Sections 48-50 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 48 to 50 deal with mediation where the Government or a public body is a party. Section 48 lets the Government frame schemes or guidelines, section 49 requires prior written consent of the competent authority before a settlement is signed, and section 50 protects action taken in good faith under the Act.
The Central Government, a State Government or any of its entity or agency may frame schemes or guidelines for mediation or conciliation where it is a party (section 48). Where such a Government body is a party, the settlement agreement "shall be signed only after obtaining the prior written consent of the competent authority" (section 49, whose wording is as enacted and difficult to parse). No suit, prosecution or other legal proceeding lies against the Government, its officers, Council Members, officers and employees, mediators, institutes and providers for anything done or intended to be done in good faith (section 50). The Act comes into force by notification, and the date is not in the text consulted.
Where these sections sit
Section 2(iv) applies the Act where one of the parties is the Central Government, a State Government or their agencies, public bodies, corporations and local bodies, including entities controlled or owned by such Government, and the matter pertains to a commercial dispute. Section 2(v) reaches other disputes that a Government has notified for mediation under the Act. See our article on sections 1 and 2. Sections 48 and 49 add the rules specific to such disputes. If you deal with public sector buyers or sellers and want advice on how these provisions affect a settlement, our legal dispute resolution team can help.
Section 48: schemes and guidelines
Section 48 reads "Subject to the provisions of this Act, the Central Government or the State Government or any of its entity or agency, as the case may be, may frame any schemes or guidelines, for resolution of any dispute through mediation or conciliation in cases where the Central Government or the State Government or any of its entity or agency is one of the parties and in such cases mediation or conciliation may be conducted in accordance with such schemes or guidelines."
Four points emerge:
- Who may frame them. The Central Government, a State Government, or any of its entity or agency.
- For what. Resolution of disputes through mediation or conciliation where that Government or entity is a party.
- Effect. Mediation or conciliation "may be conducted in accordance with" the scheme or guidelines.
- Limit. The section is "subject to the provisions of this Act".
The word "conciliation" appears here alongside mediation. Section 3(h) includes conciliation within "mediation", so the two overlap, and the Sixth Schedule deals with conciliation provisions in the Arbitration and Conciliation Act, 1996; see our article on sections 58 to 61. No scheme or guideline is in the text consulted, so none is described.
Section 49: prior written consent before signing
Section 49 reads, as enacted: "Notwithstanding anything contained in this Act, no dispute including a commercial dispute, wherein the Central Government or State Government or any of its agencies, public bodies, corporations and local bodies including entities controlled or owned by them is a party, the settlement agreement arrived at shall be signed only after obtaining the prior written consent of the competent authority of such Government or any of its entity or agencies, public bodies, corporations and local bodies, as the case may be."
Drafting slip. The sentence as printed does not parse: it begins "no dispute including a commercial dispute, wherein ... is a party" and then continues "the settlement agreement arrived at shall be signed only after". The evident meaning is that, in any dispute (commercial or otherwise) in which the Government or one of the listed bodies is a party, the settlement agreement is to be signed only after the prior written consent of the competent authority of that Government or body. This article quotes the text as enacted and gives that meaning; the official text should be checked.
On that reading:
| Element | Content |
|---|---|
| Opening words | "Notwithstanding anything contained in this Act": overrides other provisions of the Act |
| Parties covered | Central Government, State Government, their agencies, public bodies, corporations, local bodies, and entities controlled or owned by them |
| Disputes covered | Any dispute, including a commercial dispute |
| Requirement | Settlement agreement signed only after prior written consent of the competent authority of the Government or body concerned |
Practical consequences if that reading is right:
- A negotiating officer cannot bind a public body in the mediation room by signing on the spot; the written consent of the competent authority comes first.
- The consent must be "prior" and "written".
- A private party should ask early who the competent authority is and when its consent will be given, and should allow time for it within the mediation period under section 18 (one hundred and twenty days from the first appearance, extendable by up to sixty days); see our article on section 18.
The Act does not say who the competent authority is, how the consent is sought, what happens if it is refused, or whether a settlement signed without it is void or can be challenged. The grounds in section 28(2) do not mention it; see our article on section 28. These are not addressed in the text consulted. A private party can protect itself by obtaining a copy of the written consent before the signing and annexing it to the settlement.
Section 50: protection of action taken in good faith
Section 50 says "No suit, prosecution or other legal proceeding shall lie against the Central Government or a State Government or any officer of such Government, or the Member or Officer or employee of the Council or a mediator, mediation institutes, mediation service providers, which is done or is intended to be done in good faith under this Act or the rules or regulations made thereunder."
| Protected | Condition |
|---|---|
| Central Government, State Government, any officer of such Government | Act done or intended to be done in good faith under the Act or the rules or regulations |
| Member, Officer or employee of the Council | Same |
| Mediator | Same |
| Mediation institutes and mediation service providers | Same |
The protection covers "suit, prosecution or other legal proceeding" and acts "done or intended to be done in good faith". Good faith is the test. The Act does not define it in these sections. The proviso to section 23(1) separately allows information to be sought or provided to prove or dispute a claim or complaint of professional misconduct of a mediator or malpractice based on conduct during the mediation; see our article on section 23. The text of section 50 does not say how those two provisions interact, and this article does not infer an answer.
Related commercial route
The Commercial Courts Act's substituted section 12A, in the Ninth Schedule, deals with pre-litigation mediation in commercial disputes; the Act's commencement is by notification and the date is not in the text consulted. For the definition of "commercial dispute" which section 2(iv) uses, see our article on section 2(1)(c) of the Commercial Courts Act.
An example
A State road corporation and a contractor, Pillai Constructions, mediate a payment dispute. They reach agreement in principle. Under section 49 on the evident reading, the settlement agreement is signed only after the corporation's competent authority gives prior written consent. Pillai Constructions asks for a copy of that consent and keeps it with the signed settlement. The names are invented for illustration.
Need help settling with a public body?
Settlements with Government bodies add a consent step and timing risk. We can help you plan the sequence and the documents through our legal dispute resolution service.
Key takeaways
- The Government or its entity or agency may frame schemes or guidelines for mediation or conciliation where it is a party (section 48).
- Settlements with Government bodies are to be signed only after prior written consent of the competent authority; the wording of section 49 is as enacted and the evident meaning is given above.
- The Act does not say who the competent authority is or what follows if consent is absent.
- No suit, prosecution or other legal proceeding lies for acts done or intended to be done in good faith under the Act (section 50).
- The Act comes into force by notification; the date is not in the text consulted.
Read next
- Sections 1-2 of the Mediation Act, 2023: short title, commencement and application
- Section 28 of the Mediation Act, 2023: challenge to mediated settlement agreement
- Sections 45-47: Mediation Fund, accounts and audit, and Government directions
- 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.