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Section 74: Establishment of consumer mediation cell

Consumer Protection Act • Official Statutory Text & Practice Guide

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Act 2019
Section 73 All 107 Sections of Consumer Protection Act Section 75

Legal Commentary & Landmark Judgments: Section 74

Section 74 of the Consumer Protection Act, 2019 mandates the establishment of Consumer Mediation Cells attached to every District Commission, State Commission, and the National Commission, creating an institutionalized alternative dispute resolution infrastructure.

  • Court-Annexed Institutional ADR Structure: Mandates the establishment of dedicated Consumer Mediation Cells attached to consumer commissions at all three tiers by the respective Central and State Governments.
  • Roster and Case Docket Maintenance: Requires every mediation cell to maintain a panel of accredited mediators, a list of cases referred to it, and systematic records of mediation proceedings and outcomes.
  • Quarterly Reporting and Administrative Oversight: Obligates mediation cells to submit quarterly reports on case resolution rates and administrative operations to the Commission to which they are attached.
Key Landmark Precedents:
  • Afcons Infrastructure Ltd. v. Cherian Vakkachan (2010) 8 SCC 24: A 2-Judge Bench of the Supreme Court held that institutional, court-annexed mediation mechanisms under modern statutory frameworks provide effective access to justice, reducing systemic judicial pendency while securing consensual dispute resolution.
  • Salem Advocate Bar Association (II) v. Union of India (2005) 6 SCC 344: The Supreme Court recognized that court-annexed mediation cells equipped with structured operational rules provide binding, cost-effective, and expeditious settlements consistent with constitutional access to justice.
Courtroom Practice & Strategic Litigation Guidance:

At the first admission hearing under Section 37 or 49/59, evaluate whether the dispute contains elements of settlement. Moving a reference to the Consumer Mediation Cell attached under Section 74 halts adversarial litigation costs and facilitates direct commercial dialogue.

Section 73 All 107 Sections of Consumer Protection Act Section 75