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

Meera Exports Pvt Ltd and Tapti Foods Ltd first attempted conciliation, during which Tapti said it might accept a lower settlement figure. Conciliation failed and arbitration began. Meera wants to produce Tapti's statement as evidence of its willingness to settle. What is the position under the Act?

Meera cannot produce it. Parties may not rely on or introduce, in arbitral or judicial proceedings, views or suggestions the other party made about a possible settlement during conciliation. The bar applies regardless of the arbitrator's view on relevance or whether the statement was written.

  1. AAllowed, since arbitration is a separate proceeding
  2. BAllowed only if the arbitrator finds the statement relevant
  3. CAllowed if Tapti's statement was made in writing
  4. DNot allowed, because parties cannot rely on views or suggestions of the other party about a possible settlement in arbitral or judicial proceedingsCorrect

Explanation

Section 81(a) bars parties from relying on or introducing, in arbitral or judicial proceedings, views expressed or suggestions made by the other party about a possible settlement, whether or not those proceedings relate to the same dispute. The bar is not subject to the arbitrator's view of relevance or to the form of the statement.

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