Conciliation and Mediation in India: A Practical Guide

Conciliation and mediation in India are two voluntary, confidential ways to settle a dispute without a full court trial, with a neutral third party helping the sides reach their own agreement. The key practical point most people want first: a properly signed settlement reached through either route can be enforced like a court decree — a conciliation settlement under Section 73 of the Arbitration and Conciliation Act, 1996, and a mediated settlement agreement under the Mediation Act, 2023. Below we explain what each process is, how it runs step by step, where they differ, and what makes the final agreement binding.

If you are weighing these options for a commercial or family dispute, our alternate dispute resolution practice page sets out how the firm approaches ADR; this guide is the background reading.

What is conciliation and mediation in India?

Both are forms of Alternative Dispute Resolution (ADR) — methods that sit alongside litigation and arbitration. In each, the parties keep control of the outcome; the neutral does not impose a decision the way a judge or arbitrator does.

• Conciliation is governed by Part III (Sections 61–81) of the Arbitration and Conciliation Act, 1996. A conciliator actively assists the parties, can make proposals for settlement at any stage (Section 67), and helps draft the terms.
• Mediation is now governed by the Mediation Act, 2023, India's first dedicated statute on the subject. A mediator facilitates discussion but, as a rule, does not impose or even propose a fixed solution — the parties craft their own.

In everyday Indian practice the two terms are often used loosely and overlap heavily. The Supreme Court itself has observed that the line between the two is thin. The 2023 Act has, in practice, brought much of what used to be called “conciliation” under the broader “mediation” umbrella for civil and commercial matters, while conciliation under the 1996 Act continues to exist as a distinct, named mechanism.

Conciliation under Part III of the Arbitration and Conciliation Act, 1996

Conciliation is the older, statute-backed route. Its core features:

• How it starts (Section 62): one party sends a written invitation to conciliate; the process begins only when the other side accepts in writing. Silence or refusal means there is no conciliation.
• The conciliator (Sections 63–64): usually one conciliator, but the parties can agree on two or three. The conciliator is independent and impartial.
• Conduct (Sections 65–67): the conciliator is not bound by the Code of Civil Procedure or the Evidence Act. They may meet the parties together or separately and can make settlement proposals.
• Confidentiality (Section 75): matters discussed are kept confidential.
• The settlement (Sections 73–74): when the parties reach agreement, the conciliator draws up a written settlement agreement, the parties sign it, and the conciliator authenticates it.

Why the settlement matters: Section 73 and Section 74

This is the part clients care about most. Under Section 74, a signed conciliation settlement agreement has the same status and effect as if it were an arbitral award on agreed terms under Section 30. An arbitral award, in turn, is enforceable as a decree of the court under Section 36. In short: a conciliation settlement is treated as final and binding and can be enforced directly — you do not have to re-litigate the dispute to make the other side comply.

Mediation under the Mediation Act, 2023

The Mediation Act, 2023 consolidated and modernised mediation law. Note that some provisions were brought into force in phases and certain rules continue to be notified — so always verify the current commencement status of a specific section before relying on it.

Key features of the Act:

• Voluntary, with limits: mediation is generally consensual. The Act contemplates pre-litigation mediation for certain matters; the exact scope and any mandatory features should be checked against the current notified text.
• Mediation Council of India: the Act establishes a Council to register and regulate mediators and mediation service providers.
• Confidentiality and inadmissibility: what is said in mediation is confidential and generally cannot be used as evidence later.
• Time discipline: the Act sets an outer time limit for completing mediation (with a permitted extension), encouraging speed.
• Online mediation: the Act expressly recognises online and tech-enabled mediation.

Settlement agreement enforceability under the Mediation Act

A Mediated Settlement Agreement (MSA) that is authenticated by the mediator and signed by the parties is, under the Act, final, binding and enforceable in the same manner as a judgment or decree of a court. The Act also provides a narrow window to challenge an MSA — broadly on grounds such as fraud, corruption, impersonation, or where the subject matter was not fit for mediation — within a limited period. The exact grounds and limitation period must be read from the current statute.

The process: conciliation and mediation step by step

People searching for the process want a clear sequence. Here is the typical flow for each.

Conciliation process (1996 Act)

1. One party sends a written invitation to conciliate (Section 62).
2. The other party accepts in writing — the process now begins.
3. Parties appoint the conciliator(s) and agree on logistics.
4. Each side submits a brief statement of its case to the conciliator.
5. The conciliator holds joint and/or separate sessions, explores interests, and may propose settlement terms.
6. If agreement is reached, the conciliator drafts the settlement; parties sign; conciliator authenticates (Section 73).
7. The signed agreement is enforceable as an arbitral award on agreed terms (Section 74).

Mediation process (Mediation Act, 2023)

1. Parties agree to mediate (by clause, by application, or as contemplated by the Act), or the matter is referred.
2. A registered/agreed mediator is appointed.
3. Opening session: the mediator explains the process and confidentiality.
4. Joint and private sessions (“caucuses”) to surface real interests.
5. Negotiation and option-building, facilitated by the mediator.
6. If settled, the Mediated Settlement Agreement is drawn up, signed by parties, and authenticated by the mediator.
7. The MSA is enforceable as a court judgment/decree.

Conciliation vs mediation vs arbitration vs litigation

Feature	Conciliation (A&C Act 1996, Part III)	Mediation (Mediation Act 2023)	Arbitration	Litigation
Neutral's role	Facilitates and may propose terms	Facilitates; usually does not impose	Decides and binds	Judge decides and binds
Who controls outcome	The parties	The parties	The arbitrator	The court
Governing law	A&C Act 1996, ss. 61–81	Mediation Act, 2023	A&C Act 1996, Parts I/II	CPC / relevant statute
Confidential	Yes (s. 75)	Yes	Generally yes	No (public record)
Final document	Settlement agreement	Mediated Settlement Agreement	Arbitral award	Judgment/decree
Enforceability	As an arbitral award on agreed terms (ss. 73–74)	As a court decree	As a court decree (s. 36)	Directly executable
Typical speed	Faster than court	Faster; statutory time limit	Variable	Slowest

A note on statutory numbering (2023–24 reforms)

The criminal codes were overhauled in 2023–24: the Code of Criminal Procedure (CrPC) was replaced by the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, and the Indian Penal Code (IPC) by the Bharatiya Nyaya Sanhita (BNS), 2023. Conciliation and mediation are civil/commercial mechanisms and are not governed by those codes — but if any document or older judgment you are reading cross-refers to CrPC or IPC sections, treat the numbering as potentially outdated and confirm the current BNSS/BNS equivalent. The Arbitration and Conciliation Act, 1996 and the Mediation Act, 2023 themselves were not renumbered by those reforms.

How this connects to your other legal matters

ADR is not just for big contracts. Founders, brand owners and individuals run into it across practice areas. If your dispute touches a brand, our guides on trademark classes in India and IP protection for startups are useful companions. And while ADR is a civil track, readers sometimes confuse it with criminal relief — our explainer on regular bail vs anticipatory bail clears up where the criminal process sits instead. You can read the bare statute, the Arbitration and Conciliation Act, 1996, on the Government of India's official India Code portal.

Frequently Asked Questions

This article is for general informational purposes only and does not constitute legal advice. Laws change and every situation is different; please consult a qualified advocate about your specific matter.