The court refers a PENDING suit to mediation, and the parties successfully execute a mediation SETTLEMENT AGREEMENT. Under the Mediation Act, 2023, upon the mediator certifying the settlement, the court:

Where a court refers a pending suit to mediation and a settlement is reached, the mediator returns the executed SETTLEMENT AGREEMENT, and the COURT disposes of the suit in terms thereof, recording the settlement. Under the Mediation Act, 2023, the mediation settlement agreement is ENFORCEABLE in the same manner as a judgment or decree, giving the mediated outcome binding force. This is the mechanism by which court-referred mediation terminates the litigation. The enforceability feature is what makes mediation a genuine, closing alternative to trial, rather than a mere exploratory step.