MEDIATION ACT

Question 1

International Mediation

Answer 1

“international mediation” means mediation undertaken under this Act and relates to a commercial dispute arising out of a legal relationship, contractual or otherwise, under any law for the time being in force in India, and where at least one of the parties, is—
(i) an individual who is a national of, or habitually resides in, any country other than India; or
(ii) a body corporate including a Limited Liability Partnership of any nature, with its place of business outside India; or
(iii) an association or body of individuals whose place of business is outside India; or
(iv) the Government of a foreign country;

Question 2

Section 3(h) of the Mediation Act

Answer 2

“mediation” includes a process, whether referred to by the expression mediation, pre-litigation mediation, online mediation, community mediation, conciliation or an expression of similar import, whereby parties attempt to reach an amicable settlement of their dispute with the assistance of a third person referred to as mediator, who does not have the authority to impose a settlement upon the parties to the
dispute;

Question 3

Section 3(i) of Mediation Act

Answer 3

“mediator” means a person who is appointed to be a mediator, by the parties or by a mediation service provider, to undertake mediation, and includes a person registered as mediator with the Council.

Explanation.—Where more than one mediator is appointed for a mediation,
reference to a mediator under this Act shall be a reference to all the mediators;

Question 4

Mediation Agreement

Answer 4

(1) A mediation agreement shall be in writing, by or between parties and anyone claiming through them, to submit to mediation all or certain disputes which have arisen or which may arise between the parties.
(2) A mediation agreement may be in the form of a mediation clause in a contract or in the form of a separate agreement.
(3) A mediation agreement is in writing, if it is contained in or recorded as—
(a) any document signed by the parties;
(b) an exchange of communications or letters including through electronic form as provided under the Information Technology Act, 2000; 21 of 2000.
(c) any pleadings in a suit or any other proceedings in which existence of mediation agreement is alleged by one party and not denied by the other.
(4) A reference in any agreement containing a mediation clause shall constitute a mediation agreement if the agreement is in writing and the reference is such as to make the mediation clause as part of the agreement.
(5) The parties may agree to submit to mediation any dispute arising between them under an agreement, whether entered prior to arising of the dispute or subsequent thereto.
(6) A mediation agreement in case of international mediation shall refer to an agreement
for resolution in matters of commercial disputes referred to in clause (a) of section 3.

Question 5

Pre-Litigation Mediation

Answer 5

(1) Subject to other provisions of this Act, whether any mediation agreement exists or not, the parties before filing any suit or proceedings of civil or commercial nature in any court, may voluntarily and with mutual consent take steps to settle the disputes by pre-litigation mediation in accordance with the provisions of this Act:
Provided that pre-litigation mediation in matters of commercial disputes of Specified Value shall be undertaken in accordance with the provisions of section 12A of the Commercial Courts Act, 2015, and the rules made thereunder.

(2) The provisions of sub-section (1) shall be applicable to the tribunals notified by
the Central Government or a State Government, as the case may be.

(3) For the purposes of sub-sections (1) and (2), unless otherwise agreed upon by the
parties, a mediator,—
(i) registered with the Council; 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 this Act, shall conduct pre-litigation mediation.

(4) For conducting pre-litigation mediation under clauses (ii) and (iii) of sub-section (3), a party may request any 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.

(5) The court-annexed mediation centre and an Authority constituted under the Legal
Services Authorities Act, 1987, shall maintain a panel of mediators for the purposes of
pre-litigation mediation.

(6) Notwithstanding anything contained in sub-sections (1) and (2) and the Motor
Vehicles Act, 1988, when an application for compensation arising out of an accident is made
before the Claims Tribunal, if the settlement as provided for in section 149 of that Act is not
arrived at between the parties, the Claims Tribunal shall refer the parties for mediation to a
mediator or mediation service provider under this Act.

(7) Where the parties arrive at a settlement agreement under sub-section (6), it shall be
placed before the Claims Tribunal for its consideration.

(8) If the parties do not reach to settlement agreement under sub-section (6), a
non-settlement report prepared by the mediator shall be forwarded to the Claims Tribunal,
which has referred the matter for mediation, for adjudication.

Question 6

Disputes or Matters not fit for Litigation

Answer 6

(1) A mediation under this Act shall not be conducted for resolution of any dispute
or matter contained in the indicative list under the First Schedule:

Provided that nothing contained herein shall prevent any court, if deemed appropriate,
from referring any dispute relating to compoundable offences including the matrimonial
offences which are compoundable and pending between the parties, to mediation:

Provided further that the outcome of such mediation shall not be deemed to be a
judgment or decree of court referred to in sub-section (2) of section 27, and shall be further
considered by the court in accordance with the law for the time being in force.

