Supreme court of Nepal adopted court referred mediation on the District Court Rules, 1995 (2052 B.S.) through the fourth amendment on 2003. Similarly, Full Court of Supreme court has adopted the Operational Guidelines for Mediation, 2004. After three years of mediation practices, the Supreme Court also expands mediation on the Appellate Court and Supreme Court on 2006 through the amendment on court rules. A high level Mediation Committee under the chair of the Supreme Court justice has been formed by the Supreme Court rule to facilitate, promote and regulate the mediation process is all courts across the country. By the initiation of the Supreme Court, the Mediation Act had been enacted by the Legislature-Parliament as an Umbrella Mediation Act in 2011, which visualized a high level Mediation council in promoting and regulating the mediation process.
Mediation council is composed on the chairmanship of the Supreme Court justice with concerned multi sector representation. The other members of the council are
- A sitting judge of Supreme Court designated by the chief of justice on the recommendation of the Judicial Council- Chairperson
- Secretary, Ministry of Law and Justice- Member
- Secretary, Ministry of Federal Affairs and local Development- Member
- Deputy Attorney General, Office of the Attorney General- Member
- Secretary General, Nepal Bar Association- Member
- A person designate by the Board from among the representative organizations working in the field of industry and commerce- Member
- Two women designate by the Board from among the working as a mediator or the representatives of the agency involved in mediation or working in the field of mediation- Member
- Two persons with at least a women designate by the Board from among the representatives of social workers and civil society- Member
- Registrar of the Supreme Court- Member Secretary
- To conduct or cause to conduct various programs which promote mediation to settle dispute.
- To provide suggestion to the Government of Nepal for simplification of mediation procedure and for making reform in prevailing law for wide use of such procedure.
- To approve the curricula of the training to be given to the mediators and to specify the agency which conduct such training
- To monitor and evaluate the institution capacity of the agency which provides mediation service and the quality of training.
- To cause to conduct training and interaction program for the enhancement of the expertise of the mediators.
- To prepare the framework of permanent structure in local level for community based mediation and to recommend the Government of Nepal for its implementation.
- To monitor or cause to monitor the act and activity of a mediator.
- To cause to inquiry into the matter whether the mediator has abided by the code of conduct or not and to take action where the code of conduct is violated.
- To perform any other act related to mediation.