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

Patel Motors invited Rathi Components in writing to conciliate a dispute. Rathi Components has not replied for 35 days and the invitation fixed no other period. Patel Motors wants to file a suit to recover its dues. What is the correct position?

Patel Motors may elect to treat the 30-day silence as rejection of the invitation and must inform Rathi Components in writing. Conciliation commences only on written acceptance, so with rejection there are no conciliation proceedings and the bar on suits does not apply.

  1. AConciliation proceedings commenced automatically after 30 days, so Section 77 bars the suit
  2. BPatel Motors may treat the silence as rejection, informing Rathi Components in writing, and then no conciliation proceedings existCorrect
  3. CPatel Motors must wait indefinitely until Rathi Components rejects in writing
  4. DPatel Motors may treat the silence as rejection without informing the other party

Explanation

Under Section 62, conciliation commences only when the other party accepts in writing. If no reply comes within thirty days, the inviting party may elect to treat this as rejection and must inform the other party in writing. Then there are no conciliation proceedings, so the Section 77 bar is not engaged.

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