Section 7 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 7 lets a court or tribunal refer parties to mediation at any stage of a proceeding, even after a pre-litigation attempt failed. The court or tribunal may pass a suitable interim order to protect a party's interest, and the parties are under no obligation to reach a settlement.
A court or tribunal may refer the parties to mediation at any stage of proceeding, notwithstanding non-settlement of a pre-litigation attempt under section 5(1). While referring, it may pass a suitable interim order to protect a party's interest, if it deems that appropriate. The parties are not under obligation to settle. Court-annexed mediation rules in force continue under section 57 until regulations are made. The Act comes into force by notification, and the date is not in the text consulted.
Section 7(1): a reference at any stage
Section 7(1) reads "Notwithstanding the non-settlement of dispute under sub-section (1) of section 5, the court or tribunal may, at any stage of proceeding, refer the parties to undertake mediation." The printed cross-reference to section 5(1) appears to be a loose way of saying that a failed pre-litigation mediation does not prevent a later reference; it is quoted as enacted.
The sub-section gives the power to "the court or tribunal". "Court" is defined in section 3(d) as the competent court with pecuniary and territorial jurisdiction and jurisdiction over the subject matter, as if the dispute had been the subject of a suit or proceeding. A tribunal is not defined in the text of section 3, and section 5(2) refers to tribunals "notified by the Central Government or a State Government". The words "at any stage" are broad: nothing in section 7 limits the reference to the pleading stage or to a particular stage of the trial.
The word "may" means the power is discretionary. The section does not require a court to refer any case.
Section 7(2): interim orders
Section 7(2) says that if the court or tribunal refers the parties to mediation, "it may pass suitable interim order to protect the interest of any party if deemed appropriate". The Act does not list the kinds of interim order. In plain terms, a business that fears its assets or position will change while mediation runs can ask the court to consider an interim order at the time of reference. The Act leaves the choice to the court or tribunal.
If you are in a suit and the judge suggests mediation, it helps to have a clear view of what interim protection you need before you agree. Our legal dispute resolution team can advise on that before the next date.
Section 7(3): no obligation to settle
Section 7(3) says "The parties shall not be under obligation to come to a settlement in the mediation pursuant to a reference under sub-section (1)." A court can send parties to the mediator, but it cannot direct them to settle. This matches the definition in section 3(h), where a mediator has no authority to impose a settlement, and section 16(2), where the mediator must tell the parties expressly that he only facilitates.
Where the reference goes
Section 7 does not say which centre or mediator the court must use. The related provisions help:
| Provision | What it adds |
|---|---|
| Section 3(e) | "Court-annexed mediation" means mediation, including pre-litigation mediation, conducted at mediation centres established by any court or tribunal |
| Section 3(f) | "Institutional mediation" means mediation under the aegis of a mediation service provider |
| Fourth Schedule, new section 89 of the Code of Civil Procedure, 1908 | A court may 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" |
| Section 57 | Rules in force governing court-annexed mediation continue until regulations are made under section 15(1) |
Section 57: transitional rules for court-annexed mediation
Section 57 says "The rules in force governing the conduct of court-annexed mediation shall continue to apply until regulations are made under sub-section (1) of section 15". A proviso says the rules "shall continue to apply in all court-annexed mediation pending as on the date of coming into force of the regulations". The rules themselves are not in the text consulted, and no regulations under section 15(1) are in it either.
The substituted section 89 of the Code of Civil Procedure
The Fourth Schedule, through section 59, omits the sub-heading "ARBITRATION" under Part V of the Code and substitutes a new section 89 headed "Settlement of disputes outside the Court". Where it appears to the Court that the dispute may be settled and there exist elements of settlement which may be acceptable to the parties, the Court may: (a) refer the dispute to arbitration; (b) refer the parties to mediation, as above, after which the Mediation Act, 2023 applies as if the proceedings for mediation were referred for settlement under that Act; (c) refer the dispute to Lok Adalat under section 20(1) of the Legal Services Authorities Act, 1987; or (d) effect a compromise and follow the procedure it deems fit for judicial settlement. The full account of that change is in our article on sections 58 to 61, with the usual caveat that the Act comes into force by notification and the date is not in the text consulted.
How section 7 differs from section 5
Section 5 is about mediation before a suit, by mutual consent. Section 7 is about mediation after a case is in a court or tribunal, at the court's or tribunal's initiative. Under section 5(1) the parties choose; under section 7(1) the forum refers. For the pre-suit route, see our article on pre-litigation mediation. For limits on what may go to mediation at all, section 6 and the First Schedule apply: our article on disputes not fit for mediation.
For how a civil suit is instituted and what the parties plead before such a reference, see our guide on suits, parties and cause of action under the CPC.
Need help when a court suggests mediation?
A reference to mediation is a point to prepare, not to drift through. We can help you decide on interim protection, the choice of mediator and the position to take at the first session through our legal dispute resolution service.
Key takeaways
- A court or tribunal may refer parties to mediation at any stage of proceeding (section 7(1)).
- It may pass a suitable interim order to protect a party's interest if deemed appropriate (section 7(2)).
- No party is obliged to settle after a reference (section 7(3)).
- Existing rules on court-annexed mediation continue until regulations are made (section 57).
- The Fourth Schedule substitutes section 89 of the Code of Civil Procedure; commencement is by notification and the date is not in the text consulted.
Read next
- Section 5 of the Mediation Act, 2023: pre-litigation mediation
- Section 8 of the Mediation Act, 2023: appointment of mediators
- Sections 58-61: amendments to the Contract Act, CPC, Legal Services and Arbitration Acts
- Jurisdiction of civil courts: pecuniary, territorial and subject matter
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.