CONCILIATION

Sections (61-81)
By
V R K Murty
 Arbitration And Conciliation Act, 1996 & ADR

Part III. Conciliation:

Section 61. Application and scope: Unless the parties have otherwise
agreed, for the disputes arising out of legal relationship, the
conciliation shall apply
Section 62. Commencement of conciliation proceedings:
The party initiating conciliation shall send to the other party a
written invitation, to conciliate, with a briefly identifying the subject of
the dispute.
Conciliation shall commence when the other party accepts in writing
the invitation to conciliate.
If the other party rejects the invitation there will be no conciliation
 If the initiating party does not receive a reply within 30 days, he
may elect to treat this as rejection of the invitation to conciliate.
 Arbitration And Conciliation Act, 1996 & ADR

Part III. Conciliation:

Section 63. Number of conciliators: There shall be one conciliator
unless the parties agree for two or three conciliators. They ought to
act jointly as a general rule.
Section 64. Appointment of conciliators:
The parties may agree the name of a sole conciliator, if one
conciliator is specified
In case two are specified, each party may appoint one conciliator
each
In case three are specified, each party shall appoint one and the
parties may name the third conciliator
The parties may approach an Institution or person to recommend
suitable individuals as conciliators/ request the institution for
appointing conciliators. In terms of impartiality, the institution/ person
shall appoint persons of other nationality
 Arbitration And Conciliation Act, 1996 & ADR

Part III. Conciliation:

Section 65. Submission of statements to conciliator:
Upon appointment , the conciliator shall request each party to
submit to him a brief written statement describing disputes and the
points at issue, with copy to other party
The conciliator may ask further supplementary statements,
evidences, or information at any stage with copy to other party
Section 66. Conciliator not bound by certain enactments: The
conciliator is not bound by the civil procedure code, 1908 or Indian
evidence act, 1872.
Section 67. Role of conciliator:
Conciliator shall assist parties in an independent and impartial
manner to reach an amicable settlement of the dispute
 Arbitration And Conciliation Act, 1996 & ADR

Part III. Conciliation:

Sections 67 - 72. Role of conciliator and communications:
He is guided by principles of objectivity, fairness and justice, giving
consideration to, the rights and obligations of parties, the usages of
trade concerned, including business practices between parties.
He may conduct proceedings in such a manner as he considers
appropriate with due consideration to wishes of parties and the need
to speedy settlement
He may at any stage make proposals for settlement of disputes. Such
proposals need not be in writing or with reasons.
He may disclose any information given by one party to the other
party or he may keep it confidential as desired by a party
The parties shall co-operate with the conciliator in good faith and
give suggestions for speedy settlement
 Arbitration And Conciliation Act, 1996 & ADR

Part III. Conciliation:

Sections 73-75. Settlement agreement and status:
When it appears, that there exists element of a settlement which
may be acceptable to parties, he shall formulate terms of possible
settlement and submit them to the parties for their comments. After
receiving observations he may draw up the settlement agreement and
sign a written settlement agreement and assist the parties in drawing
up the settlement agreement.
When the parties sign the settlement agreement, it shall be final
and binding.
The conciliator shall authenticate the settlement agreement and
furnish copy to the parties.
The settlement agreement has the same status and effect of arbitral
award on agreed terms.
The conciliator and parties shall keep confidentiality
 Arbitration And Conciliation Act, 1996 & ADR

Part III. Conciliation:

Sections 76. Termination of conciliation proceedings:
By signing settlement agreement by the parties.
By written declaration by the conciliator, after consultation with the
parties
 By written declaration by the parties addressed to the conciliator
By a written declaration of a party to the other party and the
conciliator
Section 77. Resort to arbitral or judicial proceedings:
During conciliation proceedings, the parties shall not initiate any
arbitral or judicial proceedings except that a party may initiate such
proceedings to preserve his rights
 Arbitration And Conciliation Act, 1996 & ADR

Part III. Conciliation:

Section 78-79. Cost: Upon termination, the conciliator shall fix the
costs and gives written notice to the parties. The cost shall be borne
equally by the parties. The conciliator shall work out cost for
witnesses, expert advice, conciliatory proceedings etc. he may also ask
the parties to deposit the amount in advance.
Sections 80-81. Role of conciliator in other proceedings, and
admissibility of evidence:
The conciliator shall not act as arbitrator on the same disputes
 The conciliator shall not be presented by the parties as a witness.
 The parties shall not rely on or introduce evidence of conciliation
proceedings, views expressed by parties, proposals made by
conciliator and any party’s willingness to accept proposal in arbitral or
judicial proceedings