Conciliation is a willful proceedings, where the parties involved are allowed to agree and

endeavor to resolve their dispute by conciliation. The procedure is flexible, permitting parties to
define the time, structure and substance of the conciliation procedures. These proceedings are
once in a while public. They are interest based, as the conciliator will while proposing a
settlement, not just consider the parties' legal positions, yet in addition their; commercial,
financial and/or personal interests.

Kinds of Conciliation
1. Facilitative Conciliation:
In facilitative conciliation, the conciliator acts as a neutral facilitator, helping the parties
to communicate and understand each other's perspectives without offering solutions or
opinions. The conciliator ensures a fair and respectful dialogue, focusing on interests
rather than positions. This type is commonly used in disputes where maintaining
relationships is critical, such as family or workplace conflicts.
2. Evaluative Conciliation:
In this approach, the conciliator actively evaluates the merits of the case and provides
opinions or suggestions for resolving the dispute. The focus is on assessing legal rights,
risks, and potential outcomes. This type of conciliation is particularly useful in complex
legal or commercial disputes where parties require expert guidance to make informed
decisions.
3. Court-Annexed Conciliation:
This form of conciliation is conducted under the supervision of a court. It is often
mandatory for certain cases before litigation proceeds further. The conciliator, appointed
by the court, helps parties explore settlement options while ensuring compliance with
legal procedures. Court-annexed conciliation is commonly used in matrimonial, labor,
and small civil disputes to reduce the burden on courts and encourage settlements.
4. Voluntary Conciliation:
Voluntary conciliation occurs when parties willingly agree to resolve their dispute
through conciliation, without any external compulsion. The process is flexible and
informal, allowing parties to choose the conciliator and set the agenda. Voluntary
conciliation fosters cooperation and trust, making it ideal for disputes where parties seek
a mutually agreeable solution outside formal legal mechanisms.
5. Compulsory Conciliation:
Compulsory conciliation is mandated by law or regulations, requiring disputing parties to
attempt conciliation before pursuing litigation or arbitration. It is often seen in industrial
disputes, consumer protection matters, or family law cases. The objective is to encourage
resolution without escalating conflicts to formal judicial forums. While it reduces court
caseloads, the mandatory nature can sometimes create resistance among parties.

Qualities of a Conciliator in Alternative Dispute Resolution

 1. Impartiality and Neutrality:
A conciliator must remain impartial and neutral throughout the process, ensuring fair
treatment of all parties. They should avoid taking sides or showing favoritism,
maintaining an unbiased stance to build trust and encourage active participation from
both sides.

2. Effective Communication Skills:

Strong verbal and non-verbal communication skills are essential for a conciliator to
convey ideas clearly, listen actively, and facilitate open dialogue. The ability to reframe
issues, clarify misunderstandings, and manage emotional conversations is crucial for
keeping the process constructive.
3. Empathy and Understanding:
A conciliator must demonstrate empathy, understanding the perspectives, needs, and
emotions of each party. This quality helps in fostering a collaborative environment and
promoting solutions that address the underlying interests of all parties involved.
4. Problem-Solving and Analytical Skills:
Conciliators should possess strong problem-solving abilities to identify the root causes of
the dispute and explore creative solutions. Analytical skills are also critical for evaluating
the implications of potential agreements and ensuring that proposed settlements are
practical and enforceable.
5. Patience and Perseverance:
The conciliation process often involves prolonged discussions and occasional setbacks. A
conciliator must exhibit patience and perseverance, allowing the parties the time and
space needed to reach an agreement without feeling pressured.
6. Knowledge of Law and Ethics:
A conciliator should have a thorough understanding of the relevant legal framework and
ethical standards governing the dispute. This knowledge ensures that the proposed
solutions are lawful, fair, and in compliance with any applicable regulations or
guidelines.
7. Strong Interpersonal Skills:
The ability to build rapport with the parties and foster a cooperative atmosphere is
essential. Interpersonal skills help in managing conflicts, addressing power imbalances,
and ensuring that all parties feel respected and heard.
8. Confidentiality and Integrity:
A conciliator must uphold strict confidentiality, safeguarding sensitive information
disclosed during the process. They should also demonstrate integrity, ensuring that the
proceedings are conducted with honesty and transparency.

