Mediation Agreement (India)
MEDIATION AGREEMENT
Mediation Act 2023 (Act No. 32 of 2023) | Indian Contract Act 1872
This Mediation Agreement ("Agreement") is entered into on [Agreement Date] between:
(1) [Party 1 Name] (PAN: [Party 1 PAN]), registered at [Party 1 Address] ("Party 1"); and
(2) [Party 2 Name] (PAN: [Party 2 PAN]), registered at [Party 2 Address] ("Party 2").
Party 1 and Party 2 are collectively referred to as the "Parties".
1. AGREEMENT TO MEDIATE
1.1 The Parties agree to submit the following dispute to mediation in accordance with the Mediation Act 2023: [Dispute Description].
1.2 This Agreement is entered into pursuant to the Mediation Act 2023 (Act No. 32 of 2023). The Parties acknowledge that mediation is a voluntary, party-driven process and that the mediator will facilitate settlement but will not impose a decision on the Parties.
1.3 The Parties further acknowledge that a settlement reached in mediation will be recorded in a Mediation Settlement Agreement (MSA) which, under Section 27 of the Mediation Act 2023, shall be final, binding, and enforceable in the same manner as a decree of a civil court under the Code of Civil Procedure 1908.
2. MEDIATOR AND INSTITUTION
2.1 The mediation shall be administered by: [Mediation Institution].
2.2 The mediator shall be: [Mediator Name]. Where no mediator has been pre-agreed, the Parties shall jointly appoint an MCI-registered mediator within 14 days of the date of this Agreement. Failing agreement, the mediator shall be appointed by the designated institution or by the court under Section 8 of the Mediation Act 2023.
2.3 The mediator must be registered with the Mediation Council of India (MCI) established under the Mediation Act 2023.
3. MEDIATION PROCESS
3.1 Venue: The mediation shall be conducted at [Mediation Venue], India, or at such other venue as the Parties and mediator may agree, including virtual mediation by video conference.
3.2 Time limit: The mediation shall be completed within [Mediation Timelimit]. If the Parties cannot reach a settlement within this period, either Party may withdraw from mediation and pursue other dispute resolution mechanisms.
3.3 Representation: Each Party may be represented at mediation by its authorised representatives, with or without legal counsel. Each Party's representative must have authority to settle the dispute on behalf of the Party.
3.4 Mediator's role: The mediator shall facilitate communication and negotiation between the Parties. The mediator shall not provide legal advice, determine liability, or impose a settlement. Either Party may request a private session (caucus) with the mediator.
4. CONFIDENTIALITY
4.1 All information, documents, statements, and settlement proposals disclosed or exchanged in the course of mediation are confidential and shall not be disclosed to any third party or used in any subsequent legal proceedings, except: (a) with the written consent of all Parties; (b) where disclosure is required by law or court order; or (c) to the extent necessary to enforce an MSA.
4.2 The Parties shall procure that their legal advisers and other representatives comply with the same confidentiality obligations. This obligation shall survive conclusion of the mediation.
4.3 The mediator shall not be compelled to disclose any information received during mediation or to testify in any subsequent legal or arbitral proceedings regarding the mediation.
5. MEDIATION SETTLEMENT AGREEMENT
5.1 If the Parties reach a settlement, the terms shall be recorded in a Mediation Settlement Agreement (MSA) signed by both Parties and authenticated by the mediator.
5.2 The MSA shall be final, binding, and enforceable as a decree of a court under Section 27 of the Mediation Act 2023. Either Party may apply to a court for enforcement of the MSA in the same manner as a consent decree.
5.3 If the Parties do not reach a settlement, the mediator shall issue a notice of non-settlement. The Parties' right to proceed to arbitration or litigation shall be unaffected.
6. COSTS
6.1 Mediation costs (institution fees and mediator fees) shall be shared: [Cost Sharing].
6.2 Each Party shall bear its own legal costs unless the Parties agree otherwise in the MSA.
7. GOVERNING LAW
7.1 This Agreement is governed by the Mediation Act 2023 and the laws of India. The courts of [Governing State] shall have jurisdiction over any dispute arising from this Agreement.
Party 1
________________
Signature
Party 2
________________
Signature
What Is a Mediation Agreement (India)?
A Mediation Agreement in India documents how the parties have resolved their differences and the obligations each takes on under the settlement.
Under the Mediation Act 2023, a settlement reached through mediation is recorded in a Mediation Settlement Agreement (MSA), which is final, binding, and enforceable in the same manner as a court decree under Section 27 of the Act. This makes the MSA a powerful dispute resolution outcome, comparable in enforceability to an arbitral award.
Mediation is a party-driven process: unlike arbitration or litigation, the parties control the outcome. The mediator does not impose a decision but supports communication, identifies common ground, and assists the parties in finding a solution that meets their underlying interests. This makes mediation particularly valuable for disputes between parties who have ongoing business relationships and wish to preserve them.
