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IMC Court of Arbitration -Rules of Conciliation

Rules Of Conciliation Of the Indian Merchants’ Chamber



Short Title And Scope

  • These rules may be called the rules of conciliation of the Indian Merchants’ Chamber.
  • These rules shall apply where the parties have agreed in writing to seek an amicable settlement of a dispute which has arisen, or a dispute which may arise between them in respect of a defined legal relationship whether contractual or not, under the rules of conciliation of the Indian Merchants’ Chamber.
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Definitions


In these rules the following words will have the following meanings.

  • Rule or Rules of Conciliation means rules of conciliation of Indian Merchants’ Chamber.
  • IMC means the Indian Merchants’ Chamber.
  • Committee means the Arbitration and Conciliation Committee of the Indian Merchants’ Chamber.
  • Managing Committee means the Managing Committee of the Indian Merchants’ Chamber.
  • Party means the party to the agreement referred to in rule 1(ii).
  • Panel means the panel of conciliators maintained by the Indian Merchants’ Chamber.
  • Registrar means the Secretary General of the Indian Merchants’ Chamber or any other person designated as Registrar for carrying out the duties of the Registrar under these rules.
  • The expression and terms defined in the Arbitration and Conciliation Act as amended from time to time but not defined here will have the same meaning and effect as per the respective definitions of the said Act.
  • Words importing the singular number include, where the context admits or requires, the plural number and vice versa.
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Commencement of Conciliation Proceedings


  • Any party wishing to commence conciliation proceeding under the rules of the Indian Merchants’ Chamber shall submit to the Registrar a written request (Application) for conciliation which shall include or be accompanied by
  • The names and full addresses of the parties to the dispute.
  • A brief note containing the subject of the dispute, amount of claim, points at issue and relief and remedies sought with other details of the parties claim.
  • Original or a Photostat copy of the Conciliation Agreement, any contract or agreement out of or in connection with which the dispute has arisen.
  • Registration fee of Rs. 500 /- (Five hundred) or such higher amount as may be stipulated by the Committee from time to time.
  • A Copy of the said written request (Application) for Conciliation shall also be sent by the party initiating conciliation to the other party.
  • If there is no written agreement for conciliation between the parties, the party wishing to commence conciliation proceedings shall send to the other party a written invitation to conciliate under the Rules of IMC briefly identifying the subject of the dispute.
  • The other party must respond by either rejecting the request or accepting the request within 15 days of the date of receipt of the request.
  • Conciliation proceedings shall commence if the other party accepts the request in writing.
  • If the other party rejects the request, there will be no conciliation proceedings.
  • If the other party does not respond to the request within 15 days from the date of receipt of the request or within such other period of time as specified in the request, it will be deemed that the other party has rejected the request.
  • If the other party agrees for conciliation then on receipt of the written request (Application) for Conciliation from the Claimant, shall furnish within 15 days or within any extended date a reply setting out his case in brief to the Registrar simultaneously sending a copy of the same to the Claimant.
  • There shall be one Conciliator unless the parties agree that there shall be two or three conciliators.
  • In Conciliation Proceedings with two Conciliators, each party should appoint one Conciliator.
  • On receipt of a written request (Application) for conciliation the Registrar shall call upon the parties to the dispute to forward the name of an agreed Conciliator from among the panel of Conciliators by a notice in writing sent to them. The said notice shall specify the period in which the nomination shall be made which shall be not more than 15 days from the date of the said notice to the respective parties. If the parties fail to agree on the person to be appointed as the Sole Conciliator within the time granted by the Registrar and request the IMC for appointing a Conciliator, the Registrar in consultation with the President of the Chamber and in his absence in consultation with the person who is discharging the function of the President appoint the Sole Conciliator from among the panel of Conciliators. The Registrar shall give the notice to the parties of the appointment of the Conciliator. Where the reference is to two Conciliators the Registrar shall in the first instance call upon the parties to nominate one Conciliator each from among the panel of Conciliators by a request in writing sent to them. The said request shall specify the period within which the nomination shall be made which shall not be more than 15 days from the date of the said request to the respective parties. If the party to the dispute fails to appoint a Conciliator on his behalf within the period specified or any extended period or if he requests the Registrar to nominate the Conciliator on behalf of that party the Registrar in consultation with the President of the Chamber and in his absence in consultation with the person who is discharging the function of the President shall appoint a Conciliator / Conciliators from the panel of Conciliators on behalf of that party.
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Submission of Case to the Conciliator and Role of Conciliator


