Home › CS Executive › jurisprudence › Arbitration and Conciliation Act 1996 › Under Section 73 read with Section 74 of the Act…
Under Section 73 read with Section 74 of the Act, when the parties sign the **settlement agreement** at the end of conciliation:
A{'text': 'It shall be final and binding on the parties and shall have the same status and effect as an arbitral award on agreed terms rendered under Section 30', 'label': 'A'}
B{'text': 'It shall be referred to the High Court of the relevant State for ratification before it becomes binding under any provision of any law in force in any State of India regardless of any other consideration of any kind under any law in force', 'label': 'B'}
C{'text': 'It shall be referred to the Central Government for ratification before it becomes binding under any provision of any law in force in any State of India regardless of any other consideration of any kind under any law in force in any State of India', 'label': 'C'}
D{'text': 'It shall be referred to the Reserve Bank of India for ratification before it becomes binding under any provision of any law in force in any State of India regardless of any other consideration of any kind under any law in force in any State of India', 'label': 'D'}
Answer & Solution
Correct answer: A. {'text': 'It shall be final and binding on the parties and shall have the same status and effect as an arbitral award on agreed terms rendered under Section 30', 'label': 'A'}
1. Sections 73 and 74 of the Act together give the conciliation settlement agreement an enforceable status.
2. Section 73(3): "When the parties sign the settlement agreement, it shall be **final and binding on the parties** and persons claiming under them respectively."
3. Section 73(4): the conciliator shall authenticate the settlement agreement and furnish a copy to each party.
4. Section 74: the settlement agreement shall have the **same status and effect as if it is an arbitral award on agreed terms** on the substance of the dispute rendered by an arbitral tribunal under Section 30.
_Source: ICSI CS Executive Paper 1 — Jurisprudence, Interpretation & General Laws, Lesson 13 (Arbitration and Conciliation Act, 1996), pp. 314-333._
Related questions
Section 66 of the Act provides that the **conciliator is not bound** by:Under Section 62 of the Act, conciliation proceedings COMMENCE when:Lesson 13 distinguishes **conciliation** from arbitration and mediation. Which propositionSection 49 of the Act provides that where the Court is satisfied that the foreign award isUnder Section 45 of the Act (Part II — enforcement of foreign awards under the New York CoSection 43C of the Act lists the **composition of the Arbitration Council of India**. AccoThe **Arbitration Council of India** was established under Section 43B of the Act (inserteSection 43(1) of the Act provides: