Table of Contents

Section 2(25) of the act define the term mediation as a process by which the mediator mediates the consumer disputes.

Establishment of Consumer Mediation Cell (Section 74):

The State Government shall establish by notification, a consumer mediation cell to be attached to each of the District Commission and the State Commission of the state.

Every mediation cell set up in a commission, shall have a panel of mediators on the recommendation of the selection committee, consisting of the President and a member of that commission. The mediation cell shall have such support staff as may be decided by the President of that commission with the concerned government and that government shall provide all administrative assistance, infrastructure facilities required by the commission.

Every consumer mediation cell shall maintain:

  1. A list of empanelled mediators.
  2. A list of cases handled by the cell.
  3. Record of proceedings.
  4. Any other information as may be specified by the regulation.

Every mediation cell shall submit a quarterly report to the District Commission, State Commission, or National Commission, to which it is attached.

Impanelment of Mediators (Section 75):

For the purpose of mediation, the National Commission, the State Commission, or the District Commission, as the case maybe, shall prepare a panel of mediators to be maintained by the consumer mediation cell attached to it, on the recommendation of the selection committee consisting of the President and a member of that commission.

The panel of mediators prepared, shall be valid for a period of 5 years, and the impanelled mediator shall be eligible to be considered for re-appointment for another term.

Eligibility (Section 75):

  1. Retired judge of the Supreme Court of India.
  2. Retired judges of the High Court.
  3. Retired members of the consumer commission.
  4. Retired District and Sessions Judge.
  5. Retired judicial officers having experience of not less than 10 years.
  6. An advocate with a minimum experience of 10 years at bar.
  7. A person having experience of at least 5 years in mediation or conciliation.
  8. Experts or other professionals with at least 15 years’ experience.

Disqualification for impanelment as mediator (Section 75):

  1. A person who has been adjudicated as insolvent.
  2. A person against whom criminal charges, involving moral turpitude are framed by a criminal court and are pending.
  3. A person who has been convicted by a criminal court for any offence involving moral turpitude.
  4. A person against whom disciplinary proceedings have been initiated.

Procedure for Mediation (Section 79):

  • It would be held at a consumer mediation cell which would have impanel of mediators to settle disputes. This cell maintains a list of cases and record of proceedings.
  • Every mediator is expected to act fairly and judiciously, while deciding matter.
  • Mediation would be conducted in presence of the both parties.
  • The parties must provide all the relevant information and documents to the mediator.
  • If the parties come to an agreement after mediation proceedings within 3 months, a settlement report would be forwarded to the commission along with the signature of both the parties.
  • The concerned commission is required to pass an order within 7 days of receiving the settlement report of the parties.
  • In case no agreement has been reached through mediation, the same is communicated to the commission through a report of proceedings. The commission then would hear the issues of the concerned dispute and decide the matter.
  • A dispute cannot be taken to other proceedings like arbitration or court litigation, once it has undergone the mediation procedure.

Immunity of Mediators:

No mediator shall be liable for any civil or criminal proceedings, for any act done or omitted to be done bona fide by him in his capacity as a mediator.

The mediator shall not be summoned by a party to appear in a court or any other forum, to testify in regard to any information received or action taken by him during the mediation proceedings.

Matters not to be referred to Mediation:

  • The matters relating to proceedings in respect of medical negligence, resulting in grievous injury or death.
  • Cases involving serious and specific allegations of fraud, fabrication of documents, forgery or coercion.
  • Cases relating to prosecution of criminal and non-compoundable offences.