  • The Registrar shall send copies of all the papers relating to the conciliation such as the claim statement, reply to the claim statement, counter claim if any and other documents received from the parties to the dispute to Conciliator / Conciliators appointed under rule 3 (xi) with a request to proceed with Conciliation. The Conciliator / Conciliators are not bound by the Code of Civil Procedure 1908 or the Indian Evidence Act 1872 as amended from time to time.
  • The Conciliators shall assist the parties in an independent and impartial manner in their attempt to reach an amicable settlement to their dispute.
  • The Conciliators shall be guided by the principles of objectivity, fairness and justice giving consideration to amongst other things the rights and obligation of the parties, usage of trade and industry concerned and circumstance surrounding the dispute including any previous business practices of the parties.
  • The Conciliator may conduct the conciliation proceedings in such a manner as he considers appropriate taking into account the circumstances of the case, the wishes the parties may express including any request by a party that the Conciliator hear oral statements and the need for a speedy settlement of the dispute.
  • The Conciliator may at any stage of the Conciliation proceedings make proposal of the settlement of the dispute and such proposals need not be in writing and need not be accompanied by a statement of reasons thereof
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Disclosure of Information


  • When the Conciliator receives factual information concerning the dispute from a party he shall disclose the substance of that information to the other party in order that the other party may have the opportunity to present any explanation, which he considers appropriate. Provided that when a party gives any information to the Conciliator subject to a specific condition that it be kept confidential the Conciliator shall not disclose that information to the other party.
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Suggestions by Parties for Settlement of the Dispute


  • Each party may on his own initiative or at the invitation of the Conciliator submit to the Conciliator suggestions for the settlement of the dispute.
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Settlement Agreement


  • 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.
  • 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.
  • When the parties sign the settlement agreement, it shall be final and binding on the parties and persons claiming under them respectively.
  • The Conciliator shall authenticate the settlement agreement and furnish a copy thereof to each of the parties.
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Status and Effect of Settlement Agreement


  • 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 of the Arbitration and Conciliation Act, 1996.
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Confidentiality


  • Notwithstanding any thing contained in any other law for the time being in force, the Conciliator and the parties shall keep confidential all matters relating to the conciliation proceedings. Confidentiality shall extend also to the settlement agreement except where its disclosure is necessary for purposes of implementation and enforcement.
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Termination of Conciliation Proceedings


The Conciliation Proceedings shall be terminated

  • By the signing of the settlement agreement by the parties on the date of the agreement; or
  • By a written declaration of the conciliator, after consultation with the parties, to the effect that further efforts at conciliation are no longer justified, on the date of the declaration; or
  • By a written declaration of the parties addressed to the conciliator to the effect that the conciliation proceedings are terminated, on the date of the declaration; or
  • By a written declaration of a party to the other party and the conciliator, if appointed, to the effect that the conciliation proceedings are terminated, on the date of the declaration.
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Resort to Arbitral or Judicial Proceedings

  • The parties shall not initiate, during the conciliation proceedings, any arbitral or judicial proceedings in respect of a dispute that is the subject matter of the conciliation proceedings except that a party may initiate arbitral or judicial proceedings where, in his opinion, such proceedings are necessary for preserving his rights.
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Role of Conciliator in other Proceedings


Unless otherwise agreed by the parties,


  • The conciliator shall not act as an arbitrator or as a representative or counsel of a party in any arbitral or judicial proceeding in respect of dispute that is the subject of the conciliation proceedings;
  • The conciliator shall not be presented by the parties as a witness in any arbitral or judicial proceedings.
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Admissibility of Evidence in other Proceedings


The parties shall not rely on or introduce as evidence in arbitral or judicial proceedings, whether or not such proceedings relate to the dispute that is the subject matter of the conciliation proceedings.


