Arbitration, Mediation and Conciliation · International and Emerging Aspects under Mediation Law

Time-limit for Completion of Mediation under Section 18

Updated 11 October 2026 · Fact-checked

Under Section 18 of the Mediation Act, 2023, mediation must be completed within 120 days from the date fixed for the first appearance before the mediator. The parties may agree to extend it by a further period of up to 60 days. When the time limit expires, mediation is deemed terminated under Section 24(d).

Understand Time-limit for Completion of Mediation (Section 18)

Mediation is meant to be quicker than court or arbitration. Section 18 builds that promise into the statute by fixing an outer limit for the process.

The period is 120 days. It starts from the date fixed for the first appearance before the mediator. It does not start from the date of the mediation agreement, the application, or the mediator's appointment. The section applies "notwithstanding anything contained in any other law for the time being in force", so another law cannot give a longer period for mediation under this Act.

The period can be extended, but only by the parties' agreement, and only for a further period not exceeding 60 days. The mediator cannot extend it on their own, and a court is not given that power in this section. The maximum is therefore 120 + 60 = 180 days, and only if the parties agree to the full extension.

The time limit has consequences. Under Section 24(d), mediation is deemed to terminate on expiry of the time limit under Section 18. Under Section 21, if no agreement is reached within the Section 18 period, the mediator prepares a non-settlement report. Under Section 29, the period from commencement of mediation until submission of the report or termination of mediation is excluded when computing limitation for the dispute.

A common trap in exams is the figure. Older notes and the description of this topic sometimes speak of 180 days plus 180 days. The text of the Act says 120 days plus up to 60 days.

Key rules to remember

Basic period (Section 18(1)): Completion period = 120 days from the date fixed for the first appearance before the mediator; Applies notwithstanding any other law in force.
Extension (Section 18(2)): Extension = as agreed by the parties, not exceeding 60 days; Needs agreement of the parties. Maximum total is 120 + 60 = 180 days.
Termination on expiry (Section 24(d)): Mediation deemed terminated on expiry of the time limit under Section 18; Other grounds in Section 24: signed settlement agreement, mediator's written declaration, or a party opting out in writing.
Non-settlement report (Section 21): No agreement within Section 18 period → non-settlement report; Institutional mediation: report to the mediation service provider. Other cases: signed copy to all parties. It must not disclose the cause of non-settlement.
Limitation (Section 29): Excluded period = date of commencement of mediation under Section 14 to submission of report under Section 21 or termination under Section 24; Applies notwithstanding the Limitation Act, 1963.

How to solve Time-limit for Completion of Mediation (Section 18) questions

Use this method for any question on the time limit of mediation, whether it asks for dates, validity of an extension or the effect of delay.

1Identify the start date: the date fixed for the first appearance before the mediator.
2Add 120 days to get the basic deadline. Count carefully by months and days.
3Check whether the parties agreed to extend. If yes, confirm the extension is not more than 60 days.
4Fix the final deadline: 120 days plus the agreed extension, never beyond 60 extra days.
5State the consequence if time ends without settlement: termination under Section 24(d) and non-settlement report under Section 21.
6Add the limitation point: the period from commencement of mediation to the report or termination is excluded under Section 29.
7Conclude clearly with the date, the validity of the extension and the next step for the parties.

Quickest way: 120 + 60 check

When to use it: For short questions asking whether a mediation was completed in time or whether an extension is valid.

Write 120 days from first appearance date.
Ask: did the parties agree to extend? If no, deadline stays at 120 days.
If yes, is the extension 60 days or less? If more, it is not valid beyond 60.
Name the result: Section 24(d) termination and Section 21 report.

