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CS Professional · Arbitration, Mediation and Conciliation · Introduction to Conciliation and its Importance for MSMEs

Kaveri Engineering sends Bhatia Steels a written invitation to conciliate, which does not specify any reply period. Bhatia Steels sends no reply for thirty-five days. Kaveri Engineering wishes to treat the silence as rejection. Which course matches Section 62?

Kaveri may elect to treat the silence as rejection, because no reply arrived within thirty days, but it must inform Bhatia Steels in writing of that election. Silence is not acceptance, and no court order is needed under Section 62(4).

  1. AKaveri may elect to treat the silence as rejection and must inform Bhatia Steels of this in writingCorrect
  2. BSilence is deemed acceptance, so conciliation has commenced
  3. CKaveri must wait for a Civil Court declaration that the invitation stands rejected
  4. DKaveri may treat silence as rejection without informing Bhatia, as the law implies it

Explanation

Section 62(4) allows the initiating party, if no reply is received within thirty days of sending the invitation (or the period specified in it), to elect to treat this as rejection. If it so elects, it must inform the other party in writing. Silence is never deemed acceptance, and no court declaration is required.

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