Mediation: settling a rental dispute without going to court

Mediation is a structured conversation led by a neutral mediator, who helps both sides reach an agreement they can live with. The mediator does not decide who is right. For rental disputes — where the amounts are modest and both sides usually just want to move on — it is often faster and cheaper than litigation.

What the Mediation Act, 2023 changed

• It received Presidential assent on 15 September 2023 and gives mediation a single legal framework in India.
• Parties can try mediation before going to court (pre-litigation mediation).
• Mediation is meant to finish within 120 days of the mediator’s first appearance, extendable by up to 60 days if both parties agree.
• A signed mediated settlement agreement is final and binding and can be enforced like a court judgment; it can be challenged only on narrow grounds such as fraud or impersonation.
• Mediation can be conducted online with the parties’ written consent.
• Community mediation is recognised for disputes affecting the peace of a locality — useful for issues inside a housing society.

How it works for a deposit dispute

1. Both sides share their evidence: the agreement, the move-in and move-out reports, photos and receipts.
2. The mediator walks through each disputed item and separates normal wear from damage.
3. The parties agree a figure. The agreement is written down and signed.
4. The deposit is released on those terms.

How UNETRA supports it

On UNETRA, a tenant who disagrees with a proposed deduction can dispute it from their portal. UNETRA’s team reviews the move-in and move-out evidence and records the outcome both parties accept, and the deposit is then released through the regulated partner holding it. Where a formal mediation or legal step is needed, it is carried out by qualified partner professionals under their own terms.

Sources

• Mondaq — The Mediation Act, 2023: key features
• American Bar Association — The Indian Mediation Act, 2023

General information, not legal or financial advice. UNETRA is a technology platform; regulated services are provided by partners under their own terms.