Question

Which Section of the 1996 Arbitration Act permits the parties to engage in conciliation process even while the arbitral proceedings are on?

• A. Sec.30
• B. Sec.10
• C. Sec.40
• D. Sec.20

Hint:

Remember that the Arbitration Act, 1996, promotes alternative dispute resolution in a holistic way. Section 30 is a key provision that shows how different mechanisms like arbitration and conciliation can work together to achieve a resolution.

Answer 1

The Correct Option is A

Rather than recalling the section number directly, we can arrive at it by process of elimination based on each section's known subject matter.

1. Sec.10: Governs the number of arbitrators on a tribunal, unrelated to settlement or conciliation.
2. Sec.20: Governs where the arbitration is seated, again unrelated to settlement procedures.
3. Sec.40: Governs the effect of a party's death on the arbitration agreement and proceedings, unrelated to conciliation.
4. Sec.30: Titled Settlement, this is the only one of the four sections that deals with encouraging settlement through mediation or conciliation during the pendency of arbitral proceedings, and with recording any resulting settlement as an award on agreed terms.

Having eliminated the three unrelated sections, the correct answer is Sec.30.

Answer 2

A further way to pin this down is to focus on the specific outcome the question describes, namely an award on agreed terms following a settlement, and to trace which section produces that particular result.

1. Sec.10: Produces no award at all; it only fixes tribunal composition.
2. Sec.20: Produces no award; it only fixes the arbitral seat.
3. Sec.40: Produces no settlement outcome; it governs continuation or termination of proceedings after a party's death.
4. Sec.30: Produces exactly the outcome described, since it allows the tribunal, with the parties' agreement, to facilitate conciliation during arbitration, and if the parties settle, the tribunal terminates the arbitral proceedings and may record the settlement as an arbitral award on agreed terms, carrying the same status as any other award.

Since only Section 30 yields this settlement-into-award mechanism, the correct answer is Sec.30.