(2) If the Central Government is satisfied that it is necessary or expedient so to do, it
may, by notification, amend the First Schedule.

Question 7

Power of court or tribunal to
refer parties to mediation.

Answer 7

(1) Notwithstanding the non-settlement of dispute under sub-section (1) of section 5, the court or tribunal may, at any stage of proceeding, refer the parties to undertake mediation.
(2) If the court or tribunal refers the parties to undertake mediation, it may pass suitable
interim order to protect the interest of any party if deemed appropriate.
(3) The parties shall not be under obligation to come to a settlement in the mediation
pursuant to a reference under sub-section (1).

Question 8

Appointment of mediators.

Answer 8

(1) Unless otherwise agreed upon by the parties, a person of any nationality may be
appointed as a mediator:

Provided that mediator of any foreign nationality shall possess such qualification, experience and accreditation as may be specified.

(2) The parties shall be free to agree upon the name of mediator and the procedure for
their appointment.

(3) If the parties do not reach any agreement on a matter referred to in sub-section (2),
provider for the appointment of a mediator.
then the party seeking initiation of mediation shall make an application to a mediation service

(4) Upon receiving an application under sub-section (3), the mediation service provider
shall, within a period of seven days, appoint,—

(i) the mediator as agreed by the parties; or
(ii) in case the parties are unable to reach agreement as to the appointment of
panel maintained by it, with his consent.
mediator or mediator agreed by them refuses to act as mediator, a mediator from the
(5) The person appointed under clause (i) of sub-section (4) shall communicate his
willingness or otherwise within a period of seven days from the date of receipt of
communication of such appointment.

Question 9

Conflict of interest and disclosure.

Answer 9

(1) The person appointed as a mediator shall, prior to the conduct of mediation, disclose in writing to the parties regarding any circumstance or potential circumstance, personal, professional, financial, or otherwise, that may constitute any conflict of interest or that is likely to give rise to justifiable doubts as to his independence or impartiality as a mediator.

(2) During the mediation, the mediator shall, without delay, disclose to the parties in
writing any conflict of interest, referred to in sub-section (1), that has newly arisen or has
come to his knowledge.

(3) Upon disclosure under sub-section (1) or sub-section (2), the parties shall have the option to waive any objection if all of them express in writing, which shall be construed as the
consent of parties.

(4) Upon disclosure under sub-section (1) or sub-section (2), if either party desires to
replace the mediator, then, in case of—
(i) institutional mediation, such party shall apply to the mediation service provider for termination of the mandate of mediator;

(ii) mediation other than institutional mediation, such party shall terminate the
mandate of mediator.

Question 10

Territorial jurisdiction to undertake mediation.

Answer 10

Every mediation under this Act shall be undertaken within the territorial jurisdiction
of the court or tribunal of competent jurisdiction to decide the subject matter of dispute:

Provided that on the mutual consent of the parties, mediation may be conducted at
any place outside the territorial jurisdiction of the court or tribunal, or by way of online
mediation.

Explanation.—For the removal of doubts, it is clarified that where the parties agree to
conduct the mediation at any place outside the territorial jurisdiction or online, for the
purpose of enforcement, challenge and registration of the mediated settlement agreement, the same shall be deemed to have been undertaken within the territorial jurisdiction of the court or tribunal of competent jurisdiction.

Question 11

Commencement of mediation.

Answer 11

The mediation proceedings with respect to a particular dispute shall be deemed to have commenced—

(a) where there is an existing agreement between the parties to settle the dispute through mediation, the date on which a party or parties receives notice from the party initiating the mediation, to refer such dispute to mediation; or

(b) in other cases—
(i) where the parties have agreed to appoint a mediator of their choice for provides his consent to appointment; or mediation and settlement of disputes between them on the date the mediator
(ii) where one of the parties applies to a mediation service provider for settlement of disputes through mediation, the date of appointment of a mediator.

Question 12

Conduct of mediation.

