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

Meera Textiles Pvt Ltd and Kalyan Dyes settled a payment dispute through private (non-institutional) mediation. Both signed the written settlement and the mediator authenticated it. Kalyan Dyes then failed to pay. Under the Mediation Act, 2023, how can Meera Textiles enforce the agreement?

A mediated settlement agreement signed by the parties and authenticated by the mediator is enforceable under the Code of Civil Procedure, 1908 as if it were a court judgment or decree. No fresh suit, arbitral award or prior registration is required.

  1. ABy filing a fresh civil suit, since the agreement has no executable force
  2. BBy enforcing it under the Code of Civil Procedure, 1908 as if it were a court judgment or decreeCorrect
  3. COnly after it is registered with the Legal Services Authority
  4. DOnly by obtaining a fresh arbitral award on its terms

Explanation

Section 27 makes a signed and mediator-authenticated settlement agreement final and binding and enforceable under the CPC as if it were a judgment or decree. Registration under section 20 is optional and the Explanation says it does not affect the right to enforce.

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