Section 18 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.
Section 18 sets the clock for a mediation under the Act: it shall be completed within one hundred and twenty days from the date fixed for the first appearance before the mediator. The parties can extend it for a further period they agree on, but not beyond sixty days.
Mediation under the Act "shall be completed" within one hundred and twenty days from the date fixed for the first appearance before the mediator, notwithstanding any other law. The parties may agree to extend it by a further period not exceeding sixty days. If no agreement is reached in the period, the mediator submits a non-settlement report (section 21), and the mediation is deemed terminated on expiry (section 24(d)). The Act comes into force by notification, and the date is not in the text consulted.
Section 18(1): one hundred and twenty days
Section 18(1) reads "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." Four features stand out:
- Overriding words. "Notwithstanding anything contained in any other law" means no other law's period displaces this one for a mediation under the Act.
- A completion period. The wording is "shall be completed", which treats the period as the time for the whole process.
- The start date. It is "the date fixed for the first appearance before the mediator", and not the date of notice or of the mediator's appointment.
- The length. One hundred and twenty days, as printed.
If you manage a commercial dispute and are planning a mediation, count the days from the first fixed appearance, and fix that date in writing so there is no doubt about it. If you need a calendar built around the process, our mediation services team can set one up with you.
Section 18(2): extension of up to sixty days
Section 18(2) says "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." Two conditions: the extension must be agreed by the parties, and it cannot exceed sixty days. The Act does not require the mediator's or any court's approval, and it does not say the agreement must be in writing, but a written record is prudent. The longest period for a mediation under the Act is therefore one hundred and eighty days from the first appearance if the extension is used in full. The text does not provide for a second extension.
Two dates that are not the same
Section 18 counts from the first fixed appearance. Other sections use different triggers, so confusion is common:
| Section | Date it uses | Used for |
|---|---|---|
| 14 | Receipt of notice, mediator's consent or mediator's appointment, depending on the route | When mediation is deemed to have commenced |
| 18(1) | Date fixed for the first appearance before the mediator | Start of the one hundred and twenty days |
| 29 | Date of commencement under section 14, up to the report under section 21 or termination under section 24 | Period excluded in computing limitation |
So the period excluded from limitation (section 29) starts from the commencement date under section 14, which can be earlier than the first appearance, while the completion period under section 18 starts from the first appearance. See our article on sections 13 and 14 and our article on sections 21, 24 and 29.
What happens when the period runs out
Two sections deal with expiry:
- Section 21. Where no agreement is arrived at "within the time period as provided under section 18", or the mediator thinks no settlement is possible, the mediator submits a non-settlement report: to the provider in institutional mediation, or signed copies to all parties in other cases. The report must not disclose the cause of non-settlement or any matter referring to the parties' conduct during mediation.
- Section 24(d). The mediation proceedings are deemed terminated "on the expiry of time limit under section 18".
The Act does not say what happens to a settlement reached after the period ends without an extension. If a deal is close when the one hundred and twenty days approach, agree the extension in writing before the date passes.
Comparison with the substituted section 12A
The Ninth Schedule substitutes section 12A of the Commercial Courts Act, 2015 so that the Authority or mediation service provider authorised by the Central Government "shall complete the process of mediation within a period of one hundred and twenty days from the date of application made by the plaintiff", extendable by a further sixty days with the consent of the parties. The numbers match section 18, but the starting point differs: the date of the plaintiff's application there, and the date fixed for the first appearance here. Note also the wording: section 12A speaks of "consent of the parties", section 18(2) of a period "as agreed by the parties". The pre-litigation mediation under section 12A and its effect on limitation are covered in our article on that section. The Mediation Act's change comes into force by notification, and the date is not in the text consulted.
Practical timeline example
Sharma Packaging and Rao Plastics agree on a mediator and the mediator fixes the first appearance for 1 March. Under section 18(1), one hundred and twenty days from 1 March is the outer date for completion. With a written agreement to extend, the parties can push the date by up to sixty days. If they have not settled by the end, the mediator prepares the section 21 report. Both companies should check the limitation position for any court case, because the period for limitation is excluded only from the commencement date up to the report or termination. The names and dates are invented for illustration.
For general limitation periods, see our guide on limitation for contract suits.
Planning tips
- Fix the first appearance date in writing at the start.
- Keep a countdown of the one hundred and twenty days.
- Decide by about day ninety whether an extension is likely.
- Record any extension in writing, signed by all parties, naming the number of days (not more than sixty).
- Keep the mediator and the provider informed.
Need help managing a mediation timeline?
The one hundred and twenty days can pass quickly, especially when documents and approvals are slow. We can help you plan the sessions and settle the extension through our mediation services.
Key takeaways
- Mediation must be completed within one hundred and twenty days from the date fixed for the first appearance before the mediator (section 18(1)).
- The parties may extend by a further period they agree on, not exceeding sixty days (section 18(2)).
- Expiry leads to a non-settlement report (section 21) and deemed termination (section 24(d)).
- The section 14 commencement date and the section 18 start date can differ.
- The Act comes into force by notification; the date is not in the text consulted.
Read next
- Sections 13-14 of the Mediation Act, 2023: territorial jurisdiction and commencement of mediation
- Sections 21, 24 and 29: non-settlement report, termination and limitation
- Section 19 of the Mediation Act, 2023: mediated settlement agreement
- Limitation period for filing suits and appeals
Disclaimer: Based on the Mediation Act, 2023 as enacted and published in the Gazette of India on 15 September 2023, as consulted on 2 October 2026. The Act comes into force by notification; the commencement of each provision, the rules and the regulations should be checked. This article is general information, not legal advice; check the official text before acting.