Arbitration, Mediation and Conciliation · Various Modes and Scope of Mediation including Role of Mediation in other ADR Domains

Scope and Applicability of the Mediation Act, 2023

Updated 11 October 2026 · Fact-checked

The Mediation Act, 2023 extends to the whole of India and governs mediation, including pre-litigation, online, community, institutional and international mediation. Any dispute can go to mediation unless it is in the First Schedule's indicative list. Mediation must happen within the competent court's territorial jurisdiction, unless parties agree to go outside or online.

Understand Scope and Applicability of the Mediation Act, 2023

Start with the meaning. The Act defines mediation broadly. It is any 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. The label does not matter. Pre-litigation mediation, online mediation, community mediation and even conciliation fall inside the definition if they fit this description.

Next, territory. The Act extends to the whole of India. It was brought into force in stages by the Central Government. Sections 1, 3, 26, 31 to 38, 45 to 47, 50 to 54 and 56 to 57 came into force on 9 October 2023. Do not say the whole Act commenced on one date.

Now the subject matter. The default position is that disputes can be mediated. Section 6 carves out an exception: mediation under the Act shall not be conducted for any dispute or matter in the indicative list in the First Schedule. The word "indicative" matters. The list shows the kind of matters unfit for mediation. The Central Government may amend the First Schedule by notification if it is satisfied it is necessary or expedient.

There is a proviso for courts. A court may still refer disputes relating to compoundable offences, including compoundable matrimonial offences pending between the parties, to mediation. But the outcome is not deemed a judgment or decree of the court under section 27(2). The court must consider it further in accordance with law.

Finally, place and kind. Mediation is undertaken within the territorial jurisdiction of the court or tribunal competent to decide the subject matter. With mutual consent, parties may mediate outside that area or online. International mediation is a separate category. It covers a commercial dispute, as defined in the Commercial Courts Act, 2015, where at least one party is a foreign national or habitual resident, a body corporate (including an LLP) with its place of business outside India, a foreign association or body of individuals, or a foreign government.

Key rules to remember

Extent and commencement: Section 1: extends to the whole of India; in force on dates notified by the Central Government, different dates for different provisions; Sections 1, 3, 26, 31-38, 45-47, 50-54 and 56-57 were notified from 9 October 2023.
Meaning of mediation: Process + amicable settlement attempt + help of a third person (mediator) + mediator cannot impose settlement; Section 3(h). Name used is irrelevant: pre-litigation, online, community, conciliation or similar.
Disputes not fit for mediation: Section 6(1): no mediation under the Act for any dispute or matter in the indicative list in the First Schedule; Central Government may amend the First Schedule by notification under section 6(2).
Court proviso: Court may refer compoundable offences, including compoundable matrimonial offences, to mediation; outcome is not a judgment or decree under section 27(2); The court considers the outcome further as per law.
Territorial rule: Section 13: mediation within jurisdiction of competent court or tribunal; by mutual consent, outside it or online; For enforcement, challenge and registration, it is deemed undertaken within the competent jurisdiction.
International mediation: Commercial dispute (Commercial Courts Act, 2015) + at least one foreign party (individual, body corporate/LLP, association, or foreign government); Section 3(g). The mediation agreement must refer to commercial disputes (section 4(6)).

How to solve Scope and Applicability of the Mediation Act, 2023 questions

Use this order for any scope or applicability question, whether a short note or a case-based problem.

1Identify the dispute and the parties. Note nationality, place of business and whether the dispute is commercial.
2Check whether the process fits the definition of mediation in section 3(h): third person, amicable settlement, no power to impose.
3Test the dispute against section 6: is it in the First Schedule's indicative list? If yes, mediation under the Act is barred.
4Check the court proviso if the dispute involves compoundable offences or compoundable matrimonial offences.
5Decide the category: pre-litigation, court-annexed, institutional, online, community or international (section 3(g) tests).
6Apply section 13 on territory and consent for outside or online mediation.
7State your conclusion in one line and mention the effect on the settlement, for example that it is not a section 27(2) decree in the proviso case.

Quickest way: Three-gate check

When to use it: When time is short and the question asks whether a dispute can be mediated or whether a mediation is international.

