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Jurisprudence, Interpretation and General Laws · Law relating to Arbitration, Mediation and Conciliation

Mediated Settlement Agreement and Its Enforceability Under the Mediation Act, 2023

Updated 11 October 2026 · Fact-checked

A mediated settlement agreement is the written settlement the parties sign after mediation, authenticated by the mediator. Under section 27 of the Mediation Act, 2023 it is final, binding and enforceable like a court decree. It can be challenged only on fraud, corruption, impersonation or unfit disputes, within 90 days.

Understand Mediated Settlement Agreement and Enforceability

Mediation ends in one of two ways. Either the parties fail to agree, or they sign a settlement. That signed settlement is the mediated settlement agreement. The Mediation Act, 2023 gives it legal force so that the effort of mediation is not wasted.

The key rule is in section 27. An agreement signed by the parties and authenticated by the mediator is final and binding on the parties and on persons claiming under them. It is enforced under the Code of Civil Procedure, 1908, in the same way as a judgment or decree of a court. A party can also rely on it as a defence, set off or otherwise in any legal proceeding. This enforcement is subject to section 28, which allows a challenge.

Registration under section 20 is optional and is only for record. The parties may register the agreement with an Authority constituted under the Legal Services Authorities Act, 1987, or any other body notified by the Central Government. That body issues a unique registration number. Registration does not affect the right to enforce under section 27 or to challenge under section 28. Agreements reached in court or tribunal referred mediation, and Lok Adalat awards or final awards of the Permanent Lok Adalat, are outside this registration provision.

Confidentiality is protected by section 22. The mediator, mediation service provider, parties and participants must keep confidential offers, opinions, suggestions, promises, proposals, apologies and admissions made in mediation, willingness to accept proposals, documents prepared solely for mediation, and any other mediation communication. No audio or video recording may be made. No party can rely on such material as evidence in a court or tribunal, including an arbitral tribunal. The settlement agreement itself is not shielded where disclosure is needed for registration, enforcement and challenge.

Finally, challenge under section 28 is narrow. Only fraud, corruption, impersonation, or mediation of a dispute not fit for mediation under section 6 can be grounds. This keeps settlements stable while still guarding against abuse.

Key rules to remember

Finality and enforcement (section 27)
Signed by parties + authenticated by mediator = final, binding, enforced under CPC as if a judgment or decree
Enforcement is subject to section 28. The agreement can also be used as defence or set off.
Registration (section 20)
Optional; within 180 days of receiving the authenticated copy; later with a fee
Done with a Legal Services Authority or a body notified by the Central Government. A unique registration number is issued. For record only.
Grounds of challenge (section 28(2))
Fraud | Corruption | Impersonation | Dispute not fit for mediation under section 6
These four grounds only. Application goes to the court or tribunal of competent jurisdiction.
Limitation for challenge (section 28(3))
90 days from receipt of the copy under section 19(3); extendable by a further 90 days for sufficient cause
The extension is allowed only if the applicant shows sufficient cause for the delay.
Confidentiality (section 22)
Mediation communications are confidential and cannot be relied on as evidence; no audio or video recording
Exception: the settlement agreement where disclosure is needed for registration, enforcement and challenge. The mediator may share general information for research, reporting or training if no party or dispute is identifiable.
Territorial position (section 13)
Mediation within the territorial jurisdiction of the competent court or tribunal; outside it or online by mutual consent
Even then, for enforcement, challenge and registration, it is deemed undertaken within that jurisdiction.

How to solve Mediated Settlement Agreement and Enforceability questions

Most questions give a short fact pattern about a settlement and ask whether it can be enforced, registered, challenged or disclosed. Use this order.

  1. 1Identify the issue: enforcement, registration, challenge or confidentiality.
  2. 2Check the basic conditions: is the agreement signed by the parties and authenticated by the mediator?
  3. 3State the matching rule with the section number, such as section 27, 20, 28 or 22.
  4. 4Apply it to the facts. For challenge, match the alleged ground to the four listed grounds and count the days.
  5. 5For registration, note that it is optional, and check the 180-day period.
  6. 6For confidentiality, ask whether the material is a mediation communication or the settlement agreement itself.
  7. 7Close with a clear conclusion in one line that answers the question asked.

Quickest way: Four-line check: Sign, Register, Challenge, Keep quiet

When to use it: Use it when you have limited time and the question mixes several points about a mediated settlement.

  1. Sign: signed by parties and authenticated by the mediator means final and binding, section 27.
  2. Register: optional, for record, 180 days, section 20.
  3. Challenge: four grounds only, 90 days plus 90 days, section 28.
  4. Keep quiet: mediation communications are confidential, section 22; the agreement can be disclosed for registration, enforcement and challenge.

Common mistakes in Mediated Settlement Agreement and Enforceability

  • Saying registration is compulsory for enforcement.

    Students link registration with validity, as in property documents.