What is the Role of the Conciliator?

Assisting Parties in Reaching an Amicable Settlement
The primary role of a conciliator, as stated in Section 67, is to assist the parties in reaching a
mutually acceptable resolution to their dispute. This involves facilitating communication,
encouraging dialogue, and exploring possible solutions. The conciliator acts as a neutral and
impartial third party, promoting a cooperative environment where parties can freely express their
concerns and interests.

Guided by Principles of Objectivity, Fairness, and Justice

A conciliator must uphold objectivity, fairness, and justice principles throughout the conciliation
proceedings. This means treating both parties equally without favouring one over the other. The
conciliator must consider various factors, including the rights and obligations of the parties, trade
usage, and the circumstances surrounding the dispute. By doing so, they ensure that the proposed
settlement aligns with the principles of equity and fairness.

Conducting the Conciliation Proceedings Appropriately

Section 67 grants conciliators the flexibility to conduct the conciliation proceedings in a manner
they deem appropriate. This enables them to tailor their approach to the case’s specific needs.
They may take into account the circumstances of the dispute, the expressed wishes of the parties,
and the need for a speedy resolution. Furthermore, if a party requests the conciliator to hear oral
statements, the conciliator should consider such requests.

Making Proposals for Settlement

At any stage of the conciliation process, a conciliator is empowered to make settlement proposals
to the parties. These proposals, which need not be in writing and are not required to be
accompanied by a statement of reasons, can serve as potential solutions for the parties to
consider. The aim is to guide the parties towards a settlement that effectively accommodates their
interests and resolves their dispute.

Stages in Conciliation
1. Initiation Stage:
The conciliation process begins when one or both parties agree to engage in conciliation.
This may be voluntary or mandated by law or contract. The parties then appoint a
conciliator or agree on an impartial individual or panel to facilitate the process. During
this stage, the conciliator establishes the ground rules, explains the process, and ensures
that both parties understand their roles and responsibilities.

2. Preparation Stage:
Before discussions commence, the conciliator collects relevant information about the
dispute. This may include reviewing legal documents, gathering statements from the
parties, and understanding the nature of the conflict. The conciliator may also hold
 preliminary meetings with each party separately to clarify their concerns, interests, and
expectations.
3. Opening Stage:
The first joint meeting between the parties marks the opening stage. Here, the conciliator
sets the tone by fostering a collaborative environment and emphasizing the importance of
mutual respect. Each party is invited to present their case, outline their grievances, and
express their desired outcomes. This stage is crucial for identifying the core issues and
understanding each party’s perspective.
4. Exploration and Negotiation Stage:
During this stage, the conciliator facilitates discussions between the parties to explore
possible solutions. This may involve identifying common ground, addressing
misunderstandings, and reframing issues to focus on interests rather than positions. The
conciliator encourages open communication while managing emotions and maintaining a
constructive dialogue. Various options for settlement are proposed and evaluated.
5. Formulation of Settlement:
Once the parties reach a consensus, the conciliator helps them draft a settlement
agreement. The agreement outlines the terms and conditions of the resolution, ensuring
that it is clear, specific, and acceptable to all parties. The conciliator also ensures that the
settlement complies with legal requirements and addresses the interests of both sides.
6. Closure and Implementation:
In the final stage, the settlement agreement is reviewed and signed by the parties,
signifying their commitment to abide by its terms. The conciliator formally concludes the
process, and the agreement may be legally binding, depending on the context. The
implementation of the settlement is monitored, if necessary, to ensure compliance and
resolution of the dispute.

Conciliation under Statutes

Under Arbitration and Conciliation Act 1996

1. This part shall apply to conciliation of disputes arising out of a legal relationship, whether
contractual or not and to all proceedings.

2. This part shall not apply where by virtue of any law for the time being in force certain
disputes may not be submitted to conciliation.

Section 61 points out that the process of conciliation extends, in the first place, to disputes,
whether contractual or not. But the disputes must arise out of legal relationship. It means that the
dispute must be such as to give one party the right to sue and other party the liability to be sued.
The process of conciliation extends, in the second place, to all proceedings relating to it. But Part
3rd of the Act does not apply to such disputes as cannot be submitted to conciliation by virtue of
any law for the time being in force.

