Principles & Procedure of conciliation under Arbitration & Conciliation

Act 1996

INTRODUCTION

The Arbitration and Conciliation Act 1996 (hereinafter referred to as the “Act”) governs the
law relating to conciliation and arbitration in India. The Act aims to promote and encourage
the settlement of disputes through conciliation and arbitration and to provide for the
procedure to be followed in such settlements. This article outlines the principles and
procedure of conciliation under the Act.

Principles of Conciliation

 Voluntary Process: The process of conciliation is voluntary and the parties must
agree to participate in the conciliation proceedings.
 Confidentiality: The proceedings of conciliation are confidential and the conciliator
cannot disclose any information obtained during the proceedings unless the parties
agree.
 Neutrality: The conciliator is neutral and impartial and must not take sides in the
dispute.
 Informality: The conciliation proceedings are informal and flexible, allowing the
parties to find a solution that works for both of them.
Procedure of Conciliation

 Initiation: The conciliation proceedings are initiated by a written request from one of
the parties to the dispute to the other party. The request must state the nature of the
dispute and the parties involved.
 Appointment of Conciliator: Once the request for conciliation has been made, the
parties may agree on a conciliator or, if they cannot agree, they may request the
appropriate authority to appoint a conciliator.
 Communication of Appointment: The appointment of the conciliator must be
communicated to the parties in writing.
 Preparatory Meeting: The conciliator may hold a preparatory meeting with the
parties to discuss the dispute and to determine the terms of reference for the
conciliation proceedings.
 Conduct of Conciliation Proceedings: The conciliation proceedings are conducted
in accordance with the terms of reference agreed by the parties and the conciliator.
The conciliator may hold separate or joint meetings with the parties as he or she
deems fit.
 Written Settlement Agreement: If a settlement is reached during the conciliation
proceedings, the conciliator must reduce the settlement agreement to writing and have
it signed by the parties.
 Termination of Proceedings: The conciliation proceedings may be terminated by the
conciliator if he or she believes that it is unlikely that a settlement will be reached, or
by the parties if they agree to terminate the proceedings.
 Confidentiality of Settlement Agreement: The settlement agreement is confidential
and cannot be disclosed by the parties except as may be necessary for the purpose of
giving effect to the agreement.
Conclusion

In conclusion, the principles and procedure of conciliation under the Arbitration and
Conciliation Act 1996 provide a flexible and informal process for resolving disputes between
parties. The Act encourages the parties to participate in the conciliation proceedings
voluntarily and to reach a settlement agreement that is in their best interests. The conciliation
proceedings are confidential and impartial, and the conciliator is neutral and impartial. The
procedure for conciliation is straightforward and simple, and the parties are free to determine
the terms of reference for the proceedings. If a settlement is reached, the settlement
agreement is confidential and binding on the parties.

References

 "Arbitration and Conciliation Act 1996," Indian Kanoon,

http://www.indiankanoon.org/doc/598616/ (last accessed Jan. 31, 2023).
 "Arbitration and Conciliation Act, 1996," Legal Service India,
http://www.legalserviceindia.com/legal/article-2245-arbitration-and-conciliation-act-
1996.html (last accessed Jan. 31, 2023).
 "Arbitration and Conciliation Act, 1996," Vakilno1,
http://vakilno1.com/bareacts/arbitrationconciliationact/arbitrationconciliationact.html
(last accessed Jan. 31, 2023).
 "Arbitration and Conciliation Act 1996," Wikipedia,
https://en.wikipedia.org/wiki/Arbitration_and_Conciliation_Act_1996 (last accessed
Jan. 31, 2023).

SIDHANT SINGH
HNLU