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

Meera Exports and Lotus Logistics sign a mediated settlement, authenticated by the mediator, but neither registers it with the Legal Services Authority or any notified body. Lotus defaults. What is the legal position under the Mediation Act, 2023?

The agreement remains enforceable under section 27. Registration under section 20 is optional and only for record, and the Act expressly says it does not affect the right to enforce the settlement. Non-registration neither voids the agreement nor delays enforcement.

  1. AThe agreement cannot be enforced until registered within 180 days
  2. BThe agreement is enforceable under section 27, since registration is at the option of the parties and is for recordCorrect
  3. CThe agreement is enforceable only after a court re-examines the merits
  4. DThe agreement becomes void because it was not registered

Explanation

Section 20 says registration is for the purposes of record and at the option of the parties. Its Explanation states that it does not affect the right to enforce under section 27. So non-registration does not defeat enforcement.

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