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

Under the MSMED Act, 2006, a dispute about an amount due to a small enterprise is referred to the Facilitation Council, which conducts conciliation itself. Which provisions of the Arbitration and Conciliation Act, 1996 govern that conciliation?

Sections 65 to 81 of the Arbitration and Conciliation Act, 1996 apply, as though the conciliation had been initiated under Part III. This is directed by section 18(2) of the MSMED Act. Provisions on arbitration agreements or court assistance in evidence do not govern the conciliation stage.

  1. ASections 65 to 81, applied as if the conciliation was initiated under Part IIICorrect
  2. BSections 7 to 11 on arbitration agreements and appointment
  3. CSection 27 on court assistance in taking evidence
  4. DSection 87 on effect of proceedings commenced before 23 October 2015

Explanation

Section 18(2) of the MSMED Act says the Council either conducts conciliation or seeks the help of an ADR institution, and sections 65 to 81 of the 1996 Act apply as if the conciliation were initiated under Part III. Section 27 concerns arbitral tribunals taking evidence, not conciliation.

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