Conciliation & Settlement

When is a negotiated process useful?

Conciliation can be useful where the parties can identify a practical solution but need structured discussion and clear documentation. The disputed issues might concern a payment schedule, handover, repairs or an agreed exit. Participation and settlement should be voluntary within the applicable process. A willingness to talk is not an admission that every allegation or calculation is correct.

Section 32(g) addresses measures to facilitate amicable conciliation through dispute-settlement forums. MahaRERA’s current conciliation procedure should be checked for eligibility, filing and conduct. Do not assume that starting discussions stays a complaint, enforcement process or appeal deadline. The client should receive advice on preserving procedural rights while negotiations continue.

• RERA Act, 2016, Section 31 (filing of complaints)
• RERA Act, 2016, Section 44 (appeals to Appellate Tribunal)
• MahaRERA orders and circulars: check amendments and effective dates

What makes proposed terms workable?

Translate the settlement into specific obligations: who pays or performs, what evidence demonstrates completion, dates, conditions and consequences of default. If possession is part of the bargain, address occupancy material, inspection, services and documents rather than rely on the word handover. If money is payable, define the treatment of partial payments and any disputed calculation.

Check whether all necessary parties are represented and authorised. A promoter representative may need entity authority, while a group representative may not have authority to release each allottee’s personal claim. A settlement should not purport to bind absent persons or waive rights the signatory cannot waive. The advocate should identify claims included, claims reserved and the effect on pending proceedings.

How should settlement be recorded and monitored?

Use complete consent terms or another appropriate instrument, with consistent schedules and signatures. Obtain advice on the process for placing terms before the relevant forum and their enforceability. A private email exchange, a signed compromise and an order recording terms can have different consequences. The client should understand the actual status rather than be told that every settlement is immediately executable in the same way.

Maintain a performance tracker and retain evidence of payment, documents and completion. Do not withdraw or release a claim earlier than the agreed and advised sequence without understanding the risk. If default occurs, the next step depends on the instrument and forum. Outcomes depend on facts and the decision of the Authority or Tribunal; conciliation does not promise agreement or eliminate the need for later enforcement.

• RERA Act, 2016, Section 40 (recovery of interest or penalty or compensation)