Arbitration And Conciliation Act 1996

The Arbitration and Conciliation Act, 1996 in its Part III gives statutory recognition to conciliation as a method of alternative dispute resolution. In simple terms, conciliation may be said to be the settlement of disputes between the parties through the mechanism of discussion with the participation of a conciliator. The major distinction between arbitration and conciliation is that arbitration may be a judicial or non-judicial process; i.e., it is merely private resolution of disputes by determining the rights and liabilities of the parties in accordance with a system of law. While conciliation is the method in which, thorough the mechanism of discussion the parties are encouraged by the conciliator to resolve their dispute amicably.

Section 61 of the Act provides that the process of conciliation extends to disputes that gives rise to a legal relationship between the parties whether it be contractual or otherwise. The nature if the dispute should be such that it must empower a party to sue the other.

2. Section 63 of the Act provides for the number of conciliators in a dispute. Usually, there may be one conciliator but the parties may decide by agreement on two or three.

3. Section 64 envisages that if there is one conciliator the, the parties may agree on the same conciliator. However if there are two conciliators then, each party may appoint one conciliator each while if there are three then, the third can be jointly appointed by the parties. Section 64(2) enumerates a circumstances in which an institution may appoint a conciliator or assist in the appointment of an impartial and independent conciliator.

4. Section 67(1) provides that the conciliator should be independent and

Section 66 expressly provides that the conciliator is not bound to follow the Civil Procedure Code or the Indian Evidence Act although; he should be guided by the principles of natural justice.

10. Section 81 provides that in an arbitral proceedings the views expressed by either party to the dispute or the conciliator are not admissible as evidence.

11. Section 69 provides for the communication and place of meeting for the conciliation proceedings. It states that the parties are free to choose the place of meeting and the conciliator is empowered to invite the parties to express their views, either orally or in writing, together or separately.

12. Section 62 talks about commencement of conciliation proceedings. The proceedings are started by a party expressing in writing to the other party his willingness to refer their dispute to conciliation. In the event, the other party fails to respond within 30 days then the offer is deemed to be rejected and the other party then must be informed of the same.

13. Section 65 provides that each party must submit a written statement outlining nature of the dispute and the issues in controversy which may be supplemented with appropriate proceedings and