Status and effect of settlement agreement
Section 74 of the Arbitration and Conciliation Act, 1996 deals with status and effect of settlement agreement. The settlement agreement shall have the same status and effect as if it is an arbitral award on agreed terms on the substance of the dispute rendered by an arbitral tribunal under section 30. The Act came into force on 22 Aug 1996.
The settlement agreement shall have the same status and effect as if it is an arbitral award on agreed terms on the substance of the dispute rendered by an arbitral tribunal under section 30.
Section 74, The Arbitration and Conciliation Act, 1996 (Act 26 of 1996).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Afcons Infra. Ltd. vs Cherian Varkey Constn Co. P. LTD
Court's Decision & Legal Precedent
A civil court cannot refer a suit to arbitration under Section 89 of the Code of Civil Procedure unless all parties to the suit agree to such reference. Even though Section 89 mandates courts to refer pending suits to alternative dispute resolution processes, reference to arbitration specifically requires mutual consent of all parties, as arbitration is governed by the Arbitration and Conciliation Act, 1996 which contemplates the existence of an arbitration agreement. While non-adjudicatory ADR processes (Lok Adalat, mediation, judicial settlement) can be imposed by court discretion after identifying suitable cases, adjudicatory arbitration process cannot be imposed without party consent. The proper procedure requires courts to invoke Section 89 suo moto after completion of pleadings and before framing issues, consider whether the case falls under excluded categories, and only for suitable cases, explain the five ADR options to parties and ascertain their preferences, with arbitration and conciliation requiring mutual consent.
On this section: Governs enforceability of settlement agreement in conciliation as court decree; applied when settlement reached before ADR forum is placed before court
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 74
What have the courts held on Section 74 of the Arbitration and Conciliation Act?
Afcons Infra. Ltd. vs Cherian Varkey Constn Co. P. LTD (26 Jul 2010) is the leading judgment on this section among those set out below: Governs enforceability of settlement agreement in conciliation as court decree; applied when settlement reached before ADR forum is placed before court.
How do I find court cases under Section 74 of the Arbitration and Conciliation Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Arbitration Act 74, section 74 Arbitration Act, section 74 of the Arbitration and Conciliation Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Afcons Infra. Ltd. vs Cherian Varkey Constn Co. P. LTD (26 Jul 2010).
What should I read with Section 74 of the Arbitration and Conciliation Act, and has it changed?
Its own text turns on section 30 (Settlement), so none of them can safely be read on its own.
When did Section 74 of the Arbitration and Conciliation Act come into force?
Section 74 of the Arbitration and Conciliation Act, cited as Arbitration Act 74, came into force on 22 Aug 1996, having been enacted on 16 Aug 1996. It is in force as at the date shown on this page.
Other sections of this Act
- 8. Power to refer parties to arbitration where there is an arbitration agreement1029 words
- 11. Appointment of arbitrators1027 words
- 34. Application for setting aside arbitral awards861 words
- 2. Definitions732 words
- 29A. Time limit for arbitral award635 words
- 57. Conditions for enforcement of foreign awards519 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.