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

During conciliation between Kaveri Pharma (Bengaluru) and Nordic Health AB (Sweden), Nordic's manager admitted that a shipment was delayed due to its own error. Conciliation fails and Kaveri starts arbitration against Nordic. Can Kaveri introduce this admission as evidence in the arbitration?

Kaveri cannot introduce the admission. Section 81 prohibits parties from relying on admissions made by the other party during conciliation as evidence in arbitral or judicial proceedings, regardless of whether those proceedings concern the same dispute as the conciliation.

  1. AYes, because admissions are always relevant evidence
  2. BYes, but only if the arbitration concerns a different dispute
  3. CNo, because parties shall not rely on admissions made by the other party in the conciliation proceedings, whether or not the proceedings relate to the same disputeCorrect
  4. DNo, but only if the conciliator objects

Explanation

Section 81(b) bars a party from relying on or introducing as evidence in arbitral or judicial proceedings admissions made by the other party in conciliation. The bar applies whether or not the later proceedings relate to the same dispute, so the different-dispute option is wrong. No objection by the conciliator is needed.

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