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

Meridian Textiles Pvt Ltd of Surat has a dispute with Kaveri Dyes Ltd over unpaid invoices. Meridian's director sends Kaveri a letter titled 'Invitation to Conciliate', briefly describing the invoice dispute. Kaveri has not yet replied. Has conciliation proceedings commenced?

Conciliation has not commenced. Under Section 62(2), proceedings begin only when the other party accepts the written invitation to conciliate in writing. Merely sending or receiving the invitation, or appointing a conciliator, does not start proceedings.

  1. AYes, they commenced on the date Meridian sent the written invitation
  2. BYes, they commenced when Kaveri received the invitation
  3. CNo, they commence only when Kaveri accepts the invitation in writingCorrect
  4. DNo, they commence only when a conciliator is appointed

Explanation

Under Section 62(2), conciliation proceedings commence when the other party accepts the invitation to conciliate in writing. Sending or receiving the invitation is not enough, and appointment of a conciliator is not the trigger. Option A confuses conciliation with arbitration-style commencement.

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