  • Views expressed or suggestions made by the other party in respect of a possible settlement of the dispute.
  • Admissions made by the other party in the course of the conciliation proceedings.
  • Proposals made by the conciliator.
  • The fact that the other party had indicated his willingness to accept a proposal for settlement made by the conciliator.
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Communication between Conciliator and Parties


  • The Conciliator may invite the parties to meet him or may communicate with them orally or in writing. He may meet or communicate with the parties together or with each of them separately.
  • The venue of Conciliation shall be at Indian Merchants’ Chamber, IMC Marg, LNM IMC Building, Churchgate or such other place as may be determined by the Conciliator taking into account the convenience of all the parties concerned.
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Fees and Expenses

  • A Registration fee of Rs. 500 or such higher amount as may be stipulated shall be paid along with the application for reference. The Registration fee will not be refunded and becomes the property of the IMC.
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Conciliator’s Fee and Administrative Fee


  • The Conciliator’s fee and the Administrative fee of the Indian Merchants’ Chamber will be fixed separately by the Committee with regard to the amount in dispute in each case. The existing table of applicable fees is given in Annexure A to these Rules.
  • The Indian Merchants’ Chamber is entitled to receive a special fee of Rs. 500 per proceedings or such higher fee as may be prescribed by the Chamber for providing facilities of hearing rooms for Conciliation proceedings. The said special fee shall be shared and paid by both the parties in equal proportion.
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Other Expenses


  • The Conciliator may be paid an amount of Rs. 250 or such higher amount as may be determined by the Committee from time to time towards local conveyance for attending each proceedings. The said expenses will also be shared and paid by both the parties in equal proportion.
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Schedule Of Fees

  • Conciliator’s Fee :
    The Conciliator’s fee (for each Conciliator) will be fixed separately with regard to the amount in dispute in each case, as under and will be shared equally by both the parties.
  • Administrative Fee :
    The Administrative fee will be fixed separately with regard to the amount in dispute in each case as under and will be shared equally by both the parties.

Amount in Dispute Conciliator’s Fees Administrative Fees(IMC)
Upto Rs. 5,00,000/- Rs. 6,000/- Rs. 3,000/-
From Rs. 5,00,000/- to Rs. 10,00,000/- Rs. 6,000/- plus Rs. 300 per lac or part thereof on the amount exceeding Rs. 5,00,000/- Rs. 3,000 plus Rs.500/- per lac or part thereof on the amount exceeding Rs. 5,00,000/-
From Rs. 10,00,000/- to Rs. 100,00,000/- Rs. 7500/- plus Rs. 200/- per lac or part thereof on the amount exceeding Rs. 10,00,000/- Rs.5,500/- plus Rs.400/- per lac or part thereof on the amount exceeding Rs. 10,00,000/-
From Rs. 100,00,000/- to Rs. 500,00,000/- Rs.9,500/- plus Rs.8,000/- per crore or part thereof on the amount exceeding Rs.100,00,000/- Rs.7,500/- plus Rs.8,000/- per lac or part thereof on the amount exceeding Rs.100,00,000
From Rs. 500,00,000/- to Rs. 100,000,000/- Rs. 49,500/- plus Rs. 5200/- per crore or part thereof on the amount exceeding Rs. 500,00,000/- Rs.47,500/- plus Rs.5,200/- per lac or part thereof on the amount exceeding Rs.500,00,000/-
Over Rs. 100,000,000/- Rs. 75,500/- plus Rs. 2,000/- per crore or part thereof on the amount exceeding Rs. 100,000,000/- Rs.73,500/-
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