Mediation has long been an integral part of dispute resolution in India. Since time immemorial, individuals have relied on mediation to settle both private and community disputes. Disputing parties would typically approach a senior member of the family or society to mediate conflicts at a community level. In villages, mediation was commonly conducted by elders or gram panchayats.
Today, mediation is an effective method of resolving disputes, growing in popularity as an alternative to ligitation, which can be expensive and lengthy. Over the past decade, mediation in India has undergone significant transformation, marked by judicial recognition, legislative advancements, and institutional development. Initially introduced through Section 89 of the Code of Civil Procedure, 1908 (CPC) to promote Alternate Dispute Resolution (ADR), the Supreme Court reinforced its importance in cases such as 2002’s Salem Bar Association v. Union of India and 2010’s Afcons Infrastructure Ltd. v. Cherian Varkey Construction Co. However, the absence of a structured framework often led disputes back to litigation.
On 5 March 2019, the Supreme Court in its landmark ruling, M.R. Krishna Murthi v. The New India Assurance Co. Ltd., emphasised the need for comprehensive legislation, culminating in the enactment of the Mediation Act, 2023. Prior to this, sector-specific statutes, such as the Companies Act, Real Estate (Regulation and Development) Act, the Consumer Protection Act, the Micro, Small, and Medium Enterprises Development Act, the Industrial Disputes Act and the Commercial Courts Act, incorporated mediation mechanisms, recognising its role in speedy dispute resolution. The new Mediation Act provides a standardised legal framework, ensuring procedural clarity, enforceability of settlements, and the institutionalisation of mediation as a reliable alternative to litigation.
However, an analysis of the existing statutory framework and its practical implementation reveals significant gaps. Despite significant legislative efforts and progress, much remains to be done to establish mediation as an effective and widely accepted mode of dispute resolution. This article aims to examine the ground reality, the challenges and a few suggestions for the path forward.
Mediation – Ground Reality
India’s mediation landscape has shown consistent progress, with the establishment and operation of numerous ADR centres nationwide. India has approximately 460 ADR centres, out of which 425 are fully functional. This ecosystem is bolstered by a pool of over 3,950 mediators, alongside 12,640 lawyer-mediators and 8,672 other professionals contributing their expertise to mediation efforts.
Statistical data highlights the upward trajectory of case settlements through mediation. In the 2022–2023 period, 92,446 disputes were resolved, a figure that rose to 99,033 in 2023–2024, reflecting a 7.14% increase. In just the first half of 2024, 48,480 cases reached resolution, underscoring the growing adoption of mediation as an ADR method.
Challenges Hindering Progress
Despite these encouraging statistics, the practical implementation of mediation faces several obstacles. Significant regional disparities persist—while states like Maharashtra and Kerala excel in leveraging mediation, regions such as Arunachal Pradesh show minimal progress. Additionally, the mandatory pre-institution mediation process under the Commercial Courts Act has had limited success. Out of 43,698 pre-institution cases filed till the year 2022 only 813 were successfully mediated with many cases failing to advance beyond the preliminary stages and were deemed as ‘non-starters’. Public awareness about mediation remains low, and the lack of uniform training for mediators further inhibits broader acceptance.
The Path Forward
The Act addresses several existing challenges, providing a comprehensive framework to institutionalise mediation as a mainstream dispute resolution method. However, to achieve its full potential, certain steps must be prioritised:
Expanding ADR and mediation centres in underrepresented regions to bridge regional disparities.
Introducing consistent and high-quality training programs to ensure mediators are equipped with the necessary skills.
Conducting nationwide campaigns to educate the public and legal professionals about mediation.
Given that the Government and its entities constitute the largest category of litigants in India, it is imperative that the Government provides for a proper internal mechanism when it comes to deciding on referring disputes to mediation and suitably arriving at a mediated settlement.
Conclusion
Over the years, India has made consistent efforts to embed mediation within its legal and societal framework. Mediation holds the promise of becoming a cornerstone of alternative dispute resolution in India, but achieving this goal requires sustained focus and investment in its institutionalisation. However, its full potential can only be realised through improved infrastructure, uniform training for mediators, and greater public adoption.
