Section 2 of the Mediation Act 2023 - Application and Scope
Section 2 specifies the circumstances in which the Mediation Act, 2023 applies where mediation is conducted in India. It covers domestic parties, agreements choosing the Act, international mediation, specified disputes involving Government bodies, and other notified disputes involving Government entities.
Statutory Text of Section 2 - Application
2. Application. This Act shall apply where mediation is conducted in India, and-
(i) all or both parties habitually reside in or are incorporated in or have their place of business in India; or
(ii) the mediation agreement provides that any dispute shall be resolved in accordance with the provisions of this Act; or
(iii) there is an international mediation; or
(iv) wherein one of the parties to the dispute is the Central Government or a State Government or agencies, public bodies, corporations and local bodies, including entities controlled or owned by such Government and where the matter pertains to a commercial dispute; or
(v) to any other kind of dispute if deemed appropriate and notified by the Central Government or a State Government from time to time, for resolution through mediation under this Act, wherein such Governments, or agencies, public bodies, corporations and local bodies including entities controlled or owned by them, is a party.
Meaning and Scope of Section 2
The opening requirement is that the mediation is conducted in India. In addition, at least one of the situations listed in clauses (i) to (v) must be satisfied for Section 2 to apply according to its enacted text.
| Clause | When the Act applies under Section 2 |
|---|---|
| (i) | All or both parties habitually reside in India, are incorporated in India, or have their place of business in India. |
| (ii) | The mediation agreement expressly provides that the dispute will be resolved in accordance with the Mediation Act, 2023. |
| (iii) | The mediation is an "international mediation" within the meaning assigned by Section 3(g). |
| (iv) | A Central or State Government, or a specified Government agency, public body, corporation, local body or Government-controlled or Government-owned entity is a party and the matter concerns a commercial dispute. |
| (v) | Another category of dispute involving the Government or specified Government-related bodies is considered appropriate for mediation and is notified by the Central Government or a State Government. |
Important Definitions Connected with Section 2
International Mediation
Section 3(g) defines "international mediation" as mediation under the Act relating to a commercial dispute arising from a legal relationship, contractual or otherwise, under Indian law, where at least one party has the specified foreign connection. This includes, among others, an individual who is a national of or habitually resides outside India, a body corporate or limited liability partnership with its place of business outside India, an association or body of individuals with its place of business outside India, or the Government of a foreign country.
Commercial Dispute
Section 3(a) provides that "commercial dispute" means a dispute defined in Section 2(1)(c) of the Commercial Courts Act, 2015. That definition covers specified commercial relationships and transactions, subject to the terms of that Act.
Mediation Agreement
Section 3(j) states that "mediation agreement" means a mediation agreement referred to in Section 4(1) of the Mediation Act, 2023. Section 4 addresses an agreement by parties to submit disputes to mediation.
Notification
Section 3(p) defines "notification" as a notification published in the Official Gazette. This is relevant to clause (v) of Section 2, which contemplates additional categories of disputes being notified for mediation.
Practical Effect of Section 2
- Section 2 is territorial in structure because it begins with mediation being conducted in India.
- It accommodates both domestic mediation and international mediation falling within the statutory definition.
- Parties may bring their dispute within the statutory framework through a mediation agreement that provides for resolution in accordance with the Act.
- Government participation is specifically addressed, with commercial disputes covered by clause (iv) and other notified categories contemplated by clause (v).
- The commencement notification must be checked separately because enactment of a provision and commencement of that provision are distinct legal steps under Section 1(3).
Official Legal Sources
For the authoritative text and current notifications, refer to the official India Code - Mediation Act, 2023 and the Department of Legal Affairs - Acts Administered by the Ministry. The Department of Legal Affairs page provides the Act, the enforcement notification dated 9 October 2023, the Removal of Difficulty Order and the corrigendum.
Updated: 3 October 2026. This page is intended for legal information and should be read with the latest Gazette notifications, rules and judicial decisions applicable to the facts of a particular matter.