Sections 62-65 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 62 to 65 amend four more Acts through the Seventh to Tenth Schedules. The MSMED Act gets a new section 18 (mediation first, then arbitration), the Companies Act gets a new section 442, the Commercial Courts Act gets a substituted Chapter IIIA and a changed section 21A(2)(a), and the Consumer Protection Act gets new sections 37, 37A and 37B and a number of omissions.
Section 62 and the Seventh Schedule substitute section 18 of the MSMED Act, 2006: a reference to the Facilitation Council, which conducts mediation itself or refers it to a provider, and then arbitration if mediation fails. Section 63 and the Eighth Schedule substitute section 442 of the Companies Act, 2013 (reference to mediation). Section 64 and the Ninth Schedule substitute Chapter IIIA of the Commercial Courts Act, 2015 (pre-litigation mediation and settlement). Section 65 and the Tenth Schedule change the Consumer Protection Act, 2019. The Act comes into force by notification, with different dates possible for different provisions, and the dates are not in the text consulted.
How these sections work
Each of sections 62 to 65 says that a named Act "shall be amended in the manner specified" in a Schedule. This article states each change in the Schedule's own words. It does not describe the old provisions from memory; for the sections as they stood before the substitution, the site's earlier articles are linked. Commencement is by notification and the notification dates are not in the text consulted, so nothing here says whether any substituted provision is in force. If you are a supplier, a company or a consumer-facing business, our MSME conciliation and arbitration team can help you see how the new routes apply to your dispute.
Section 62 and the Seventh Schedule: MSMED Act, 2006, section 18
The Seventh Schedule substitutes section 18 of the Micro, Small and Medium Enterprises Development Act, 2006, headed "Reference to Micro and Small Enterprises Facilitation Council". The new section reads, in summary:
| Sub-section | Rule |
|---|---|
| (1) | Notwithstanding anything in any other law, any party to a dispute may, with regard to any amount due under section 17, make a reference to the Micro and Small Enterprises Facilitation Council |
| (2) | On receipt of a reference, the Council shall either conduct mediation itself or refer the matter to any mediation service provider as provided under the Mediation Act, 2023 |
| (3) | The conduct of mediation under the section shall be as per the provisions of the Mediation Act, 2023 |
| (4) | Where the mediation is not successful and stands terminated without any settlement, the Council shall either itself take up the dispute for arbitration or refer it to any institution or centre providing alternative dispute resolution services for such arbitration, and the Arbitration and Conciliation Act, 1996 shall then apply as if the arbitration was in pursuance of an arbitration agreement referred to in sub-section (1) of section 7 of that Act |
| (5) | Notwithstanding anything in any other law, the Council or the centre providing ADR services shall have jurisdiction to act as an Arbitrator or mediator in a dispute between the supplier located within its jurisdiction and a buyer located anywhere in India |
The sequence, as the section words it, is reference, mediation, then arbitration if the mediation "stands terminated without any settlement". For the section as it stood before the substitution, see our article on section 18(1) and (2) of the MSMED Act and our article on section 18(3) to (5). For the Facilitation Council process in practice, see our guide to the MSEFC process and our guide to MSME Samadhaan. Those posts cover the section as it stood. The Seventh Schedule does not state the time limits for mediation or arbitration; the time limit for mediation under the Mediation Act is in section 18 of that Act, see our article on it.
Section 63 and the Eighth Schedule: Companies Act, 2013, section 442
The Eighth Schedule (which prints the Act as "Companies Act, 20l3", the letter "l" standing for the figure 1) substitutes section 442, headed "Reference to mediation":
| Sub-section | Rule |
|---|---|
| (1) | Any of the parties to a proceeding before the Central Government, Tribunal or Appellate Tribunal may at any time apply to it, in such form along with such fees, if any, as may be prescribed, for referring the matter for mediation, and it "shall refer the matter to mediation to be conducted under the provisions of the Mediation Act, 2023" |
| (2) | Nothing prevents the Central Government, Tribunal or Appellate Tribunal from referring any matter suo motu to mediation under the Mediation Act, 2023, as it deems fit |
| (3) | The mediator or mediation service provider shall file the mediated settlement agreement with the Central Government, Tribunal or Appellate Tribunal under the Act |
| (4) | The Central Government, Tribunal or Appellate Tribunal shall pass an order or judgment making the mediated settlement agreement part thereof |
| (5) | The fee of the mediator shall be such as may be prescribed |
The form, the fees and the mediator's fee are "as may be prescribed", so they are left to rules; none are in the text consulted. For the section as it stood, see our article on section 442 of the Companies Act and our article on mediation and conciliation under the Companies Act.
Section 64 and the Ninth Schedule: Commercial Courts Act, 2015
The Ninth Schedule makes two changes.
(a) Chapter IIIA substituted. The new Chapter is headed "Pre-litigation Mediation and Settlement" and contains section 12A:
- 12A(1): a suit that does not contemplate any urgent interim relief under that Act "shall not be instituted unless the plaintiff exhausts the remedy of pre-litigation mediation in accordance with such manner and procedure as may be prescribed by rules made by the Central Government".
- 12A(2): for pre-litigation mediation, the Central Government may, by notification, authorise (i) the Authority constituted under the Legal Services Authorities Act, 1987 or (ii) a mediation service provider as defined in section 3(m) of the Mediation Act, 2023.
