Section 19 of Mediation Act 2023 - Mediated Settlement Agreement
Section 19 of the Mediation Act, 2023 defines and regulates a mediated settlement agreement. It requires the settlement to be in writing, signed by the parties and authenticated by the mediator, and it also recognises settlement agreements resulting from online mediation.
Section 19 - Mediated settlement agreement
19. (1) A mediated settlement agreement includes an agreement in writing between some or all of the parties resulting from mediation, settling some or all of the disputes between such parties, and authenticated by the mediator:
Provided that the terms of the mediated settlement agreement may extend beyond the disputes referred to mediation.
Explanation. A mediated settlement agreement which is void under the Indian Contract Act, 1872, shall not be deemed to be lawful settlement agreement within the meaning of mediated settlement agreement.
(2) Where a mediated settlement agreement is reached between the parties with regard to all or some of the disputes, the same shall be reduced in to writing and signed by the parties.
(3) Subject to the provisions of section 26, the mediated settlement agreement signed,-
(i) in case of institutional mediation, shall be submitted to the mediator, who shall, after authenticating the same, forward it with a covering letter signed by him, to the mediation service provider and also provide a copy to the parties;
(ii) in all other cases, shall be submitted to the mediator who shall, after authenticating the mediated settlement agreement, provide a copy to all the parties.
(4) The parties, may, at any time during the mediation process, make an agreement with respect to any of the disputes which is the subject matter of mediation.
(5) Any mediated settlement agreement under this section includes a settlement agreement resulting from online mediation.
Meaning of mediated settlement agreement
Under Section 19(1), a mediated settlement agreement is an agreement in writing between some or all of the parties that results from mediation and settles some or all of the disputes between them. Authentication by the mediator is an express statutory element of the definition.
The proviso to Section 19(1) gives the parties flexibility to include terms extending beyond the disputes originally referred to mediation. Accordingly, a consensual settlement need not be confined strictly to the initial reference if the parties agree upon broader terms.
Agreement must be lawful under the Indian Contract Act, 1872
The Explanation to Section 19(1) makes clear that a mediated settlement agreement that is void under the Indian Contract Act, 1872 is not treated as a lawful mediated settlement agreement for the purposes of Section 19. The settlement must therefore satisfy the applicable requirements of contract law and must not be void under that Act.
Writing and signatures of parties
Section 19(2) requires a settlement reached in respect of all or some disputes to be reduced to writing and signed by the parties. The written and signed document records the terms on which the parties have consensually resolved the relevant dispute or disputes.
Authentication by the mediator
Section 19(3), subject to Section 26, provides different procedures depending on whether the mediation is institutional or otherwise.
- Institutional mediation: the signed agreement is submitted to the mediator. After authentication, the mediator forwards it with a signed covering letter to the mediation service provider and provides a copy to the parties.
- Other mediation: the signed agreement is submitted to the mediator, who authenticates it and provides a copy to all parties.
Settlement during the mediation process
Section 19(4) expressly permits the parties, at any time during mediation, to make an agreement concerning any dispute that is the subject matter of the mediation. The provision therefore accommodates settlement of individual issues without requiring the parties to wait until every issue in the mediation has been resolved.
Online mediation settlement
Section 19(5) expressly includes a settlement agreement resulting from online mediation within the meaning of a mediated settlement agreement under the section. Online mediation is separately dealt with in Section 30 of the Mediation Act, 2023.
Related provisions
Section 19 should be read with Section 18 - Time limit for completion of mediation, Section 20 - Registration of mediated settlement agreement, and other provisions governing confidentiality, termination, enforcement and challenge of mediated settlement agreements under the Act.
Official Mediation Act, 2023
For the authoritative statutory text and current legislative information, refer to the Government of India's India Code database.
India Code - The Mediation Act, 2023
Official PDF - The Mediation Act, 2023