cost
Mediation is far more economical and quicker than traditional litigation.
3. Focus on Relationships
Especially effective for:
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Family disputes
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Partnership issues
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Commercial disagreements
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Workplace conflicts
It preserves relationships—something litigation often destroys.
4. Boost to India’s Ease of Doing Business
A predictable, efficient dispute resolution system encourages investments and business confidence.
But…Why Is Mediation Still Underused?
Despite its advantages, mediation remains under-utilised in India. Here’s why:
1. Lack of Awareness
Common people and even corporations often lack understanding of how mediation works.
2. Resistance from Lawyers
Many lawyers believe mediation reduces their involvement or income—though in reality, it can build long-term client trust.
3. Limited Institutional Framework
Though the Act introduces institutional mediation, India still lacks robust mediation centres nationwide.
4. The “Litigation Mindset”
People equate justice with court trials—settlement is often seen as “compromise” or weakness.
5. Quality of Mediators
Skilled, trained mediators are essential. The ecosystem is still developing.
Does the Act Solve These Challenges?
Partially, yes.
The Act lays the foundation, but true change requires:
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Awareness campaigns
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Training programs for mediators
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Encouragement from the Bar and Bench
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Active participation by corporates
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Government adoption in public sector disputes
The success of mediation will depend on cultural acceptance, not just legislation.
So—Game Changer or Still Underused?
The Mediation Act 2023 is a potential game-changer—strong legislation, clear framework, enforceable outcomes, and institutional support.
But as of today, mediation remains massively underused due to lack of awareness, cultural resistance, and slow adoption.
India now stands at a crucial juncture.
If implemented effectively, mediation can transform dispute resolution, reduce pendency, and create a more harmonious legal ecosystem.
The Act has opened the door.
Walking through it requires effort from courts, lawyers, institutions, and citizens alike.
