STRAT TT STAT STARRTOT ceaeipnon- onan zsoreranzscrann career oftaes atte uot parera) PAY Fax :91-11-25003507 / 25088614 National Highways Authority of India (Ministry of Road Transport and Highways) ‘Shs wa 6, Aret-10, arr, AE Feee-110075 6-5 & 6, Sector-10, Dwarka, New Delhi-110075 NHAI/Policy Guidelines/Dispute Resolution/2021 Policy Circular No. 2.1.48, Dated, 09t April, 2021 {Decision taken on e-office file No. E-70124 & 465% EC Meeting held on 26.03.2021} Sub.: Modified Standard Operating Procedure/ Methodology for Conciliation. NHAI vide Policy Circular No. 2.1.23/2017 dated 02.06.2017 established a system for conciliation of disputes through Conciliation Committee of Independent Experts (CCIE). Amendment 1 dated 19.06.2017 to the Policy Guidelines dated 02.06.2017 and Standard Operating Procedure/ Methodology for Conciliation were issued vide Policy Guidelines no. 2.1.23 (1)/2017 dated 19.06.2017. In order to expedite the conciliation of disputes through CCIEs, instructions were issued vide note no. NHAI/OSD to Chairman/05/2019 dated 13.09.2019 & OM dated 09.06.2020 bearing file no. NHAI/CMD/CCIE Matters/2020(C.No. 5298)/ 153257. Based on the experience gained in the process, it has been decided vide EC Agenda item no. 465.06 to make amendments in the SOP/ Methodology for conciliation, Ml, In view of above and in supersession of earlier SOP/ Methodology for Conciliations, the following Modified Standard Operating Procedure/ Methodology is issued: 1, The procedure for conciliation shall be as prescribed in Sections 61 to 81 of the Arbitration and Conciliation (Amendment) Act, 2015 (hereinafter referred to as ‘the Act’) with the following further clarifications: 1.1 Application and Scope (in furtherance to the provisions contained in Section 61 of the Act): Application and Scope of Conciliation shall be before, during or after the arbitral process, as contained in the Policy Guidelines No. 2.1.23/2017 dated 02.06.2017 with subsequent amendments. The NHAl on the one hand, and the Concessionaire/ Contractor/ Consulting Agency on the other, shall be deemed to have consented to opt for conciliation under the Act ibid by giving their consent for conciliation as per these policy guidelines. The consent of the parties shall also be deemed to be their consent for the procedure prescribed herein. 1.2 Commencement of Conciliation Proceedings in terms of Section 62 of the Act: Conciliation Proceedings shall commence when the parties submit the following to the Conciliation Committee: (i) A letter, jointly signed by both parties, consenting to conciliation through any of the three committees constituted under the NHAl Policy Guidelines, as Per suggestive template communication enclosed as Annex-1. The Concessionaire/ Contractor/Consultant may indicate names of all three Committees in order of their preference, The case will be referred to the Committee leaving those which are unavailable due to work load or any other reason. A Committee will normally be considered unavailable if it is handling more than 40% of the total ongoing cases at any point of time. Member dealing with CMD may refer the matter to the Committee on above basis. Whs- Contd. to Pg-22 (ii) Brief statements of the issues/ dispute(s) to be taken up for conciliation: a. As per Concessionaire/ Contractor/ Consulting agency b. As per NHAI (iii) Name, Address and Contact details of the person(s) representing parties:- a. NHAI (duly authorised by the Competent Authority (Chairman or ‘Member concerned, as the case may be) b. Concessionaire/Contractor/ Consulting Agency - The person representing shall be a Senior Executive and a regular employee of the company, supported by a Board Resolution and a Power of Attorney, duly authorized to enter into a Conciliation Agreement. The parties will not be permitted to bring professional lawyers for conciliation. The suggestive templates of Board Resolution and Power of Attorney are enclosed as Annexure 2 & 3 respectively. These can be produced on or before first hearing of CCIE; (iv) The process of conciliation/settlement should be started preferably keeping the Arbitration/ Court proceedings in abeyance. If any party wants to continue with arbitration/court proceedings, the parties shall inform the Arbitral Tribunal/Court regarding initiation of conciliation process by them before the first meeting of CCIE. (v) List of Documents (suggestive) to be submitted by the parties: a. Copy of Contract/Concession Agreement or relevant clauses pertaining to the disputes/claims. b. Copy of Statement of Claims (SOCs), Statement of Defences (SODs) etc. when the matter is pending before the Arbitral Tribunal. c. Copy of Arbitral Awards; OMPs filed before the Hon'ble Court; Orders passed by the Hon'ble Court, if any, etc. when the matter is pending before the Hon’ble Court. (vi) For speedy disposal of the cases, the parties to preferably hold a preliminary discussion between them before the first meeting of CCIE. (vii) CCIEs will give recommendation about the possible terms of settlement to both parties, wherever necessary, as per Section 73 of A&C Act. 1.3. Number of Conciliators and Appointment of Conciliators (in terms of Sections 63 & 64 of the Act): The consent of parties to praceed with conciliation and settlement of dispute(s) through the Conciliation Committees constituted under the Policy Guidelines of NHAI shall be deemed to fulfil the conditions prescribed under Section 63 and Section 64 of the Act. 2, Administrative Assistance (in furtherance of Section-68 of the Act): The Conciliation Committee shall be assisted by such expert technical and secretarial assistance as it may require for efficient discharge of its functions. The NHAl shall make arrangements for the same to the satisfaction of the Committees. Mo Contd. to Pe-3“3 3. Costs of Conciliation and Deposits: In terms of Sections 78 and 79 of the Act, the NHAI shall incur all expenditure on the conciliation proceedings including payment of fees to the conciliators, provision of office space, expenditure on dedicated expert and secretarial assistance and other incidental expenses. In case of successful cases, an amount of Rs. 5 Lakh shall be recovered by NHAl from the other party (Concessionaire/ Contractor/ Consulting Agency) irrespective of number of CCIE meetings. In case of failed cases, NHAI shall absorb the conciliation expenditure. 