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

Under the Mediation Act, 2023, a party wants to challenge a mediated settlement agreement. Which of the following is a permissible ground of challenge?

Fraud is a permissible ground. Section 28(2) of the Mediation Act, 2023 allows a mediated settlement agreement to be challenged only for fraud, corruption, impersonation, or mediation of disputes unfit for mediation. Dissatisfaction with the terms or a change of mind is not enough.

  1. AThe settlement terms were less favourable than the party expected
  2. BFraud in arriving at the mediated settlement agreementCorrect
  3. CThe mediator was of a different profession from the parties
  4. DThe party changed its commercial view after signing

Explanation

Section 28(2) of the Mediation Act, 2023 limits challenge to fraud, corruption, impersonation, or mediation held in disputes not fit for mediation under section 6. A change of mind, unfavourable terms or the mediator's background are not listed grounds.

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