Mediation has become one of the most preferred methods for resolving civil and commercial disputes in India. Parties avoid litigation stress, save time and costs, and most importantly, preserve relationships. But one question often creates confusion:
After a settlement is reached through mediation, how do we convert it into a binding and enforceable court decree?
Many people believe the mediated settlement is automatically enforceable. In reality, enforceability depends on how the settlement is recorded and presented before the court. If the final step is not completed properly, parties may face difficulties enforcing the terms later.
This article explains — in clear and practical terms — how a mediation settlement becomes a court decree, and what to keep in mind during the process.
Why Convert a Mediated Settlement Into a Decree?
A mediated settlement is based on consent, not compulsion.
But once it becomes a decree of court, it gains the strength of a judicial order.
Benefits of converting a settlement agreement into a court decree:
- Enforceable under the Code of Civil Procedure (CPC)
- Provides legal finality to the dispute
- Prevents parties from reopening settled issues
- Protects both sides from breach of terms
- Ensures smooth implementation of settlement
This is especially useful in family disputes, property matters, commercial disputes, partnership issues, money recovery and IP disputes.
Where Mediation Happens Matters
The procedure differs depending on where the mediation took place:
| Type of Mediation | How Decree Is Obtained |
| Court-Referred Mediation (under Section 89 CPC) | Settlement is submitted to court → Court reviews and passes decree |
| Mediation in Pending Litigation | Settlement is filed in the ongoing case → Court disposes the case and decrees the settlement |
| Private Mediation / Pre-Litigation | Parties file the settlement before a court → Court records terms and passes decree on consent |
So, a mediated settlement becomes enforceable only when it is placed before a court and accepted by the judge.
How to Convert a Mediated Settlement Into a Court Decree – Step by Step Process
Below is the process followed in most courts across India:
- Draft the settlement agreement clearly
Terms, timelines, obligations and mode of compliance must be unambiguous.
- Ensure signatures of both parties and their counsel
This reduces the scope of future objections.
- Mediator submits the settlement report to the court
In court-referred mediation, the mediator forwards it to the referral court.
- Parties appear before the court and confirm consent
The judge verifies free will and voluntary settlement.
- Court records the settlement terms in an order or decree
The case is disposed of as settled
- Certified decree is issued by the court registry
This final decree can now be legally enforced if required.
Does the Court Modify the Settlement Terms?
Generally, no Courts do not rewrite or alter voluntarily agreed terms unless:
- The settlement is illegal
- It affects non-parties
- It is against public policy
- It involves minors without proper safeguards
Where any concern exists, the court may seek clarification or request corrections, but the spirit of party autonomy is respected.
Execution and Enforcement: Why the Decree Matters
Once a mediated settlement becomes a decree, the terms become legally binding.
If a party defaults, the opposite party can file Execution Proceedings under the CPC.
This is particularly helpful where:
- Payments are scheduled
- Property transfer is involved
- Compliance depends on future actions
- Parties require legal assurance for implementation
A mediated settlement without conversion into a decree may still be valid as a contract but may require fresh litigation in case of breach. Converting it into a decree avoids that risk.
Documents to Keep Ready
To ensure a smooth process, the following should be available:
- Mediated settlement agreement
- Mediation centre’s report (if applicable)
- Identity documents of parties
- Case documents (if litigation is ongoing)
- Joint memo / application requesting decree (if required by court)
Proper documentation ensures the decree is passed without unnecessary delays.
Final Thought
Mediation works best when the settlement reached is implemented without uncertainty.
Converting the mediated settlement into a court decree ensures:
- Legal enforceability
- Long-term compliance
- Closure and peace of mind for all parties involved
Whether the dispute relates to family, business, property or commercial rights mediation is effective only when the settlement is secured properly.
Authored by
Mr. Ananthakesavan V
(Associate Advocate – IPR and Litigation)