4. Residuary matters: The panel of Concitiators may decide on the procedures to be followed in respect of any residuary matters, including the review of this SoP from time to time, based on the experience gained in the process. IV. This issues with the approval of Competent Authority. a eee (Sheo Shankar Jha) CGM (Coord. ) To: All officers of NHAI/HQ/ROs/PIUs/CMUs/Site Offices Copy to: 1. PS to Chairman 2. PS to All Members/CVO 3. Hindi Officer for translation in Hindi 4, Library for hosting the circular on library site 5. Web Admin for circulationAnnexure (Template letter, jointly signed by both the parties, consenting to conciliation) Before Hon’ble Conciliation Committee of Independent Experts Comprising of 1- Sh. » 2- Sh. & 3- Sh. oe Sub.: Proposal for settlement of disputes/ claims pertaining to the project (Insert name of the Project-) Having consented for conciliation of different disputes/issues of the subject cited project as per Policy Guidelines of NHAI, issued vide Policy Circular No. 2.1.23/2017 dated 02.06.2017 with subsequent amendments as on date, the parties have jointly selected your committee for this conciliation as per Part-Ill (Conciliation) of the Arbitration and conciliation Act, 1996 as amended by the Amendment Act, 2015. This consent of the parties for conciliation is also the consent to the Methodology/ Standard Operating Procedure approved by the panel of Conciliators, as brought out in the above Policy Guidelines of NHAI. Authorized Signatory [Authorized Signatory _ For or on behalf of National Highways |For or on behalf of Authority of India Concessionaire/Contractor/ | Consulting agency (Signature) (Signature) Name: Namesiscereecee-ere creer Designation: Designation: ‘Address: ‘Address: z Who -Annexure-2, (Template Board Resolution) CERTIFIED TRUE COPY OF THE RESOLUTION PASSED BY THE BOARD OF DIRECTORS OF (Name of the Concessionaire/Contractor/Consultancy agency) AT THEIR MEETING HELD ON. wow AT THE REGISTERED OFFICE OF THE COMPANY SITUATED AT------ “RESOLVED THAT Mr. Authorized Signatory (hereinafter referred to as “Authorized Signatories”) resident of. smewneb@ and are hereby severally authorized to appear, represent and execute a Conciliation Agreement on behalf of the (Name of the Concessionaire/Contractor/Consultancy agency), before all the Judicial/ non-judicial authorities including but not limited to any Arbitration or Conciliation Panel or any civil courts or any government offices or any other statutory or non-statutory bodies, in the best interest of the Company for the following work: (Name of the project) KNOW ALL MEN By these present that we, (Name of the Concessionaire/ Contractor/ Consultancy agency), a company incorporated in India under the Companies Act 1956, having Its registered office at .. (hereinafter called ‘The Company’) represented by Sh. Managing Director. RESOLVED FURTHER THAT the consent of the Board be and is here by also accorded and authorised Shiv. ‘of the Company to execute and grant Power of Attorney in favour of of the Company, RESOLVED FURTHER THAT THE SAID Power of Attorney be signed by... Company. of the Specimen Signature of 1. 2 3. Attested by (Signature) Director weAnnexure-3 (A Template for Power of Attorney) POWER OF ATTORNEY Know all men by these presents, We, 5 (Company name) having its Fegistered office At enmnnensn hereinafter referred as ‘The Company’) represented DY Mfeiumnneey SON Of Shri and presently residing at . rari ”, who is presently employed with us and holding the position of Authorized Signatory as our true and lawful attorney (hereinafter referred to as the “Attorney”) to act severally and to do in our name and on our behalf, all such acts, deeds and things as are necessary or required in connection with our incidental to conciliation proceeding for the (project name) proposed or being developed by the National Highways Authority of India (the “Authority”) including but not limited to signing and submissions of all applications and other documents and writings, participate in meetings and providing information/ responses to the Authority, representing us in all matters before the Authority, signing and execution of all documents including the Conciliation Agreement, undertakings consequent to conciliation proceeding, and generally dealing with the Authority in all matters in connection with or relating to or arising out of conciliation proceeding for the said Project. AND we hereby agree to ratify and confirm and do hereby ratify and confirm all acts, deeds and things done or caused to be done by our said Attorney pursuant to and in exercise of the powers conferred by this Power of Attorney and that all acts, deeds and things done by our said Attorney in exercise of the powers hereby conferred shall and shall always be deemed to have been done by us. IN WITNESS WHEREOF WE, .... .-.(company name), THE ABOVE NAMED PRINCIPAL HAVE EXECUTED THIS POWER OF ATTORNEY ON THIS -DAY OF . For ... - (Company name) (Signature) Director Witnesses ‘Accepted (Signature) Authorized Signatory & address BEFORE ME Seal of the Notary Name & address of Notary Registration Number of Notary: .. Date ernnnnnn Wee