Terms of Compromise Agreement of Mediation shall be Understood in the Broad Background

Sabu Edward Vs Santhosh and Ors

Kerala HC

15/01/2019

OP (FC).No. 295 of 2018

About/from the judgment:

Mediation Agreement - the terms of compromise agreement shall be understood in the broad background in which it was brought into existence by the parties.

It is not a blind reading or mechanical adherence that is called for while comprehending or interpreting conditions or clauses in a mediation agreement. The stipulations in a mediation agreement are to be comprehended and construed in such a manner as giving effect to the true spirit of the consensus arrived between parties to the agreement. Once mediation agreement is found to be lawfully and voluntarily executed, any interpretation that does not help to promote or foster the ultimate object or goal of the settlement requires only to be discarded. The attempt shall always be to effectuate the true spirit of what the parties thought and intended to bring about by having the disputes compromised. In other words, the terms of compromise agreement shall be understood in the broad background in which it was brought into existence by the parties. Any other interpretation will only be technical defeating the very purpose of process of mediation and also the result desired to be achieved by the parties who consented to settlement.

Read the Judgment

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