MA Section 19 : Mediated Settlement Agreement

Act

Summary

Section 19 of The Mediation Act, 2023, outlines the requirements for a mediated settlement agreement. It specifies that such agreements must be in writing, signed by the parties, and authenticated by the mediator. The section also covers the submission process for institutional and other mediation cases. Additionally, it clarifies that agreements resulting from online mediation are included and highlights that void agreements under the Indian Contract Act, 1872, are not considered lawful.

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Explanation using Example

Example 1: Business Dispute Resolution

Introduction: ABC Corp and XYZ Ltd are two companies engaged in a contractual dispute over the delivery of goods. They decide to resolve their issues through mediation.

Application: During the mediation process, both parties reach a consensus on the disputed issues. According to Section 19(1) of The Mediation Act, 2023, they draft a mediated settlement agreement in writing, which is authenticated by the mediator. The agreement not only addresses the current dispute but also includes terms for future business collaborations, as allowed by the proviso in Section 19(1).

Outcome: The mediated settlement agreement is reduced to writing and signed by both parties as per Section 19(2). The mediator authenticates the agreement and forwards it to the mediation service provider, complying with Section 19(3)(i). This ensures that the agreement is legally binding and enforceable.

Conclusion: By following the procedural requirements of The Mediation Act, 2023, ABC Corp and XYZ Ltd effectively resolve their dispute and lay the groundwork for future cooperation. Non-compliance with these procedures could have resulted in the agreement being void or unenforceable.

Example 2: Family Dispute Mediation

Introduction: Mr. and Mrs. Sharma are undergoing a div...

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