The Mediation Act 2023 applies to both pre-dispute mediation agreements (incorporated into commercial contracts as a dispute resolution mechanism before any dispute arises) and post-dispute submission agreements (where parties who already have a dispute agree to try mediation before proceeding to arbitration or litigation). This template covers both scenarios.
The legal framework governing the Mediation Agreement (India) in India draws on several key statutes and regulatory bodies. Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). The Industrial Disputes Act 1947 and state labour commissioners govern employment disputes. The Information Technology Act 2000 and IT (Reasonable Security Practices) Rules 2011 protect personal data. The Income Tax Act 1961 and Goods and Services Tax Act 2017 govern tax obligations through the Central Board of Direct Taxes (CBDT) and GST Council. Parties executing a Mediation Agreement (India) in India should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Arbitration and Conciliation Act, 1996 sets the foundational requirements.
When Do You Need a Mediation Agreement (India)?
You need a Mediation Agreement when you wish to establish mediation as the first step in your dispute resolution process — before resorting to arbitration or litigation. Mediation is particularly appropriate for commercial disputes where the parties have an ongoing relationship they wish to preserve.
You need this agreement when incorporating a multi-tiered dispute resolution clause into a commercial contract, where disputes must first be submitted to negotiation, then to mediation under the Mediation Act 2023, and only then to arbitration or litigation if mediation fails.
You need this agreement when a dispute has already arisen between commercial parties and both parties agree that mediation is a faster, more cost-effective, and relationship-preserving alternative to arbitration or court litigation.
You need this agreement in supplier-buyer disputes, joint venture disagreements, franchise conflicts, or partnership disputes where the parties' ongoing commercial relationship makes an adversarial court or arbitration process undesirable.
You also need this agreement to benefit from the Mediation Act 2023's enforcement mechanism: a settlement reached under the Act is enforceable as a court decree, making it significantly more powerful than a contractual settlement agreement that would require separate enforcement proceedings.
Parties in India should prepare a Mediation Agreement (India) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). The Industrial Disputes Act 1947 and state labour commissioners govern employment disputes. The Information Technology Act 2000 and IT (Reasonable Security Practices) Rules 2011 protect personal data. The Income Tax Act 1961 and Goods and Services Tax Act 2017 govern tax obligations through the Central Board of Direct Taxes (CBDT) and GST Council. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Mediation Agreement (India)
A thorough India Mediation Agreement under the Mediation Act 2023 should contain the following key elements.
Parties: Full legal names, addresses, and PAN of all parties to the dispute.
Dispute description: A clear description of the dispute or category of disputes submitted to mediation.
Mediator appointment: The agreed mediator (if pre-selected), or the procedure for appointing a mediator — including whether the mediator must be registered with the Mediation Council of India (MCI) under the Act. For institutional mediation, the institution's appointment procedure applies.
Mediation institution: Whether the mediation will be ad hoc or administered by a mediation institution such as the Delhi Mediation Centre, Mumbai Mediation Centre, ICADR, or an international institution.
Time limit: The period within which mediation must be completed (default 180 days under the Act, extendable by 180 days).
Confidentiality: A binding obligation on all participants to maintain the confidentiality of the mediation process, submissions, and settlement discussions — aligned with the Act's confidentiality provisions.
Mediator's role: Clarification that the mediator supports settlement and does not decide the dispute or provide legal advice.
Costs: The basis for sharing mediation costs (typically equally between the parties) and mediator fees.
MSA enforcement: Acknowledgement that a settlement reached in mediation will be recorded in an MSA enforceable as a court decree under Section 27 of the Mediation Act 2023.
Relationship to other proceedings: Whether mediation is a condition precedent to arbitration or litigation, and what happens if mediation fails.
Governing law: Laws of India.
Additional compliance elements for a Mediation Agreement (India) used in India include: Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). The Industrial Disputes Act 1947 and state labour commissioners govern employment disputes. The Information Technology Act 2000 and IT (Reasonable Security Practices) Rules 2011 protect personal data. The Income Tax Act 1961 and Goods and Services Tax Act 2017 govern tax obligations through the Central Board of Direct Taxes (CBDT) and GST Council. Forms-legal.com provides this template as a starting point for India-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Mediation Agreement (India) (India) [Legal document template]. Forms Legal. https://forms-legal.com/india/business/contracts/mediation-agreement-india
"Mediation Agreement (India) (India)." Forms Legal, 2026, https://forms-legal.com/india/business/contracts/mediation-agreement-india.
