Green Field Agro Private Limited (Referred as 'Green Field Agro'), a food-processing company, entered into a long-term supply agreement with Sunrise Farmers' Cooperative Society for procurement of organic vegetables. Due

Under Section 73 of the Arbitration and Conciliation Act, 1996, when the conciliator perceives elements of settlement acceptable to the parties, a settlement agreement may be drawn up and signed by the parties. Further, Section 74 provides that a settlement agreement shall have the same status and effect as an arbitral award on agreed terms under Section 30. Moreover, according to section 36(1), where the time for making an application to set aside the arbitral award under section 34 has expired, then, subject to the provisions of sub-section (2), such award shall be enforced in accordance with the provisions of the Code of Civil Procedure, 1908, in the same manner as if it were a decree of the court. The Supreme Court in Haresh Dayaram Thakur v. State of Maharashtra held that once parties sign a settlement agreement in conciliation proceedings, it becomes final, binding, and enforceable like an arbitral award, and parties cannot unilaterally withdraw from such settlement. In the given case, the conciliator facilitated negotiations and the parties signed a written settlement agreement resolving the dispute. As per Sections 73 and 74, such agreement attains the legal status of an arbitral award. Therefore, Green Field Agro Private Limited cannot subsequently refuse to comply with the settlement. Hence, a settlement agreement reached and signed during conciliation proceedings is final and binding on the parties and enforceable as an arbitral award, as recognised under the Arbitration and Conciliation Act, 1996 and affirmed by the Supreme Court.