Case of Sonali Power Equipment Pvt Ltd vs Chairman MSEB, SC Judgement Dated 17th July 2025. The Court clarified that conciliation under Section 18(2) is a non-adjudicatory, voluntary, and non-binding mechanism. Since it does not result in a judicial or quasi-judicial determination, limitation law has no direct application.
— On arbitration, the apex court reaffirmed the view that once conciliation fails, and the matter proceeds to arbitration under Section 18(3), the provisions of the Arbitration and Conciliation Act, (ACA), including Section 43 fully apply. Arbitration under section 18(3) is deemed to arise from an arbitration agreement under Section 7 of ACA, invoking the entire framework of the ACA, including limitation.