Sections 40-42 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.
Sections 40 to 42 say who counts as a mediation service provider, what providers do, and how mediation institutes are recognised. A provider can be a body recognised by the Council, a legal services Authority, a court-annexed mediation centre or any other notified body, and its functions run from keeping a panel of mediators to facilitating registration of settlements.
Under section 40(1), "mediation service provider" includes (a) a body or organisation that conducts mediation under the Act and is recognised by the Council, (b) an Authority under the Legal Services Authorities Act, 1987, (c) a court-annexed mediation centre, or (d) any other body notified by the Central Government. Bodies in (b), (c) and (d) are deemed recognised by the Council. Section 41 lists six functions, and section 42 has the Council recognise mediation institutes to perform duties as may be specified. The Act comes into force by notification, and the date is not in the text consulted.
Section 40(1): four kinds of provider
Section 40(1) says "'mediation service provider' includes" four kinds of body:
| Clause | Kind of provider | Recognition |
|---|---|---|
| (a) | A body or organisation that provides for the conduct of mediation under this Act and the rules and regulations made thereunder, and is recognised by the Council | Must be recognised by the Council |
| (b) | An Authority constituted under the Legal Services Authorities Act, 1987 | Deemed recognised |
| (c) | A court-annexed mediation centre | Deemed recognised |
| (d) | Any other body as may be notified by the Central Government | Deemed recognised |
The word "includes" shows the list is not necessarily closed. The proviso says "the bodies referred to in clauses (b), (c) and (d) shall be deemed to be mediation service providers recognised by the Council". So only clause (a) bodies need an actual act of recognition by the Council; the other three are treated as recognised by force of the Act.
This definition ties into section 3(m), which points "mediation service provider" to section 40(1), and into section 3(f), under which institutional mediation is mediation conducted under the aegis of a mediation service provider.
If you run or plan to run a mediation centre or institution, our mediation services team can help you understand how the Act positions it.
Section 40(2): recognition by the Council
Section 40(2) says "The mediation service provider shall be recognised by the Council in the manner as may be specified." The manner of recognition is left to regulations, and no regulations are in the text consulted. The criteria for recognition are also to be specified by the Council under section 38(j), and the Council's power to recognise, renew, withdraw, suspend or cancel recognition is in section 38(i); see our article on sections 38 and 39. This article states no condition, fee or form for recognition.
Section 41: six functions of a provider
Section 41 says "The mediation service providers shall perform the following functions, namely:—"
| Clause | Function |
|---|---|
| (a) | Accredit mediators and maintain a panel of mediators |
| (b) | Provide the services of a mediator for the conduct of mediation |
| (c) | Provide all facilities, secretarial assistance and infrastructure for the efficient conduct of mediation |
| (d) | Promote professional and ethical conduct amongst mediators |
| (e) | Facilitate registration of mediated settlement agreements in accordance with the provisions of section 20 |
| (f) | Such other functions as may be specified |
Each connects with other parts of the Act:
- Panel and appointment. Clause (a) is the source of the panel from which a provider appoints under section 8(4)(ii) and section 12(ii); see our article on section 8. Section 9 asks the provider to consider suitability and the parties' preference when appointing from the panel.
- Termination. Under section 11 the provider may terminate a mediator's mandate; see our article on sections 11 and 12.
- Reports and settlements. In institutional mediation the mediator submits the non-settlement report to the provider (section 21(i)) and forwards the signed settlement agreement with a covering letter to the provider (section 19(3)(i)).
- Registration. Clause (e) matches section 20(2), which allows the parties or the provider to register within one hundred and eighty days; see our article on section 20.
- Pre-litigation mediation. Under section 5(3)(iv), a mediator empanelled by a mediation service provider recognised under the Act may conduct pre-litigation mediation, unless the parties agree otherwise.
Clause (f) leaves further functions to be specified. None are in the text consulted.
Who benefits: parties, mediators and institutions
For a party, the provider is the practical contact. It appoints the mediator if the parties cannot agree, supplies the venue and secretarial support, and handles the paperwork at the end. For a mediator, the provider accredits and empanels. For a business that wants "institutional mediation", the provider's rules and fee terms matter, and the Act leaves the cost to regulations (section 25(1)) and the default sharing to section 25(2); see our article on costs.
Section 42: mediation institutes
Section 42 says "The Council shall recognise mediation institutes to perform such duties and exercise such functions as may be specified." Section 3(l) defines a "mediation institute" as a body or organisation that provides training, continuous education and certification of mediators and carries out such other functions under the Act. So the Act separates two kinds of body:
| Body | Main role in the Act | Recognised by |
|---|---|---|
| Mediation service provider | Conducts mediation, keeps panels, appoints mediators, provides facilities, facilitates registration | The Council (clause (a)), or deemed recognised (clauses (b) to (d)) |
| Mediation institute | Training, continuing education, certification of mediators; other functions as specified | The Council (section 42) |
The duties and functions of institutes are "as may be specified", so they are for regulations. Section 38(c) refers to guidelines for the continuous education, certification and assessment of mediators "by the recognised mediation institutes", and section 38(i) to (l) give the Council powers over both institutes and providers. A body can be, in principle, both, but the text consulted does not say so, and this article does not assume it.
Limits and silences
The Act does not say how many providers there must be, what an application for recognition contains, whether recognition can be refused, or what a provider may charge. It does not set a code of conduct beyond the Council's power in section 38(l). Section 50 protects action taken in good faith by the Central Government, the Council's Members, officers and employees, a mediator, mediation institutes and mediation service providers from suit, prosecution or other legal proceeding; see our article on sections 48 to 50.
An example
Rao and Associates, a company that runs a mediation centre, applies to the Council for recognition under section 40(1)(a). Until the Council recognises it in the manner specified, it is not a clause (a) provider. A district legal services Authority, by contrast, is a clause (b) provider and is deemed recognised. A party that cannot agree on a mediator with its counterparty applies to a provider under section 8(3), and the provider appoints within seven days under section 8(4). The names are invented for illustration.
Need help choosing or becoming a mediation provider?
Whether you are a party picking an institution or an organisation looking at recognition, the Act's categories and the regulations will decide your position. We can advise through our mediation services.
Key takeaways
- A mediation service provider includes a Council-recognised body, a legal services Authority, a court-annexed mediation centre and any other body notified by the Central Government (section 40(1)).
- The last three are deemed recognised by the Council.
- Recognition is by the Council in the manner as may be specified (section 40(2)).
- Section 41 lists six functions, including accrediting mediators, keeping panels and facilitating registration under section 20.
- The Council recognises mediation institutes to perform duties as may be specified (section 42).
Read next
- Sections 38-39 of the Mediation Act, 2023: duties and functions of the Council
- Section 8 of the Mediation Act, 2023: appointment of mediators
- Section 43 of the Mediation Act, 2023: community mediation
- Mediation Act 2023 for commercial and trade disputes
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.