Sections 58-61 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 58 to 61 each amend one older Act as set out in the Third to Sixth Schedules. The Contract Act's saving for agreements to refer disputes now covers "arbitration or mediation", the Code of Civil Procedure gets a new section 89, the Legal Services Authorities Act gets a new clause (f) in section 4, and the Arbitration and Conciliation Act loses its conciliation provisions in favour of two new sections.
Section 58 and the Third Schedule substitute Exceptions 1 and 2 to section 28 of the Indian Contract Act, 1872 to cover arbitration or mediation. Section 59 and the Fourth Schedule omit a sub-heading and substitute section 89 of the Code of Civil Procedure, 1908. Section 60 and the Fifth Schedule substitute clause (f) of section 4 of the Legal Services Authorities Act, 1987. Section 61 and the Sixth Schedule omit words in section 43D and replace sections 61 to 81 of the Arbitration and Conciliation Act, 1996 with two new sections. The Act comes into force by notification, with different dates possible for different provisions, and the dates are not in the text consulted.
How the four sections work
Each of sections 58 to 61 says that a named Act "shall be amended in the manner specified" in a Schedule. The Schedule then substitutes, omits or inserts words. This article describes each change in the Schedule's own words and does not describe the older text from memory; where the site has an article on the section as it stood, it is linked. All these changes take effect when the relevant provision comes into force by notification, and the notification dates are not in the text consulted. Whether you are drafting a dispute clause or planning a court reference, our conciliation services team can help you see what the changes mean for your documents.
Section 58 and the Third Schedule: section 28 of the Indian Contract Act, 1872
The Third Schedule says that in section 28 of the Indian Contract Act, 1872, "for Exception 1 and Exception 2, the following shall be substituted". The new text reads:
- Exception 1, headed "Saving of contract to refer to arbitration or mediation dispute that may arise": the section "shall not render illegal a contract, by which two or more persons agree that any dispute which may arise between them in respect of any subject or class of subjects shall be referred to resolution through arbitration or mediation."
- Exception 2, headed "Saving of contract to refer questions that have already arisen": the section shall not render illegal "any contract in writing, by which two or more persons agree to refer to arbitration or mediation any question between them which has already arisen, or affect any provision of any law in force for the time being as to references to arbitration or mediation."
In both, the substituted text names "arbitration or mediation". The effect, as the Schedule words it, is that an agreement to refer future disputes, or an agreement in writing to refer an existing question, to mediation is within the saving, as an agreement to refer to arbitration is. For the section as it stood before this substitution, see our article on section 28 of the Indian Contract Act.
Section 59 and the Fourth Schedule: section 89 of the Code of Civil Procedure, 1908
The Fourth Schedule makes two changes in the Code of Civil Procedure, 1908:
- Under Part V, under the heading SPECIAL PROCEEDINGS, the sub-heading "ARBITRATION" is omitted.
- For section 89, a new section headed "Settlement of disputes outside the Court" is substituted.
The new section 89 says: where it appears to the Court that the dispute between the parties may be settled and there exist elements of settlement which may be acceptable to the parties, the Court may:
| Clause | Course open to the Court | What follows |
|---|---|---|
| (a) | Refer the dispute to arbitration | The provisions of the Arbitration and Conciliation Act, 1996 apply as if the proceedings for arbitration were referred for settlement under that Act |
| (b) | Refer the parties to mediation, to the court-annexed mediation centre or any other mediation service provider or any mediator, as per the option of the parties | The provisions of the Mediation Act, 2023 apply as if the proceedings for mediation were referred for settlement under that Act |
| (c) | Refer the dispute to Lok Adalat, in accordance with sub-section (1) of section 20 of the Legal Services Authorities Act, 1987 | All other provisions of that Act apply in respect of the dispute |
| (d) | Effect compromise between the parties | Follow such procedure as deemed fit for judicial settlement |
Section 89 as substituted works with section 7 of the Mediation Act, which lets a court or tribunal refer parties to mediation at any stage; see our article on section 7. For the Arbitration Act reference in clause (a), see our article on section 8 of the Arbitration and Conciliation Act, 1996.
Section 60 and the Fifth Schedule: section 4 of the Legal Services Authorities Act, 1987
Section 60 as printed names "The Legal Service Authorities Act, 1987", while the Schedule and the rest of the Act say "Legal Services Authorities Act, 1987"; this is a printing slip in the section. The Fifth Schedule says that in section 4 of the Act, "for clause (f), the following clause shall be substituted":
"(f) encourage the settlement of disputes, including online by way of negotiations, arbitration, mediation and conciliation;"
The Schedule does not say anything further. The words "including online" and the list "negotiations, arbitration, mediation and conciliation" are those of the substituted clause. The Schedule does not describe the clause it replaces, and this article does not.
