What Is The Status Of A Settlement Agreement In Conciliation Proceedings

A conciliation agreement is an agreement drawn up by a conciliator when he sees that there is a possibility of amicable compromise between the parties. A conciliator helps the parties settle disputes between them amicably. The conciliation agreement has the same position and effect, as if it were an arbitral award on the conditions authorized for the subject of an arbitration tribunal`s dispute under Section 30 of the Arbitration and Conciliation Act of 1996. Section 36 of the Act provides that the arbitral award under the 1908 Code of Civil Procedure is carried out in the same process, as if it were a Court of Justice decree after the expiry or application to quash an application to quash the sentence under Section 34 of the Act. It seems reasonable that there is no justification for authorizing a petition to quash an arbitration award on agreed terms, but it appears that there is no exception for a fixed-term arbitration award. It is therefore possible to argue that Section 36 applies to all arbitration awards, including an arbitration bonus on agreed terms. Therefore, an application for the execution of an arbitration award under agreed conditions cannot be made unless the time limit for filing an application to quash the award under section 34 of the Act has expired. The necessary consequence is that a petition for the annulment of an arbitration award may also be preferred. This argument can be rebutted by the absence of a derogation clause in section 34 of the statute concerning an arbitral award on agreed terms. Since a conciliation agreement must be regarded in legal literature as an arbitral award on agreed terms, a petition under Section 34 of the Arbitration and Conciliation Act 1996 cannot be characterized as foreign knowledge to a conciliation agreement. If such a petition were to be submitted, it would unfairly impede the applicability of a comparison agreement and would be a major blow to the effectiveness of a conciliation procedure.

Only the agreement, which was entered into in accordance with the established form and terms and which was duly authenticated in accordance with Section 73, can be granted the status of a transaction contract within the meaning of the law. The argument that the transaction agreement is not sufficiently persuasive. The Court found that under Section 74, a transaction agreement would have the status and effect “as if it were an arbitral award”; Therefore, legal fiction gave the same status and effect as an arbitration award to a transaction agreement concluded in the conciliation procedure and certified by the conciliator.