MA Section 28 : Challenge to mediated settlement agreement

Explanation using Example

Example 1: Fraudulent Settlement Agreement

Introduction: John and Mary are business partners who have a dispute over the distribution of profits. They decide to resolve their conflict through mediation. During the mediation process, John presents a financial statement that significantly understates the company's profits, leading Mary to agree to a settlement that is less favorable to her.

Application: According to Section 28, Sub-section (2)(i) of The Mediation Act, 2023, a mediated settlement agreement can be challenged on the grounds of fraud. In this scenario, Mary can file an application before the court or tribunal of competent jurisdiction to challenge the settlement agreement, alleging that John committed fraud by providing false financial information.

Outcome: If the court finds that fraud occurred, the mediated settlement agreement may be set aside. John could face legal consequences, including potential civil liabilities for damages caused by the fraudulent misrepresentation.

Conclusion: This example illustrates the importance of honesty in mediation. Parties should ensure all information is accurate to avoid legal challenges and potential penalties.

Example 2: Impersonation During Mediation

Introduction: Sarah and Tom are involved in a mediation to resolve a contractual dispute. Unbeknownst to Sarah, Tom sends his brother, who closely resembles him, to attend the mediation sessions and agree to a settlement on his behalf.

Application: Section 28, Sub-section (2)(iii) of The Mediation Act, 2023, allows a mediated settlement agreement to be challenged on the grounds of impersonation. Sarah ca...

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