Arbitration, Mediation and Conciliation · Mediation: An Introduction and its Process along with Rules

Introduction to Mediation and Key Definitions under the Mediation Act, 2023

Updated 11 October 2026 · Fact-checked

Under the Mediation Act, 2023, mediation is a process in which parties try to reach an amicable settlement with the help of a third person, the mediator, who has no authority to impose a settlement. To answer exam questions, state the definition, then apply the defined terms (mediator, service provider, settlement agreement) to the facts.

Understand Introduction to Mediation and Key Definitions

Mediation is a way of settling disputes without a judge or arbitrator deciding them. A neutral third person helps the parties talk, understand each other's interests and find a settlement they both accept. The decision stays with the parties.

The Mediation Act, 2023 defines mediation widely. Section 3(h) says it includes a process called mediation, pre-litigation mediation, online mediation, community mediation, conciliation or any expression of similar import. So under this Act, conciliation falls inside mediation. The key test is that a third person assists and has no authority to impose a settlement.

A mediator is a person appointed by the parties or by a mediation service provider to undertake mediation, and includes a person registered with the Council (Section 3(i)). If more than one mediator is appointed, a reference to the mediator means all of them. A mediation service provider is the body that runs institutional mediation. Under Section 41 it accredits mediators and keeps a panel, provides mediators, provides facilities and secretarial help, promotes ethical conduct and facilitates registration of settlement agreements. Institutional mediation means mediation conducted under the aegis of a mediation service provider (Section 3(f)).

A mediated settlement agreement is an agreement in writing between some or all of the parties, resulting from mediation, settling some or all of the disputes, and authenticated by the mediator (Section 19(1)). Its terms may go beyond the disputes referred to mediation. It must be signed by the parties. If it is void under the Indian Contract Act, 1872, it is not a lawful settlement agreement.

Section 15 gives the nature of the process. The mediator assists in an independent, neutral and impartial manner, is guided by objectivity and fairness, and protects voluntariness, confidentiality and self-determination of the parties. The mediator is not bound by the Code of Civil Procedure, 1908 or the Indian Evidence Act, 1872. Typical advantages are speed, lower cost, privacy, flexibility, control over the outcome and preservation of business relationships. Mediation differs from arbitration because the mediator cannot decide the dispute, and from negotiation because a neutral third person is involved.

Key rules to remember

Mediation (Section 3(h)): Mediation = process to reach amicable settlement + assistance of a third person (mediator) + no authority to impose settlement; Includes pre-litigation, online and community mediation and conciliation or similar expressions.
Mediator (Section 3(i)): Mediator = person appointed by parties or by a mediation service provider; includes a person registered with the Council; Where more than one mediator is appointed, the reference is to all of them.
Institutional mediation (Section 3(f)): Institutional mediation = mediation under the aegis of a mediation service provider; Court-annexed mediation under Section 3(e) is mediation at centres established by a court or tribunal.
Mediated settlement agreement (Sections 19(1), 19(2)): Written agreement + resulting from mediation + authenticated by mediator + signed by parties; Void agreements under the Indian Contract Act, 1872 are not lawful settlement agreements. Terms may extend beyond the disputes referred.
Mediator's duties (Section 15): Independent, neutral, impartial; objectivity and fairness; protect voluntariness, confidentiality, self-determination; Not bound by the CPC, 1908 or the Indian Evidence Act, 1872.
Party (Section 3(s)): Party = party to a mediation agreement or proceeding whose agreement or consent is necessary to resolve the dispute, including successors; Participants such as advisers, advocates and experts are not parties (Section 3(r)).

How to solve Introduction to Mediation and Key Definitions questions

Use this method for definition, distinction and short-note questions on mediation.

1Identify what is asked: a definition, a distinction, a list of features or a fact-based application.
2State the core definition from the Act with the section number where you are certain, such as Section 3(h) for mediation.
3List the essential elements of the definition, such as third-person assistance and no power to impose a settlement.
4For distinction questions, compare on fixed heads: who decides, binding nature, procedure, confidentiality and outcome.
5For fact-based questions, apply each defined term to the facts: who is mediator, party or participant, and whether the process is institutional.
6Check the settlement agreement conditions: written, signed by parties, authenticated by mediator, not void under the Contract Act.
7Conclude clearly in one sentence that answers the question asked.

Quickest way: Definition-Elements-Contrast

When to use it: Use it for short notes and 5 to 8 mark questions when time is short.

Write the definition in one or two lines.
Add three or four bullet elements drawn from the definition and Section 15.
Add one line of contrast with arbitration or negotiation, or one line on advantages.
Close with the legal effect, such as the settlement being a written, signed and authenticated agreement.

