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CS Professional · Arbitration, Mediation and Conciliation · Arbitral Proceedings, Pleadings and Evidence

Ishaan Logistics and Patel Cold Storage failed to settle through conciliation. Ishaan later begins arbitration on a different contract between the same parties. Patel Cold Storage objects to Ishaan introducing an admission Patel made during the conciliation. Ishaan argues the bar applies only where the later proceedings concern the conciliated dispute. Is Ishaan's argument correct?

Ishaan's argument is wrong. Section 81 bars reliance on the other party's conciliation admissions in arbitral or judicial proceedings whether or not those proceedings relate to the conciliated dispute. So the admission cannot be introduced in the arbitration on a different contract.

  1. ANo; section 81 applies whether or not the later proceedings relate to the conciliated disputeCorrect
  2. BYes; the bar applies only to the same dispute
  3. CYes; the bar applies only to judicial proceedings
  4. DNo; but the bar applies only if the tribunal so directs under section 19(4)

Explanation

Section 81 says the bar applies in arbitral or judicial proceedings 'whether or not such proceedings relate to the dispute that is the subject of the conciliation proceedings'. Admissions by the other party under clause (b) are therefore barred here too. Section 19(4) tribunal discretion cannot override this statutory bar.

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