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

During conciliation between Sundaram Infra Ltd and Rohan Builders, the conciliator proposed that Rohan pay Rs 40 lakh in full settlement. Rohan told the conciliator it was willing to accept. Sundaram later declined, and sued in a civil court. Sundaram's counsel wants to prove in court that Rohan had indicated willingness to accept the conciliator's proposal. Which statement is correct?

The attempt is barred. Section 81(d) prevents a party from relying, in arbitral or judicial proceedings, on the fact that the other party indicated willingness to accept the conciliator's settlement proposal. Court proceedings are expressly covered, and the section imposes no condition that the proposal be written.

  1. AThis is barred, because the fact that the other party indicated willingness to accept a conciliator's proposal cannot be relied on as evidenceCorrect
  2. BThis is allowed, because a willingness to accept amounts to a concluded settlement agreement
  3. CThis is allowed, because court proceedings are not mentioned in the bar
  4. DThis is barred only if the conciliator's proposal was in writing

Explanation

Section 81(d) bars reliance on the fact that the other party indicated willingness to accept a proposal made by the conciliator. Section 81 covers arbitral and judicial proceedings, so a civil court is included. No written form requirement appears in the section.

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