Section 5 of the Mediation Act 2023 - Pre-Litigation Mediation

Subject to the other provisions of the Mediation Act, whether a mediation agreement exists or not, parties before filing any suit or proceeding of a civil or commercial nature in any court may voluntarily and with mutual consent take steps to settle their disputes by pre-litigation mediation in accordance with the Act.

The proviso states that pre-litigation mediation in commercial disputes of Specified Value shall be undertaken in accordance with Section 12A of the Commercial Courts Act, 2015 and the rules made under that Act.

The provisions of Section 5(1) are also applicable to tribunals notified by the Central Government or a State Government, as the case may be.

Unless the parties agree otherwise, pre-litigation mediation under Sections 5(1) and 5(2) shall be conducted by a mediator who is:

(i) registered with the Mediation Council of India; or

(ii) empanelled by a court-annexed mediation centre; or

(iii) empanelled by an Authority constituted under the Legal Services Authorities Act, 1987; or

(iv) empanelled by a mediation service provider recognised under the Mediation Act, 2023.

For pre-litigation mediation under clauses (ii) and (iii) of Section 5(3), a party may request a person designated for this purpose by the High Courts or an Authority constituted under the Legal Services Authorities Act, 1987, as the case may be.

Court-annexed mediation centres and Authorities constituted under the Legal Services Authorities Act, 1987 are required by the enacted provision to maintain panels of mediators for pre-litigation mediation.

Notwithstanding Sections 5(1) and 5(2) and the Motor Vehicles Act, 1988, where an application for compensation arising out of an accident is made before the Claims Tribunal and the settlement contemplated by Section 149 of the Motor Vehicles Act, 1988 is not arrived at, the Claims Tribunal shall refer the parties for mediation to a mediator or mediation service provider under the Mediation Act, 2023.

If the parties arrive at a settlement agreement in mediation under Section 5(6), the settlement agreement shall be placed before the Claims Tribunal for consideration.

If the parties do not reach a settlement agreement under Section 5(6), the mediator shall prepare a non-settlement report and forward it to the Claims Tribunal that referred the matter for mediation, after which the matter proceeds for adjudication.