Section 26

Where there is a mediation agreement, no action to be instituted without sufficient proof of non-settlement

Where parties have agreed under a mediation agreement to refer any dispute for mediation and such dispute is a dispute coming within any one or more of the categories of disputes determined under section 2 of this Act, not withstanding anything in any other written law to the contrary, no proceedings in regard to such dispute shall be instituted or be entertained by a court, unless sufficient documentary proof is submitted to the effect that such dispute has been referred to mediation and a settlement has not been possible.

The provision of, subsection (1) shall not apply in respect of any action, where a party to a dispute referred to in that subsection prays for relief in the form of any provisional remedy under Part V of the Civil Procedure Code, and a court may entertain and determine such action, only in so far as it relates to the grant of such provisional remedy.

For the purpose of this section, a mediation agreement may be in the form of a mediation clause in a contract or in the form of a separate agreement, by which the parties agree to refer for settlement by mediation all or any dispute which may arise between them, in respect of a defined legal relationship whether contractual or otherwise.