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

Desai Foods sent Kulkarni Packaging a written invitation to conciliate on 4 June, specifying no reply period. By 4 July it had received no reply. Which statement is correct under the Act?

Desai Foods may elect to treat the thirty days of silence as rejection, and if it does so it must inform the other party in writing. Silence is not acceptance, and the rejection is not automatic, since it depends on the initiating party's election.

  1. AConciliation is deemed to have commenced because silence amounts to acceptance
  2. BDesai Foods may elect to treat the silence as rejection and must inform Kulkarni Packaging in writing of that electionCorrect
  3. CDesai Foods must wait indefinitely until Kulkarni Packaging replies
  4. DThe invitation is automatically treated as rejected without any action by Desai Foods

Explanation

Under section 62(4), if no reply comes within thirty days from the date the invitation was sent, or within the period specified in it, the initiating party may elect to treat this as rejection and must inform the other party in writing. Silence is not acceptance, and rejection is not automatic but depends on that election.

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