Arbitration and Conciliation Act Section 73 — Settlement agreement

CHAPTER II

Civil

Summary

Sub-section (1) states that when the conciliator believes there are elements of a settlement that the parties might accept, he must draft the terms of a possible settlement and send them to the parties for their feedback. After the parties give their observations, the conciliator may revise the terms of the possible settlement based on those observations.

Sub-section (2) provides that if the parties agree on a settlement of the dispute, they may prepare and sign a written settlement agreement. If the parties ask for it, the conciliator may prepare the settlement agreement himself, or help the parties in preparing it.

Sub-section (3) says that once the parties sign the settlement agreement, it becomes final and binding on the parties and on anyone claiming under them.

Sub-section (4) requires the conciliator to authenticate the settlement agreement and give a copy of it to each of the parties.

Official Text

(1) When it appears to the conciliator that there exist elements of a settlement which may be acceptable to the parties, he shall formulate the terms of a possible settlement and submit them to the parties for their observations. After receiving the observations of the parties, the conciliator may reformulate the terms of a possible settlement in the light of such observations.

(2) If the parties reach agreement on a settlement of the dispute, they may draw up and sign a written settlement agreement. If requested by the parties, the conciliator may draw up, or assist the parties in drawing up, the settlement agreement.

(3) When the parties sign the settlement agreement, it shall be final and binding on the parties and persons claiming under them respectively.

(4) The conciliator shall authenticate the settlement agreement and furnish a copy thereof to each of the parties.