Arbitration, Mediation and Conciliation · Arbitral Proceedings, Pleadings and Evidence

Section 81: Admissibility of Evidence in Other Proceedings

Updated 11 October 2026 · Fact-checked

Section 81 bars parties from relying on, or introducing as evidence in any arbitral or judicial proceedings, four things from conciliation: the other party's views or suggestions on settlement, the other party's admissions, the conciliator's proposals, and the other party's willingness to accept a proposal. It applies whether or not the later case concerns the same dispute.

Understand Admissibility of Evidence in Other Proceedings

Conciliation works only if parties speak freely. A party will not suggest a compromise or concede a weak point if it fears the words will be used against it later. Section 81 removes that fear.

The section says the parties shall not rely on or introduce as evidence certain material in arbitral or judicial proceedings. The bar covers both kinds of later proceedings. It also applies whether or not those proceedings relate to the dispute that was being conciliated. So even a different case between the same parties is covered.

Four items are protected: (a) views expressed or suggestions made by the other party about a possible settlement; (b) admissions made by the other party in the course of the conciliation; (c) proposals made by the conciliator; (d) the fact that the other party indicated willingness to accept a conciliator's proposal.

Note the wording. Items (a), (b) and (d) refer to the other party. Items (c) is the conciliator's own proposals. The section stops a party from using what the opponent said or showed in conciliation. Read it with section 80, which keeps the conciliator out of later proceedings as arbitrator, counsel or witness, and with section 34, where a breach of section 81 is a ground of public policy for setting aside an award.

Key rules to remember

Core rule: Conciliation material in s. 81(a) to (d) cannot be relied on or introduced as evidence in arbitral or judicial proceedings; Applies whether or not the later proceedings relate to the conciliated dispute.
The four protected items: (a) other party's views or suggestions on settlement; (b) other party's admissions in conciliation; (c) conciliator's proposals; (d) other party's indicated willingness to accept a conciliator's proposal; Learn them in this order and cite the clause letters.
Where it bites: Section 34(2) Explanation 1(i): an award made in violation of section 81 conflicts with the public policy of India; The section 34 text also mentions section 75, which you should link to confidentiality in conciliation.
Related bar: Section 80: conciliator cannot act as arbitrator, representative or counsel, or be presented as a witness, unless parties agree otherwise; Section 81 bars the material; section 80 bars the person.

How to solve Admissibility of Evidence in Other Proceedings questions

Use this method for any fact-based question on use of conciliation material in later proceedings.

1Identify the stage: confirm the material arose in conciliation proceedings, not in negotiation outside it or in arbitration.
2State section 81 and its two limbs: parties cannot rely on or introduce as evidence, in arbitral or judicial proceedings.
3Match the material to clauses (a) to (d): settlement views, admissions, conciliator's proposals, or willingness to accept a proposal.
4Note that the later proceedings may be on the same dispute or another one. The bar applies either way.
5Check who is trying to use it. Clauses (a), (b) and (d) protect the other party's statements from being used against that party.
6Apply to the facts and conclude: inadmissible, or not covered by section 81 and why.
7Add the consequence: if an award relied on such material, it may be challenged under section 34 as against public policy. Mention section 80 if the conciliator is called as a witness.

Quickest way: Four-clause match

When to use it: When time is short and the question asks whether a statement made in conciliation can be used later.

Write: Section 81 bars reliance on, or introduction as evidence of, conciliation material in arbitral or judicial proceedings.
Tick the clause: (a) views, (b) admissions, (c) conciliator's proposals, (d) willingness to accept.
Write that it applies even if the later case is about a different dispute.
Conclude inadmissible, then add section 34 and section 80 in one line each.

