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Mediation agreement | Section 4 of The Mediation Act 2023

The mediation agreement must be in writing and can be a separate document or a clause within a contract. It is written if signed by the parties, communicated through various means, or included in legal pleadings. Parties can agree to mediate disputes arising from an agreement at any time. For international mediation, it addresses commercial disputes. However, sensitive issues listed in the First Schedule are not eligible for mediation, though courts may refer certain compoundable offences to mediation. Outcomes from mediation are not formal court judgments, allowing for court review to ensure legal standards are met. The Central Government may update the First Schedule as needed.
advtanmoy 20/09/2024 3 minutes read

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Indian Parliament

Home ยป Law Library Updates ยป Sarvarthapedia ยป Law ยป Mediation agreement | Section 4 of The Mediation Act 2023

(1) A mediation agreement shall be in writing, by or between parties and anyone claiming through them, to submit to mediation all or certain disputes which have arisen or which may arise between the parties.

(2) A mediation agreement may be in the form of a mediation clause in a contract or in the form of a separate agreement.

(3) A mediation agreement is in writing, if it is contained in or recorded as–
(a) any document signed by the parties;
(b) an exchange of communications or letters including through electronic form as provided under the Information Technology Act, 2000 (21 of 2000);
(c) any pleadings in a suit or any other proceedings in which existence of mediation agreement is alleged by one party and not denied by the other.

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(4) A reference in any agreement containing a mediation clause shall constitute a mediation agreement if the agreement is in writing and the reference is such as to make the mediation clause as part of the agreement.

(5) The parties may agree to submit to mediation any dispute arising between them under an agreement, whether entered prior to arising of the dispute or subsequent thereto.

(6) A mediation agreement in case of international mediation shall refer to an agreement for resolution in matters of commercial disputes referred to in clause (a) of section 3.

A mediation under the Mediation Act shall not be conducted for the resolution of any dispute or matter contained in the indicative list under the First Schedule, which includes various sensitive and serious issues that require a more formal judicial approach. Provided that nothing contained herein shall prevent any court, if deemed appropriate and in the interest of justice, from referring any dispute relating to compoundable offences, including the matrimonial offences which are compoundable and pending between the parties, to mediation as a form of alternative dispute resolution. This is because mediation can offer a more amicable and less adversarial setting for parties involved, fostering better communication and understanding. Provided further that the outcome of such mediation shall not be deemed to be a judgment or decree of court referred to in sub-section (2) of section 27, and shall be further considered by the court in accordance with the law for the time being in force, allowing the court to review the aspects of the mediated settlement to ensure it aligns with legal standards and fairness principles. Again If the Central Government is satisfied that it is necessary or expedient so to do, it may, by notification, amend the First Schedule to address changing societal norms or legal needs, ensuring that the mediation framework remains relevant and effective in dealing with contemporary issues. (Sec-6)

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Agreement, Mediation
Mediated Settlement Agreement | Sec 19 of Mediation Act 2023

Tags: Agreement Mediation

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