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

Residents of a housing locality in Pune settle a dispute about shared-lane use through community mediation conducted under the Mediation Act, 2023. A settlement agreement is reduced into writing, signed by the parties and authenticated by the community mediators. What is the legal effect of this settlement agreement?

A community mediation settlement is for maintaining peace, harmony and tranquillity among residents of the locality, but it is not enforceable as a judgment or decree of a civil court, according to section 44(4) of the Mediation Act, 2023.

  1. AIt is enforceable as a decree of a civil court
  2. BIt serves the purpose of maintaining peace, harmony and tranquillity in the locality but is not enforceable as a judgment or decree of a civil courtCorrect
  3. CIt has the status of an arbitral award enforceable under section 36 of the Arbitration and Conciliation Act
  4. DIt is void unless approved by the High Court

Explanation

Under section 44(4) of the Mediation Act, 2023, a settlement agreement reached in community mediation is meant to maintain peace, harmony and tranquillity among residents or families of an area. It is expressly not enforceable as a judgment or decree of a civil court. The option treating it as a decree is therefore wrong.

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