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CS Professional · Arbitration, Mediation and Conciliation · Arbitral Proceedings, Pleadings and Evidence

Conciliation between Ganga Logistics and Hindustan Packaging over a freight contract failed. Ganga then began arbitration over a separate, unrelated supply contract with the same company. In that arbitration, Ganga seeks to produce a suggestion for settlement made by Hindustan's director during the conciliation. How should the tribunal treat this?

The tribunal should reject reliance on the suggestion. Section 81(a) bars use of the other party's views or suggestions on settlement made in conciliation, and the bar applies whether or not the later proceedings relate to the conciliated dispute, so the unrelated contract is irrelevant.

  1. AAdmit it, since the arbitration concerns a different dispute
  2. BAdmit it, since section 19(4) lets the tribunal decide admissibility in every case
  3. CReject reliance on it, since section 81 applies whether or not the later proceedings relate to the conciliated disputeCorrect
  4. DAdmit it only if Hindustan fails to object within the time fixed by the tribunal

Explanation

Section 81 expressly applies to later proceedings whether or not they relate to the dispute that was the subject of conciliation, and covers views or suggestions on a possible settlement by the other party (clause (a)). Section 19(4) gives tribunal discretion on admissibility within its procedure, but it operates subject to the Part, including the section 81 bar.

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