Section 4 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 4 says what a mediation agreement is, what form it must take and when it can be made. A mediation agreement must be in writing, may be a clause inside a contract or a separate document, and can be made before or after a dispute arises.
A mediation agreement must be in writing and can be made by or between the parties and anyone claiming through them. It can be a mediation clause in a contract or a separate agreement, and the parties can agree to mediate a dispute whether the agreement was entered into before the dispute arose or afterwards. Section 4(3) lists three ways a writing can exist, and section 4(6) adds a rule for international mediation. The Act comes into force by notification, and the date is not in the text consulted.
Why section 4 matters
Several provisions of the Act refer back to the mediation agreement. Section 2(ii) lets an agreement bring a mediation within the Act; section 14(a) starts the clock for mediation from the notice given under an existing agreement; and section 3(j) defines "mediation agreement" by pointing to section 4(1). If you manage contracts, section 4 tells you what the mediation clause must look like. Our mediation services team reviews dispute clauses for exactly this kind of gap.
Note that section 5(1) allows pre-litigation mediation "whether any mediation agreement exists or not", so an agreement is not a precondition for every mediation under the Act. Section 4 matters where the parties rely on their own agreement.
Section 4(1) and (2): in writing, by or between the parties
Section 4(1) says a mediation agreement "shall be in writing, by or between parties and anyone claiming through them, to submit to mediation all or certain disputes which have arisen or which may arise between the parties". Four points come out of this:
- the agreement must be in writing;
- it binds the parties and anyone claiming through them, such as a successor or assignee;
- it can cover all disputes or only certain disputes; and
- it can cover disputes that have arisen and disputes that may arise.
Section 4(2) says it may be a mediation clause in a contract or a separate agreement. A contract with a tiered dispute clause, for example "negotiation, then mediation, then arbitration", is therefore a mediation agreement as far as the mediation step goes, provided it is in writing.
Section 4(3): when is an agreement "in writing"?
The Act does not require a single signed document. Under section 4(3), a mediation agreement is in writing if it is contained in or recorded as:
| Clause | Form of writing | Example |
|---|---|---|
| (a) | Any document signed by the parties | A signed supply contract with a mediation clause |
| (b) | An exchange of communications or letters, including through electronic form as provided under the Information Technology Act, 2000 | Emails in which one side proposes mediation and the other accepts |
| (c) | Any pleadings in a suit or other proceedings in which the existence of a mediation agreement is alleged by one party and not denied by the other | A written statement that mentions the mediation agreement, with no denial in the reply |
Clause (c) is useful where a party says in a pleading that the parties agreed to mediate and the other side does not deny it. The Act treats that as a writing.
Section 4(4): incorporation by reference
Section 4(4) says a reference in any agreement containing a mediation clause constitutes a mediation agreement "if the agreement is in writing and the reference is such as to make the mediation clause as part of the agreement". In plain terms, if your purchase order says "the dispute resolution terms of the master agreement apply" and the master agreement carries a mediation clause, the reference can bring the clause in, but only if the reference is clear enough to make the clause part of the purchase order. Vague wording such as "standard terms apply" may not be enough. Check the clause rather than assume.
Section 4(5): before or after the dispute
Section 4(5) says the parties may agree to submit to mediation "any dispute arising between them under an agreement, whether entered prior to arising of the dispute or subsequent thereto". So the agreement can sit in the original contract or be signed once a dispute has surfaced. A signed one-page submission agreement after a payment dispute starts is as good a mediation agreement as a clause drafted at the outset, if it satisfies section 4(1) and (3).
Section 4(6): international mediation
Section 4(6) says that a mediation agreement "in case of international mediation shall refer to an agreement for resolution in matters of commercial disputes referred to in clause (a) of section 3". This is as printed. Clause (a) of section 3 defines "commercial dispute" by reference to the Commercial Courts Act, 2015, and international mediation is defined in section 3(g) as relating to a commercial dispute. Read together, the agreement in an international case must be an agreement for resolving commercial disputes. For the definitions, see our section 3 article; for the Commercial Courts Act meaning, see commercial dispute under section 2(1)(c).
Practical drafting points
The Act does not prescribe wording for a mediation clause, and no rules or regulations are in the text consulted. A workable clause normally says:
- which disputes it covers, and that it applies to disputes that have arisen or may arise;
- whether mediation is institutional, through a mediation service provider, or ad hoc;
- how the mediator is chosen (section 8 lets the parties agree on the name and the appointment procedure, failing which a provider appoints);
- where the mediation will take place or whether it may be online (section 13); and
- whether the parties want the Act to apply by express wording, as section 2(ii) contemplates.
Our guide on common concepts in drafting, including the mediation clause and the guide to usual clauses in commercial agreements show where such a clause sits in a contract.
Need help with a mediation clause or agreement?
If your standard contract has a dispute clause that mentions mediation only in passing, it may be worth tightening it before a dispute starts. We can draft or review the clause and the submission agreement through our mediation services.
Key takeaways
- A mediation agreement must be in writing (section 4(1)).
- It can be a clause in a contract or a separate agreement (section 4(2)).
- Writing includes a signed document, electronic exchanges and uncontested pleadings (section 4(3)).
- A clear reference to a clause in another written agreement can incorporate it (section 4(4)).
- The agreement can be made before or after the dispute (section 4(5)); international mediation has its own rule (section 4(6)).
Read next
- Section 5 of the Mediation Act, 2023: pre-litigation mediation
- Section 8 of the Mediation Act, 2023: appointment of mediators
- Sections 1-2: short title, commencement and application
- Arbitration vs litigation vs mediation: a comparison
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.