Sections 74 to 81 of Consumer Protection Act 2019: Mediation
Chapter V of the Consumer Protection Act, 2019 establishes the statutory framework for mediation of consumer disputes. Sections 74 to 81 deal with consumer mediation cells, panels and nomination of mediators, disclosure and replacement of mediators, mediation procedure, settlement reports and the orders to be passed by the Consumer Commission.
- Quick overview of Sections 74 to 81
- Section 74 - Establishment of consumer mediation cell
- Section 75 - Empanelment of mediators
- Section 76 - Nomination of mediators from panel
- Section 77 - Duty of mediator to disclose certain facts
- Section 78 - Replacement of mediator in certain cases
- Section 79 - Procedure for mediation
- Section 80 - Settlement through mediation
- Section 81 - Recording settlement and passing of order
Quick overview of Sections 74 to 81
| Section | Subject | What it covers |
|---|---|---|
| 74 | Consumer mediation cell | Establishment, records and quarterly reporting by mediation cells attached to Consumer Commissions. |
| 75 | Empanelment | Preparation and duration of mediator panels and regulation of qualifications, training, fees and conduct. |
| 76 | Nomination | Selection of a suitable mediator from the panel for the particular consumer dispute. |
| 77 | Disclosure | Disclosure of interests or circumstances that may affect independence or impartiality. |
| 78 | Replacement | Replacement of a mediator after the Commission considers relevant information and hears the mediator. |
| 79 | Procedure | Place, guiding considerations, natural justice and regulated procedure for mediation. |
| 80 | Settlement | Written settlement, settlement report and report where settlement is not reached. |
| 81 | Commission order | Recording full or partial settlement and continuation of unresolved issues. |
Section 74: Establishment of consumer mediation cell
Meaning: Section 74 creates the institutional base for consumer mediation. State Governments establish mediation cells attached to District Commissions and State Commissions, while the Central Government establishes cells for the National Commission and its regional Benches.
74. (1) The State Government shall establish, by notification, a consumer mediation cell to be attached to each of the District Commissions and the State Commissions of that State.
(2) The Central Government shall establish, by notification, a consumer mediation cell to be attached to the National Commission and each of the regional Benches.
(3) A consumer mediation cell shall consist of such persons as may be prescribed.
(4) Every consumer mediation cell shall maintain -
(a) a list of empanelled mediators;
(b) a list of cases handled by the cell;
(c) record of proceeding; and
(d) any other information as may be specified by regulations.
(5) Every consumer mediation cell shall submit a quarterly report to the District Commission, State Commission or the National Commission to which it is attached, in the manner specified by regulations.
Section 75: Empanelment of mediators
Meaning: Section 75 requires each Consumer Commission to prepare a panel of mediators on the recommendation of a selection committee consisting of the President and a member of that Commission. Detailed eligibility, training, fees, terms, code of conduct and removal are governed by regulations.
75. (1) For the purpose of mediation, the National Commission or the State Commission or the District Commission, as the case may be, shall prepare a panel of the mediators to be maintained by the consumer mediation cell attached to it, on the recommendation of a selection committee consisting of the President and a member of that Commission.
(2) The qualifications and experience required for empanelment as mediator, the procedure for empanelment, the manner of training empanelled mediators, the fee payable to empanelled mediator, the terms and conditions for empanelment, the code of conduct for empanelled mediators, the grounds on which, and the manner in which, empanelled mediators shall be removed or empanelment shall be cancelled and other matters relating thereto, shall be such as may be specified by regulations.
(3) The panel of mediators prepared under sub-section (1) shall be valid for a period of five years, and the empanelled mediators shall be eligible to be considered for re-empanelment for another term, subject to such conditions as may be specified by regulations.
Section 76: Nomination of mediators from panel
Meaning: The Commission must consider the mediator's suitability for resolving the particular consumer dispute rather than nominate a mediator without regard to the nature of the case.
76. The District Commission, the State Commission or the National Commission shall, while nominating any person from the panel of mediators referred to in section 75, consider his suitability for resolving the consumer dispute involved.
Section 77: Duty of mediator to disclose certain facts
Meaning: Section 77 protects neutrality in mediation by requiring disclosure of interests and circumstances that could create a justifiable doubt about the mediator's independence or impartiality.
