Section 19 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 19 says what a mediated settlement agreement is and how it is made. It is an agreement in writing between some or all of the parties, resulting from mediation, settling some or all of the disputes, signed by the parties and authenticated by the mediator, and then submitted and circulated as the section directs.
A mediated settlement agreement is in writing, signed by the parties and authenticated by the mediator. It may settle some or all of the disputes between some or all of the parties, and its terms may extend beyond the disputes referred to mediation. An agreement that is void under the Indian Contract Act, 1872 is not a lawful settlement agreement for this purpose. The mediator forwards it, and online mediation settlements are included. The Act comes into force by notification, and the date is not in the text consulted.
Section 19(1): the definition
Section 19(1) says "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". Break it down:
| Element | What the Act says |
|---|---|
| Form | An agreement in writing |
| Who | Some or all of the parties (so a partial group of parties can settle) |
| Origin | Resulting from mediation |
| Scope | Settling some or all of the disputes between those parties |
| Authentication | Authenticated by the mediator |
"Includes" means the definition is not exhaustive. Section 3(n) points the defined term "mediated settlement agreement" to this sub-section.
The proviso. "The terms of the mediated settlement agreement may extend beyond the disputes referred to mediation." Parties can use the settlement to resolve related matters that were not formally referred, for example fixing a new delivery schedule alongside a payment dispute.
The 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." Our guide on what makes an agreement a contract and on lawful consideration and object cover the Contract Act side, and are about that Act as it stands; this article does not repeat them.
If a settlement is being drafted for you after a long dispute, our mediation services team can review the terms before you sign.
Section 19(2): reduced to writing and signed
Section 19(2) says that where a mediated settlement agreement is reached "with regard to all or some of the disputes, the same shall be reduced in to writing and signed by the parties". Signing by the parties is required. Authentication by the mediator is a separate step under sub-section (1) and sub-section (3). Section 27(1) later makes an agreement "signed by the parties and authenticated by the mediator" final and binding; see our article on enforcement.
Section 19(3): submission and circulation
Section 19(3) begins "Subject to the provisions of section 26", which says the Act does not apply to Lok Adalat or Permanent Lok Adalat proceedings. The signed agreement then goes as follows:
| Type of mediation | Step | Provision |
|---|---|---|
| Institutional mediation | Submitted to the mediator, who authenticates it and forwards it, with a covering letter signed by him, to the mediation service provider, and also gives a copy to the parties | 19(3)(i) |
| All other cases | Submitted to the mediator, who authenticates it and provides a copy to all the parties | 19(3)(ii) |
The copy the party receives under this sub-section matters later. Under section 28(3), the ninety days to challenge a mediated settlement agreement run from the date the applicant "has received the copy of mediated settlement agreement under sub-section (3) of section 19". Under section 20(2), registration within one hundred and eighty days is counted from receipt of the authenticated copy. Keep a note of the date of receipt. See our article on registration and our article on challenge.
Section 19(4): settling during the mediation
Section 19(4) says "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." Parties need not wait until the end. If two of five issues are resolved in the first session, they can record them. The sub-section does not say these interim agreements are themselves "mediated settlement agreements" with all the consequences; whether they are depends on the definition in sub-section (1), including authentication by the mediator.
Section 19(5): online mediation
Section 19(5) says "Any mediated settlement agreement under this section includes a settlement agreement resulting from online mediation." An agreement reached over video or other electronic means has the same standing. Section 30 and the definition of "secure electronic signature" in section 3(x) are relevant; see our article on online mediation.
Practical example
Verma Steel and Joshi Fabricators mediate a dispute over unpaid invoices. They settle the payment amount and also agree on a revised supply schedule that was not part of the original dispute. Under the proviso, the revised schedule can be part of the agreement. Both sign, the mediator authenticates and gives each a copy, and Joshi Fabricators notes the date it received its copy. If the agreement had an unlawful object and was void under the Contract Act, the Explanation would take it outside the section. The names are invented for illustration.
What the section leaves out
The Act does not set a form or a template, and no rules or regulations are in the text consulted. It does not say what the mediator's authentication must look like, how the covering letter should read, or what happens if one party refuses to sign. Taxes on the settled amount are outside the Act; see our income-tax guides.
Need help drafting a settlement agreement?
The wording of a settlement decides whether it can be enforced, registered or challenged. We can review the draft and the supporting documents through our mediation services.
Key takeaways
- A mediated settlement agreement is in writing, from mediation, signed by the parties and authenticated by the mediator.
- It may settle some or all disputes between some or all parties and may go beyond the referred disputes.
- A settlement void under the Indian Contract Act, 1872 is not a lawful settlement agreement.
- Submission steps differ for institutional and other mediation (section 19(3)).
- The date a party receives its copy starts the periods in sections 20(2) and 28(3).
Read next
- Section 20 of the Mediation Act, 2023: registration of mediated settlement agreement
- Section 27 of the Mediation Act, 2023: enforcement of mediated settlement agreement
- Section 28 of the Mediation Act, 2023: challenge to mediated settlement agreement
- Section 10 of the Indian Contract Act, 1872: what agreements are contracts
Disclaimer: Based on the Mediation Act, 2023 as enacted and published in the Gazette of India on 15 September 2023, as consulted on 2 October 2026. The Act comes into force by notification; the commencement of each provision, the rules and the regulations should be checked. This article is general information, not legal advice; check the official text before acting.