Section 29 of the Mediation Act 2023: Limitation and Exclusion of Mediation Period

Section 29 contains the enacted rule for excluding the period spent in mediation under the Mediation Act, 2023 while computing limitation for proceedings relating to the mediated dispute.

Section 29 - Limitation

Meaning and effect of the non-obstante clause

Section 29 begins with the words "Notwithstanding anything contained in the Limitation Act, 1963 or in any other law for the time being in force". This is a non-obstante clause intended to give the provision overriding effect over inconsistent limitation rules within its statutory field once Section 29 is brought into force.

Section 14 - Commencement of mediation

Section 14 defines when mediation proceedings in respect of a particular dispute are deemed to commence. The commencement date depends on the statutory route by which mediation is initiated. This date is important because Section 29 uses commencement under Section 14 as the starting point for the period proposed to be excluded from limitation computation.

Section 14 has not yet been brought into force under the commencement notification dated 9 October 2023.

Section 21 - Non-settlement report

Section 21 deals with the report to be prepared or submitted where no agreement is reached within the statutory mediation period or where the mediator considers that settlement is not possible. The report is not to disclose the cause of non-settlement or matters concerning the parties' conduct during mediation.

For Section 29, submission of the report under Section 21 is one possible end point of the period to be excluded. Section 21 has not yet been brought into force.

Section 24 - Termination of mediation

Section 24 specifies the circumstances in which mediation proceedings under the Act are deemed to terminate. These include statutory events such as signing and authentication of a mediated settlement agreement and other termination events specified by the section.

Termination under Section 24 is the other end point expressly identified by Section 29. Section 24 has not yet been brought into force.

Relationship with the Limitation Act 1963

The Limitation Act, 1963 prescribes limitation periods for numerous suits, appeals and applications and also contains rules governing computation of limitation. Section 29 of the Mediation Act creates a specific enacted exclusion for the mediation period in proceedings falling within its scope. It does not itself prescribe the underlying limitation period for the substantive proceeding.

How the Section 29 calculation is intended to work

• First identify the limitation period applicable to the contemplated proceeding under the Limitation Act, 1963 or other applicable law.
• Identify the statutory commencement date of mediation under Section 14.
• Identify the relevant end event: submission of the report under Section 21 or termination under Section 24.
• Once Section 29 is operative, exclude that statutory mediation period while computing limitation for the proceeding to which Section 29 applies.
• Do not confuse exclusion of time with creation of a new limitation period; the underlying limitation rule continues to come from the applicable law.

Why commencement status matters

Section 1(3) of the Mediation Act, 2023 permits different provisions of the Act to be brought into force on different dates by Central Government notification. Notification S.O. 4384(E) dated 9 October 2023 did not include Section 29. Accordingly, merely reproducing the enacted text without stating its commencement status may incorrectly suggest that the Section 29 exclusion is already operational.

Related provisions

Section 29 follows Section 28 on challenge to a mediated settlement agreement and precedes Section 30 on online mediation. Its text expressly depends on Sections 14, 21 and 24.