(1)  Any dispute likely to affect peace, harmony and tranquillity amongst the residents or families of any area or locality may be settled through community mediation with prior mutual consent of the parties to the dispute.

   (2)  For the purposes of sub-section (1), any of the parties shall make an application before the concerned Authority constituted under the Legal Services Authorities Act, 1987 (39 of 1987) or District Magistrate or Sub-Divisional Magistrate in areas where no such Authority has been constituted, for referring the dispute to mediation.

   (3)  In order to facilitate settlement of a dispute for which an application has been received under sub-section (2), the concerned Authority constituted under the Legal Services Authorities Act, 1987 (39 of 1987) or the District Magistrate or Sub-Divisional Magistrate, as the case may be, shall constitute panel of three community mediators.

   (4)  For the purposes of this section, the Authority or District Magistrate or the Sub-Divisional Magistrate, as the case may be, shall notify a permanent panel of community mediators, which may be revised from time to time.

   (5)  The following persons may be included in the panel referred to in sub-section (4)—

   (a)  person of standing and integrity who are respectable in the community;

   (b)  any local person whose contribution to the society has been recognised;

   (c)  representative of area or resident welfare associations;

   (d)  person having experience in the field of mediation; and

   (e)  any other person deemed appropriate.

   (6)  While making panel referred to in sub-section (4) the representation of women or any other class or category of persons may be considered.