Section 37 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 37 lets the District Commission steer a dispute towards mediation. At the first hearing after admission, or later, if it sees elements of a settlement that the parties may accept, it can direct them to say in writing within five days whether they consent to mediation. If they agree, the Commission must refer the matter to mediation within five days of receiving the consent. If you are in a consumer dispute and a settlement looks possible, a legal dispute resolution adviser can help you prepare for it.
At the first hearing after admission, or at any later stage, if it appears to the District Commission that there are elements of a settlement which may be acceptable to the parties, it may direct the parties to give written consent within five days to settle by mediation under Chapter V (37(1)). This does not apply to cases prescribed by rules. If both agree and consent in writing, the Commission shall within five days of receipt of consent refer the matter for mediation (37(2)). The mediation provisions of Chapter V then apply.
Section 37 at a glance
| Sub-section | Step | Key point |
|---|---|---|
| 37(1) | Direction to consider mediation | At first hearing after admission or later; where elements of settlement appear |
| 37(1) | Consent | In writing, within five days |
| 37(1) | Exception | "Except in such cases as may be prescribed" |
| 37(2) | Reference | Within five days of receipt of written consent |
| 37(2) | Applicable law | Chapter V provisions on mediation |
Section 37(1): the Commission's direction
"At the first hearing of the complaint after its admission, or at any later stage, if it appears to the District Commission that there exists elements of a settlement which may be acceptable to the parties, except in such cases as may be prescribed, it may direct the parties to give in writing, within five days, consent to have their dispute settled by mediation in accordance with the provisions of Chapter V."
Breaking it into parts:
| Part | What the text says |
|---|---|
| When | At the first hearing after admission, or at any later stage |
| Test | It appears to the Commission that there exist "elements of a settlement which may be acceptable to the parties" |
| Exception | Except in such cases as may be prescribed |
| Power | "May direct" the parties |
| Action required | Give consent in writing within five days |
| Route | Mediation under Chapter V |
Points to notice:
- It is the Commission's call. The word is "may". A party cannot insist that the Commission send the case to mediation under this sub-section, although the parties may of course ask. The text does not say whether a party's application is required or allowed.
- The test is "elements of a settlement". The text does not define it or require any particular facts. It simply asks whether a settlement is conceivable.
- Consent is needed from the parties. The Commission directs the parties to give consent, not to attend mediation. A party who does not consent is not forced into mediation by this sub-section.
- Five days for consent. The period is exactly "five days". The text does not say from when the five days run (presumably from the direction) or what happens if one party gives no answer. It also does not give a power to extend.
- Prescribed exceptions. The sub-section carves out "such cases as may be prescribed". The rules decide which cases are outside this route; this article names none.
Example. A buyer claims a refund for a defective refrigerator. At the first hearing, the seller's counsel says the seller is willing to replace it, while the buyer wants a refund and compensation. The Commission sees that the gap is narrow, and directs both sides to say in writing within five days whether they will go to mediation. If both agree, the case is referred.
Section 37(2): the reference
"Where the parties agree for settlement by mediation and give their consent in writing, the District Commission shall, within five days of receipt of such consent, refer the matter for mediation, and in such case, the provisions of Chapter V, relating to mediation, shall apply."
- "Where the parties agree" means agreement by the parties, not just one. Both must give written consent.
- "Shall ... within five days". This is mandatory for the Commission; once consent is in, the reference must follow within five days of receipt.
- Chapter V governs from there. The Chapter creates a mediation cell and sets rules about mediators, procedure and settlement. See our article on section 74 and our article on sections 79-81 when published. The text of section 37 does not describe what mediation involves; that is in later sections, and the Mediation rules, which are not in the source consulted.
| Time | Event |
|---|---|
| First hearing after admission or later | Commission sees elements of a settlement |
| Within 5 days of the direction | Parties give written consent |
| Within 5 days of receiving consent | Commission refers matter for mediation |
| Afterwards | Chapter V applies |
The text does not say who mediates, how long mediation may take, or whether the Commission's proceeding is paused. Section 38(1) says that for cases referred for mediation, the Commission proceeds with the complaint "on failure of settlement by mediation"; see our article on section 38. That implies the Commission picks the case up again if mediation fails.
How section 37 fits the bigger picture
Mediation is voluntary at this stage. A party is not penalised under section 37 for refusing, and the text does not say that refusal is held against anyone. The Commission may still decide the case on merits if the parties do not consent. The same section sits in the District Commission's procedure alongside admission in section 36 and the main procedure in section 38. See our article on section 36.
The word "mediation" is defined in section 2(25) as the process by which a mediator mediates consumer disputes, and "mediator" in section 2(26) as a mediator referred to in section 75. See our article on the section 2 definitions.
What section 37 leaves out
- No list of the prescribed cases which are excluded.
- No rule on the date from which the five days begin.
- No direction on what a party should do if consent is withheld.
- No statement about costs of mediation.
- No provision for mediation before admission; the text speaks of "the first hearing of the complaint after its admission, or at any later stage".
Need help with a settlement?
A written settlement can end a dispute sooner than a final order, but only if its terms are clear and you understand what you give up. We can help you assess the offer, prepare for mediation and review any settlement before you sign. Begin with legal dispute resolution and bring the complaint, the reply and the offers made so far.
Key takeaways
- The District Commission may direct parties to consider mediation at the first hearing after admission or any later stage.
- It must appear that there are elements of a settlement which may be acceptable to the parties.
- Written consent is due within five days; the Commission must then refer the matter within five days of receipt of consent.
- Prescribed cases are excluded; Chapter V governs mediation.
Read next
- Section 36: proceedings before District Commission and admission
- Section 38: procedure on admission of complaint
- Section 74: consumer mediation cell
- Consumer Forum Complaint: How to File and Win at District State National Commission
Disclaimer: Based on the Consumer Protection Act, 2019 as enacted, as consulted on 1 October 2026. Monetary limits, fees and procedure are set or revised by rules and regulations made under the Act and should be checked in their current form. This article is general information, not legal advice; check the official text before acting.