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

Ganga Infra Ltd sent a written invitation to conciliate to Yamuna Builders Ltd. Yamuna replied in writing rejecting the invitation. Ganga now asks whether any conciliation proceedings exist. What is the correct answer?

No conciliation proceedings exist. Section 62(3) provides that if the other party rejects the invitation, there will be no conciliation proceedings. Proceedings commence only on written acceptance, so sending the invitation or later appointing a conciliator cannot create them.

  1. AYes, proceedings exist until Ganga withdraws the invitation
  2. BYes, proceedings commenced when the invitation was sent
  3. CNo, there will be no conciliation proceedingsCorrect
  4. DYes, but only if a conciliator is later appointed by Ganga

Explanation

Section 62(3) states that if the other party rejects the invitation, there will be no conciliation proceedings. Commencement requires written acceptance, which Yamuna never gave. Options A, B and D wrongly treat the invitation or appointment as enough.

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