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Chapter VI - Enforcement of Mediated Settlement Agreement

Reviewed by CA Nikhil Gupta and Kajri Singh · Last reviewed 30 August 2026

Separate execution readiness, limited challenge grounds, challenge limitation and any stay or security strategy.

Reviewed through 2026-07-18Authors: CA Nikhil Gupta and Kajri SinghNot commenced under S.O. 4384(E) in reviewed official record
Source and commencement status: The official India Code page records the Act and all 65 sections, but section 1 footnote shows only a limited group commenced on 9 October 2023. This publication therefore identifies provision-level status and does not treat uncommenced provisions or Schedule amendments as operative. Open official Act PDF | Department of Legal Affairs instruments.
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Dedicated Finin2min Summary - Chapter in 2 Minutes

  • Separate execution readiness, limited challenge grounds, challenge limitation and any stay or security strategy.
  • Provision-level commencement is the first legal gate: only 21 sections were commenced by S.O. 4384(E) on 9 October 2023 in the reviewed official record.
  • Use the India Code Act and the Department of Legal Affairs Gazette files as controlling sources.
  • Separate the Mediation Act from existing Commercial Courts, consumer, company, court-annexed and special-statute mediation rules.
  • Document consent, authority, limitation, confidentiality, settlement drafting, tax, stamp and enforcement before closing the file.

Section-by-section provision map

Provision / gateTopicCommencement / statusFinin2min decodeImplementationEvidence / control
Section 27Enforcement of mediated settlement agreement.Not commenced under S.O. 4384(E) in reviewed official recordTreats an operative mediated settlement agreement as enforceable like a judgment or decree, subject to the Act.Prepare an execution/challenge/limitation memorandum before signing and again immediately after receipt of the authenticated settlement.Authenticated settlement, signature evidence, authority, registration record, default proof, limitation sheet, challenge/execute pleadings and payment/security records.
Section 28Challenge to mediated settlement agreement.Not commenced under S.O. 4384(E) in reviewed official recordLimits challenge grounds and provides a 90-day filing period plus a possible further 90 days on sufficient cause.Prepare an execution/challenge/limitation memorandum before signing and again immediately after receipt of the authenticated settlement.Authenticated settlement, signature evidence, authority, registration record, default proof, limitation sheet, challenge/execute pleadings and payment/security records.
Section 29Limitation.Not commenced under S.O. 4384(E) in reviewed official recordExcludes the mediation period when computing limitation for subsequent proceedings, subject to statutory conditions.Prepare an execution/challenge/limitation memorandum before signing and again immediately after receipt of the authenticated settlement.Authenticated settlement, signature evidence, authority, registration record, default proof, limitation sheet, challenge/execute pleadings and payment/security records.

Finin2min clause-by-clause decode

Section 27 - Enforcement of mediated settlement agreement.

Status: Not commenced under S.O. 4384(E) in reviewed official record

Treats an operative mediated settlement agreement as enforceable like a judgment or decree, subject to the Act.

Implementation: Prepare an execution/challenge/limitation memorandum before signing and again immediately after receipt of the authenticated settlement.

Evidence: Authenticated settlement, signature evidence, authority, registration record, default proof, limitation sheet, challenge/execute pleadings and payment/security records.

Section 28 - Challenge to mediated settlement agreement.

Status: Not commenced under S.O. 4384(E) in reviewed official record

Limits challenge grounds and provides a 90-day filing period plus a possible further 90 days on sufficient cause.

Implementation: Prepare an execution/challenge/limitation memorandum before signing and again immediately after receipt of the authenticated settlement.

Evidence: Authenticated settlement, signature evidence, authority, registration record, default proof, limitation sheet, challenge/execute pleadings and payment/security records.

Section 29 - Limitation.

Status: Not commenced under S.O. 4384(E) in reviewed official record

Excludes the mediation period when computing limitation for subsequent proceedings, subject to statutory conditions.

Implementation: Prepare an execution/challenge/limitation memorandum before signing and again immediately after receipt of the authenticated settlement.

Evidence: Authenticated settlement, signature evidence, authority, registration record, default proof, limitation sheet, challenge/execute pleadings and payment/security records.

Practical examples and calculations

  • Section 27: Treats an operative mediated settlement agreement as enforceable like a judgment or decree, subject to the Act. Operational status: Not commenced under S.O. 4384(E) in reviewed official record.
  • Section 28: Limits challenge grounds and provides a 90-day filing period plus a possible further 90 days on sufficient cause. Operational status: Not commenced under S.O. 4384(E) in reviewed official record.
  • Section 29: Excludes the mediation period when computing limitation for subsequent proceedings, subject to statutory conditions. Operational status: Not commenced under S.O. 4384(E) in reviewed official record.

Timeline model: where an operative route adopts the Act model, separately calculate invitation/service, first appearance, 120-day process period, agreed extension up to 60 days, optional registration clock of 180 days, and challenge clock of 90 days plus a possible further 90 days. Do not apply these figures to an uncommenced provision.

Settlement value model: principal + agreed interest + tax adjustments + costs + security value - payments/credits/set-off, with milestone and default sensitivity.

Chapter-specific decision flowchart

Decision flow for Chapter VI - Enforcement of Mediated Settlement Agreement
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