Number And Qualifications of Conciliators- Section 63

Section 63 fixes the number of conciliators. There shall be one conciliator. But the parties may
by their agreement provide for two or three conciliators. Where the number of conciliators is
more than one, they should as a general rule act jointly.

Appointment of Conciliators- Section 64

1. If there is one conciliator in a conciliation proceeding, the parties may agree on the name
of a sole conciliator.

2. If there are two conciliators in a conciliation proceeding, each party may appoint one
conciliator.
3. If there are three conciliators in a conciliation proceeding, each party may appoint one
conciliator and the parties may agree on the name of the third conciliator who shall act as
the presiding conciliator.

Sub- section (2) of section 64 provides for the assistance of a suitable institution or person in the
appointment of conciliators. Either a party may request such institution or person to recommend
the names of suitable individuals to act as conciliators, or the parties may agree that the
appointment of one or more conciliators be made directly by such institution or person.

Principles of Procedure
1. Independence and impartiality Sec 67(1)
The conciliator should be independent and impartial. He should assist the parties in an
independent and impartial manner while he is attempting to reach an amicable settlement
of their dispute.

2. Fairness and justice Sec 67(2)

The conciliator should be guided by principles of objectivity, fairness and justice. He
should take into consideration, among other things, the rights and obligations of the
parties, the usages of the trade concerned, and the circumstances surrounding the dispute,
including any previous business practices between the parties.

3. Confidentiality Sec 75, 70, proviso

The conciliator and the parties are duly bound to keep confidential all matters relating to
the conciliation proceedings. Similarly, when a party gives an information to the
 conciliator on the condition that it be kept confidential, the conciliator should not disclose
that information to the other party. (Sec 70, proviso)

4. Disclosure of information Sec 70

When the conciliator receives information about any fact relating to the dispute from a
party, he should disclose the substance of that information to the other party. The purpose
of this provision is to enable the other party to present an explanation which he might
consider appropriate.

5. Cooperation of parties with conciliator Sec 71

The parties should in good faith cooperate with the conciliator. They should submit the
written materials, provide evidence and attend meetings when the conciliator requests
them for this purpose.

6. Rules of procedure Sec 66

The conciliator is not bound by the rules contained in the Code of Civil Procedure, 1908
or the Indian Evidence Act, 1872. Though the conciliator is not bound by the technical
rules of procedure, he should not ignore the principles of natural justice.
7. Place of meeting Sec 69(2)
The parties have freedom to fix by their agreement the place where meetings with the
conciliator are to be held. Where there is no such agreement, the place of meeting will be
fixed by the conciliator after consultation with the parties. In doing so the circumstances
of the conciliation proceedings will have to be considered.
8. Communication between conciliator and parties - Sec 69(1)
The conciliator may invite the parties to meet him or may communicate with them orally
or in writing. He may do so with the parties together or with each of them separately.

Procedure of Conciliation
1. Commencement of conciliation proceedings Section 62
The conciliation proceedings are initiated by one party sending a written invitation to the
other party to conciliate. The invitation should identify the subject of the dispute.
Conciliation proceedings are commenced when the other party accepts the invitation to
conciliate in writing. If the other party rejects the invitation, there will be no conciliation
proceedings. If the party inviting conciliation does not receive a reply within 30 days
from the date he sends the invitation, he may elect to treat this as rejection of the
invitation to conciliate. If he so elects he should inform the other party in writing.

2. Submission of statements to conciliator Section 65

The conciliator may request each party to submit to him a brief written statement. The
 statement should describe the general nature of the dispute and the points at issue. Each
party should send a copy of such statement to the other party. The conciliator may require
each party to submit to him a written statement of his position and the facts and grounds
in its support. It may be supplemented by appropriate documents and evidence. The party
should send a copy of such statements, documents and evidence to the other party.

