What Has the Central Government Notified?
On 27 August 2026, the Central Government exercised its powers under Section 31(1) of the Mediation Act, 2023 to formally establish a statutory body called the Mediation Council of India. According to Notification S.O. 4781(E), issued by the Ministry of Law and Justice, the Council has been established for the purposes of the Mediation Act, 2023 and will have its head office in Delhi. While the notification itself is concise, the establishment of the Council is significant because the Mediation Act envisages it as an important institutional component of India’s mediation framework.
Why Is the Mediation Council of India Important?
The Mediation Act, 2023 was introduced to promote and facilitate mediation, with particular emphasis on institutional mediation, for the resolution of disputes. The legislation provides a statutory framework covering domestic mediation, certain forms of international mediation, enforcement of mediated settlement agreements, online mediation and community mediation. The Mediation Council of India forms part of this broader framework. Under the Act, the Council is expected to perform regulatory and developmental functions intended to create greater consistency, credibility and institutional capacity within India’s mediation ecosystem. Its establishment therefore moves the statutory mediation framework from legislation towards institutional implementation.
Key Functions Envisaged for the Council
The Mediation Act provides the Council with several important functions connected with the development and regulation of mediation in India. These include promoting domestic and international mediation in India, developing appropriate guidelines relating to mediation, and supporting the growth of mediation as a professional dispute-resolution mechanism. The statutory framework also gives the Council an important role in relation to the registration of mediators and recognition of mediation service providers and mediation institutes. This institutional structure could help establish clearer standards across the mediation ecosystem while supporting training, accreditation and professional development.
Strengthening Institutional Mediation in India
One of the important objectives behind the Mediation Act, 2023 is the promotion of institutional mediation. Institutional mediation generally provides parties with an organised framework for conducting the mediation process rather than leaving every administrative aspect to the disputing parties themselves. A stronger institutional ecosystem can assist with matters such as mediator selection, procedural administration, professional standards and management of the mediation process. The establishment of the Mediation Council of India therefore has significance beyond the creation of another statutory body. It represents an effort to build the institutional infrastructure necessary for mediation to develop as a dependable component of India’s dispute-resolution system.
Mediation as an Alternative to Prolonged Litigation
Mediation differs fundamentally from adjudicatory dispute-resolution mechanisms. Rather than having a court or arbitral tribunal impose a determination upon the parties, mediation enables the parties to explore a mutually acceptable resolution with the assistance of a neutral mediator. This can be particularly valuable in disputes where preserving commercial, contractual or continuing relationships is important. A structured mediation framework may also encourage parties to examine settlement possibilities at an earlier stage instead of allowing disputes to develop into prolonged adversarial proceedings. The establishment of a national statutory council provides additional institutional support for this approach.
Mediated Settlement Agreements
Another important feature of India’s statutory mediation framework concerns mediated settlement agreements. Where mediation results in a settlement satisfying the requirements of the Mediation Act, the legislation provides a framework for such agreements to have binding and enforceable legal effect. This is important for commercial confidence. Parties considering mediation need assurance that a settlement reached through the process is not merely an informal understanding but can have meaningful legal consequences. A stronger institutional framework can therefore contribute to greater confidence in mediation as a serious dispute-resolution mechanism.
Role of Mediation Service Providers
The Mediation Act also recognises the importance of mediation service providers. Such institutions can support the administration of mediation proceedings, maintain panels of mediators and facilitate the appointment of mediators where required. The Mediation Council of India’s role in recognising mediation service providers is consequently important for the development of institutional mediation. Over time, greater institutional participation could contribute to more standardised processes and stronger professional practices across the sector.
Online Mediation and Technology-Enabled Dispute Resolution
The Mediation Act also recognises online mediation, reflecting the increasing role of technology in dispute resolution. Technology-enabled mediation can make participation easier where parties are located in different cities or states and may reduce some of the logistical challenges associated with physical proceedings. For a country of India’s geographic scale, the combination of institutional mediation and technology-enabled dispute resolution has significant potential. However, accessibility must be accompanied by appropriate safeguards relating to confidentiality, consent, identity verification and the integrity of proceedings. A developing institutional framework will therefore have an important role in supporting both accessibility and procedural confidence.
What Does This Development Mean for India’s ADR Ecosystem?
India’s alternative dispute resolution framework has traditionally been strongly associated with arbitration. The Mediation Act, 2023 created a dedicated statutory framework for mediation, and the establishment of the Mediation Council of India represents another important step in giving that framework institutional form. The development could contribute to:
Greater recognition of mediation as an independent dispute-resolution mechanism;
Development of professional and institutional standards;
Increased confidence in institutional mediation;
Stronger systems for mediator registration and professional development;
Recognition and oversight of mediation service providers;
Greater adoption of technology-enabled and online mediation; and
Increased awareness of consensual dispute resolution among businesses and individuals.
The practical impact will, however, depend on how the Council’s statutory functions are operationalised and how the broader framework under the Mediation Act develops.
A Broader Shift Towards Consensual Dispute Resolution
The establishment of the Council also reflects a broader policy direction towards strengthening mechanisms that allow disputes to be resolved efficiently and consensually. Litigation and arbitration remain essential mechanisms where adjudication is required. Mediation serves a different purpose: enabling parties themselves to participate directly in finding a workable resolution. A mature dispute-resolution ecosystem does not depend upon a single mechanism. Instead, arbitration, mediation, conciliation, litigation and technology-enabled dispute-resolution processes can each serve different categories and stages of disputes. Building institutional capacity for mediation therefore adds another important component to India’s overall justice and dispute-resolution framework.
What Happens Next?
The formal establishment of the Mediation Council of India is an important milestone, but its practical significance will become clearer as the institutional framework develops. Stakeholders will be watching how the Council exercises its statutory responsibilities, develops standards and guidelines, interacts with mediation service providers and supports the professionalisation of mediation practice. For businesses, financial institutions, professionals and parties involved in commercial relationships, these developments are worth following closely. As India’s mediation framework continues to evolve, greater institutionalisation could make mediation an increasingly important part of dispute-management strategies.
Conclusion
The Central Government’s establishment of the Mediation Council of India under Section 31(1) of the Mediation Act, 2023 represents a significant development in India’s ADR landscape. By creating the statutory institution contemplated under the Act, the Government has taken an important step towards building the infrastructure required to support institutional mediation. The next phase will be crucial. The effectiveness of the framework will ultimately depend on implementation, professional standards, institutional participation and the confidence placed in mediation by businesses, individuals and legal professionals. Nevertheless, the establishment of the Council provides a stronger institutional foundation for mediation and signals its growing importance within India’s dispute-resolution ecosystem.
Reference
Government Notification: Ministry of Law and Justice, Department of Legal Affairs, Notification S.O. 4781(E), dated 27 August 2026. Statutory Reference: Section 31(1), Mediation Act, 2023 (32 of 2023). Additional reporting: SCC Times, LiveLaw and Bar & Bench reporting on the establishment of the Mediation Council of India.
