Arbitration and Conciliation Act Section 30 — Settlement

CHAPTER VI — Making of arbitral award and termination of proceedings

Civil

Summary

Sub-section (1) states that an arbitral tribunal is allowed to encourage the parties to settle their dispute, and this does not conflict with the arbitration agreement. With the agreement of both parties, the tribunal may use mediation, conciliation, or other methods at any point during the arbitration proceedings to promote a settlement.

Sub-section (2) provides that if the parties reach a settlement during the arbitration proceedings, the arbitral tribunal must end the proceedings. If the parties ask for it and the tribunal does not object, the tribunal will record the settlement in the form of an arbitral award on agreed terms.

Sub-section (3) requires that an arbitral award on agreed terms be made according to section 31, and it must clearly state that it is an arbitral award.

Sub-section (4) says that an arbitral award on agreed terms carries the same status and effect as any other arbitral award made on the substance of the dispute.

Official Text

(1) It is not incompatible with an arbitration agreement for an arbitral tribunal to encourage settlement of the dispute and, with the agreement of the parties, the arbitral tribunal may use mediation, conciliation or other procedures at any time during the arbitral proceedings to encourage settlement.

(2) If, during arbitral proceedings, the parties settle the dispute, the arbitral tribunal shall terminate the proceedings and, if requested by the parties and not objected to by the arbitral tribunal, record the settlement in the form of an arbitral award on agreed terms.

(3) An arbitral award on agreed terms shall be made in accordance with section 31 and shall state that it is an arbitral award.

(4) An arbitral award on agreed terms shall have the same status and effect as any other arbitral award on the substance of the dispute.