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CS Professional · Arbitration, Mediation and Conciliation · Introduction to Conciliation and its Importance for MSMEs

Anil Metals invites Gopal Steels in writing to conciliate. Gopal Steels never replies. After thirty days Anil Metals wants to treat the silence as the end of the matter. What does the Act require?

Anil Metals may elect to treat the silence as rejection and must inform Gopal Steels in writing. Since conciliation commences only on written acceptance, no proceedings ever began, and section 62(4) governs the position rather than the termination provisions of section 76.

  1. ANothing; silence automatically terminates conciliation after thirty days
  2. BAnil Metals may elect to treat it as rejection and must inform Gopal Steels in writing, so no conciliation proceedings ariseCorrect
  3. CAnil Metals must get a termination declaration from a conciliator under section 76
  4. DConciliation commences on the thirtieth day by deemed acceptance

Explanation

Under section 62(2), proceedings commence only on written acceptance, so none commenced here. Section 62(4) lets the inviting party treat no reply within thirty days as rejection, and if it so elects it must inform the other party in writing. Termination under section 76 is not relevant as no proceedings began.

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