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Arbitration, Mediation and Conciliation · International and Emerging Aspects under Mediation Law

Enforcement of Mediated Settlement Agreements under the Mediation Act, 2023

Updated 11 October 2026 · Fact-checked

A mediated settlement agreement that is signed by the parties and authenticated by the mediator is final and binding. Under Section 27, it is enforced under the Code of Civil Procedure, 1908, as if it were a court decree. It can be challenged only on four grounds under Section 28, within 90 days.

Understand Enforcement of Mediated Settlement Agreements

Mediation ends in one of two ways. Either the parties settle or they do not. If they settle, the result is a mediated settlement agreement. The Act gives this agreement real legal force, so that a settlement does not become another dispute.

Section 19 says what counts. It is an agreement in writing between some or all of the parties, settling some or all of the disputes, and authenticated by the mediator. Its terms may go beyond the disputes referred to mediation. Parties sign it, and the mediator authenticates it. In institutional mediation, the mediator forwards it with a signed covering letter to the mediation service provider and gives a copy to the parties. In other cases, the mediator gives a copy to all parties. An agreement that is void under the Indian Contract Act, 1872 is not a lawful settlement agreement. Settlements from online mediation are covered too.

Section 27 gives the enforcement rule. A settlement signed by the parties and authenticated by the mediator is final and binding on the parties and persons claiming under them. It is enforced under the Code of Civil Procedure, 1908, in the same manner as a judgment or decree of a court. Any party, or person claiming through them, can also rely on it as a defence, set off or otherwise in any legal proceeding. This is all subject to Section 28.

Section 28 allows a challenge, but only narrowly. A party files an application before the court or tribunal of competent jurisdiction. The grounds are fraud, corruption, impersonation, or mediation conducted in a dispute not fit for mediation under Section 6. The time limit is 90 days from receipt of the copy under Section 19(3). The court or tribunal may allow a further 90 days if sufficient cause is shown.

Registration under Section 20 is separate and optional. It is for record. Parties can register the settlement with an Authority under the Legal Services Authorities Act, 1987 or another notified body, within 180 days of receiving the authenticated copy. Late registration is allowed on payment of a fee. Registration does not affect the right to enforce under Section 27 or challenge under Section 28. The Mediation Council of India, under Section 38(n), maintains an electronic depository of settlements made in India.

Section 49 adds a safeguard. Where the Central or State Government, or its agency, public body, corporation or local body is a party, the settlement can be signed only after prior written consent of the competent authority. The supplied text does not cover the Singapore Convention. For international settlements, read the international mediation provisions in your study material, and do not assign section numbers from memory.

Key rules to remember

Section 19: what is a mediated settlement agreement
Written + signed by parties + authenticated by mediator + results from mediation + settles some or all disputes
Terms may go beyond the disputes referred. A settlement void under the Indian Contract Act, 1872 is not a lawful settlement agreement.
Section 27: enforcement
Signed by parties + authenticated by mediator = final and binding; enforced under CPC, 1908 as a judgment or decree
Subject to Section 28. Can also be used as defence, set off or otherwise in any legal proceeding.
Section 28: grounds of challenge
Fraud | Corruption | Impersonation | Dispute not fit for mediation under Section 6
These are the only grounds. Disagreeing with the terms is not a ground.
Section 28(3): time limit
90 days from receipt of copy under Section 19(3) + further 90 days for sufficient cause
The extension is at the discretion of the court or tribunal.
Section 20: registration
Optional, for record; within 180 days of receiving authenticated copy; later on payment of fee
Excludes settlements reached in court or tribunal referred mediation and Lok Adalat awards. Does not affect Sections 27 and 28.
Section 49: Government party
Prior written consent of competent authority before signing
Applies to Central or State Government and their agencies, public bodies, corporations and local bodies, including entities they control or own.

How to solve Enforcement of Mediated Settlement Agreements questions

Use this order for any case question on enforcing a mediated settlement. It follows the provision, analysis, conclusion pattern.

  1. 1Identify what the document is. Check it is in writing, signed by the parties, authenticated by the mediator and results from mediation (Section 19).
  2. 2Check validity. A settlement void under the Indian Contract Act, 1872 is not a lawful settlement agreement.
  3. 3Check whether any party is the Government or its entity. If so, ask whether prior written consent of the competent authority was obtained (Section 49).
  4. 4State the enforcement rule. It is final and binding and enforced as a decree under the CPC (Section 27).
  5. 5Test any challenge. Is the ground one of the four in Section 28(2)? Is it within 90 days, or 180 days with sufficient cause?
  6. 6Address registration if raised. It is optional, for record, within 180 days, and does not affect enforcement or challenge (Section 20).
  7. 7Conclude clearly in one or two lines and add a practical point, such as keeping proof of the date the copy was received.

