India now has a standalone Mediation Act, 2023, which supplements the conciliation provisions already in Part III of the Arbitration and Conciliation Act, 1996. The Mediation Act makes pre-litigation mediation a required first step for certain civil and commercial disputes before a court can be approached, and gives a settlement agreement reached through mediation the same enforceability as an arbitral award on agreed terms.
Mediation vs. conciliation vs. arbitration -- how they differ
Mediation and conciliation are both non-adjudicatory processes -- a neutral third party helps the parties
reach their own settlement, rather than imposing a decision, as an arbitrator does. Conciliation has long
been recognized under Part III of the Arbitration and Conciliation Act, 1996. The Mediation Act, 2023
introduced a more comprehensive, standalone framework specifically for mediation, including institutional
mediation, mediator accreditation, and a formal process for making settlement agreements enforceable.
Pre-litigation mediation -- now a required step for some disputes
The Mediation Act, 2023 requires parties to certain civil or commercial disputes to attempt
pre-litigation mediation before filing a suit, subject to exceptions (for example, where urgent interim
relief is needed). This reflects a policy push to reduce the burden on courts and encourage parties to
genuinely attempt settlement before formal litigation begins. The Act also formally recognizes online
mediation as equivalent to in-person mediation, subject to party consent, which is directly useful for NRIs
who want to participate in an Indian mediation without traveling, and establishes the Mediation Council of
India to accredit mediators and mediation service providers on an ongoing basis.
Enforcing a mediated settlement agreement
A settlement agreement reached through mediation under the Act is registered and is enforceable as if it
were a court decree -- the parties do not need to file a fresh suit to enforce what they agreed to in
mediation. This mirrors how an arbitral award on agreed terms (a settlement recorded during arbitration) is
treated under Section 30 of the Arbitration and Conciliation Act. For NRIs involved in a family property
dispute or a commercial disagreement with an India-based counterparty, mediation offers a materially faster
and less adversarial route than full litigation or arbitration, and can often be conducted over
video-conferencing without the NRI needing to travel to India for every session, which is a genuine practical
advantage over both court litigation and, in many cases, formal arbitration.
Is mediation now mandatory before filing every civil case in India?
Not every case -- the Mediation Act, 2023 requires pre-litigation mediation for certain categories of
civil and commercial disputes, subject to specific exceptions such as when urgent interim relief is genuinely
needed.
Is a mediated settlement legally binding?
Yes -- once registered under the Mediation Act, 2023, a settlement agreement is enforceable in the same
manner as a court judgment or decree, without requiring a fresh lawsuit.
What's the difference between a mediator and a conciliator under Indian law?
Both facilitate a voluntary settlement rather than deciding the dispute, but conciliation under the
Arbitration and Conciliation Act, 1996 and mediation under the standalone Mediation Act, 2023 now sit under
separate legal frameworks with their own procedural rules and accreditation requirements.