Common mistakes in Time-limit for Completion of Mediation (Section 18)

Stating the period as 180 days with a further 180 days.
Students confuse it with other time limits in arbitration or insolvency law, or with unreliable notes.
Fix: Remember the text: 120 days, extendable by agreement for not more than 60 days.
Counting 120 days from the date of the mediation agreement or the mediator's appointment.
Students assume the clock starts when the process is first set up.
Fix: Start from the date fixed for the first appearance before the mediator.
Saying the mediator or the court can extend the period.
Students carry over the idea of court-granted extensions from other statutes.
Fix: Section 18(2) allows extension only as agreed by the parties, up to 60 days.
Allowing an extension longer than 60 days if the parties agree.
Students read 'as agreed by the parties' and ignore the cap.
Fix: Party agreement is needed, but the extension cannot exceed 60 days.
Forgetting the consequence of expiry.
Students stop at the number of days.
Fix: Add Section 24(d) termination, the Section 21 non-settlement report and the Section 29 limitation exclusion.
Saying the non-settlement report must state why mediation failed.
Students assume reports explain reasons.
Fix: The proviso to Section 21 says the report shall not disclose the cause of non-settlement or the parties' conduct during mediation.

Worked examples

Example 1

Alpha Textiles Ltd and Beta Dyes Pvt Ltd begin mediation under the Mediation Act, 2023. The date fixed for the first appearance before the mediator is 1 March. No settlement has been reached. Advise on the time within which mediation must be completed and what happens if the parties wish to continue.

Show the solution

Provision: Section 18(1) requires completion within 120 days from the date fixed for the first appearance before the mediator.
Application: 120 days from 1 March is the basic deadline, which falls on 29 June (March 30 days remaining after 1 March, April 30, May 31, June 29 gives 30+30+31+29 = 120).
Extension: under Section 18(2) the parties may agree to extend for a further period, not exceeding 60 days. A mediator alone cannot extend.
Conclusion on continuation: if both parties agree, mediation can continue for up to 60 days beyond 29 June, that is, up to 28 August (June has 1 day left after 29 June, July 31, August 28 gives 1+31+28 = 60).
If no extension is agreed, mediation is deemed terminated on expiry under Section 24(d).

Answer: Mediation must be completed within 120 days, that is, by 29 June. The parties may agree to extend it by up to 60 days, to 28 August at the latest. Without such agreement, mediation terminates on expiry under Section 24(d).

Example 2

In a dispute between Ravi Exports and Sundaram Logistics, the parties agree to extend the mediation by 90 days after the initial 120 days, and no settlement is reached. Is the extension valid? What happens at the end of the period, and how is limitation affected?

Show the solution

Provision: Section 18(2) permits extension as agreed by the parties but not exceeding 60 days.
Analysis: the agreed 90 days exceeds the cap of 60 days. The agreement cannot extend mediation under the Act beyond 60 further days.
Consequence of expiry: at the end of the permitted period, mediation is deemed terminated under Section 24(d).
Report: where no agreement is reached within the Section 18 period, the mediator prepares a non-settlement report under Section 21. It is submitted to the mediation service provider in institutional mediation, or a signed copy is given to all parties in other cases. It must not disclose the cause of non-settlement.
Limitation: under Section 29, the period from commencement of mediation under Section 14 until submission of the report or termination under Section 24 is excluded in computing limitation for proceedings on the dispute.

Answer: The extension is valid only up to 60 days, not 90. On expiry, mediation is deemed terminated under Section 24(d) and a non-settlement report follows under Section 21. The mediation period is excluded when computing limitation under Section 29, so the parties may then pursue other remedies.

Exam tips

Write the numbers exactly: 120 days, then up to 60 days, with the start point stated.
Always link Section 18 with Sections 24(d), 21 and 29 in a case-based answer.
Show the date calculation in steps; examiners reward clear counting.
In case studies, check who agreed to the extension and whether it exceeds 60 days.
Use the format: provision, analysis of facts, conclusion.

Practice questions from International and Emerging Aspects under Mediation Law

Time-limit for Completion of Mediation (Section 18): frequently asked questions

What is the time limit for mediation under the Mediation Act, 2023?

Section 18(1) says mediation must be completed within 120 days from the date fixed for the first appearance before the mediator. This applies notwithstanding any other law in force.

Can the 120-day period be extended?

Yes. Section 18(2) allows the parties to agree to an extension, but the extension cannot exceed 60 days. So the longest period is 180 days in total.

What happens when the time limit expires?

Mediation is deemed to terminate under Section 24(d). If no agreement was reached, the mediator prepares a non-settlement report under Section 21.

Does the mediation period count towards limitation?

No. Section 29 excludes the period from commencement of mediation under Section 14 until submission of the Section 21 report or termination under Section 24, when computing limitation for the related dispute.