Quickest way: Four-check shortcut

When to use it: Use it when you have limited time and the question asks whether a settlement can be enforced or challenged.

  1. Check form: written, signed, authenticated.
  2. Check Government party and consent under Section 49.
  3. If enforcement: Section 27, decree under CPC.
  4. If challenge: one of four grounds and within 90 days (plus 90). If neither, the challenge fails.

Common mistakes in Enforcement of Mediated Settlement Agreements

  • Saying registration is compulsory for enforcement.

    Students link registration with validity.

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

  • Allowing a challenge on the ground that the terms are unfair.

    Students apply general contract thinking.

    Fix: Only fraud, corruption, impersonation and unfitness for mediation under Section 6 are grounds.

  • Counting the 90 days from the date of signing.

    Students assume the date of signing starts the clock.

    Fix: Time runs from the date the party receives the copy under Section 19(3).

  • Forgetting the mediator's authentication.

    Students focus on the parties' signatures.

    Fix: Both signature by parties and authentication by the mediator are needed. Mention both.

  • Ignoring Section 49 when a public sector body is a party.

    The section is short and easy to miss.

    Fix: Look for any Government entity in the facts. The settlement needs prior written consent of the competent authority before it is signed.

  • Citing Singapore Convention section numbers from memory.

    Students try to fill gaps with guesses.

    Fix: State the principle in plain words and cite only sections you are sure of.

Worked examples

Example 1

Meridian Components Pvt Ltd and Kaveri Traders agree a settlement through mediation. Both sign it and the mediator authenticates it. Kaveri Traders later fails to pay. Meridian asks whether it must first register the settlement before enforcing it. Advise.

Show the solution
  1. Provision: Section 27(1) makes a settlement signed by the parties and authenticated by the mediator final and binding.
  2. Section 27(2) says it is enforced under the Code of Civil Procedure, 1908 as if it were a judgment or decree of a court.
  3. Registration under Section 20 is at the option of the parties and is for record.
  4. The Explanation to Section 20(1) says registration does not affect the right to enforce under Section 27.

Answer: Meridian need not register first. It can seek enforcement under Section 27 in the same manner as a decree. Registration is optional and only for record.

Example 2

Anand Industries signed a mediated settlement with Bharat Logistics and received the authenticated copy on 1 March. On 20 June it applies to challenge the settlement, saying the payment terms are too harsh. It gives no other reason. Can it succeed?

Show the solution
  1. Provision: Section 28(2) allows challenge only for fraud, corruption, impersonation or mediation in a dispute not fit for mediation under Section 6.
  2. Analysis of ground: harsh terms are none of these grounds.
  3. Analysis of time: 1 March to 20 June is more than 90 days. Section 28(3) allows a further 90 days only if sufficient cause prevented an earlier application.
  4. No sufficient cause is given, and the ground fails in any case.

Answer: The challenge will fail. Harsh terms are not a ground under Section 28(2), and the application is also beyond 90 days with no sufficient cause shown.

Exam tips

  • Write the section number with each rule: 19 for form, 27 for enforcement, 28 for challenge, 20 for registration, 49 for Government parties.
  • In case questions, check the grounds and the time limit separately and give a conclusion on each.
  • Use the phrase 'as if it were a judgment or decree of a court' in enforcement answers.
  • For international settlements, explain the principle in plain words and avoid section numbers you are unsure of.

Practice questions from International and Emerging Aspects under Mediation Law

Enforcement of Mediated Settlement Agreements in other exams

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

Enforcement of Mediated Settlement Agreements: frequently asked questions

How is a mediated settlement agreement enforced under the Mediation Act, 2023?

Under Section 27, a settlement 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 court judgment or decree. It can also be used as a defence or set off in legal proceedings.

Is registration of a mediated settlement agreement mandatory?

No. Section 20 makes registration optional and for record. It is 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, or mediation in disputes or matters not fit for mediation under Section 6. The application must be made within 90 days of receiving the copy, with a further 90 days if sufficient cause is shown.

What if the Government is a party to the settlement?

Section 49 requires prior written consent of the competent authority before the settlement is signed. This covers Central and State Governments and their agencies, public bodies, corporations and local bodies, including entities they control or own.