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

Kiran Exports invited Lal Engineering in writing to conciliate. Lal Engineering did not reply for thirty days. Which statement is correct?

Kiran Exports may elect to treat the thirty days of silence as rejection and, if it does, must inform Lal Engineering in writing. Conciliation commences only on written acceptance, so silence neither starts proceedings nor automatically rejects the invitation.

  1. AConciliation proceedings have automatically commenced, since silence implies acceptance
  2. BKiran Exports may elect to treat the silence as rejection and, if it so elects, must inform Lal Engineering in writingCorrect
  3. CKiran Exports must wait for a conciliator to declare under Section 76 that further efforts are unjustified
  4. DThe invitation is rejected automatically and Kiran Exports need not inform the other party

Explanation

Under Section 62(2) proceedings commence only when the other party accepts in writing. Under Section 62(4), if no reply is received within thirty days, the initiating party may elect to treat this as rejection and must then inform the other party in writing. No proceedings exist, so Section 76 termination is not needed.

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