Chapter III - Mediation
Reviewed by CA Nikhil Gupta and Kajri Singh · Last reviewed 30 August 2026
Test written consent, pre-litigation route, non-mediable exclusions and court/tribunal referral powers.
Dedicated Finin2min Summary - Chapter in 2 Minutes
- Test written consent, pre-litigation route, non-mediable exclusions and court/tribunal referral powers.
- Provision-level commencement is the first legal gate: only 21 sections were commenced by S.O. 4384(E) on 9 October 2023 in the reviewed official record.
- Use the India Code Act and the Department of Legal Affairs Gazette files as controlling sources.
- Separate the Mediation Act from existing Commercial Courts, consumer, company, court-annexed and special-statute mediation rules.
- Document consent, authority, limitation, confidentiality, settlement drafting, tax, stamp and enforcement before closing the file.
Section-by-section provision map
| Provision / gate | Topic | Commencement / status | Finin2min decode | Implementation | Evidence / control |
|---|---|---|---|---|---|
| Section 4 | Mediation agreement. | Not commenced under S.O. 4384(E) in reviewed official record | Requires a written mediation agreement and recognises contractual, electronic and incorporated forms subject to statutory conditions. | Prepare a clause and eligibility memo; identify the governing special law, urgent-relief need, exclusions and forum before sending the invitation. | Executed contract, mediation clause, invitation, service proof, refusal/acceptance, forum note and interim-relief record. |
| Section 5 | Pre-litigation mediation. | Not commenced under S.O. 4384(E) in reviewed official record | Provides a voluntary pre-litigation mediation route, while special statutes and commercial-court procedure may create separate obligations. | Prepare a clause and eligibility memo; identify the governing special law, urgent-relief need, exclusions and forum before sending the invitation. | Executed contract, mediation clause, invitation, service proof, refusal/acceptance, forum note and interim-relief record. |
| Section 6 | Disputes or matters not fit for mediation. | Not commenced under S.O. 4384(E) in reviewed official record | Excludes matters listed in the First Schedule and permits notified additions, subject to the provision becoming operative. | Prepare a clause and eligibility memo; identify the governing special law, urgent-relief need, exclusions and forum before sending the invitation. | Official commencement and target-Act amendment source, board/legal approval, revised templates, training and control-testing evidence. |
| Section 7 | Power of court or tribunal to refer parties to mediation. | Not commenced under S.O. 4384(E) in reviewed official record | Allows a court or tribunal to refer parties in appropriate cases without removing its power to grant interim protection. | Prepare a clause and eligibility memo; identify the governing special law, urgent-relief need, exclusions and forum before sending the invitation. | Executed contract, mediation clause, invitation, service proof, refusal/acceptance, forum note and interim-relief record. |
Finin2min clause-by-clause decode
Status: Not commenced under S.O. 4384(E) in reviewed official record
Requires a written mediation agreement and recognises contractual, electronic and incorporated forms subject to statutory conditions.
Implementation: Prepare a clause and eligibility memo; identify the governing special law, urgent-relief need, exclusions and forum before sending the invitation.
Evidence: Executed contract, mediation clause, invitation, service proof, refusal/acceptance, forum note and interim-relief record.
Status: Not commenced under S.O. 4384(E) in reviewed official record
Provides a voluntary pre-litigation mediation route, while special statutes and commercial-court procedure may create separate obligations.
Implementation: Prepare a clause and eligibility memo; identify the governing special law, urgent-relief need, exclusions and forum before sending the invitation.
Evidence: Executed contract, mediation clause, invitation, service proof, refusal/acceptance, forum note and interim-relief record.
Status: Not commenced under S.O. 4384(E) in reviewed official record
Excludes matters listed in the First Schedule and permits notified additions, subject to the provision becoming operative.
Implementation: Prepare a clause and eligibility memo; identify the governing special law, urgent-relief need, exclusions and forum before sending the invitation.
Evidence: Official commencement and target-Act amendment source, board/legal approval, revised templates, training and control-testing evidence.
Status: Not commenced under S.O. 4384(E) in reviewed official record
Allows a court or tribunal to refer parties in appropriate cases without removing its power to grant interim protection.
Implementation: Prepare a clause and eligibility memo; identify the governing special law, urgent-relief need, exclusions and forum before sending the invitation.
Evidence: Executed contract, mediation clause, invitation, service proof, refusal/acceptance, forum note and interim-relief record.
Practical examples and calculations
- Section 4: Requires a written mediation agreement and recognises contractual, electronic and incorporated forms subject to statutory conditions. Operational status: Not commenced under S.O. 4384(E) in reviewed official record.
- Section 5: Provides a voluntary pre-litigation mediation route, while special statutes and commercial-court procedure may create separate obligations. Operational status: Not commenced under S.O. 4384(E) in reviewed official record.
- Section 6: Excludes matters listed in the First Schedule and permits notified additions, subject to the provision becoming operative. Operational status: Not commenced under S.O. 4384(E) in reviewed official record.
- Section 7: Allows a court or tribunal to refer parties in appropriate cases without removing its power to grant interim protection. Operational status: Not commenced under S.O. 4384(E) in reviewed official record.
Timeline model: where an operative route adopts the Act model, separately calculate invitation/service, first appearance, 120-day process period, agreed extension up to 60 days, optional registration clock of 180 days, and challenge clock of 90 days plus a possible further 90 days. Do not apply these figures to an uncommenced provision.
Settlement value model: principal + agreed interest + tax adjustments + costs + security value - payments/credits/set-off, with milestone and default sensitivity.
Chapter-specific decision flowchart
