Luminex Technologies Private Ltd ('Luminex'), a Bengaluru-based software company, entered into a five-year service contract with Helios Infrastructure Ltd ('Helios'), a Noida-based construction firm, for the supply of cu

CS Professional · Arbitration, Mediation and Conciliation · PYQS · December 2025
Luminex Technologies Private Ltd ('Luminex'), a Bengaluru-based software company, entered into a five-year service contract with Helios Infrastructure Ltd ('Helios'), a Noida-based construction firm, for the supply of customized project management software. Within two years, disputes arose when Helios alleged that the software failed to integrate with its existing systems, causing delays and financial losses. Luminex denied liability, asserting that Helios had repeatedly altered specifications, leading to additional costs and project overruns. Being a listed company, Helios lodged a formal complaint with the stock exchange. Before escalation, both parties were advised to attempt e-mediation through the newly established Online Dispute Resolution (ODR) portal. Recognizing the advantages, both parties consented to proceed with this process and a mediator was appointed. At the outset, the mediator directed the parties to execute a mediation agreement, setting out the framework of the process. Luminex readily agreed, but Helios expressed hesitation, fearing that signing such an agreement might prejudice its rights in any subsequent arbitration or litigation. Further differences arose over the mode of mediation. Luminex preferred ad-hoc mediation, citing flexibility and lower costs, while Helios insisted on institutional mediation under a SEBI-accredited centre, emphasizing structured procedures and enforceability. With no consensus reached, the parties were left to balance efficiency, cost and legal certainty before proceeding. Based on the above facts, answer the following questions: Draft a mediation agreement for resolution of dispute between Luminex and Helios, assuming necessary facts.

Answer & Explanation:

Mediation Agreement This Mediation Agreement ("Agreement") is entered into on this [Day] day of [Month] , 202X, between: Luminex Technologies Private Ltd. (hereinafter referred to as the "First Party"), having its registered office at [Address of Luminex] ; Helios Infrastructure Ltd. (hereinafter referred to as the "Second Party"), having its registered office at [Address of Helios] ; (collectively referred to as "the Parties") and III. Mr./Ms. [Mediator's Name] , appointed as Mediator (hereinafter referred to as the "Mediator"). 1. Purpose The Parties agree to resolve their disputes arising out of the Service Contract dated [Date of Service Contract] through mediation, in good faith, with the assistance of the Mediator. 2. Voluntary Nature Mediation is a voluntary process. Either Party may withdraw at any time by written notice to the Mediator and the other Party. 3. Role of Mediator The Mediator shall act impartially, facilitate discussions, and assist the Parties in reaching a mutually acceptable settlement. The Mediator shall not impose any decision or award. 4. Confidentiality All communications, documents, and disclosures made during mediation shall remain confidential and shall not be admissible in any judicial or arbitral proceedings, except as required by law or to enforce a settlement agreement. 5. Timelines The mediation proceedings shall commence within 7 days of this Agreement and shall, as far as possible, be concluded within 60 days, unless extended by mutual consent of the Parties. 6. Costs The Parties shall share the mediator's fees and other administrative expenses equally, unless otherwise agreed in writing. 7. Settlement Agreement Any settlement reached shall be reduced to writing, signed by the Parties, and shall be binding as a contract between them. 8. Governing Law This Agreement shall be governed by and construed in accordance with the laws of India. Signed on this [Day] day of [Month] , 202X For Luminex Technologies Private Ltd. Authorised signatory For Helios Infrastructure Ltd. Authorised signatory Mediator

Topics: Mediation

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