Section 61 and the Sixth Schedule: the Arbitration and Conciliation Act, 1996
The Sixth Schedule makes two sets of changes.
(a) Section 43D. In sub-section (1), the words "mediation, conciliation" are omitted. In sub-section (2), in clauses (e), (f) and (i), the words "and conciliation" wherever they occur are omitted. The text of section 43D is not reproduced in the Mediation Act or in the sources consulted for this article, so nothing is said here about what that section provides.
(b) Sections 61 to 81. These are substituted by two new sections:
| New section | Heading | What it says |
|---|---|---|
| 61(1) | Reference of conciliation in enactments | Any provision in any other enactment for the time being in force, providing for resolution of disputes through conciliation in accordance with the provisions of that Act, "shall be construed as reference to mediation as provided under the Mediation Act, 2023" |
| 61(2) | Same | Conciliation as provided under that Act and the Code of Civil Procedure, 1908 "shall be construed as mediation referred to in clause (h) of section 3 of the Mediation Act, 2023" |
| 62 | Saving | Notwithstanding section 61, any conciliation proceeding initiated in pursuance of sections 61 to 81 of that Act as in force before the commencement of the Mediation Act, 2023 "shall be continued as such, as if the Mediation Act, 2023, had not been enacted" |
So, as the Schedule words it, two things happen. References to conciliation under the Arbitration Act in other laws are read as references to mediation under the Mediation Act, and conciliation under that Act and the Code is read as mediation within section 3(h). And conciliation proceedings already begun under the old sections 61 to 81 before commencement continue as if the Mediation Act had not been enacted. Section 3(h) of the Mediation Act already includes conciliation within "mediation"; see our article on section 3.
For the old Part III of the Arbitration Act, see our article on conciliation under sections 61 to 81 as it stood and our introduction to the Arbitration and Conciliation Act, 1996. Those articles describe the provisions before the substitution. For the interaction of settlement and arbitration after the change, see our article on section 30 of the Arbitration and Conciliation Act. Commencement of the Sixth Schedule, like the others, is by notification and the date is not in the text consulted; this article does not say whether the new sections 61 and 62 are in force.
Reading the four changes together
| Act amended | Section of the Mediation Act | Schedule | One-line change |
|---|---|---|---|
| Indian Contract Act, 1872 | 58 | Third | Exceptions 1 and 2 to section 28 now name "arbitration or mediation" |
| Code of Civil Procedure, 1908 | 59 | Fourth | New section 89 with four courses for the Court; "ARBITRATION" sub-heading omitted |
| Legal Services Authorities Act, 1987 | 60 | Fifth | New clause (f) in section 4 on encouraging settlement, including online |
| Arbitration and Conciliation Act, 1996 | 61 | Sixth | Words omitted in section 43D; sections 61 to 81 replaced by new sections 61 and 62 |
The remaining amending Schedules (Seventh to Tenth) are covered in our article on sections 62 to 65.
Practical points
- Check the mediation clause in your contracts against the new Exceptions in section 28 of the Contract Act, for the exact words.
- If you are in a suit, expect the Court's power under the new section 89 to include a reference to mediation at the parties' option as to centre or mediator.
- If a statute or contract refers to "conciliation" under the Arbitration Act, read it with new section 61.
- If conciliation under the old sections 61 to 81 began before commencement, new section 62 applies to it.
- Check the Official Gazette for the commencement notification for each provision.
Need help with clauses and court references after these changes?
Dispute clauses, court references and conciliation references in older documents may need a fresh look. We can review them and advise through our conciliation services.
Key takeaways
- The Third Schedule substitutes Exceptions 1 and 2 to section 28 of the Indian Contract Act, 1872 so that they name "arbitration or mediation".
- The Fourth Schedule omits the "ARBITRATION" sub-heading under Part V of the Code of Civil Procedure and substitutes a new section 89 with four courses: arbitration, mediation, Lok Adalat and judicial settlement.
- The Fifth Schedule substitutes clause (f) in section 4 of the Legal Services Authorities Act, 1987.
- The Sixth Schedule omits words in section 43D of the Arbitration and Conciliation Act, 1996 and replaces sections 61 to 81 with new sections 61 and 62.
- Commencement is by notification, and the dates are not in the text consulted.
Read next
- Sections 62-65 of the Mediation Act, 2023: amendments to the MSMED, Companies, Commercial Courts and Consumer Acts
- Section 7 of the Mediation Act, 2023: power of court or tribunal to refer parties to mediation
- Section 3 of the Mediation Act, 2023: definitions
- Introduction to the Arbitration and Conciliation Act, 1996
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.