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

Dhruv Steels Ltd and Eastern Rail Components Ltd had their first appearance before the mediator on 1 June. They agreed to extend the mediation by the maximum permitted period, and no settlement was signed and no one opted out earlier. On which basis would the mediation proceedings be deemed terminated at the end of the extended period?

The proceedings are deemed terminated under Section 24(d), on expiry of the time limit under Section 18, here the 120 days plus the agreed extension of up to 60 days. No settlement, mediator declaration or opt-out occurred, so the other clauses do not apply.

  1. ASection 24(b), as the mediator is deemed to declare further efforts unjustified
  2. BSection 24(c), as the parties are deemed to opt out
  3. CSection 24(d), on expiry of the time limit under section 18Correct
  4. DSection 24(a), as a settlement is deemed signed

Explanation

Section 24(d) provides that mediation terminates on expiry of the time limit under section 18, which includes any agreed extension. Clauses (b) and (c) need a written declaration or communication, and clause (a) needs a signed settlement, none of which occurred.

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