- 12A(3): the authorised Authority or provider "shall complete the process of mediation within a period of one hundred and twenty days from the date of application made by the plaintiff". A proviso allows a further sixty days with the consent of the parties, and a second proviso says the period spent in pre-litigation mediation "shall not be computed for the purposes of limitation under the Limitation Act, 1963".
- 12A(4): if the parties to the commercial dispute arrive at a settlement, it shall be reduced into writing and signed by the parties and the mediator.
- 12A(5): the mediated settlement agreement "shall be dealt with in accordance with the provisions of sections 27 and 28 of the Mediation Act, 2023".
(b) Section 21A(2)(a) substituted. Clause (a) now reads "the manner and procedure of pre-litigation mediation under sub-section (1) of section 12A".
The period of one hundred and twenty days plus sixty here counts from the plaintiff's application, while section 18 of the Mediation Act counts from the date fixed for the first appearance. The section 12A rules are not in the text consulted. For the section itself, see our article on section 12A of the Commercial Courts Act, and for the Specified Value concept, our article on its determination. For the pre-litigation provision of this Act, see our article on section 5, and for enforcement and challenge under sections 27 and 28, see our article on section 27 and our article on section 28.
Section 65 and the Tenth Schedule: Consumer Protection Act, 2019
The Tenth Schedule makes these changes, in the Schedule's words:
| Item | Change |
|---|---|
| (a) | In section 2, clauses (25) and (26) are omitted |
| (b) | Section 37 is substituted by sections 37, 37A and 37B (see below) |
| (c) | In section 38(1), the words "or in respect of cases referred for mediation on failure of settlement by mediation," are omitted |
| (d) | In section 41, the third proviso is omitted |
| (e) | Chapter V is omitted |
| (f) | In section 101(2), clauses (r) and (zf) are omitted |
| (g) | In section 102(2), clause (p) is omitted |
| (h) | In section 103(2), clauses (c) to (h) are omitted |
New section 37, "Reference to mediation". The District Commission, State Commission or National Commission "shall either on an application by the parties at any stage of proceedings refer the disputes for settlement by mediation under the Mediation Act, 2023". As printed, the word "either" has no alternative that follows; the wording is as enacted.
New section 37A, "Settlement through mediation". If an agreement is reached on all or only some issues, its terms are reduced to writing and signed by the parties or their authorised representatives (sub-section (1)). The mediator prepares a settlement report and forwards the signed agreement with it to the Commission (sub-section (2)). Where no agreement is reached "within the specified time" or the mediator thinks settlement is not possible, he prepares a report and submits it to the Commission (sub-section (3)).
New section 37B, "Recording settlement and passing of order". The Commission shall, "within seven days of the receipt of the settlement report, pass suitable order recording such settlement of consumer dispute and dispose of the matter accordingly" (sub-section (1)). If the dispute is settled only in part, the Commission records the settled issues and continues to hear the others (sub-section (2)). If it could not be settled by mediation, the Commission continues to hear all issues (sub-section (3)).
The omissions of clauses (25) and (26) in section 2 and of the whole Chapter V are stated in the Schedule without description of what those provisions said, and this article does not describe them. For the earlier position on mediation under the Consumer Protection Act, 2019, see our article on mediation under the CPA 2019, which describes the provisions before this substitution.
Reading the four changes together
| Act amended | Section | Schedule | Core change |
|---|---|---|---|
| MSMED Act, 2006 | 62 | Seventh | New section 18: reference, mediation, then arbitration |
| Companies Act, 2013 | 63 | Eighth | New section 442: reference to mediation; settlement made part of the order |
| Commercial Courts Act, 2015 | 64 | Ninth | New Chapter IIIA (section 12A) and new section 21A(2)(a) |
| Consumer Protection Act, 2019 | 65 | Tenth | New sections 37, 37A, 37B; several omissions |
The Third to Sixth Schedules are covered in our article on sections 58 to 61.
Need help with a dispute under any of these four Acts?
Whether you are chasing a delayed payment, appearing before a company tribunal, planning a commercial suit or facing a consumer complaint, the route now runs through mediation first. We can advise on your position through our MSME conciliation and arbitration service.
Key takeaways
- The Seventh Schedule substitutes section 18 of the MSMED Act, 2006: reference to the Facilitation Council, mediation under the Mediation Act, then arbitration if mediation stands terminated without settlement.
- The Eighth Schedule substitutes section 442 of the Companies Act, 2013: reference to mediation on application or suo motu, with the settlement made part of the order.
- The Ninth Schedule substitutes Chapter IIIA of the Commercial Courts Act, 2015: pre-litigation mediation within one hundred and twenty days, extendable by sixty, with sections 27 and 28 of the Mediation Act applying.
- The Tenth Schedule changes the Consumer Protection Act, 2019: new sections 37, 37A and 37B and omissions.
- Commencement is by notification; the dates are not in the text consulted.
Read next
- Sections 58-61 of the Mediation Act, 2023: amendments to the Contract Act, CPC, Legal Services and Arbitration Acts
- Section 5 of the Mediation Act, 2023: pre-litigation mediation
- Section 12A of the Commercial Courts Act, 2015: pre-institution mediation and settlement
- MSME Facilitation Council (MSEFC): dispute resolution process
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.