Common mistakes in Admissibility of Evidence in Other Proceedings

Saying section 81 applies only to the same dispute.
Students assume confidentiality protects only the conciliated claim.
Fix: Quote the words: whether or not such proceedings relate to the dispute that is the subject of the conciliation.
Limiting the bar to arbitration.
The chapter is on arbitration, so students forget courts.
Fix: State both: arbitral or judicial proceedings.
Listing only admissions and missing the other three items.
Admissions are the most familiar evidence idea.
Fix: Memorise all four clauses: views, admissions, conciliator's proposals, willingness to accept.
Confusing section 81 with section 80.
Both deal with conciliation and later proceedings.
Fix: Section 81 is about material or evidence. Section 80 is about the conciliator as arbitrator, counsel or witness.
Forgetting the consequence of breach.
Students stop at inadmissibility.
Fix: Add that an award made in violation of section 81 is in conflict with public policy under section 34(2) Explanation 1, so it can be set aside.

Worked examples

Example 1

Meridian Traders Pvt. Ltd. and Kaveri Foods Ltd. attempted conciliation over a supply dispute. During it, Kaveri's manager said the delivery was late by two weeks and suggested a 10% price reduction. Conciliation failed. Meridian now starts arbitration and wants to produce these statements to prove the delay. Advise on admissibility.

Show the solution

The statements were made in conciliation proceedings, so section 81 is relevant.
The admission that delivery was late falls under clause (b): admissions made by the other party in the course of conciliation.
The 10% reduction suggestion falls under clause (a): suggestions by the other party about a possible settlement.
Section 81 bars reliance on, or introduction as evidence of, these in arbitral or judicial proceedings. Arbitration is covered.
Meridian must prove the delay by other independent evidence, such as delivery records, not conciliation statements.

Answer: Meridian cannot rely on the statements. They are inadmissible under section 81(a) and (b). It must prove the delay with independent evidence.

Example 2

In a conciliation between Arjun Steels and Bharat Logistics, the conciliator proposed a settlement of ₹12,00,000, and Bharat indicated it would accept. The deal did not close. Arjun sues in the civil court on a separate contract dispute between the same parties and wants to show Bharat's willingness to pay ₹12,00,000 as an acknowledgement of liability. Is this allowed? Would your answer change if the conciliator is called as witness?

Show the solution

The proposal of ₹12,00,000 was made by the conciliator: clause (c) of section 81.
Bharat's indication of willingness to accept is clause (d).
The later case is judicial proceedings on a different dispute. Section 81 applies whether or not the proceedings relate to the conciliated dispute.
So neither the proposal nor the willingness can be relied on or introduced as evidence.
Calling the conciliator as a witness is separately barred by section 80(b), unless the parties have otherwise agreed.

Answer: Not allowed. Clauses (c) and (d) of section 81 bar both items even in a different dispute, and under section 80(b) the conciliator cannot be presented as a witness unless parties agree otherwise.

Exam tips

Quote section 81 clause by clause. Examiners give marks for each of the four items.
Always state that the bar covers arbitral and judicial proceedings, and same or different disputes.
Link to section 34 Explanation 1(i) and section 80 in one line each to show breadth.
In case questions, first confirm the statement was made in conciliation. If it was made outside, say section 81 may not apply.
Draft the conclusion in one sentence: inadmissible under section 81(clause) of the Act.

Practice questions from Arbitral Proceedings, Pleadings and Evidence

Admissibility of Evidence in Other Proceedings: frequently asked questions

Can admissions made in conciliation be used in arbitration?

No. Section 81(b) bars a party from relying on or introducing as evidence the other party's admissions made in the course of conciliation. The bar covers arbitral and judicial proceedings.

Does section 81 apply if the later case is about a different dispute?

Yes. The section applies whether or not the later proceedings relate to the dispute that was the subject of the conciliation.

Are the conciliator's proposals protected too?

Yes. Section 81(c) bars reliance on proposals made by the conciliator, and clause (d) bars reliance on the fact that the other party indicated willingness to accept a proposal.

What happens if an award relies on conciliation material?

Under section 34(2) Explanation 1, an award made in violation of section 81 is in conflict with the public policy of India. A party can apply to the court to set it aside within the time limits in section 34(3).