CS Professional · Arbitration, Mediation and Conciliation · Conciliation Proceedings and International Perspective of Conciliation

Anand Pharma and Zenith Labs conciliated a licensing dispute and failed. In a later arbitration about an entirely different supply contract between the same parties, Anand wishes to use an admission made by Zenith's director during the conciliation about delayed payments. Anand argues the bar in Section 81 applies only where the later proceedings concern the same dispute. What is the correct position?

Anand is wrong. Section 81 bars reliance on the other party's admissions made in conciliation in arbitral or judicial proceedings, whether or not those proceedings relate to the conciliated dispute. So the admission cannot be used in the arbitration about the different contract.

1. AAnand is right, as the bar applies only to the same dispute
2. BAnand is right, as admissions are barred only in judicial, not arbitral, proceedings
3. CAnand is wrong, because the bar applies only if the conciliator is a witness
4. DAnand is wrong, because Section 81 applies whether or not the proceedings relate to the dispute subject to conciliationCorrect