Skip to content

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

Sharma Textiles Pvt Ltd wishes to settle a payment dispute with Gupta Dyes through conciliation under Part III of the Arbitration and Conciliation Act, 1996. What must Sharma Textiles do to initiate conciliation?

The initiating party must send the other party a written invitation to conciliate that briefly identifies the subject of the dispute. The Act requires the invitation to be in writing, so an oral invitation, a court application or an arbitration claim does not start the conciliation process.

  1. ASend Gupta Dyes a written invitation to conciliate, briefly identifying the subject of the disputeCorrect
  2. BApply to the court for an order appointing a conciliator
  3. CGive an oral invitation to Gupta Dyes in the presence of two witnesses
  4. DFile a statement of claim with the arbitral tribunal

Explanation

Under section 62(1), the party initiating conciliation sends the other party a written invitation to conciliate, briefly identifying the subject of the dispute. No court order is needed and an oral invitation does not satisfy the requirement. A statement of claim belongs to arbitration, not conciliation.

Did you get it right without looking?

One question tells you little. A timed set on Introduction to Conciliation and its Importance for MSMEs shows your real accuracy, how long you take and where you lose marks.

Practise Introduction to Conciliation and its Importance for MSMEsFree diagnostic mock

More Introduction to Conciliation and its Importance for MSMEs questions