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Enforcing International Mediated Settlement Agreements in India: The Current Legal Position | Devika Mehra
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Enforcing International Mediated Settlement Agreements in India: The Current Legal Position


For multinational corporations, the commercial value of mediation ultimately depends upon one critical factor: Can the settlement agreement be enforced if the other party defaults?

The answer in India presently depends on the nature of the mediation and the legal framework governing the settlement.

Unlike arbitral awards, which benefit from the reciprocal enforcement regime under the New York Convention and Part II of the Arbitration and Conciliation Act, 1996, international mediated settlement agreements do not yet enjoy a dedicated statutory enforcement mechanism in India under the Singapore Convention, as India has signed but has not ratified the Convention.

Accordingly, international parties cannot presently approach an Indian court seeking direct enforcement of an overseas mediated settlement solely by invoking the Singapore Convention.

Instead, enforcement may presently take one of the following routes:

1. Contractual Enforcement

A mediated settlement agreement is generally treated as a binding contract between the parties. Where one party breaches its obligations, the aggrieved party may institute appropriate civil proceedings before the competent Indian court seeking enforcement of the contractual obligations or damages arising from the breach.

2. Court-Recorded Settlements

Where mediation takes place during pending judicial proceedings and the settlement is recorded by the court in accordance with applicable procedural law, the settlement may become enforceable as part of the court's order or decree, substantially simplifying execution proceedings.

3. Domestic Mediated Settlement Agreements under the Mediation Act, 2023

The Mediation Act, 2023 provides statutory recognition and enforceability to qualifying mediated settlement agreements concluded under its framework. However, its provisions should not be conflated with the international enforcement regime contemplated by the Singapore Convention, which would require India's ratification and corresponding implementation.

Practical Considerations for International Businesses

Until India ratifies the Singapore Convention, businesses entering cross-border transactions with Indian counterparties should adopt a proactive approach when structuring dispute resolution mechanisms.

This includes:

  • carefully drafting multi-tier dispute resolution clauses;

  • identifying the governing law of both the underlying contract and any settlement agreement;

  • considering whether mediation should precede arbitration or litigation;

  • assessing where the counterparty's assets are located;

  • evaluating the jurisdictions in which enforcement may ultimately be required; and

  • obtaining India-specific legal advice before concluding significant commercial settlements.

For international corporations, the enforceability of a settlement should be considered at the contract negotiation stage rather than after a dispute has been resolved. A carefully structured dispute resolution clause can significantly reduce uncertainty, preserve commercial relationships, and minimise the costs associated with cross-border enforcement.

Until India adopts the Singapore Convention through ratification and implementing legislation, international businesses should view mediation involving Indian parties as an effective commercial tool, while recognising that enforcement strategy must continue to be planned within the existing framework of Indian contract and procedural law.