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

Himalaya Foods Ltd sent Deccan Packaging Ltd a written invitation to conciliate on 10 June, stating that a reply must come within 15 days. No reply arrived by 20 June. Himalaya wants to treat this as rejection. What is the position?

Himalaya may elect to treat silence as rejection only after the 15-day period specified in its invitation expires, which is after 25 June. Section 62(4) allows thirty days or such other period specified, so the specified period governs, and written notice of the election is required.

  1. AIt cannot do so before thirty days from 10 June in all cases
  2. BIt may do so only after the Tribunal permits
  3. CIt may elect rejection only after sixty days
  4. DIt may elect to treat it as rejection only after 25 June, i.e. after the 15-day period specifiedCorrect

Explanation

Section 62(4) refers to thirty days or such other period as specified in the invitation. Here 15 days was specified, which ends on 25 June, so on 20 June the period has not run out. Option A ignores the specified period. As of 20 June, Himalaya cannot yet elect rejection; after 25 June it may, and must inform Deccan in writing.

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