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CS Professional · Arbitration, Mediation and Conciliation · Various Modes and Scope of Mediation including Role of Mediation in other ADR Domains

In a pending commercial suit, the court refers Arvind Constructions and Bhawani Infra to mediation and passes an interim order protecting Bhawani's site possession. After the mediation, no settlement is reached and Arvind says it was forced to settle. Under the Mediation Act, 2023, which statement is correct?

A court or tribunal may refer parties to mediation at any stage of the proceeding and may pass a suitable interim order to protect a party's interest. The parties are not under any obligation to reach a settlement in the mediation, so being referred does not force a settlement.

  1. AThe court can refer parties to mediation at any stage of the proceeding and may pass a suitable interim order; parties are not obliged to settleCorrect
  2. BThe court can refer only at the first hearing and cannot pass interim orders
  3. CParties referred by a court must settle or face a penalty
  4. DThe court can refer only if both parties had a prior mediation agreement

Explanation

Section 7 lets a court or tribunal refer parties to mediation at any stage, permits suitable interim orders to protect a party's interest, and states that parties are under no obligation to settle after a reference. Hence option A is right and the others contradict it.

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