Mediation Act 2023 - Section 65

Tenth Schedule of Mediation Act 2023

The Tenth Schedule, referred to in Section 65 of the Mediation Act, 2023, sets out amendments to the Consumer Protection Act, 2019 concerning reference of consumer disputes to mediation, settlement through mediation, recording of settlement and related statutory provisions.

Important update: The Mediation (Removal of Difficulties) Order, 2023, S.O. 4506(E), effective from 13 October 2023, substituted the word "may" for the words "shall either on an application by the parties" in the Tenth Schedule amendment to Section 37. Accordingly, the updated text provides that the District Commission, State Commission or National Commission, as the case may be, may at any stage of proceedings refer disputes for settlement by mediation under the Mediation Act, 2023.

Section 65 - Amendment of the Consumer Protection Act 2019

Section 65 of the Mediation Act, 2023 states that the Consumer Protection Act, 2019 shall be amended in the manner specified in the Tenth Schedule. The Schedule identifies the provisions affected by the statutory integration of consumer dispute mediation with the Mediation Act framework.

Overview of amendments in the Tenth Schedule

Consumer Protection Act provisionAmendment specified in Tenth Schedule
Section 2Clauses (25) and (26) are omitted.
Section 37Substituted by Sections 37, 37A and 37B governing reference to mediation, settlement through mediation and recording of settlement.
Section 38(1)Specified words concerning cases referred for mediation on failure of settlement are omitted.
Section 41The third proviso is omitted.
Chapter VOmitted.
Section 101(2)Clauses (r) and (zf) are omitted.
Section 102(2)Clause (p) is omitted.
Section 103(2)Clauses (c) to (h) are omitted.

Section 37 - Reference to mediation

Under the updated Tenth Schedule text, the District Commission, State Commission or National Commission, as the case may be, may at any stage of proceedings refer a dispute for settlement by mediation under the Mediation Act, 2023.

The use of "may" reflects the amendment made by S.O. 4506(E) dated 13 October 2023. The original Schedule used the expression "shall either on an application by the parties", which was replaced by the Removal of Difficulties Order.

Section 37A - Settlement through mediation

Written and signed settlement

If mediation results in agreement on all or only some issues in a consumer dispute, the agreed terms are to be reduced to writing and signed by the parties or their authorised representatives.

Settlement report by mediator

The mediator is required to prepare a settlement report and forward the signed agreement together with the report to the concerned Consumer Commission.

Where settlement is not reached

If no agreement is reached within the specified time, or if the mediator considers that settlement is not possible, the mediator is to prepare a report accordingly and submit it to the concerned Commission.

Section 37B - Recording settlement and passing of order

Full settlement

The District Commission, State Commission or National Commission, as applicable, is required within seven days of receipt of the settlement report to pass a suitable order recording the settlement and dispose of the matter accordingly.

Partial settlement

If only some issues are settled, the Commission records the settlement of those issues and continues to hear the remaining issues in the consumer dispute.

No settlement

If mediation does not settle the dispute, the Commission continues to hear all issues involved in the consumer dispute.

Other amendments to the Consumer Protection Act 2019

Clause (a): In Section 2, clauses (25) and (26) are omitted.

Clause (c): In Section 38(1), the words "or in respect of cases referred for mediation on failure of settlement by mediation," are omitted.

Clause (d): In Section 41, the third proviso is omitted.

Clause (e): Chapter V is omitted.

Clause (f): In Section 101(2), clauses (r) and (zf) are omitted.

Clause (g): In Section 102(2), clause (p) is omitted.

Clause (h): In Section 103(2), clauses (c) to (h) are omitted.

Legal significance of the Tenth Schedule

The Schedule is designed to connect consumer dispute mediation with the framework of the Mediation Act, 2023 rather than maintain a separate mediation chapter and associated rule-making provisions within the Consumer Protection Act. The substituted provisions address referral, the mediator's report, full or partial settlement, and continuation of proceedings where mediation does not resolve the dispute.

Current statutory text and commencement should be checked

The Mediation Act permits different provisions to be brought into force on different dates. For a live proceeding, the applicable commencement notification and the current consolidated text of the Mediation Act, the Tenth Schedule and the Consumer Protection Act should therefore be checked before relying on a provision.

The Tenth Schedule text reproduced and explained on this page incorporates the textual change made by the Mediation (Removal of Difficulties) Order, 2023 to the proposed amendment of Section 37.