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CS Executive · Jurisprudence, Interpretation and General Laws · Law relating to Arbitration, Mediation and Conciliation

In the accident-compensation reference under section 5 of the Mediation Act, 2023, the mediation ends without a settlement agreement. What happens next?

The mediator prepares a non-settlement report and forwards it to the Claims Tribunal that made the reference, and the Tribunal then adjudicates the claim. The mediator cannot decide the compensation, and the application does not lapse or require a fresh suit.

  1. AThe mediator prepares a non-settlement report and forwards it to the referring Claims Tribunal for adjudicationCorrect
  2. BThe mediator decides the compensation and the decision binds the Tribunal
  3. CThe application stands automatically withdrawn
  4. DThe parties must file a fresh suit in a civil court

Explanation

Section 5(8) states that if no settlement agreement is reached, a non-settlement report prepared by the mediator is forwarded to the Claims Tribunal which made the reference, for adjudication. A mediator has no power to decide the dispute, and a settlement, if reached, is placed before the Tribunal for consideration under section 5(7).

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