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title = {Mediation Agreement (India) (India)},
year = {2026},
howpublished = {\url{https://forms-legal.com/india/business/contracts/mediation-agreement-india}},
note = {Free legal document template. Based on Arbitration and Conciliation Act, 1996}
}Also available for these jurisdictions:
Frequently Asked Questions
The Mediation Act 2023 (Act No. 32 of 2023) was enacted by the Parliament of India and received Presidential assent on 14 September 2023. It is the first standalone legislation in India specifically governing mediation, and represents a significant development in India's alternative dispute resolution (ADR) framework. Prior to the Act, mediation in India was governed by a patchwork of provisions in the Code of Civil Procedure 1908 (Section 89), the Arbitration and Conciliation Act 1996 (Part III on conciliation), and court-annexed mediation schemes. Key features of the Mediation Act 2023:
Scope: The Act applies to mediations conducted in India where the mediation agreement provides for mediation under the Act, where the parties are Indian nationals/entities, or — for international commercial mediations — where at least one party is a foreign national or entity and the parties agree to be governed by the Act. Pre-litigation mediation: The Act provides for pre-litigation mediation — parties to a commercial dispute may refer the dispute to mediation before filing suit, and courts may refer disputes to mediation at any stage. Mediator qualifications: The Act requires mediators to be registered with the Mediation Council of India (MCI), established under the Act. Only MCI-registered mediators may conduct mediation under the Act. Mediation Settlement Agreement (MSA): A settlement agreement reached through mediation under the Act is called a Mediation Settlement Agreement (MSA).
Mediation and arbitration are both forms of alternative dispute resolution (ADR) in India, but they differ fundamentally in process, outcome, and the role of the neutral third party. Arbitration (governed by the Arbitration and Conciliation Act 1996) is an adjudicatory process in which the parties submit their dispute to an arbitral tribunal, which hears the parties' arguments and evidence and issues a binding award. The arbitral award is final and binding on the parties and is enforceable as a decree of a court. The arbitrators decide the dispute; the parties do not have control over the outcome. Arbitration is adversarial in nature and resembles litigation in structure, though it is more flexible and confidential. Mediation (now governed by the Mediation Act 2023) is a facilitative process in which a neutral mediator assists the parties in reaching a mutually acceptable settlement. The mediator does not decide the dispute — they facilitate negotiation and help the parties find common ground. A settlement reached in mediation is recorded in a Mediation Settlement Agreement (MSA), which under the Mediation Act 2023 is final, binding, and enforceable as a court decree. If mediation fails, the parties retain their right to proceed to arbitration or litigation. Key differences in practice: (a) Control — parties control the outcome in mediation; the arbitrator controls it in arbitration. (b) Outcome — mediation results in a negotiated settlement (if successful) or no resolution (if not); arbitration always results in a binding decision.
Yes, a Mediation Settlement Agreement (MSA) reached under the Mediation Act 2023 is enforceable in India as a decree of a civil court. Section 27 of the Mediation Act 2023 provides that an MSA is final and binding on the parties and is enforceable in accordance with the provisions of the Code of Civil Procedure 1908 (in the same manner as if it were a decree passed by a court). This is a significant improvement over the previous position in India, where mediated settlement agreements were contractual documents enforceable as contracts (through fresh litigation) rather than as court decrees. For international enforcement, India signed the United Nations Convention on International Settlement Agreements Resulting from Mediation (the 'Singapore Convention on Mediation') in August 2019. The Singapore Convention provides a framework for the cross-border enforcement of mediated settlement agreements, similar to the New York Convention for arbitral awards. However, as of the time of writing, India has not yet ratified the Singapore Convention and the Mediation Act 2023 does not yet provide a ratification framework. Parties should check the current status of India's ratification. Pending ratification of the Singapore Convention, international MSAs involving Indian parties are enforceable: (a) in India as decrees under the Mediation Act 2023; and (b) in foreign jurisdictions as contracts (enforceable through local contract law), or — depending on the jurisdiction — under bilateral treaty arrangements.
A Mediation Agreement (India) does not legally require a lawyer in India, and individuals and businesses may draft and execute the document independently. The Arbitration and Conciliation Act, 1996 does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified India lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The Supreme Court of India has jurisdiction over disputes arising from this type of document, and Registrar of Companies (ROC) may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.
A Mediation Agreement (India) does not legally require a lawyer in India, though legal advice is recommended. Under Indian law, the Indian Contract Act 1872 governs agreements. The Companies Act 2013 and Registrar of Companies (ROC) regulate corporate documents. The Information Technology Act 2000 governs electronic contracts and data protection. The Consumer Protection Act 2019 provides consumer rights. The Income Tax Act 1961 requires tax compliance. Forms-legal.com provides this template as a starting point — always review with a qualified Indian advocate for significant transactions. Under India law, Arbitration and Conciliation Act, 1996, parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). Forms-legal.com provides this template as a starting point for India-compliant documentation.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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