Section 31 of the Mediation Act 2023: Establishment and Incorporation of Mediation Council of India
Section 31 provides the statutory basis for establishment of the Mediation Council of India and defines its corporate character, head office and power to establish other offices.
Section 31 - Establishment and incorporation of Mediation Council
Sub-section (1): The Central Government shall, by notification, establish for the purposes of the Act a Council to be known as the Mediation Council of India to perform the duties and discharge the functions assigned under the Act.
Sub-section (2): The Council is to be a body corporate with perpetual succession and a common seal. Subject to the Act, it may acquire, hold and dispose of movable and immovable property, enter into contracts, and sue or be sued in its own name.
Sub-section (3): The head office of the Council shall be at Delhi or at another place notified by the Central Government.
Sub-section (4): In consultation with the Central Government, the Council may establish offices at other places in India and abroad.
What is the Mediation Council of India?
The Mediation Council of India is the statutory regulatory body contemplated by Chapter VIII of the Mediation Act, 2023. Section 31 creates the legal framework for its establishment, while the succeeding provisions deal with its composition, institutional arrangements and functions.
Meaning of body corporate
Section 31(2) expressly gives the Council the status of a body corporate. In practical legal terms, this means the Council is intended to have a legal identity distinct from its individual members, together with perpetual succession and the statutory capacities expressly conferred by the Act.
The provision specifically authorises the Council, subject to the Act, to acquire, hold and dispose of property, enter into contracts and sue or be sued in its statutory name.
Head office and other offices
Under Section 31(3), the statutory default location of the head office is Delhi, unless the Central Government notifies another place. Section 31(4) further permits the Council, in consultation with the Central Government, to establish offices elsewhere in India and abroad.
Composition of the Council under Section 32
Section 32 deals with the composition of the Council. It provides for a Chairperson, specified full-time members, ex officio members and a part-time member representing an industry body, subject to the detailed qualifications and appointment provisions contained in that section.
The Central Government notified the Mediation Council of India (Salary, Allowances and other Terms and Conditions of Service of Chairperson and Members) Rules, 2024 on 13 June 2024 under Section 51(2) read with Section 32(3).
Duties and functions under Section 38
Section 38 sets out the duties and functions assigned to the Council. These form part of the institutional framework for regulating and developing mediation under the Act, including standards, recognition and related statutory functions specified by Parliament.
Current establishment position
Although Section 31 is in force and the 2024 service-condition rules have been notified, recent official material from the Department of Legal Affairs states that requisite steps are underway for establishment of the Mediation Council of India. Accordingly, the statutory provision should be distinguished from the factual stage of institutional establishment.
Key legal points
- Section 31 is in force from 9 October 2023.
- The Central Government is required to establish the Mediation Council of India by notification.
- The Council is designed as a statutory body corporate with perpetual succession and a common seal.
- Its statutory powers include dealing with property, contracts and legal proceedings in its own name, subject to the Act.
- The head office is to be at Delhi unless another place is notified.
- Other offices may be established in India and abroad in consultation with the Central Government.
- The 2024 Rules prescribe salary, allowances and other service conditions for the Chairperson and members.
Related provisions
Section 31 begins the chapter dealing with the Mediation Council of India. It should be read with Section 32 on composition, Section 33 on vacancies, Section 36 on experts and committees, Section 37 on the Secretariat and Chief Executive Officer and Section 38 on duties and functions.