Section 7
of International Settlement Agreements Resulting from Mediation Act 2026
Section 7
The application for an international settlement agreement to be recorded as an order of the High Court under subsection 4(1), or the tendering of an international settlement agreement as evidence in any proceedings under subsection 5(2), by a party may be refused by the High Court or any other court or institution, as the case maybe—
(a)
if the other party furnishes proof that—
(i)
a party was under some incapacity;
(ii)
the international settlement agreement—
(A)
is null and void, inoperative or incapable of being performed under the applicable law relating to the international settlement agreement;
(B)
is not binding, or is not final, according to its terms; or
(C)
has been subsequently modified;
(iii)
the obligations under the international settlement agreement—
(A)
have been duly performed; or
(B)
are not clear or incomprehensible;
(iv)
allowing the application or tendering would be contrary to the terms of the international settlement agreement;
(v)
there was a serious breach by the mediator of the standards applicable to the mediator, or the mediation, without which breach that party would not have entered into the international settlement agreement; or
Act 881
(vi)
there was a failure by the mediator to disclose to the parties the circumstances that raise justifiable doubts as to the mediator’s impartiality or independence and such failure to disclose had a material impact or undue influence on a party, without which failure that party would not have entered into the international settlement agreement; or
(b)
if the High Court or any other court or institution finds that—
(i)
the terms of the international settlement agreement is in conflict with the public policy of Malaysia;
or
(ii)
the subject matter of the commercial dispute is not capable of settlement by mediation under the laws of Malaysia.