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Section 72: Suggestions by parties for settlement of dispute

Arbitration and Conciliation Act, 1996 • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1996
Section 71 All 87 Sections Schedules (4th, 5th, 7th) Section 73

Legal Commentary & Landmark Judgments: Section 72

Section 72 of the Arbitration and Conciliation Act, 1996 provides that each party may, on their own initiative or at the invitation of the conciliator, submit to the conciliator suggestions for the settlement of the dispute.

  • Parties' Right to Propose Settlement: Each party may, on their own initiative or at the invitation of the conciliator, submit to the conciliator suggestions for the settlement of the dispute.
  • Dynamic Negotiation: Allows parties to generate creative non-monetary solutions (e.g., future contracts, contract modifications, joint ventures).
  • Facilitating Compromise: Provides the building blocks for the conciliator's formulation of settlement terms under Section 73.
Key Landmark Precedents:
  • Afcons Infrastructure Ltd. v. Cherian Varkey Construction Co. (P) Ltd., (2010) 8 SCC 24: The Supreme Court noted that party-driven settlement suggestions under Section 72 form the bedrock of sustainable ADR outcomes.
  • Haresh Dayaram Thakur v. State of Maharashtra, (2000) 6 SCC 179: Affirmed that settlement proposals must originate from or be ratified by the parties.
Courtroom Practice & Strategic Litigation Guidance:

Draft structured settlement options under Section 72 featuring staged payments, interest waivers, or barter terms to provide the conciliator with practical compromises to present to the other side.

Section 71 All 87 Sections Schedules (4th, 5th, 7th) Section 73