Answer 12

(1) The mediation process shall be conducted in the manner as may be specified.
(2) The mediator shall assist the parties in an independent, neutral and impartial manner in their attempt to reach an amicable settlement of their dispute.
(3) The mediator shall at all times be guided by the principles of objectivity and fairness and protect the voluntariness, confidentiality and self-determination of the parties, and the standards for professional and ethical conduct as may be specified.
(4) The mediation process may include the mediator taking such measures as may be
considered appropriate, taking into account the circumstances of the case, including meeting
both in order to convene the mediation, and during the mediation for the orderly and timely
with parties or participants, jointly or separately, as frequently as deemed fit by the mediator,
conduct of the process and to maintain its integrity.
(5) The mediator shall not be bound by the Code of Civil Procedure, 1908, or the Indian
Evidence Act, 1872.
(6) The mediator with the consent of the parties shall determine the language or
languages to be used in the mediation process.

Question 13

Role of mediator in
other proceedings.

Answer 13

The mediator shall not—
(a) act as an arbitrator or as a representative or counsel of a party in any arbitral
proceedings;
or judicial proceeding in respect of a dispute that is the subject matter of the mediation
(b) be presented by the parties as a witness in any arbitral or judicial proceeding.

Question 14

Time limit for completion of mediation.

Answer 14

(1) Notwithstanding anything contained in any other law for the time being in force, mediation under this Act shall be completed within a period of one hundred and twenty days from the date fixed for the first appearance before the mediator.

(2) The period for mediation mentioned under sub-section (1) may be extended for a
further period as agreed by the parties, but not exceeding sixty days.

Question 15

Mediated settlement agreement.

Answer 15

(1) A mediated settlement agreement includes an agreement in writing between some or all of the parties resulting from mediation, settling some or all of the disputes between such parties, and authenticated by the mediator:
Provided that the terms of the mediated settlement agreement may extend beyond the
disputes referred to mediation.

Explanation.—A mediated settlement agreement which is void under the Indian Contract Act, 1872, shall not be deemed to be lawful settlement agreement within the meaning of mediated settlement agreement.

(2) Where a mediated settlement agreement is reached between the parties with regard
parties to all or some of the disputes, the same shall be reduced in to writing and signed by the parties.

(3) Subject to the provisions of section 26, the mediated settlement agreement signed,—
(i) in case of institutional mediation, shall be submitted to the mediator, who shall, after authenticating the same, forward it with a covering letter signed by him, to the mediation service provider and also provide a copy to the parties;
(ii) in all other cases, shall be submitted to the mediator who shall, after authenticating the mediated settlement agreement, provide a copy to all the parties.
(4) The parties, may, at any time during the mediation process, make an agreement with
respect to any of the disputes which is the subject matter of mediation.
(5) Any mediated settlement agreement under this section includes a settlement
agreement resulting from online mediation.

Question 16

Registration of mediated
settlement agreement.

Answer 16

(1) For the purposes of record, mediated settlement agreement arrived at between
the parties, other than those arrived in a court or tribunal referred mediation or award of Lok
Adalat or final award of the Permanent Lok Adalat under section 21 or section 22E of the Legal Services Authorities Act, 1987, may, at the option of parties, be registered with an Authority constituted under the said Act, or any other body as may be notified by the Central Government, in such manner as may be specified and such Authority or body shall issue a unique registration number to such settlement agreements:

Provided that the mediated settlement agreement under this section may be registered with such Authority or the body situated within the territorial jurisdiction of the court or tribunal of competent jurisdiction to decide the subject matter of dispute.

Explanation.—For the removal of doubts, it is clarified that nothing contained in this
sub-section shall affect the rights of parties to enforce the mediated settlement agreement
under section 27 or challenge the same under section 28.

(2) The registration referred to in sub-section (1) may be made by the parties or mediation service provider within a period of one hundred and eighty days from the date of receipt of authenticated copy of mediated settlement agreement:

Provided that mediated settlement agreement may be allowed to be registered after the
expiry of period of one hundred and eighty days on payment of such fee as may be specified
in consultation with the Authority or any other body referred to in sub-section (1).

Question 17

Non- settlement report.

Answer 17

Subject to the provisions of section 26, where no agreement is arrived at between the parties, within the time period as provided under section 18, or where, the mediator is of the view that no settlement is possible, he shall,—

(i) in the case of institutional mediation, submit a non-settlement report to the mediation service provider in writing;
(ii) in all other cases, prepare a non-settlement report and provide a signed copy to all the parties:

Provided that the report referred to in this section shall not disclose the cause of non- settlement, or any other matter or thing referring to their conduct, during mediation.