    Fix: Section 20 says registration is at the option of the parties and is for record. Enforcement under section 27 does not depend on it.

  • Listing grounds of challenge such as coercion or mistake.

    Students borrow grounds from contract law.

    Fix: Section 28(2) allows only fraud, corruption, impersonation and disputes not fit for mediation under section 6.

  • Giving the wrong time limit for challenge.

    Students mix it with the 180-day registration period.

    Fix: Challenge is 90 days from receipt of the copy under section 19(3), plus a further 90 days for sufficient cause. The 180 days relates to registration.

  • Claiming the settlement agreement can never be disclosed because of confidentiality.

    Students read section 22 only in part.

    Fix: The Explanation to section 22 says it does not apply to the agreement where disclosure is needed for registration, enforcement and challenge.

  • Saying enforcement is by arbitral award rules.

    Students confuse the Mediation Act with the Arbitration Act.

    Fix: Section 27(2) enforces the agreement under the Code of Civil Procedure, 1908, as if it were a judgment or decree.

  • Forgetting authentication by the mediator.

    Students focus only on the parties' signatures.

    Fix: Section 27(1) needs both: signed by the parties and authenticated by the mediator.

Worked examples

Example 1

Asha Textiles Pvt. Ltd. and Bharat Dyes Ltd. settle a payment dispute through mediation. The settlement is signed by both and authenticated by the mediator. Bharat Dyes later refuses to pay, saying the agreement was not registered. Advise Asha Textiles.

Show the solution
  1. Issue: whether an unregistered mediated settlement agreement can be enforced.
  2. Rule: under section 27(1), an agreement signed by the parties and authenticated by the mediator is final and binding. Under section 27(2) it is enforced under the Code of Civil Procedure, 1908, as if it were a judgment or decree.
  3. Registration under section 20 is at the option of the parties and is for record. The Explanation to section 20(1) says it does not affect the right to enforce under section 27.
  4. Application: the agreement meets the conditions of section 27. Non-registration is not a defence.

Answer: Asha Textiles can enforce the agreement as if it were a decree. Bharat Dyes' objection fails because registration is optional and does not affect enforcement.

Example 2

Ravi signed a mediated settlement agreement with Meera and received its copy under section 19(3) on 1 March. On 10 July he learns that Meera had hidden material facts and applies to the court to challenge the agreement on the ground of fraud. Can he succeed on limitation?

Show the solution
  1. Issue: whether the challenge is within time and on a valid ground.
  2. Ground: fraud is listed in section 28(2)(i), so the ground is valid.
  3. Time: under section 28(3), the application cannot be made after 90 days from receipt of the copy. From 1 March, the 90 days end on 30 May.
  4. Application: 10 July is after 30 May, so it is late by the main period.
  5. Extension: the court may entertain it within a further 90 days if satisfied that sufficient cause prevented him. The further period runs to about 28 August, so 10 July falls within it.
  6. Whether Ravi succeeds depends on proving sufficient cause, such as late discovery of the concealment.

Answer: The ground of fraud is valid, but the application is beyond the first 90 days. It can be entertained within the further 90 days only if the court is satisfied that Ravi had sufficient cause for the delay.

Exam tips

  • Write the section number with every rule: 27 for enforcement, 20 for registration, 28 for challenge, 22 for confidentiality.
  • Learn the four grounds of challenge as a list and write them in the exact order.
  • Keep the numbers apart: 180 days for registration, 90 days plus 90 days for challenge.
  • Always end with a clear conclusion after the provision and facts, in the ICSI answer style.
  • For confidentiality questions, mention the exception for the settlement agreement and the mediator's general information for research and training.

Practice questions from Law relating to Arbitration, Mediation and Conciliation

Mediated Settlement Agreement and Enforceability in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Mediated Settlement Agreement and Enforceability: frequently asked questions

Is a mediated settlement agreement enforceable like a court decree?

Yes. Under section 27 of the Mediation Act, 2023, an agreement signed by the parties and authenticated by the mediator is final and binding. It is enforced under the Code of Civil Procedure, 1908, as if it were a judgment or decree. This is subject to section 28.

Is registration of a mediated settlement agreement mandatory?

No. Section 20 makes it optional and for the purpose of record. It can be done within 180 days of receiving the authenticated copy, and later on payment of a fee. It does not affect enforcement or challenge.

On what grounds can a mediated settlement agreement be challenged?

Section 28(2) allows only fraud, corruption, impersonation, and mediation of disputes or matters not fit for mediation under section 6. The application is made to the court or tribunal of competent jurisdiction.

What is the time limit to challenge a mediated settlement agreement?

The application must be made within 90 days from receipt of the copy under section 19(3). If the court is satisfied there was sufficient cause, it may entertain it within a further 90 days.

Can what was said in mediation be used as evidence later?

No. Under section 22, parties cannot rely on mediation communications such as proposals, admissions or apologies as evidence before a court or tribunal, including an arbitral tribunal. Audio or video recording of mediation is also barred.