3. Conduct of conciliation proceedings Section 69(1), 67(3)

The conciliator may invite the parties to meet him. He may communicate with the parties
orally or in writing. He may meet or communicate with the parties together or separately.
(Sec 69(1))

In the conduct of conciliation proceedings, the conciliator has some freedom. He may
conduct them in such manner as he may consider appropriate. But he should take into
account the circumstances of the case, the express wishes of the parties, a party request to
be heard orally and the need of speedy settlement of dispute. (Sec 67(3))

4. Administrative assistance - Section 68

Section 68 facilitates administrative assistance for the conduct of conciliation
proceedings. The parties and the conciliator may seek administrative assistance by a
suitable institution or the person with the consent of the parties.

Settlement
1. Settlement of dispute Sec 67(4), 72, 73
The role of the conciliator is to assist the parties to reach an amicable settlement of the
dispute. He may at any stage of the conciliation proceedings make proposals for the
settlement of the dispute. Such proposals need not be in writing and need not be
accompanied by a statement of reasons. (Sec. 67(4)) Each party may, on his own
initiative or at the invitation of the conciliator, submit to the conciliator the suggestions
for the settlement of the dispute. (Sec. 72)

When it appears to the conciliator that there exist elements of a settlement likely to be
accepted by the parties, he shall formulate the terms of a possible settlement and submit
them to the parties for their observations. After receiving the observations of the parties,
the conciliator may reformulate the terms of a possible settlement in the light of such
observations. (Sec 73(1)) If the parties reach agreement on the settlement of a dispute, a
written settlement agreement will be drawn up and signed by the parties.

If the parties request, the conciliator draw up or assist the parties in drawing up the
 settlement agreements. (Sec 73(2)) When the parties have signed the settlement
agreement, it becomes final and binding on the parties and persons claiming under them.
(Sec 73(3)) The conciliator shall authenticate the settlement agreement and furnish its
copy to each of the parties. (Sec 73(4)

2. Status and effect of settlement agreement - Sec 74

Section 74 provides that the settlement agreement shall have the same status and effect as
an arbitral award on agreed terms under Section 30. This means that it shall be treated as
a decree of the court and shall be enforceable.

Restrictions on Role of Conciliator - Section 80

Section 80 places two restrictions on the role of the conciliator in the conduct of conciliation
proceedings:
1. Clause (a) of Section 80 prohibits the conciliator to act as an arbitrator or as a
representative or counsel of a party in any arbitral or judicial proceeding in respect of a
dispute which is subject of the conciliation proceedings.

2. Clause (b) of Section 80 prohibits the parties to produce the conciliator as a witness in
any arbitral or judicial proceedings.

Termination of Conciliation Proceedings - Section 76

Section 76 lays down four ways of the termination of conciliation proceedings. These are:
1. The conciliation proceedings terminate with the signing of the settlement agreement by
the parties. Here the date of termination of conciliation proceedings is the date of the
settlement agreement. (Sec 76(a))

2. The conciliation proceedings stand terminated when the conciliator declares in writing
that further efforts at conciliation are no longer justified. Here the date of termination of
conciliation proceedings is the date of the declaration. (Sec 76(b))
3. The conciliation proceedings are terminated by written declaration of the parties
addressed to the conciliator to the effect that the conciliation proceedings are terminated.
Here the date of termination of conciliation proceedings is the date of the declaration.
(Sec 76(c))
4. The conciliation proceedings are terminated when a party declares in writing to the other
party and the conciliator, that the conciliation proceedings are terminated. Here the date
of termination of conciliation proceedings is the date of the declaration. (Sec 76(d))
Resort To Arbitral or Judicial Proceedings- Sec 77
As a general rule, the parties cannot initiate arbitral or judicial proceedings during the
conciliation proceedings in respect of a dispute which is the subject matter of the conciliation
proceedings. But in exceptional cases a party may initiate arbitral or judicial proceedings if in his
opinion such proceedings are necessary for preserving his rights.