Common mistakes in Introduction to Mediation and Key Definitions

Saying the mediator can decide or pass an award.
Students mix mediation with arbitration.
Fix: Remember that the mediator has no authority to impose a settlement. Only the parties decide.
Treating conciliation as a separate process outside the Mediation Act.
The Arbitration and Conciliation Act, 1996 treats conciliation separately.
Fix: Section 3(h) of the Mediation Act includes conciliation within mediation for this Act. Mention both statutes.
Calling a settlement agreement valid without the mediator's authentication.
Students focus only on party signatures.
Fix: Section 19 requires writing, signature by parties and authentication by the mediator.
Confusing a party with a participant.
Both attend the mediation sessions.
Fix: A party's consent is needed to resolve the dispute. Participants, such as advisers, advocates and experts, are not parties.
Assuming a mediation service provider is the mediator.
The terms sound similar.
Fix: The provider is the institution that accredits and supplies mediators and facilities. The mediator is the individual who assists the parties.

Worked examples

Example 1

Explain the meaning of mediation under the Mediation Act, 2023 and state the duties of the mediator in conducting it. (Short answer)

Show the solution

Definition: Section 3(h) defines mediation as a process, however named, whereby parties attempt to reach an amicable settlement with the assistance of a third person, the mediator, who has no authority to impose a settlement.
Scope: the term includes pre-litigation mediation, online mediation, community mediation and conciliation.
Duties under Section 15: the mediator assists the parties in an independent, neutral and impartial manner.
The mediator is guided by objectivity and fairness and protects voluntariness, confidentiality and self-determination of the parties, along with the specified professional and ethical standards.
Procedure: the mediator is not bound by the Code of Civil Procedure, 1908 or the Indian Evidence Act, 1872, and may meet the parties jointly or separately.

Answer: Mediation is a party-controlled process assisted by a neutral mediator who cannot impose a settlement. The mediator must be independent, neutral and impartial, fair and objective, and must protect voluntariness, confidentiality and self-determination.

Example 2

Arvind Textiles Pvt. Ltd. and Bharat Dyes Ltd. settle a supply dispute in mediation. They sign a written settlement that also covers a separate pending payment issue not referred to mediation. The mediator has not signed it. Is it a mediated settlement agreement?

Show the solution

Provision: Section 19(1) requires a written agreement resulting from mediation, settling some or all disputes, and authenticated by the mediator.
Analysis of scope: the proviso allows terms to extend beyond the disputes referred to mediation, so covering the separate payment issue is permitted.
Analysis of signature: Section 19(2) requires the agreement to be in writing and signed by the parties, which has been done.
Analysis of authentication: the mediator has not authenticated it. Under Section 19(3) the signed agreement is submitted to the mediator, who authenticates it and gives copies to the parties, and in institutional mediation forwards it to the service provider with a covering letter.
Conclusion: the agreement fails the authentication requirement for now, and the Contract Act validity must also be satisfied.

Answer: Not yet. The extra terms are allowed, but until the mediator authenticates the signed agreement it is not a mediated settlement agreement under Section 19. Once authenticated, and if not void under the Indian Contract Act, 1872, it qualifies.

Exam tips

Quote the definition from Section 3 almost word for word. Examiners reward accurate wording.
In distinction questions, use a two-column comparison written in bullets, with at least four heads.
In case-based questions, name the provision first, apply the facts, then conclude.
Cite a section number only when you are sure of it. Otherwise state the rule in plain words.
Link Section 19 with the authentication and signature steps whenever a settlement agreement appears.

Practice questions from Mediation: An Introduction and its Process along with Rules

Introduction to Mediation and Key Definitions: frequently asked questions

What is mediation under the Mediation Act, 2023?

It is a process in which parties try to reach an amicable settlement with the help of a third person called a mediator. The mediator cannot impose a settlement. The definition is in Section 3(h) and covers pre-litigation, online and community mediation and conciliation.

What is the difference between mediation and conciliation?

Under the Mediation Act, 2023, conciliation is included within the definition of mediation. Under the Arbitration and Conciliation Act, 1996 it is treated separately. In both, the neutral person helps the parties settle and does not impose a decision.

How is mediation different from arbitration and negotiation?

In arbitration, the arbitrator decides and gives an award. In mediation, the mediator only assists and the parties decide. Negotiation is direct talk between the parties with no neutral third person.

Who is a mediation service provider?

It is a body that provides institutional mediation services. Under Section 41 it accredits mediators, maintains a panel, provides mediators and facilities, promotes ethical conduct and facilitates registration of settlement agreements.

What makes a mediated settlement agreement valid?

It must be in writing, signed by the parties and authenticated by the mediator. It must also not be void under the Indian Contract Act, 1872.