Mediation Settlement Agreement Drafting

The Mediation Settlement Agreement is governed by the Mediation Act, 2023 (No. 32 of 2023). Section 19 of the Act provides that a settlement agreement reached through mediation shall be binding on the parties and enforceable in the same manner as a judgment or decree of a court. The Act also requires that the agreement be in writing and signed by the parties and the mediator.

The Ministry of Law and Justice, Government of India oversees mediation under the Mediation Act, 2023. The official website for mediation-related information is https://legalaffairs.gov.in. Additionally, the Mediation and Conciliation Project Committee (MCPC) of the Supreme Court of India provides guidelines and resources for mediation.

The process for obtaining a Mediation Settlement Agreement typically involves the following stages:

1. Initiation of Mediation: Parties agree to mediate or a court refers the dispute to mediation.
2. Selection of Mediator: Parties choose a mediator, often from a panel maintained by a mediation centre.
3. Mediation Sessions: The mediator facilitates negotiations between the parties.
4. Drafting the Agreement: Once terms are agreed, the mediator or a legal professional drafts the settlement agreement.
5. Signing: The parties and the mediator sign the agreement.
6. Enforcement: The agreement is filed with the court (if referred by court) or kept by the parties for enforcement as a contract.

While there is no standard government form for a Mediation Settlement Agreement, the following documents are typically required:

• Mediation Agreement (initial agreement to mediate)
• Settlement Agreement (the final document)
• Affidavit of Parties (if required by the mediation centre)
• Court Order (if mediation was court-referred)

These documents must be drafted in compliance with the Mediation Act, 2023.

Any person who is a party to a civil or commercial dispute can enter into a Mediation Settlement Agreement. The dispute must be one that is capable of being mediated under Indian law (i.e., not involving criminal offences or matters affecting public policy). The parties must have the legal capacity to contract, and the agreement must be voluntary.

No specific timeline is prescribed by law for completing a Mediation Settlement Agreement. The duration depends on the complexity of the dispute and the willingness of the parties to negotiate. The Mediation Act, 2023 encourages parties to complete mediation within 60 days, extendable by mutual consent.

The fees for drafting a Mediation Settlement Agreement are not fixed by statute. However, court-annexed mediation centres may charge a nominal administrative fee. The following table provides indicative government-prescribed fees for mediation (if applicable):

Note: These figures are indicative and may vary by state and mediation centre.