Haresh Dayaram Thakur v State of Maharashtra

(2000) 6 Supreme Court Cases 179Supreme Court of India2000Alternate Dispute Resolution
ADRconciliationconsentPart-III

Rule established

Conciliation under Part III of the 1996 Act is consensual; it commences only upon acceptance of invitation by the other party; no compulsion

Facts

  • Dispute arose between parties; one party sent an invitation to conciliate under Part III
  • The other party did not accept the invitation
  • The question was whether conciliation could be forced on an unwilling party

Issue

  1. Whether conciliation proceedings under Part III of the Arbitration and Conciliation Act, 1996 require mandatory consent of both parties.

Held

  • Conciliation is a consensual process; it commences only upon acceptance of the invitation (S.62).
  • No party can be compelled to participate in conciliation.
  • If the invitation is rejected or not responded to within 30 days, there is no conciliation (S.62(4)).
  • Consent is the foundation of conciliation; coerced conciliation defeats its very purpose.

Ratio Decidendi

Conciliation under Part III is voluntary. Proceedings commence only upon written acceptance of the invitation. No party can be forced to conciliate. The consensual nature is what distinguishes conciliation from arbitration (which, once agreed, is binding).

How to use it in an exam

Key line: "Conciliation is consensual. No party can be compelled to participate. Proceedings commence only upon acceptance of the written invitation under S.62."

Source

Source: Supreme Court judgment

This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.

Cited in study notes

ADRConciliationVoluntary nature of conciliation: consent is foundational
ADRConciliation under the 1996 ActCommencement of proceedings: S.62 requires acceptance