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

Apex Textiles Ltd (Surat) and Nordic Fabrics AB (Sweden) have a supply contract that contains a clause referring all commercial disputes to mediation, and the clause is part of the signed contract. Under the Mediation Act, 2023, which statement about the mediation agreement is correct?

A mediation agreement must be in writing, and the Act expressly permits it to be a mediation clause in a contract or a separate agreement. Hence the clause in the signed supply contract is valid; it need not be a separate post-dispute document or be registered.

  1. AIt need not be in writing if both parties attend the first session
  2. BIt must be in writing and may take the form of a clause in the contractCorrect
  3. CIt must be a separate document executed after the dispute arises
  4. DIt is valid only if registered with the Mediation Council of India

Explanation

Section 4 requires a mediation agreement to be in writing and allows it to be a mediation clause in a contract or a separate agreement. It can be made before or after the dispute arises, so the option requiring a separate post-dispute document is wrong. No registration with the Council is required.

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