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CS Professional · Arbitration, Mediation and Conciliation · Mediation: An Introduction and its Process along with Rules

Sharma Textiles Ltd and Kaveri Dyes Pvt Ltd settle a payment dispute through institutional mediation. Both sign the written settlement agreement. Under the Mediation Act, 2023, what must happen next for it to be a mediated settlement agreement that is final and binding?

The signed agreement must be submitted to the mediator, who authenticates it. Once signed by the parties and authenticated by the mediator, it is final and binding. Registration is optional and only for record, and no court approval is needed.

  1. AIt must be authenticated by the mediator after being submitted to the mediatorCorrect
  2. BIt must be registered with the Legal Services Authority within 180 days
  3. CIt must be approved by a civil court before it takes effect
  4. DIt must be filed with the Mediation Council of India for a certificate

Explanation

Section 19(3) requires the signed agreement to be submitted to the mediator, who authenticates it. Section 27(1) makes an agreement signed by the parties and authenticated by the mediator final and binding. Registration under section 20 is optional and only for record, so option 2 is wrong.

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