Consider the following statements about settlement of a dispute through mediation under the Consumer Protection Act, 2019:
(A) The District Commission may direct the parties to give their consent for settlement of the dispute through mediation within five days.
(B) The District Commission refers the matter for mediation once the parties agree and give their oral consent.
(C) The District Commission can direct mediation either on the first hearing or at any later stage of the complaint.
(D) If the settlement by mediation fails, the District Commission refers the complaint to the State Commission.
Which of the statements given above are correct?
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A) and (C) only
(A) The District Commission may direct the parties to give their consent for settlement of the dispute through mediation within five days. — Correct. When there are elements of settlement, the commission may ask the parties to consent to mediation within five days.
(B) The District Commission refers the matter for mediation once the parties agree and give their oral consent. — Incorrect. The parties must give written consent. Only then is the matter referred for mediation.
(C) The District Commission can direct mediation either on the first hearing or at any later stage of the complaint. — Correct. It can do so on the first hearing or at any later stage.
(D) If the settlement by mediation fails, the District Commission refers the complaint to the State Commission. — Incorrect. If mediation fails, the District Commission itself proceeds with the complaint. The State Commission comes in only on an appeal against the District Commission’s order.
NCERT (2026-27 Edition):
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