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

A State-owned corporation and a private contractor mediate a commercial dispute under the Mediation Act, 2023. A clause in an older contract says mediation may continue for up to 12 months. Which statement correctly applies Section 18?

The 120-day limit applies, extendable by party agreement by not more than 60 days. Section 18(1) operates notwithstanding any other law, so a longer period in an older contract or the involvement of a State body does not displace it.

  1. AThe 12-month clause prevails as the parties' specific agreement
  2. BThe 120-day limit applies notwithstanding any other law, extendable by agreement by up to 60 daysCorrect
  3. CThe limit is 12 months because a State body is involved
  4. DNo time limit applies to commercial disputes involving government bodies

Explanation

Section 18(1) begins with 'notwithstanding anything contained in any other law', so mediation under the Act must finish within 120 days from the first appearance date. The only extension is the parties' agreed period not exceeding sixty days, so a 12-month clause cannot prevail.

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