77. It shall be the duty of the mediator to disclose -
(a) any personal, professional or financial interest in the outcome of the consumer dispute;
(b) the circumstances which may give rise to a justifiable doubt as to his independence or impartiality; and
(c) such other facts as may be specified by regulations.
Section 78: Replacement of mediator in certain cases
Meaning: If relevant information concerning the mediator is placed before the Commission, the Commission must hear the mediator and, when satisfied that replacement is warranted, replace that mediator with another mediator.
78. Where the District Commission or the State Commission or the National Commission, as the case may be, is satisfied, on the information furnished by the mediator or on the information received from any other person including parties to the complaint and after hearing the mediator, it shall replace such mediator by another mediator.
Section 79: Procedure for mediation
Meaning: Mediation is conducted in the mediation cell attached to the relevant Commission. The mediator must consider the parties' rights and obligations, trade usages, the circumstances of the dispute and other relevant factors, and must be guided by principles of natural justice.
79. (1) The mediation shall be held in the consumer mediation cell attached to the District Commission, the State Commission or the National Commission, as the case may be.
(2) Where a consumer dispute is referred for mediation by the District Commission or the State Commission or the National Commission, as the case may be, the mediator nominated by such Commission shall have regard to the rights and obligations of the parties, the usages of trade, if any, the circumstances giving rise to the consumer dispute and such other relevant factors, as he may deem necessary and shall be guided by the principles of natural justice while carrying out mediation.
(3) The mediator so nominated shall conduct mediation within such time and in such manner as may be specified by regulations.
Section 80: Settlement through mediation
Meaning: A full or partial settlement must be reduced to writing and signed by the parties or their authorised representatives. The mediator sends the signed agreement with a settlement report to the Commission. If no settlement is possible, the mediator reports that outcome to the Commission.
80. (1) Pursuant to mediation, if an agreement is reached between the parties with respect to all of the issues involved in the consumer dispute or with respect to only some of the issues, the terms of such agreement shall be reduced to writing accordingly, and signed by the parties to such dispute or their authorised representatives.
(2) The mediator shall prepare a settlement report of the settlement and forward the signed agreement along with such report to the concerned Commission.
(3) Where no agreement is reached between the parties within the specified time or the mediator is of the opinion that settlement is not possible, he shall prepare his report accordingly and submit the same to the concerned Commission.
Section 81: Recording settlement and passing of order
Meaning: After receiving the settlement report, the Commission has seven days to pass a suitable order recording the settlement. A partial settlement is recorded and the unresolved issues continue to be heard. If mediation fails completely, the Commission continues with all issues in the consumer dispute.
81. (1) The District Commission or the State Commission or the National Commission, as the case may be, shall, within seven days of the receipt of the settlement report, pass suitable order recording such settlement of consumer dispute and dispose of the matter accordingly.
(2) Where the consumer dispute is settled only in part, the District Commission or the State Commission or the National Commission, as the case may be, shall record settlement of the issues which have been so settled and continue to hear other issues involved in such consumer dispute.
(3) Where the consumer dispute could not be settled by mediation, the District Commission or the State Commission or the National Commission, as the case may be, shall continue to hear all the issues involved in such consumer dispute.
How Chapter V works with the Mediation Rules and Regulations
The Act provides the statutory framework, while the Consumer Protection (Mediation) Rules, 2020 and Consumer Protection (Mediation) Regulations, 2020 supply procedural detail. Rule 4 of the Mediation Rules identifies categories of disputes that are not to be referred to mediation, including specified serious medical-negligence matters, certain offence-related matters, serious allegations such as fraud or forgery, criminal and non-compoundable offences, and disputes involving public interest or numerous persons who are not parties.
The Commission may also decline mediation in an otherwise eligible case where it considers that no acceptable elements of settlement exist or mediation is otherwise inappropriate having regard to the circumstances and positions of the parties.
Official legal resources
For the authoritative text and current subordinate legislation, readers should verify the law from official Government sources. The links in the right-side panel provide direct access to India Code and the Department of Consumer Affairs.
This page is an informational guide to the statutory provisions. For a pending dispute, the applicable Act, Rules, Regulations, notifications and orders of the concerned Consumer Commission should be checked in their current form.