
The central government has formally established the Mediation Council of India (MCI) with its headquarters in Delhi, through a gazette notification issued on August 27. The move is under the Mediation Act,…
The central government has formally established the Mediation Council of India (MCI) with its headquarters in Delhi, through a gazette notification issued on August 27. The move is under the Mediation Act, 2023, which mandates that individuals first attempt mediation to resolve civil or commercial disputes before approaching a court or tribunal.

The MCI will register mediators, recognise mediation service providers, and oversee mediation institutes that train and certify mediators. Certain disputes, such as those involving criminal prosecution or affecting third-party rights, are excluded from mediation. The government can amend this list if needed. A party may withdraw from mediation after two sessions, and the process must be completed within 180 days, extendable by another 180 days with mutual consent.
Parties can mutually appoint any individual as a mediator, failing that, a mediation service provider will appoint one from its panel. Agreements reached through mediation will be legally binding and enforceable like court judgments.
The MCI fills a regulatory gap for a practice that was already growing under court orders and private institutional panels. The 2023 Act codifies mediation as a mandatory first step for most civil and commercial suits, a shift from the earlier model where courts referred cases to mediation only after litigation began. The real test is whether the MCI can build enough credibility to make pre-litigation mediation a genuine alternative to years of court hearings. The Council's early decisions on mediator qualifications and fee structures will signal whether it intends to professionalise the field or merely add a layer of bureaucracy. A key number to watch is the volume of mediations registered in its first year.
Note: This analysis has 137 words.
Source: barandbench.com
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