Conciliation

Conciliation.

Part III of the Arbitration and Conciliation Act 1996 deals with conciliation. Conciliation means “the settling of disputes without litigation. Conciliation is a process by which discussion before parties is kept going through the participation of a conciliator. The parties in a disputes uses conciliator, who meets the parties separately in an attempt to resolve their  differences. They do this by 

Lowering tension



Improving communication



Interpreting issues



Providing technical assistance



Exploiting potential solution

and bring out the negotiated settlement. It involves bringing a positive relationship between the parties of disputeand provides quick  and fair legal representation. Conciliation is a process in which parties with the assistance of a neutral third parties identifies the disputed issue, develop options, consider alternatives and endeavor to reach a resolution by agreement. The main difference before arbitration and conciliation is that in arbitration proceedings the award is the decision of the Arbitral Tribunal while in the case of conciliation the decision is that of the parties arrived at with the assistance of the conciliator.

Procedure of conciliation.

1. Commencement of Conciliation Proceedings : S.62. The Conciliation Proceedings are initiated by one party sending a written invitation to the other party to conciliate. The invitation invitation should identify the 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. 2. Submission of statement to Conciliator : S.65. The conciliator may request 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 further written statement of his position and facts and grounds in its support. It may be supplemented by appropriate document and evidence. 3. Conduct of Conciliation Proceedings : S.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. The conciliator may conduct the proceedings in such a manner as he may consider appropriate. 4. Administrative Assistance : S.68 The parties and the conciliator may seek administrative assistance by a suitable institution or  the person with the consent of the parties.

Settlement (Ss.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 anys tage of the conciliation proceedings make proposals for the settlement of the dispute. Such proposals need not be in writing writ ing and need not be accompanied  by a statement of reasons. S. 72 each party may on their own initiative or at the conciliators initiative submit to the conciliation the suggestions for the settlement of dispute.

Termination of Conciliation Proceedings.

S.76 lays down four ways of the termination of conciliation proceedings. These are i.

The conciliation proceedings terminate with the signing of the settlement agreement  by the parties.

ii.

The conciliation proceedings stand terminated when the conciliator declares in writing that further efforts at conciliation are no longer justified.

iii.

The conciliation proceedings are terminated by written

declaration of the parties

addressed to the conciliator to the effect that the conciliation proceedings are terminated. iv.

The conciliation proceedings are terminated when a party declares in writing to the other party and the conciliator that conciliation proceedings are terminated.

Resort to Arbitral or Judicial Proceedings

S. 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 parties may initiate arbitral or judicial proceedings if in the opinion of the party or parties such proceedings are necessary for preserving his rights.

Cost (S. 78)

S. 78(2) "costs" means reasonable costs relating toa) The fee and expenses of the conciliator and witnesses requested by the conciliator, with the consent of the parties  b) any expert advice requested by the conciliator with the consent of the parties c) any assistance provided pursuant to clause (b) of sub- section (2) of section 64 and section 68 d) any other expenses incurred in connection with the conciliation proceedings and the settlement agreement. S. 78 (3) The costs shall be borne equally by the parties

Deposits (S. 79)

The conciliator may direct each party to deposit an equal amount as an advance for the costs. If the required deposits are not paid by both of the parties within thirty days, the conciliator  may suspend the proceedings or may make a written declaration of termination of the  proceedings to the parties, effective on the date of that declaration.