As with other contracts, the agreement is not always available in writing, but it is preferable to conclude the agreement in writing and it is sometimes mandatory to apply it in writing. This is in stark contradiction to the status of private mediation transaction agreements, which are treated only as contracts. When a transaction is entered into by mediation, it does not enjoy the status of a court order, unlike an arbitral award that has been applied; but if the same regime is achieved by calling the mediator a conciliator, the scheme is considered a decree. For this reason, the parties prefer conciliation over mediation in India. A simple examination of the paragraph cited above concludes that, if the settlement agreement is reached in accordance with Section 73, which meets the requirements set out in it, it obtains the status and effect of an arbitral award on the agreed clause in the litigation case made by an arbitration tribunal under Section 30 of the Act. With this letter, we would like to warn all investigators/members of the Ce to carefully read the submissions to ensure that such controversial agreements are not in place. They are unethical, illegal and could impose unnecessary burdens on subjects and their nominees. Recently, a single Judge Bench from the Delhi High Court, in the case of Anuradha SA Investments LLC – Anr. v Parsvnath Developers Limited – Ors.4 also examined the concept of a transaction agreement as part of an arbitration award. The Court had the opportunity to consider the enforcement of a settlement agreement as an arbitral award. The respondents had challenged the continuation of the petition on the grounds that the transaction agreement was not an agreement under Section 73 of the Act or the conciliation procedure under Part III of the Act. In addition, they have not received a certified copy of the transaction agreement and this agreement is not sufficiently stamped.
Section 73 of the Act authorizes a conciliator to enter into a transaction agreement that is final and binding on the parties. Section 74 nullifies the status of the arbitration premium transaction agreement. This was confirmed by hon`ble Delhi High Court in Anuradha SA Investments LLC – Anr. v. Parsvnath Developers Limited – Ors 2017 (4) ARBLR 72 (Delhi). A conciliation agreement is an agreement drawn up by a conciliator when he sees that there is a possibility of amicable compromise between the parties. A conciliator helps the parties settle disputes between them amicably. The conciliator establishes the terms of the settlement agreement on the basis of its indications in the conciliation procedure and on the basis of the written statements and written evidence of the parties.