Sections 79 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 79 to 81 describe what happens once a consumer dispute is referred for mediation: where it is held, what the mediator keeps in mind, how a full or partial agreement is written down, and how the Commission records it by order within seven days. They also say what happens if mediation fails. If you are heading into mediation, our legal dispute resolution team can help you prepare the terms you want in writing.
Mediation is held in the consumer mediation cell attached to the Commission (79(1)). The mediator has regard to the rights and obligations of the parties, usages of trade, the circumstances and other relevant factors, and is guided by the principles of natural justice (79(2)). Any agreement, on all or only some issues, is reduced to writing and signed (80(1)); the mediator sends it with a settlement report to the Commission (80(2)). The Commission passes an order recording the settlement within seven days of receiving the report (81(1)). If mediation fails, it continues to hear the dispute (81(3)).
The sections at a glance
| Provision | Subject | Key point |
|---|---|---|
| 79(1) | Where | In the consumer mediation cell attached to the Commission |
| 79(2) | How the mediator proceeds | Regard to rights, obligations, trade usage, circumstances; natural justice |
| 79(3) | Time and manner | Such as specified by regulations |
| 80(1) | Agreement | Written and signed, on all or some of the issues |
| 80(2) | Settlement report | Mediator forwards signed agreement and report to the Commission |
| 80(3) | No agreement | Mediator reports accordingly |
| 81(1) | Order | Within seven days of receipt of the report |
| 81(2) | Part settlement | Record settled issues; continue hearing the rest |
| 81(3) | Failed mediation | Commission continues to hear all issues |
Section 79: procedure for mediation
79(1). "The mediation shall be held in the consumer mediation cell attached to the District Commission, the State Commission or the National Commission, as the case may be." The cell is the one set up under section 74; see section 74 on the consumer mediation cell.
79(2). Where a dispute is referred for mediation, "the mediator nominated by such Commission shall have regard to the rights and obligations of the parties, the usages of trade, if any, the circumstances giving rise to the consumer dispute and such other relevant factors, as he may deem necessary and shall be guided by the principles of natural justice while carrying out mediation."
| Factor | Text |
|---|---|
| Parties' rights and obligations | Must be had regard to |
| Usages of trade | "If any" |
| Circumstances giving rise to the dispute | Must be had regard to |
| Other relevant factors | As the mediator deems necessary |
| Standard | Principles of natural justice |
The mediator is nominated by the Commission, as section 76 provides; see sections 75–78 on mediators. Section 79(2) does not define natural justice. It does not say the mediator decides the dispute; the following sections show that the outcome is an agreement between the parties.
79(3). "The mediator so nominated shall conduct mediation within such time and in such manner as may be specified by regulations." The time and manner are fixed by regulations (section 103(2)(h) lists it as a head). The regulations are not in the source text, so this article states no time limit.
Section 80: settlement through mediation
80(1): the agreement in writing
"Pursuant to mediation, if an agreement is reached between the parties with respect to all of the issues involved in the consumer dispute or with respect to only some of the issues, the terms of such agreement shall be reduced to writing accordingly, and signed by the parties to such dispute or their authorised representatives."
- Agreement can be on all or only some issues.
- The terms shall be reduced to writing and signed by the parties or their authorised representatives.
- A company or firm, for example, signs through an authorised representative.
80(2): settlement report
"The mediator shall prepare a settlement report of the settlement and forward the signed agreement along with such report to the concerned Commission."
So the mediator forwards two things: the signed agreement and the settlement report. The Act does not set out what the report must contain, and it does not give a time within which the mediator must forward it.
80(3): when there is no agreement
"Where no agreement is reached between the parties within the specified time or the mediator is of the opinion that settlement is not possible, he shall prepare his report accordingly and submit the same to the concerned Commission."
Two triggers: the "specified time" passes without agreement (the time is specified by regulations under 79(3)), or the mediator forms the opinion that settlement is not possible. In either case the mediator submits a report to the Commission.
Section 81: recording the settlement
81(1): seven days
"The District Commission or the State Commission or the National Commission, as the case may be, 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."
The period is seven days from receipt of the settlement report. The Commission "shall" pass the order. The words "suitable order" are not explained. The text does not say whether the Commission can decline to record a settlement, for example if a term is contrary to law; it is silent on that.
81(2): partial settlement
"Where the consumer dispute is settled only in part, the District Commission or the State Commission or the National Commission, as the case may be, shall record settlement of the issues which have been so settled and continue to hear other issues involved in such consumer dispute."
81(3): failed mediation
"Where the consumer dispute could not be settled by mediation, the District Commission or the State Commission or the National Commission, as the case may be, shall continue to hear all the issues involved in such consumer dispute."
| Outcome of mediation | What the Commission does |
|---|---|
| Full settlement | Within seven days of the report, passes an order recording it and disposes of the matter |
| Part settlement | Records the settled issues and continues to hear the others |
| No settlement | Continues to hear all issues |
Example. A buyer's complaint against a travel company is referred to mediation. The parties agree that the company will refund Rs 40,000 but they cannot agree on compensation for harassment. The agreement on the refund is written and signed. The mediator forwards it with a settlement report. Within seven days the Commission passes an order recording the refund, and carries on hearing the compensation issue under section 81(2).
What the text leaves out
- Whether what a party said in mediation can be used later if mediation fails. The text is silent.
- Whether the parties may be represented by lawyers in mediation. Section 80(1) speaks of "authorised representatives" only in connection with signing.
- Whether the order recording the settlement can be appealed. Appeals are dealt with elsewhere in the Act; sections 79–81 are silent.
- How the order recording a settlement is enforced. Section 71 says every order of a Commission is enforced as if it were a decree; see section 71 on enforcement.
- Fees and forms. The Mediation Rules and Regulations are not in the source text; this article gives none.
Need help with a mediation settlement?
A settlement is only as good as its written terms: amounts, dates, who does what and what happens on default. Our team can help you review the draft before you sign it and check that all the issues you want covered are in the agreement. Book a legal dispute resolution consultation and bring the reference order and the proposed terms.
Key takeaways
- Mediation is held in the consumer mediation cell attached to the Commission.
- The mediator has regard to rights, obligations, trade usage and circumstances, and follows natural justice.
- An agreement on all or some issues is written and signed; the mediator forwards it with a settlement report.
- The Commission passes an order recording the settlement within seven days of the report.
- If mediation fails, or only part succeeds, the Commission continues to hear the remaining issues.
Read next
- Sections 75–78: mediators, empanelment, nomination, duties and replacement
- Section 37: reference to mediation
- Sections 82–83: product liability action, who can sue whom
- Consumer Protection Act 2019: Complete Guide to Rights, Forums and Remedies
Disclaimer: Based on the Consumer Protection Act, 2019 as enacted, as consulted on 1 October 2026. Monetary limits, fees and procedure are set or revised by rules and regulations made under the Act and should be checked in their current form. This article is general information, not legal advice; check the official text before acting.