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

Sunrise Textiles Pvt Ltd and Kaveri Dyes of Surat settle a supply dispute through mediation. Both sign the written settlement and the mediator authenticates it. Kaveri Dyes later fails to pay the agreed sum. Under the Mediation Act, 2023, how can Sunrise Textiles enforce the settlement?

Sunrise Textiles can enforce the settlement under the Code of Civil Procedure, 1908 as if it were a court judgment or decree, because it was signed by the parties and authenticated by the mediator. No fresh suit or registration is needed.

  1. ABy enforcing it under the Code of Civil Procedure, 1908 as if it were a judgment or decree of a courtCorrect
  2. BBy first filing a fresh civil suit to obtain a decree on the same dispute
  3. COnly by getting it registered, since unregistered agreements cannot be enforced
  4. DOnly by invoking arbitration, since settlements are treated as arbitral awards

Explanation

Section 27 makes a signed and mediator-authenticated settlement final and binding. It is enforced under the Code of Civil Procedure, 1908 as if it were a judgment or decree. A fresh suit is unnecessary, and registration is optional under section 20.

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