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CS Professional · Arbitration, Mediation and Conciliation · Arbitration: Introduction, Agreements and its Institutions

Sagar Foods, which is in conciliation with Deccan Agro, wishes to end the conciliation. No conciliator has been appointed yet. Sagar sends a written declaration to Deccan Agro stating that the conciliation proceedings are terminated. Which statement is correct under the Act?

The proceedings terminate on the date of Sagar's written declaration. Section 76(d) allows a single party to terminate by written declaration to the other party and the conciliator, if one is appointed. No conciliator exists here, so notice to Deccan Agro is enough and no consent or court approval is needed.

  1. AThe proceedings continue, as a single party cannot terminate them without the other party's consent
  2. BThe proceedings terminate on the date of the declaration, because a party may terminate by written declaration to the other party and the conciliator, if appointedCorrect
  3. CThe proceedings terminate only after the court approves the declaration
  4. DThe proceedings terminate only if both parties sign a joint written declaration addressed to the conciliator

Explanation

Section 76(d) lets a party terminate by written declaration to the other party and the conciliator, if appointed, on the date of the declaration. Since no conciliator is appointed, the declaration to Deccan Agro suffices. A joint declaration is required only under clause (c), which is a separate mode, so the last option is wrong.

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