MA Section 27 : Enforcement of Mediated Settlement Agreement

Explanation using Example

Example 1: Business Dispute Resolution

Introduction: ABC Corp and XYZ Ltd, two companies engaged in a business partnership, encounter a dispute over the terms of their contract. They decide to resolve the issue through mediation rather than going to court.

Application: During the mediation process, both parties agree on a settlement, which is then documented in a mediated settlement agreement. This agreement is signed by both parties and authenticated by the mediator, as required by Section 27(1) of The Mediation Act, 2023.

Outcome: The mediated settlement agreement is now final and binding on both ABC Corp and XYZ Ltd. If either party fails to comply with the terms, the other party can enforce the agreement as per Section 27(2), using the provisions of the Code of Civil Procedure, 1908, as if it were a court judgment. This means they can seek enforcement through legal proceedings if necessary.

Conclusion: By adhering to the mediation process and ensuring the agreement is properly signed and authenticated, both companies avoid lengthy court battles and ensure a legally binding resolution to their dispute.

Example 2: Family Dispute Resolution

Introduction: John and Mary, a married couple, decide to separate and need to resolve issues related to child custody and property division. They opt for mediation to reach an amicable settlement.

Application: Through mediation, John and Mary agree on a parenting plan and property division, which is documented in a mediated settlement agreement. This agreement is signed by both parties and authenticated by the mediator, fulfilling the requirements of Section 27(1) of The Mediation Act, 2023.

Outcome: The agreement is now final and binding. If John or Mary fails to adhere to the terms, the other party can enforce the agreement under Section 27(2), treating it as a court judgment. This provides a clear legal pathway to ensure compliance with the agreed terms.

Conclusion: By choosing mediation, John and Mary avoid the adversarial nature of court proceedings and achieve a binding resolution that can be enforced if necessary, ensuring stability for their family.

Example 3: Commercial Lease Dispute

Introduction: A dispute arises between a landlord, Mr. Smith, and his tenant, Ms. Johnson, over the terms of a commercial lease. They decide to use mediation to resolve their differences.

Application: The mediation results in a settlement agreement that outlines revised lease terms. The agreement is signed by both Mr. Smith and Ms. Johnson and authenticated by the mediator, as stipulated in Section 27(1) of The Mediation Act, 2023.

Outcome: This mediated settlement agreement is final and binding. If either party breaches the agreement, the other can enforce it under Section 27(2) using the Code of Civil Procedure, 1908, as if it were a court decree.

Conclusion: By resolving their dispute through mediation, Mr. Smith and Ms. Johnson achieve a legally binding solution that can be enforced, providing certainty and avoiding further legal costs.