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Mediation Act, 2023

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MEDIATION
ACT, 2023 –
AN INSIGHT

WWW.MANUPATRA.COM
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1. What is the objective and


Scope of Mediation Act?
The objective and scope of Mediation Act, 2023 is:

to promote and facilitate mediation, especially


institutional mediation, for resolution of commercial
and other disputes,
to enforce mediated settlement agreements,
to encourage community mediation and to make
online mediation as acceptable and cost effective
process.

It also provides for a body for registration of mediators


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2. What is the applicability


of Mediation Act, 2023?
The Act is applicable where:

all or both parties habitually reside in or are


incorporated in or have their place of business
in India; or

the mediation agreement provides that any


dispute shall be resolved in accordance with
the provisions of this Act; or

there is an international mediation.

the matter pertains to a commercial dispute


and one of the parties to the dispute is the
Central/State Government, or agencies,
public bodies, corporations and local bodies,
including entities controlled or owned by such
Government
3. Does the Mediation Act, 2023 04

provide information about disputes


that are not suitable for mediation?
Yes, First Schedule of the Act provides a list of disputes that are
not suitable for mediation which includes:

1. Disputes involving allegations of serious and specific fraud,


fabrication of documents, forgery, impersonation, coercion.
2. Disputes relating to claims against minors, deities, persons
with intellectual disabilities or mental illness
3. Suits for declaration of title against Government.
4. Disputes involving prosecution for criminal offences.
5. Settlement prohibited being in conflict with public policy.
6. Complaints or proceedings initiated against any practitioner,
or registered professional.
7. Subject-matter dealt by NGT.
8. Any dispute relating to levy, collection, penalties or offences,
in relation to any direct or indirect tax.
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4. Is Pre-Litigation Mediation mandatory


under the Mediation Act, 2023?

Yes, the 2023 Act mandates Pre-litigation Mediation


irrespective of the existence of mediation agreement
before filing any suit or proceedings of civil or commercial
nature in any court. This excludes commercial disputes of
specified value which shall be undertaken in accordance
with the provisions of Section 12A of the Commercial
Courts Act, 2015.
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5. What is the timeline


within which mediation
process needs to be
completed?

The mediation proceedings under this


Act shall be completed within a period
of one hundred and twenty days from
the date of mediator’s first appearance.
Provided, the period may be extended
but not beyond sixty days.
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6. What are the grounds on which


mediated settlement agreement
can be challenged?
A mediated settlement agreement may be challenged
on all or any of the grounds, namely:
fraud
corruption
impersonation
where the mediation was conducted in disputes or
matters not fit for mediation under Section 6.

Disclaimer: This document is for reference and research purposes only. Manupatra Information Solutions
Private Limited makes no warranties, express or implied, or representations as to the completeness or
accuracy of content or references provided.

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