what is conciliation in ADR- Meaning, Role, And Types

what is conciliation in ADR – The Arbitration and Conciliation Act, 1996 deals with domestic arbitration and conciliation proceedings. Conciliation is an alternative dispute resolution system out of court. In conciliation, parties are free to attempt and agree to resolve their dispute. There are two types of conciliation i.e voluntary conciliation and compulsory conciliation.

what is conciliation in ADR

Meaning–

Conciliation means, settling the dispute without litigation. Conciliation is an alternative dispute resolution whereby a third party ( i.e conciliator) meets the parties to resolve their differences and settle the dispute.

what is conciliation in ADR

Kinds of conciliation

A)Voluntary conciliation – In Voluntary conciliation, parties can voluntarily participate in settling their dispute.

B)Compulsory conciliation –

In Compulsory conciliation parties do not want to participate in voluntary conciliation then they can go for compulsory conciliation.

When the parties do not want to meet the other party to settle the dispute then the Compulsory conciliation method is used.

In labour cases, the Compulsory conciliation method is commonly used.

Application and Scope of Conciliation (Section -61)

Section 61 of the Arbitration and Conciliation Act of 1996, deals with the application and scope of conciliation. It applies only those disputes submitted to conciliation and which dispute not submitted to conciliation then it not apply.
Commencement of Conciliation Proceedings(Section -62)

1)The initiating conciliation party shall send to another party a written invitation for conciliation, written invitation contains the briefly and identifying the subject of dispute.

2)When another party accepts the invitation then conciliation proceedings shall commence.

3)Conciliation proceedings shall not commence when the other party rejects the invitation.

4)If initiating party does not receive a reply within 30days from the date on which he sends the invitation or within the period as mentioned in the invitation, then he may elect this as a rejection of conciliation and if he so elects then he shall inform in writing the other party.

The number of conciliators- (Section -63)

1)There shall be one conciliator if the parties agree that there shall be two or three conciliators.

2) Where there is more than one conciliator, they must act jointly according to the general rule.

Appointment of conciliators

a)Both the parties may agree on the name of a sole conciliator

b)There are two conciliators then each party may appoint one conciliator in conciliation proceedings.

c)There are three conciliators, then each party may appoint one conciliator and both parties may agree on the name of the third conciliator who shall act as the presiding conciliator.

d) The parties may enlist the help of the appropriate organisation or individual in the appointment of conciliator.

e)The party may request such organization or person to recommend the names of suitable persons to act as a conciliator.

what is conciliation in ADR

Duties and Powers of Conciliator

1)Submission of statements to conciliator-(Section -65)

After the appointment of the conciliator, he may request both parties to submit to him a brief written statement describing the issues and general nature of the dispute. At any stage of conciliation, the conciliator may request a party to submit additional information to him.

2)Conciliator not bound by certain enactment (Section -66) Conciliator is not bound by the Code of Civil Procedure, 1908 or Indian Evidence Act, 1872.

3)Role of conciliator (Section -67) The conciliator shall assist the parties independently and impartially and reach an amicable settlement of their dispute. In conciliation proceedings, at any stage conciliator propose settlement of the dispute.

4)Administrative assistance (Section – 68) In conciliation proceedings, arrange for administrative assistance by a suitable institution to conduct proceedings, with the consent of parties.

5)Communication between conciliators and parties (Section -69) In conciliation proceedings, the conciliator may invite the parties to communicate with parties orally or in writing.

6)Disclosure of information (Section -70) Conciliator shall disclose the information to be the other party when he receives factual information concerning the dispute from a party.

7)Cooperation of parties with conciliator (Section -71) Parties shall cooperate with the conciliator and shall attempt to comply with requests by the conciliator to submit written materials, provide evidence, and attend meetings.

what is conciliation in ADR

8)Suggestions by parties for settlement of the dispute (Section – 72)

9)The settlement agreement (Section -73)

When parties reach an agreement and a settlement of the dispute then parties may draw up

and sign a written settlement agreement.

It shall be final and binding on the parties.

10)Status and effect of the settlement agreement (Section -74)

11)Confidentiality (Section -75)

In conciliation proceedings, the conciliator and parties shall keep confidential all matters relating to conciliation proceeding confidentiality shall extend also to the settlement agreement.

12)Termination of conciliation proceedings (Section -76) The conciliation proceedings shall be terminated -When parties singing the settlement agreement, on the date of the agreement.

By a written declaration of the conciliator with parties after consultation.

By a written declaration of the parties to the conciliator.By a written declaration of the parties to the other party.

13)Report to arbitral or Judicial proceedings (Section -77)

It is a duty of conciliator to report to arbitral or Judicial proceedings.

14)Costs (Section -78)

After termination of the conciliation proceedings,

the conciliator shall fix the costs of the conciliation and its borne equally by the parties,

and the conciliator gives written notice to both the parties.

15)Deposite (Section -79)

Conciliator may direct both parties to deposit amount as an advance for the costs referred

to in section 78 and conciliator may direct supplementary deposits in an equal amount from both parties.

16)Role of conciliator in other proceedings (Section -80)

Agreed by the parties-In any arbitral tribunal or judicial proceeding conciliator shall not be presented by

the parties as a witness and he shall not act as an arbitrator or

as a representative or counsel of party.

17)Admissibility of evidence in other proceedings (Section -81)

Quetions and Answers

1) What is the role of a conciliator?

Answer – The conciliator independently and impartially assists the parties to resolve disputes in an amicable manner.

2) What is the difference between a mediator and a conciliator?

Answer – Mediation is the process of resolving issues between the parties, and a third party helps them reach an agreement. Conciliation is another method of dispute resolution, in which experts are appointed to resolve the dispute by getting the parties to reach an agreement.