Section 21 of Mediation Act 2023 - Non-Settlement Report
Section 21 of the Mediation Act, 2023 deals with the report to be prepared when mediation does not result in a settlement. It prescribes separate procedural steps for institutional mediation and other mediation, while protecting confidentiality by prohibiting disclosure of the cause of non-settlement or matters relating to the parties' conduct during mediation.
Section 21 - Non-settlement report
21. Subject to the provisions of section 26, where no agreement is arrived at between the parties, within the time period as provided under section 18, or where, the mediator is of the view that no settlement is possible, he shall,-
(i) in the case of institutional mediation, submit a non-settlement report to the mediation service provider in writing;
(ii) in all other cases, prepare a non-settlement report and provide a signed copy to all the parties:
Provided that the report referred to in this section shall not disclose the cause of nonsettlement, or any other matter or thing referring to their conduct, during mediation.
When is a non-settlement report prepared?
Section 21 contemplates a non-settlement report in two situations. The first is where the parties do not reach an agreement within the period provided under Section 18. The second is where the mediator forms the view that no settlement is possible.
Institutional mediation
In institutional mediation, the mediator is required to submit the non-settlement report in writing to the mediation service provider. A mediation service provider is a statutory concept under the Mediation Act and the provisions relating to such providers appear in Chapter IX of the Act.
Other mediation
Where the mediation is not institutional mediation, the mediator must prepare a non-settlement report and provide a signed copy to all the parties. This records the fact that the mediation concluded without settlement without requiring disclosure of confidential negotiations or reasons for failure.
What must not be disclosed in the report?
The proviso to Section 21 expressly restricts the contents of a non-settlement report. The report must not disclose the cause of non-settlement and must not disclose any other matter or thing referring to the parties' conduct during mediation. This limitation is consistent with the confidentiality framework reflected in Section 22 - Confidentiality and Section 23 - Admissibility and privilege against disclosure.
Section 21 is subject to Section 26
Section 21 begins with the words "Subject to the provisions of section 26". Section 26 provides that the provisions of the Mediation Act shall not apply to proceedings conducted by a Lok Adalat and a Permanent Lok Adalat under the Legal Services Authorities Act, 1987.
Related provisions
The operation of Section 21 is closely connected with Section 18 - Time limit for completion of mediation, Section 22 - Confidentiality, Section 23 - Admissibility and privilege against disclosure and Section 24 - Termination of mediation.
Official legal sources
For the authoritative statutory text and current commencement position, refer to the official Government of India sources.
Gazette of India - The Mediation Act, 2023
Gazette notification dated 9 October 2023 - commencement of specified provisions
Department of Legal Affairs - Acts and notifications