Gate 1: Is it a First Schedule matter? If yes, stop. Cite section 6(1).
Gate 2: Is it a compoundable offence referred by a court? If yes, mediation is allowed but the outcome is not a section 27(2) decree.
Gate 3: Is it commercial with a foreign party? If yes, call it international mediation under section 3(g).
Write the conclusion with the section number.

Common mistakes in Scope and Applicability of the Mediation Act, 2023

Treating the First Schedule as a closed, exhaustive list.
Students memorise items and forget the wording of section 6.
Fix: Write that the list is indicative and the Central Government can amend it by notification under section 6(2).
Saying a court-referred compoundable offence settlement becomes a decree of the court.
Students assume every mediated outcome gets the same status.
Fix: State that under the second proviso to section 6(1) it is not deemed a judgment or decree under section 27(2) and the court considers it further under law.
Calling any dispute with a foreign element international mediation.
The word international is taken loosely.
Fix: Check both: it must relate to a commercial dispute and at least one party must fall in section 3(g)(i) to (iv).
Saying the whole Act came into force on 9 October 2023.
Students remember one date.
Fix: Say different provisions can be notified on different dates; only the listed sections were notified on 9 October 2023.
Believing mediation outside the court's territory is invalid.
Section 13 is read without its proviso.
Fix: Note that mutual consent permits mediation anywhere or online, and it is deemed within jurisdiction for enforcement, challenge and registration.

Worked examples

Example 1

Meridian Textiles Pvt Ltd, Surat, and Hanover Fabrics GmbH, Germany, have a commercial supply dispute. Is a mediation between them an international mediation under the Mediation Act, 2023? Can they mediate online?

Show the solution

Section 3(g) needs a commercial dispute under section 2(1)(c) of the Commercial Courts Act, 2015. A supply contract dispute is commercial.
It must also arise out of a legal relationship under Indian law, and at least one party must be foreign.
Hanover Fabrics GmbH is a body corporate with its place of business outside India, so section 3(g)(ii) is met.
Section 4(6) requires the mediation agreement to refer to resolution of commercial disputes.
Under the proviso to section 13, parties may by mutual consent mediate outside the court's territory or online. For enforcement, challenge and registration it is deemed within competent jurisdiction.

Answer: Yes, it is international mediation under section 3(g)(ii), and they may mediate online by mutual consent under section 13.

Example 2

A court is hearing a compoundable criminal complaint between two neighbours. It refers them to mediation and they settle. Is mediation allowed, and is the settlement a decree?

Show the solution

Section 6(1) bars mediation for First Schedule matters.
The first proviso lets a court refer disputes relating to compoundable offences, including compoundable matrimonial offences, to mediation if deemed appropriate.
So the reference is permitted.
The second proviso says the outcome is not deemed a judgment or decree under section 27(2).
The court must consider the outcome further in accordance with the law in force.

Answer: Mediation is permitted by the first proviso to section 6(1), but the settlement is not a section 27(2) decree. The court considers it further under the law.

Exam tips

Quote the section number with each point: 3(h), 3(g), 6, 13. It shows precision.
In case-based questions, first classify the dispute, then apply the rule, then conclude.
Say "indicative list" whenever you mention the First Schedule.
For international mediation, list all four party categories and both conditions: commercial dispute and foreign party.
If asked about the commencement, mention staged notification, not a single date.

Practice questions from Various Modes and Scope of Mediation including Role of Mediation in other ADR Domains

Scope and Applicability of the Mediation Act, 2023: frequently asked questions

Which disputes cannot be referred to mediation under the Mediation Act, 2023?

Disputes or matters in the indicative list in the First Schedule cannot be mediated under the Act. The Central Government can amend that list by notification. Courts may still refer compoundable offences to mediation under a proviso.

Does the Mediation Act apply to the whole of India?

Yes. Section 1 says it extends to the whole of India. It comes into force on dates the Central Government notifies, and provisions may be notified on different dates.

What is international mediation under the Act?

It is mediation under the Act of a commercial dispute arising from a legal relationship under Indian law, where at least one party is a foreign individual, a body corporate or LLP with its place of business abroad, a foreign association, or a foreign government.

Can parties mediate outside the court's territorial jurisdiction?

Yes, if they mutually consent. Section 13 permits mediation at any place outside the jurisdiction or online. For enforcement, challenge and registration of the settlement it is treated as done within the competent jurisdiction.