The Mediation Act 2023 > Section 25

Section 25 of Mediation Act 2023 - Cost of Mediation

Section 25 of the Mediation Act, 2023 deals with the cost of mediation. It provides for the cost of mediation other than community mediation to be specified and, unless the parties agree otherwise, requires the parties to bear all mediation costs equally, including mediator fees and mediation service provider charges.

Commencement status: Section 1(3) permits different provisions of the Act to commence on different dates. The Central Government notification dated 9 October 2023 brought specified provisions into force, but Section 25 was not included in that notification. The latest official commencement notification should therefore be checked before relying on Section 25 as an operative provision.
General ruleCost of mediation, other than community mediation, is to be specified
Default sharingParties bear mediation costs equally unless they agree otherwise
Mediator feeExpressly included within mediation costs
Service provider chargesExpressly included within mediation costs

Section 25 - Cost of mediation

25. (1) The cost of mediation, other than community mediation shall be such as may be specified.

(2) Unless otherwise agreed by the parties, all costs of mediation, including the fees of the mediator and the charges of the mediation service provider shall be borne equally by the parties.

Meaning of cost of mediation

Section 25 establishes the statutory framework for allocating mediation expenses. Sub-section (1) excludes community mediation from its rule and states that the cost of other mediation shall be such as may be specified. Under the Act, matters that are to be "specified" are dealt with through the applicable statutory framework, and Section 52(2)(f) specifically authorises regulations concerning the cost of mediation under Section 25(1).

Equal sharing is the default rule

Section 25(2) provides a default allocation rule: unless the parties agree on another arrangement, all costs of mediation are borne equally by the parties. The Act therefore preserves party autonomy while supplying an equal-sharing rule when there is no contrary agreement.

Mediator fees and mediation service provider charges

The statutory expression "all costs of mediation" expressly includes the fees of the mediator and charges of the mediation service provider. A mediation service provider is an organisation or authority recognised under the Act to provide mediation-related services in accordance with the statutory framework.

Community mediation

Section 25(1) expressly excludes community mediation from the provision stating that mediation costs shall be specified. Community mediation is separately dealt with in Chapter X of the Mediation Act, 2023, including Sections 43 and 44.

Related provisions

Section 25 should be read with Section 24 - Termination of mediation, the provisions relating to mediation service providers, the regulation-making power in Section 52, and the separate statutory framework for community mediation.

Official legal sources

India Code - The Mediation Act, 2023

Gazette of India - The Mediation Act, 2023

Gazette notification dated 9 October 2023 - commencement of specified provisions

Legal note: This article is for general legal information. The official Act, current commencement notifications, regulations specifying mediation costs and other applicable subordinate legislation should be checked for a particular mediation.