MA Section 19 : Mediated Settlement Agreement

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 divorce and have disputes regarding child custody and property division. They opt for mediation to amicably resolve these issues.

Application: Through mediation, they agree on a shared custody arrangement and the division of their property. As per Section 19(2) of The Mediation Act, 2023, the agreement is documented in writing and signed by both parties. The mediator authenticates the agreement and provides copies to Mr. and Mrs. Sharma, in line with Section 19(3)(ii).

Outcome: The mediated settlement agreement is legally binding, ensuring that both parties adhere to the agreed terms. If the agreement had been void under the Indian Contract Act, 1872, it would not be considered lawful, as explained in Section 19(1).

Conclusion: The Sharmas successfully resolve their disputes through mediation, avoiding a lengthy court battle. Compliance with the procedural steps ensures the agreement's enforceability, providing legal certainty for both parties.

Example 3: Online Mediation for Consumer Dispute

Introduction: A consumer, Ms. Patel, has a dispute with an e-commerce company over a defective product. They agree to resolve the issue through online mediation.

Application: During the online mediation, both parties agree on a refund and additional compensation for inconvenience. According to Section 19(5) of The Mediation Act, 2023, the mediated settlement agreement resulting from online mediation is valid. The agreement is written and signed electronically by both parties, with the mediator authenticating it.

Outcome: The agreement is legally binding and enforceable, providing Ms. Patel with the agreed compensation. The e-commerce company avoids potential legal action by resolving the dispute amicably.

Conclusion: Online mediation proves to be an effective tool for resolving consumer disputes, offering a convenient and legally recognized method for settlement. Non-compliance with the agreement could lead to legal enforcement actions.