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

Under a mediated settlement, Gokul Foods agreed to supply goods to Narmada Retail. Narmada Retail later sues Gokul on the original dispute, and Gokul pleads the settlement in defence. Which provision supports this plea under the Mediation Act, 2023?

Gokul can rely on section 27(2), which permits a party to use the mediated settlement agreement as a defence, set off or otherwise in any legal proceeding. The Council and service provider provisions do not deal with such pleas.

  1. ASection 27(2), which allows reliance on the agreement by way of defence, set off or otherwise in any legal proceedingCorrect
  2. BSection 38, which empowers the Council to decide the suit
  3. CSection 41, which makes mediation service providers adjudicate defences
  4. DSection 20, which bars suits on registered settlements

Explanation

Section 27(2) lets parties or those claiming through them rely on the settlement by way of defence, set off or otherwise in any legal proceeding. Sections 38 and 41 deal with the Council's and service providers' functions.

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