Costs- Sec 78
Costs means reasonable costs relating to the following:

1. The fee and expenses of the conciliator and witness requested by the conciliator with the
consent of the parties

2. Any expert advice requested by the conciliator with the consent of the parties
3. Any assistance provided to sec 64(2)(b) and sec 68
4. Any other expenses incurred in connection with the conciliation proceedings and the
settlement agreement. (Sec 78(2))

It is the conciliator who fixes the costs of the conciliation proceedings upon their termination and
gives written notice of it to the parties. (Sec 78 (1)) The costs are borne by the parties in equal
shares. (Sec 78(3))

Deposits - Sec 79
The conciliator may estimate the costs likely to be incurred and direct each party to deposit it in
advance in an equal amount. During the conciliation proceedings, the conciliator may demand
supplementary deposits from each party. If the require deposits are not paid in full by both
parties within 30 days, the conciliator may either suspend the proceedings or terminate the
proceedings by making a written declaration to the parties.

The termination of proceedings become effective from the date of declaration. Upon termination
of the proceedings, the conciliator shall render to the parties accounts of deposits received and
return the unexpected balance to the parties.

Under Industrial Disputes Act 1947

In the beginning, Trade Disputes Act of 1929 was passed to provide conciliation machinery at
the center. Section 6 of the Act, provided for constitution of a board of conciliation which
comprises of a chairman who is an independent person and two or four other members appointed
equal in numbers. Section 18A of the same Act, was inserted “authorizing the central and
provincial governments to appoint conciliation officers to act as mediators in trade disputes”
which was incorporated in Section 4 of the Industrial Disputes Act.
APPOINTMENT OF CONCILIATION AUTHORITIES
Section 4 of the Industrial Disputes Act, provides that “the appropriate Government may, by
notification in the Official Gazette, appoint such number of persons as it thinks fit, to be
conciliation officers, charged with the duty of mediating in and promoting the settlement of
industrial disputes. A conciliation officer may be appointed for a specified industry in a specified
area or for one or more specified industries and either permanently or for a limited”.
The appropriate Government has discretionary powers “to appoint conciliation officer for a
specified area or a specified industry either permanently or for a limited period for the purpose of
mediation and promotion of the settlement of industrial disputes”.
CONCILIATION – AN EFFECTIVE MODE FOR RESOLVING INDUSTRIAL
DISPUTES
Conciliation is the most used method in the settlement of disputes both in public and private
enterprises.
Role of Conciliator
The conciliation officer does not discharge the function in adjudicative nature. He induces the
parties during the conciliation proceedings and makes efforts to reach a settlement fairly and
amicably and takes a role as mediator. He plays the role as a guide while actively taking part in
the discussion and guiding the disputants for settlement. He cannot coerce the parties but he
takes the role of the advisor by facilitating the persons to understand the reasonableness and
ground for compromising with a view to suggest settlements.
Duties of Conciliation Officer
The conciliator, depending upon the circumstances of each case, tries to induce the parties for
negotiation by appreciating the advantages of settlement and binding of decisions. The
conciliation machinery provides time for the parties to reconcile by allowing adjournments for
possible resolution of industrial disputes. Even after sending failure report, he is not debarred
from making efforts to settle the industrial disputes.
Conciliation officer is not competent to hear and decide any of the issue between the opposing
parties to industrial disputes. In this regard, his role is limited to the purpose of inducing the
parties for mediation for reaching a fair and amicable settlement.
Section 12(2) deals with the duty of conciliation officer to investigate disputes expeditiously and
empowers him to “do all such things as it thinks fit for the purpose of the inducing the parties to
arrive at a fair and amicable settlement”.
Powers of Conciliation officer
The powers of the conciliation officer are provided under Section 11 of the Industrial Disputes
Act, 1947. They are:
 ​ After giving a prior notice the conciliation officer is empowered to enter into the
premises of the industrial establishment to inquire an industrial dispute which is
existing or an apprehending.

​ The conciliation officer is vested with power to call for and inspect any relevant
document relating to the dispute.

​ Conciliation officer may compel the parties to appear and produce all the relevant
documents relating to the dispute as same powers as of the Civil Courts.
​ A conciliation officer is deemed to be a “public servant” as per Section 21 of the
IPC.