Question 18

Confidentiality.

Answer 18

(1) Subject to the other provisions of this Act, the mediator, mediation service provider, the parties and participants in the mediation shall keep confidential all the following matters relating to the mediation proceedings, namely:—

(i) acknowledgements, opinions, suggestions, promises, proposals, apologies and admissions made during the mediation;
(ii) acceptance of, or willingness to, accept proposals made or exchanged in the
mediation;
(iii) documents prepared solely for the conduct of mediation or in relation thereto;
(iv) any other mediation communication.

(2) No audio or video recording of the mediation proceedings shall be made or maintained
by the parties or the participants including the mediator and mediation service provider,
whether conducted in person or online to ensure confidentiality of the conduct of mediation
proceedings.

(3) No party to the mediation shall in any proceeding before a court or tribunal including
arbitral tribunal, rely on or introduce as evidence any information or communication set forth
in clauses (i) to (iv) of sub-section (1), including any information in electronic form, or verbal
communication and the court or tribunal including arbitral tribunal shall not take cognizance
of such information or evidence.

(4) The provisions of this section shall not prevent the mediator from compiling or disclosing general information concerning matters that have been subject of mediation, for research, reporting or training purposes, if the information does not
expressly or indirectly identify a party or participants or the specific disputes in the
mediation.

Explanation.—For the removal of doubts, it is hereby clarified that nothing contained in this section shall apply to the mediated settlement agreement where its disclosure is necessary for the purpose of registration, enforcement and challenge.

Question 19

Admissibility and privilege
against disclosure.

Answer 19

(1) No mediator or participant in the mediation, including experts and advisers engaged for the purpose of the mediation and persons involved in the administration of the mediation, shall at any time be permitted, or compelled to disclose to any court or tribunal, or in any adjudicatory proceedings, by whatever description, any communication in mediation, or to state the contents or conditions of any document or nature or conduct of parties during mediation including the content of negotiations or offers or counter offers with which they have become acquainted during the mediation:

Provided that nothing in this section and section 22 shall protect from disclosure, information sought or provided to prove or dispute a claim or complaint of professional misconduct of mediator or malpractice based on conduct occurring during the mediation.

(2) There shall be no privilege or confidentiality that will attach to—
(a) a threat or statement of a plan to commit an offence punishable under any law for the time being in force;
(b) information relating to domestic violence or child abuse; and
(c) statements made during a mediation showing a significant imminent threat to
public health or safety.

Question 20

Termination of mediation.

Answer 20

The mediation proceedings under this Act shall be deemed to terminate—
(a) on the date of signing and authentication of the mediated settlement agreement; or
(b) on the date of the written declaration of the mediator, after consultation with the parties or otherwise, to the effect that further efforts at mediation are no longer justified; or
(c) on the date of the communication by a party or parties in writing, addressed to the mediator and the other parties to the effect that the party wishes to opt out of mediation;
(d) on the expiry of time limit under section 18.

Question 21

Enforcement of mediated
settlement agreement.

Answer 21

(1) A mediated settlement agreement resulting from a mediation signed by the parties and authenticated by the mediator shall be final and binding on the parties and persons claiming under them respectively and enforceable as per the provisions of sub-section (2).

(2) Subject to the provisions of section 28, the mediated settlement agreement shall be
enforced in accordance with the provisions of the Code of Civil Procedure, 1908, in the same manner as if it were a judgment or decree passed by a court, and may, accordingly, be relied
on by any of the parties or persons claiming through them, by way of defence, set off or
otherwise in any legal proceeding.

Question 22

ONLINE MEDIATION

Answer 22

(1) Online mediation including pre-litigation mediation may be conducted at any stage of mediation under this Act, with the written consent of the parties including by the use of electronic form or computer networks but not limited to an encrypted electronic mail service, secure chat rooms or conferencing by video or audio mode or both.

(2) The process of online mediation shall be in such manner as may be specified.

(3) The conduct of online mediation shall be in the circumstances, which ensure that the essential elements of integrity of proceedings and confidentiality are maintained at all times and the mediator may take such appropriate steps in this regard as he deems fit.

(4) Subject to the other provisions of this Act, the mediation communications in the
case of online mediation shall, ensure confidentiality of mediation.

Question 23

Establishment and incorporation
of Mediation Council.

