This Act, consisting of 6 Chapters, may be called "Mediation Act, 2068. It establishes administative and legal proceedings related to any dispute that may be settled through mediation: In case, any agreement provides for the settlement of dispute through mediation, the dispute concerned with that agreement or a dispute arisen under that agreement shall be settled according to the procedure prescribed in the agreement, if any. Notwithstanding anything contained in Sub-section (1), in case, parties intend to settle a dispute through mediation which is subjudice or not filed in any adjudicating body and such dispute may be settled through compromise (Milapatra) pursuant to prevailing law, the aforesaid dispute may be settled through mediation by following the procedure pursuant to this Act.
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During the late 18th-early 19th centuries, the principality of Gorkha united many of the other principalities and states of the sub-Himalayan region into a Nepalese Kingdom. Nepal retained its independence following the Anglo-Nepalese War of 1814-16 and the subsequent peace treaty laid the foundations for two centuries of amicable relations between Britain and Nepal.