Arbitration and Conciliation Act, 1996 · Chapter VI
Section 30: Settlement
(1) It is not incompatible with an arbitration agreement for an arbitral tribunal to encourage settlement of the dispute and, with the agreement of the parties, the arbitral tribunal may use mediation, conciliation or other procedures at any time during the arbitral proceedings to encourage settlement.
(2) If, during arbitral proceedings, the parties settle the dispute, the arbitral tribunal shall terminate the proceedings and, if requested by the parties and not objected to by the arbitral tribunal, record the settlement in the form of an arbitral award on agreed terms.
(3) An arbitral award on agreed terms shall be made in accordance with section 31 and shall state that it is an arbitral award.
(4) An arbitral award on agreed terms shall have the same status and effect as any other arbitral award on the substance of the dispute.
Source: India Code (indiacode.gov.in), the consolidated text published by the Legislative Department, Government of India. Text as updated on India Code on 16 October 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.
Supreme Court judgments citing the section 30
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M/s Dhanbad Fuels Private Limited v. Union of India & Anr.
Issue arose whether, due to non-compliance with s.12A of the Commercial Courts Act, 2015, a suit should be dismissed u/Ord. VII r.11 CPC, or whether it should be kept in abeyance, directing the parties to first explore…
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Gayatri Balasamy v. M/s ISG Novasoft Technologies Limited
In ‡M. Hakeem and Anr.’s case, this Court held that while exercising powers u/s.34 of the Arbitration and Conciliation Act, 1996, a Court hearing the petition had no power to “modify” the Award, whereas other benches of…
- M/S. Patil Automation Private Limited and Ors. v. Rakheja Engineers Private Limited
- Mysore Cements Ltd. v. Svedala Barmac Ltd.