Answer 23

(1) The Central Government shall, by notification, establish for the purposes of this Act, a Council to be known as the Mediation Council of India to perform the duties and discharge the functions under this Act.
(2) The Council shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to enter into contract, and shall, by the said name, sue or be sued.
(3) The head office of the Council shall be at Delhi or at such other place as may be notified by the Central Government.
(4) The Council may, in consultation with the Central Government, establish offices at
other places in India and abroad.

Question 24

Composition of Council.

Answer 24

(1) The Council shall consist of the following members, namely:—
(a) a person of ability, integrity and standing having adequate knowledge and professional experience or shown capacity in dealing with problems relating to law, alternative dispute resolution preferably mediation, public affairs or administration to be appointed by the Central Government—Chairperson;

(b) a person having knowledge and experience in law related to mediation or alternative dispute resolution mechanisms, to be appointed by the Central Government—Member;

(c) an eminent person having experience in research or teaching in the field of mediation and alternative dispute resolution laws, to be appointed by the Central Government—Member;

(d) Secretary to the Government of India in the Department of Legal Affairs, Ministry of Law and Justice or his representative not below the rank of Joint Secretary—
Member, ex officio;

(e) Secretary to the Government of India in the Department of Expenditure, Ministry of Finance or his representative not below the rank of Joint Secretary— Member, ex officio;

(f) Chief Executive Officer—Member-Secretary, ex officio; and
(g) one representative of a recognised body of commerce and industry, chosen by the Central Government—Part-Time Member.

(2) The Members of the Council, other than ex officio members, shall hold office as such, for a term of four years from the date on which they enter upon their office and shall be eligible for re-appointment:

Provided that no Member other than ex officio Member shall hold office after he has
attained the age of seventy years, in the case of Chairperson, and sixty-seven years, in the
case of other Members:

Provided further that if the Chairperson is appointed on Part-Time basis, then, at least
one of the Members appointed under clauses (b) or (c) shall be a Full-Time Member.

(3) The salaries, allowances and other terms and conditions of Members other than
ex officio Members shall be such as may be prescribed.

(4) The Member shall be entitled to such travelling and other allowances as may be
prescribed.

Question 25

Removal.

Answer 25

The Central Government may, remove any Member from his office, if he—

(a) is an undischarged insolvent; or
(b) has engaged at any time, during his term of office, in any paid employment without the permission of the Central Government; or

(c) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or

(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a Member; or

(e) has so abused his position as to render his continuance in office prejudicial to the public interest; or

(f) has become physically or mentally incapable of acting as a Member:

Provided that where a Member is proposed to be removed on any ground, he shall be informed of charges against him and given an opportunity of being heard in respect of those charges.

Question 26

Duties and functions of Council.

Answer 26

The Council shall—
(a) endeavour to promote domestic and international mediation in India through
appropriate guidelines;
(b) endeavour to develop India to be a robust centre for domestic and international mediation;
(c) lay down the guidelines for the continuous education, certification and assessment of mediators by the recognised mediation institutes;
(d) provide for the manner of conduct of mediation proceedings, under sub-section (1) of section 15;
(e) provide for manner of registration of mediators and renew, withdraw, suspend or cancel registration on the basis of conditions as may be specified;
(f) lay down standards for professional and ethical conduct of mediators under sub-section (3) of section 15;
(g) hold trainings, workshops and courses in the area of mediation in collaboration with mediation service providers, law firms and universities and other stakeholders, both Indian and international, and any other mediation institutes;
(h) enter into memoranda of understanding or agreements with domestic and international bodies or organisations or institutions;
(i) recognise mediation institutes and mediation service providers and renew, withdraw, suspend or cancel such recognition;
(j) specify the criteria for recognition of mediation institutes and mediation service providers;
(k) call for any information or record of mediation institutes and mediation service providers;
(l) lay down standards for professional and ethical conduct of the mediation institutes and mediation service providers;
(m) publish such information, data, research studies and such other information as may be required;
(n) maintain an electronic depository of the mediated settlement agreements made in India and for such other records related thereto in such manner as may be specified; and
(o) perform any other function as may be assigned to it by the Central Government.

Question 27

Monitoring and reporting.

Answer 27

(1) The Council shall, as soon as practicable after the end of each year or at such other intervals as directed by the Central Government, prepare a report on the implementation of the provisions of this Act during the year or such interval and forward a copy thereof to the Central Government
.
(2) The Central Government may take such additional measures as it deems necessary
to supplement the functioning of the Council and for the effective implementation of the
provisions of the Act.

Question 28

Mediation service provider.

