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

Vihaan Motors and Gupta Components agreed in writing, at the start of conciliation, that if conciliation failed the conciliator, Mr. Nair, could later act as arbitrator on the same dispute. Conciliation failed, and Mr. Nair is appointed arbitrator. Gupta objects, relying on the Act. What is the correct position?

The objection fails. Section 80 operates unless the parties have otherwise agreed, and clause (a) bars the conciliator from acting as arbitrator only in the absence of such agreement. Vihaan and Gupta expressly agreed Mr. Nair could act, so his appointment is permitted.

  1. AThe objection succeeds, because a conciliator can never act as arbitrator
  2. BThe objection succeeds, because the agreement must be made after conciliation ends
  3. CThe objection fails, because the bar in Section 80(a) applies only unless the parties have agreed otherwiseCorrect
  4. DThe objection fails, but only if the court also approves the appointment

Explanation

Section 80 begins with 'Unless otherwise agreed by the parties'. The parties agreed that Mr. Nair could act as arbitrator, so the bar in clause (a) does not apply. The section does not require the agreement to come after conciliation or need court approval.

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