Duties of the Board of Conciliation

Board of Conciliation has duties which are enumerated under Section 13 of the Act. The Board is
charged with the duty of bringing about a settlement of the industrial disputes referred to it and
adopt any method as it thinks fit to minimise the conflict and patch up for arriving at a amicable
settlement of the dispute. If the effort of the Board is successful, it shall submit a memorandum
of settlement duly signed by the parties to the dispute. Along with a memorandum of settlement
a report shall be sent by the Board to the appropriate Government. If no settlement is arrived at
by the parties, then the Board has to close the investigation and send a complete report to the
Government. The facts, findings, and the reasons of the disputes has to be stated as a failure
report from the Board and further recommendations can also be given by the Board.
Powers of Board of Conciliation
The Board of Conciliation has the power of a Civil Court, while trying a dispute on matters
defined under the Act. “Every inquiry or investigation by a Board shall be deemed to be a
judicial proceeding within the meaning of Sections 193 and 228 of the IPC”. The Board is
empowered to investigate matters that affect the merits and rights without any delay and it has to
do everything that promotes a fair and amicable settlement.
Settlement
The conciliation officer is required to submit the report within 14 days of conciliation
proceedings, however the time limit may be extended as may be agreed upon in writing by the
parties subject to the approval of the conciliation officer. The memorandum of settlement is
deemed to have to come to operation as per its term. In case of a Board, the report should be
submitted within two months from the date on which the dispute was referred or within a short
period as may be fixed by the appropriate government.
When a settlement is arrived at privately that is otherwise than in the course of conciliation
proceedings, it binds only the parties to the agreement. But when the settlement is reached with
the help of the conciliation officer, the presumption is that the settlement is to be just and fair and
has a far-reaching binding effect than a private settlement. This shows that the government is
motivating the parties involved i.e. the employer and employees to use the conciliation
mechanism

Family Courts Act 1984

The Preamble to the Family Courts Act, 1984 enacted by the Indian Parliament laws down as
follows:

“An Act to provide for the establishment of Family Courts with a view to promote conciliation
in, and secure speedy settlement of disputes relating to marriage and family affairs and for
matters connected therewith.”

Section 9 of the said Act makes it a duty of the Court to make efforts for a settlement. It shall be
worthwhile to note that the legislative intent and thought behind enactment of the said Act was to
provide not only legal remedy for settlement of family disputes but ensure that estranged families
avail of the services of professional and trained mediators who may provide counselling and
easier settlement of disputes. Thus, this enactment can be termed as a wholesome legislation on
reconciliatory modes in family law disputes in Indian matrimonial disputes.

Judicial Pronouncements

The Division Bench of the Calcutta High Court in Shiv Kumar Gupta v. Lakshmi Devi Gupta,
2005 (1) HLR 483 observed that compliance with Section 23(2) of the Hindu Marriage Act, 1955
is a statutory duty of the judge trying matrimonial cases.

The Apex Court in the case of Jagraj Singh v. Bir Pal Kaur, JT 2007 (3) SC 389, observed as
follows:

“The Act (Hindu Marriage Act, 1955) is a special Act dealing with the provisions relating to
marriages, restitution of conjugal rights and judicial separation as also nullity of marriage and
divorce. Chapter V (Sections 19 to 28A) deals with jurisdiction and procedure of Court in
petitions for restitution of conjugal rights, judicial separation or divorce. Sub-section (1) of
Section 23 expressly states that where a petition for divorce is filed under Section 13 of the Act
on certain grounds, before proceeding to grant any relief, the Court, 'in the first instance', should
make an endeavour to bring about reconciliation between the parties.”

Hindu Personal Laws and Special Marriage Act

The Vedas and other Holy Scriptures makes reconciliation an essential tool to be followed by
Hindus before a marriage irretrievably breaks down. When the Holy Scriptures was codified to
unite the diverse laws of various sects of Hinduism, reconciliation is mandatory under The Hindu
Marriage Act, 1955 (HMA) and The Special Marriage Act, 1954 (SMA). Section 23(2) of the
HMA lays down that before proceeding to grant any relief under the HMA, it shall be a duty of
the Court in the first instance, to make every endeavour to bring about reconciliation between
parties in all cases. This is in relation to any relief sought on most of the fault grounds for
divorce specified in Section 13 of HMA. The provisions contained in Sections 34(2) and 34(3) of
the SMA are pari materia to the provisions contained in Sections 23(2) and 23(3) of the HMA.