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

During conciliation of a dispute between Patel Agro and Sunrise Foods, Sunrise's manager admitted that part of the invoice was unpaid. Conciliation failed. In later arbitration on the same dispute, Patel Agro wants to rely on this admission. Which statement is correct under the Act?

Patel Agro cannot rely on the admission. Section 81(b) prohibits parties from relying on or introducing as evidence, in arbitral or judicial proceedings, admissions made by the other party during conciliation, whether or not those proceedings concern the same dispute.

  1. APatel Agro can rely on it because it is an admission against interest
  2. BPatel Agro can rely on it only if the conciliator confirms it in writing
  3. CPatel Agro cannot rely on or introduce it as evidence in the arbitrationCorrect
  4. DPatel Agro can rely on it only in court proceedings, not in arbitration

Explanation

Section 81(b) bars the parties from relying on or introducing as evidence in arbitral or judicial proceedings admissions made by the other party in the course of conciliation. This applies to both forums, so the court-only option is wrong.

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