The Central government has formally brought the Mediation Council of India (MCI) into existence under the Mediation Act, 2023, marking a key step towards strengthening India’s institutional framework for resolving disputes outside the courtroom.
A government gazette notification issued on August 27 officially establishes the Council, with Delhi designated as its head office.
The MCI will oversee the mediation framework created under the 2023 legislation. Among its principal functions will be the registration of mediators and recognition of mediation service providers and mediation institutes involved in the training and certification of mediators.
The Mediation Act seeks to encourage parties involved in civil and commercial disputes to explore mediation before pursuing litigation or proceedings before a tribunal. The objective is to provide a structured mechanism for resolving disputes through mutual agreement.
Not every dispute can be taken to mediation. Matters involving criminal prosecution and disputes that could affect the rights of third parties are among those excluded under the framework. The Central government can also modify the categories of disputes that are considered unsuitable for mediation.
The law allows a party to opt out of mediation after two sessions. The process is ordinarily required to conclude within 180 days, although the parties can agree to extend the period by a further 180 days.
Parties are free to mutually select their mediator. Where they cannot agree, a mediation service provider can appoint a qualified mediator from its panel.
Importantly, settlements reached through mediation receive legal enforceability comparable to court judgments, giving mediated agreements a formal status within the dispute-resolution system.
The establishment of the MCI provides the institutional structure envisaged by the Mediation Act and is expected to play a central role in regulating and developing mediation practices in India.
