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

Arvind Infra and Bhavna Realty signed a mediated settlement agreement. The mediator authenticated it. Arvind chose not to register it under section 20. In later proceedings brought by Bhavna on a related claim, Arvind wants to rely on the settlement as a defence. Which statement is correct?

Arvind can rely on the agreement as a defence or set off. Section 27 allows a signed, authenticated mediated settlement agreement to be relied on in any legal proceeding, and registration under section 20 is optional and does not affect enforcement.

  1. AHe cannot, because an unregistered agreement has no legal effect
  2. BHe can rely on it by way of defence or set off in a legal proceeding, because section 27 permits thisCorrect
  3. CHe can rely on it only if the court first converts it into a decree
  4. DHe can rely on it only after 180 days from receiving the authenticated copy

Explanation

Section 27(2) says the agreement may be relied on by way of defence, set off or otherwise in any legal proceeding. Registration is optional for record purposes and does not condition enforcement, and no conversion into a decree is needed.

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