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

On 1 March, Mehta Engineering sent Rao Components a written invitation to conciliate. On 5 March Rao Components' director orally told Mehta's manager over the phone that the company was willing to conciliate. On 10 March Rao Components sent a signed letter accepting the invitation. When did the conciliation proceedings commence?

Conciliation commenced on 10 March, because proceedings commence only when the other party accepts the invitation in writing. The oral willingness on 5 March does not count, and merely sending the invitation on 1 March does not start the proceedings.

  1. AOn 1 March, when the invitation was sent
  2. BOn 5 March, when the oral willingness was expressed
  3. COn 10 March, when the written acceptance was givenCorrect
  4. DOn the date the conciliator is appointed

Explanation

Section 62(2) says conciliation proceedings commence when the other party accepts the invitation in writing. The oral willingness on 5 March is not written acceptance, so the proceedings begin on 10 March. Sending the invitation alone does not commence them.

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