Not only property or real estate, shares, debts, family quarrels are also areas in which a family comparison agreement is useful. With respect to set-aside, courts have generally not understood that while legal fiction treats settlement agreements as an arbitral award, there is nothing that compels the court to consider mediation/mediation as an arbitration proceeding or a conciliator/mediator as an arbitral tribunal. The arbitral tribunal relies on a valid settlement agreement to give its consent. Consent cannot be granted by an invalid transaction agreement. A settlement agreement setting out the obligations of both parties usually sets out the conditions for its entry into force. The parties meet the conditions laid down and submit to the court of arbitration the supporting documents necessary to determine the execution of the transaction. In several cases, the parties have attempted to impose settlement agreements negotiated under the Act. The pioneering judgment was delivered by the Hon`ble Delhi High Court of Shri Ravi Aggarwal v. Shri Anil Jagota (2009) SCC Online Del 1475. In this case, the parties had entered into a settlement agreement on private mediation and requested enforcement under sections 30, 73 and 74 of the Act. The Tribunal objected on the ground that Part III of the Act applied only to settlement agreements concluded in the context of duly reasoned conciliation proceedings.
A settlement agreement, like any other contract, is useful to a party who intends to enforce it, unless it is valid….