Rules 1 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The Mediation Rules fill in the Act's scheme for mediation of consumer disputes. They say who is on the panel of a Mediation Cell, which matters a Commission must not refer, that the complainant gets the application fee back in full if a settlement is reached, that parties may not run parallel proceedings on the mediated subject, and that a settlement survives the death of a party.
The rules were notified as G.S.R. 450(E) on 15 July 2020 under section 101(1) and clauses (r) and (zf) of section 101(2) of the Consumer Protection Act, 2019, and came into force on 20 July 2020. This article takes them as amended up to 3 October 2026 (no amending notification is listed by the Department of Consumer Affairs). Later amendments should be checked on the Department of Consumer Affairs website. For the Act's rule-making power see section 101.
Every Mediation Cell has a panel of mediators chosen on the recommendation of a selection committee of the President and one member of the Commission. Five kinds of matter cannot be referred, including medical negligence resulting in grievous injury or death and serious allegations of fraud or forgery. If a reference to mediation ends in settlement, the complainant is entitled to a full refund of the application fee. A settlement agreement is not discharged by the death of a party.
Parties weighing mediation against a contested hearing can ask for legal dispute resolution advice before agreeing to a reference.
The Mediation Act, 2023 also amends the Consumer Protection Act, 2019; see the article on sections 62 to 65 of the Mediation Act, 2023 for that Act's own amendments. This article does not go into their effect on these rules.
Rules 1 and 2: title, commencement and definitions
Rule 1 gives the short title, the Consumer Protection (Mediation) Rules, 2020, and fixes the commencement as the 20th day of July, 2020. Rule 2 defines:
- "Act": the Consumer Protection Act, 2019;
- "Commission": the District, State or National Commission as the case may be;
- "mediation cell": a consumer mediation cell established under section 74;
- "panel": the panel of mediators prepared by the Commission under section 75(1);
- "Parties": parties to a dispute;
- "Settlement": a settlement arrived at in the course of mediation.
Other words not defined have the meanings in the Act. The Act's provisions on the cell and the panel are explained in the articles on section 74 and on sections 75 to 78.
Rule 3: the Mediation Cell
Rule 3(1): every Mediation Cell set up in a Commission shall have a panel of mediators "on the recommendation of a selection committee consisting of the President and a member of that Commission". Rule 3(2): the Cell has such support staff as the President of the Commission decides in consultation with the concerned Government, and that Government "shall provide all administrative assistance and infrastructure facilities required by the Commission".
Who is eligible for the panel and how mediators are chosen is in the Mediation Regulations, explained in the article on regulations 1 to 4 and the article on regulations 5 to 8 and 10.
Rule 4: matters not to be referred
Rule 4 lists five matters that "shall not be referred to mediation".
| Clause | Matter excluded |
|---|---|
| (a) | Proceedings in respect of medical negligence resulting in grievous injury or death |
| (b) | Defaults or offences for which applications for compounding have been made by one or more parties |
| (c) | Cases involving serious and specific allegations of fraud, fabrication of documents, forgery, impersonation or coercion |
| (d) | Cases relating to prosecution for criminal and non-compoundable offences |
| (e) | Cases involving public interest or the interest of numerous persons who are not parties before the Commission |
The proviso adds a further ground for not referring. In any case other than those listed, the Commission before which the case is pending "may choose not to refer it to mediation" if it appears that no elements of a settlement exist that may be acceptable to the parties, or that mediation is otherwise not appropriate having regard to the circumstances of the case and the respective positions of the parties.
So the list is of mandatory exclusions, and the proviso is a discretion. An invented example: a hospital patient's family files a complaint about a surgery that ended in death. Rule 4(a) bars a reference. A buyer, Sunita, complains that a mobile phone was sold with a defective battery and the seller has already offered a replacement; there is no bar, and the Commission may send the parties to the Cell if it sees room for settlement. For compounding and the Act's offences, see section 96 of the Act.
Rule 5: refund of fee
Where the Commission refers the parties to mediation, the complainant "shall be entitled to receive full amount of application fee paid in respect of such complaint, if a settlement is reached between such parties". Three conditions follow from the text: a reference by the Commission, a settlement reached between the parties, and the application fee paid for that complaint. The rule says "full amount" and sets no deduction. It does not say what happens to the fee if the mediation fails; read the rule as printed, which gives the refund only on settlement. The fee itself is set by rule 7 of the CDRC Rules, covered in the article on rule 7.
Rule 6: no parallel proceedings
"The parties shall not initiate any arbitral or judicial proceedings in respect of a matter which is the subject-matter of the mediation and also when such parties have expressly undertaken not to initiate any such proceeding." The words are compressed. Read plainly, parties may not start arbitral or judicial proceedings on the subject of the mediation, and the rule also points to the case where they have expressly undertaken not to start such proceedings. If you have signed such an undertaking, treat it as binding in the manner the rule describes, and take advice before filing anything on the same subject.
Rule 7: settlement and death of a party
Rule 7(1): a settlement agreement "shall not be discharged by the death of any party thereto and shall be enforceable by or against the legal representative of the deceased party". Rule 7(2): nothing in the rule affects the operation of any law by which a right of action is extinguished by the death of a person.
So a settlement reached with a trader who later dies can be enforced against his legal representative, and a settlement in favour of a consumer who dies can be enforced by the legal representative. If the law elsewhere extinguishes a particular right of action on death, rule 7 does not override it. The way a settlement is recorded and enforced is in sections 79 to 81 of the Act.
How the Cell, the Act and the regulations fit together
The Act creates the Cell and the panel and gives the Commission the power to refer; section 37 is the reference provision. These rules add the selection committee, the exclusions, the fee refund and the settlement effect. The Mediation Regulations deal with eligibility, empanelment, fees, conduct and proceedings.
Need help deciding whether to mediate?
Before you agree to a reference, check whether the matter falls in rule 4 and whether a settlement is realistic. Our legal dispute resolution team can review the complaint, discuss settlement terms and prepare a written settlement for the Commission.
Key takeaways
- A Mediation Cell's panel is recommended by a selection committee of the President and one member of the Commission.
- Five matters are barred from reference, from medical negligence causing grievous injury or death to cases of public interest.
- Outside those, the Commission may choose not to refer a case if no settlement elements exist or mediation is otherwise inappropriate.
- If a settlement is reached after a reference, the complainant is entitled to a full refund of the application fee.
- Parties may not start arbitral or judicial proceedings on the mediated subject-matter.
- A settlement agreement survives the death of a party and binds or benefits the legal representative.
Read next
- Regulations 1–4 of the Mediation Regulations: who can be a mediator
- Regulations 11–16 of the Mediation Regulations: proceedings and confidentiality
- Section 37: reference to mediation
- Sections 79–81: mediation procedure, settlement and recording
Disclaimer: Based on the rules, regulations and guidelines named above as published in the Gazette of India or on the CCPA website, with the amending notifications the article names (consulted on 3 October 2026). Later amendments, the Consumer Protection Act, 2019 provisions referred to, State rules and CCPA advisories should be checked. This article is general information, not legal advice; check the official text before acting.