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

Orchid Pharma Ltd sent Sundaram Logistics a written invitation to conciliate on 1 March, specifying no particular reply period. Sundaram sent no reply. On 2 April, Orchid wishes to treat the silence as rejection. What must Orchid do?

Orchid may elect to treat the silence as rejection and must inform Sundaram in writing. Section 62(4) allows this after thirty days, or the period specified in the invitation, without a reply. Rejection is not automatic, and no court or conciliator is involved.

  1. ANothing; silence is automatically a rejection after thirty days
  2. BElect to treat it as rejection and inform Sundaram in writing accordinglyCorrect
  3. CApply to the court for a declaration of rejection
  4. DWait for the conciliator to declare the invitation rejected

Explanation

Under Section 62(4), if no reply is received within thirty days from sending the invitation (or the period specified in it), the initiating party may elect to treat this as rejection and, if so, must inform the other party in writing. Silence is not automatically rejection, so option A is wrong.

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