Consumer Mediation Cell under Consumer Protection Act, 2019 [Just 7 Points + 2025 PY UPSC Law Optional Answer]
- Lawxpertsmv
- Oct 4
- 2 min read
"The establishment of 'Consumer Mediation Cell' and procedure for mediation in the Consumer Protection Act, 2019 is a step towards alternative dispute resolution in consumer cases." Discuss. [2025 UPSC Law Optional | Question 4(c)]
7 POINTS :
NUMBER 1 : Establishing Consumer Mediation Cell [Section 74] : Section 74 establishes ‘consumer mediation cell’ [hereinafter CMC] at National and State level.
a) Section 74(1)– State Govt. to establish CMC – and to attach the same with - District + State Commissions.
b) Section 74(2)- Central Govt to establish CMC – and to attach the same with – National Commission + Regional Benches.
NUMBER 2 : Composition of CMC : CMC may consist of such persons as may be prescribed. [Sec.74(3)]
NUMBER 3: Duty of CMC: (a) To maintain - list of (i) empanelled mediators (ii) cases handled and (b) records of the proceedings (c) Submit Quarterly reports to the Commission to which they are attached. [Sec.74(4)]
NUMBER 4 : Empanelment of Mediators :
Section 75 (1) mandates preparation of panel of the mediators – at respective commissions[National, State, District] – through recommendation of selection committee consisting of the President and a member of that Commission.
Section 75(3) – Empanelled mediators – is eligible for 5 years + can be reconsidered for re-empanelment.
NUMBER 5: Nomination of mediators from panel :
Section 76 – Respective commissions - to consider the mediator suitability for resolving the consumer dispute involved.
NUMBER 6 : Procedure for Mediation:
Section 79 : Mediation is conducted in consumer mediation cells – shall regard to rights and obligations of the parties + usages of trade + relevant factors and to be guided by natural justice.
NUMBER 7 : Settlement through Mediation :
If purusuant to mediation,
a) the agreement is reached between parties on all or any one of the issues, then settlement report is prepared + signed by parties + forwarded to the respective commission. [Section 80(1)]
Within 7 days of settlement report - respective commissions[National, State, District] – shall pass suitable order recording such settlement of consumer dispute and dispose of the matter accordingly [Section 81(1)]
If only partial settlement is reached, remaining issues are adjudicated by the Commission. [Section 81(2)]
b) if no agreement is reached, prepare such report and submit the same to the respective commission. [Section 80(2)]
Upon such report - respective commissions[National, State, District] - e, shall continue to hear all the issues involved in such consumer dispute.[Section 81(3)]
The Consumer Protection Act, 2019, by establishing Consumer Mediation Cells and laying down a structured procedure, introduces an effective system of Alternative Dispute Resolution (ADR) in consumer law. This mechanism promotes speedy, cost-effective, and amicable settlements, reduces case pendency, and strengthens consumer access to justice.
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