Answer 28

(1) “mediation service provider” includes—
(a) a body or an organisation that provides for the conduct of mediation under this Act and the rules and regulations made thereunder and is recognised by the Council; or

(b) an Authority constituted under the Legal Services Authorities Act, 1987; or

(c) a court-annexed mediation centre; or
(d) any other body as may be notified by the Central Government:

Provided that the bodies referred to in clauses (b), (c) and (d) shall be deemed to be mediation service providers recognised by the Council.

(2) The mediation service provider shall be recognised by the Council in the manner as
may be specified.

Question 29

Functions of mediation service providers.

Answer 29

The mediation service providers shall perform the following functions, namely:—
(a) accredit mediators and maintain panel of mediators;
(b) provide the services of mediator for conduct of mediation;
(c) provide all facilities, secretarial assistance and infrastructure for the efficient conduct of mediation;
(d) promote professional and ethical conduct amongst mediators;
(e) facilitate registration of mediated settlement agreements in accordance with the provisions of section 20; and
(f) such other functions as may be specified.

Question 30

Community mediation.

Answer 30

(1) Any dispute likely to affect peace, harmony and tranquillity amongst the residents or families of any area or locality may be settled through community mediation with prior mutual consent of the parties to the dispute.

(2) For the purposes of sub-section (1), any of the parties shall make an application before the concerned Authority constituted under the Legal Services Authorities Act, 1987 or District Magistrate or Sub-Divisional Magistrate in areas where no such Authority has been constituted, for referring the dispute to mediation.

(3) In order to facilitate settlement of a dispute for which an application has been received under sub-section (2), the concerned Authority constituted under the Legal Services Authorities Act, 1987 or the District Magistrate or Sub-Divisional Magistrate, as the case may be, shall constitute panel of three community mediators.

(4) For the purposes of this section, the Authority or District Magistrate or the Sub-Divisional Magistrate, as the case may be, shall notify a permanent panel of community mediators, which may be revised from time to time.

(5) The following persons may be included in the panel referred to in sub-section (4)—
(a) person of standing and integrity who are respectable in the community;
(b) any local person whose contribution to the society has been recognised;
(c) representative of area or resident welfare associations;
(d) person having experience in the field of mediation; and
(e) any other person deemed appropriate.

(6) While making panel referred to in sub-section (4) the representation of women or
any other class or category of persons may be considered.

Question 31

Procedure for community mediation.

Answer 31

(1) Any community mediation shall be conducted by the panel of three community mediators referred to in sub-section (3) of section 43 who shall devise suitable procedure for the purpose of resolving the dispute.

(2) The community mediators shall endeavour to resolve disputes through community mediation and provide assistance to parties for resolving disputes amicably.

(3) In every case where a settlement agreement is arrived at through community mediation
under this Act, the same may be reduced into writing with the signature of the parties and
authenticated by the community mediators, a copy of which be provided to the parties and in
cases where no settlement agreement is arrived at, a non-settlement report may be submitted
by the community mediators to the Authority or the District Magistrate or the Sub-Divisional
Magistrate, as the case may be, and to the parties.

(4) Any settlement agreement arrived at under this Chapter shall be for the purpose of maintaining the peace, harmony and tranquillity amongst the residents or families of any area or locality but shall not be enforceable as a judgment or decree of a civil court.

(5) The provisions of section 20 shall, mutatis mutandis apply, in relation to the registration of mediated settlement agreement under this section.

Question 32

Mediation Fund.

Answer 32

(1) There shall be a fund to be called “Mediation Fund” (hereinafter referred to as the “Fund”) for the purposes of promotion, facilitation and encouragement of mediation under this Act, which shall be administered by the Council.

(2) There shall be credited to the Fund the following, namely:—
(a) all monies provided by the Central Government;
(b) institutes or bodies or persons;
all fees and other charges received from mediation service provider, mediation institutes or bodies or persons;
(c) all monies received by the Council in the form of donations, grants,
contributions and income from other sources;
(d) grants made by the Central Government or the State Government for the
purposes of the Fund;
(e) amounts deposited by persons as contributions to the Fund;
(f) amounts received in the Fund from any other source; and
(g) interest on the above or other income received out of the investment made
from the Fund.

(3) The Fund shall be applied towards meeting the salaries and other allowances of Member, Chief Executive Officer, Officers and employees and the expenses of the Council including expenses incurred in the exercise of its powers and discharge of its duties under this Act.