CS Professional · Arbitration, Mediation and Conciliation

Conciliation Proceedings and International Perspective of Conciliation

Conciliation is a voluntary process in which a neutral conciliator helps parties reach a settlement. Part III of the Arbitration and Conciliation Act, 1996 covers how it starts, how it ends, and its link to arbitration and courts. In answers, state the section, apply it to the facts, then conclude.

What this chapter covers

This chapter covers the life cycle of conciliation under Part III of the Arbitration and Conciliation Act, 1996. It begins with a written invitation and acceptance (section 62), runs through the conciliator's role (section 67), and ends by one of four routes (section 76). It also covers costs and deposits (sections 78 and 79), and how conciliation sits beside arbitral and court proceedings (sections 77, 80 and 81).

The chapter also has two add-on topics. One is the effect of proceedings commenced before 23 October 2015, which is a transition rule in section 87. The other is the international perspective of conciliation, which you study from the ICSI material and not from the section text supplied here.

The chapter links to the rest of the paper in a clear way. Arbitration (sections 9, 21 and 32) is the formal, binding route. Conciliation is the voluntary, non-binding-until-signed route. Mediation is the third route in the paper. Case questions often ask you to pick between them, or to explain how one affects the other. Knowing the conciliation rules exactly helps you compare them well.

Arbitration and Conciliation carries 70 marks in Paper 7.1, and this chapter gives you short, rule-based sections that are easy to score on if you know the exact wording. Case-based questions reward the correct provision, a clean application to the facts, and a firm conclusion. The sections here have precise conditions, such as who must accept in writing, the thirty-day period, and what cannot be used as evidence. Students who remember the conditions can write full answers quickly. Since the elective is open book, you can find the section fast, but you still need to know the rule well enough to apply it.

Conciliation Proceedings and International Perspective of Conciliation: topics in the order to study them

1Commencement of Conciliation ProceedingsEverything else depends on when conciliation starts: written invitation, written acceptance, and the thirty-day silence rule in section 62.
2Termination of Conciliation ProceedingsOnce you know the start, learn the four ways it ends under section 76, plus the related rules on deposits and costs in sections 78 and 79.
3Resort to Arbitral or Judicial ProceedingsSection 77 bars parallel proceedings during conciliation, with one exception, so it follows naturally from start and end.
4Role of Conciliator in Other ProceedingsSection 80 limits what the conciliator can do later, so study it after you know the process.
5Admissibility of Evidence in Other ProceedingsSection 81 protects what was said in conciliation, and it pairs with section 80 as a confidentiality safeguard.
6Effect of Proceedings Commenced Before 23 October 2015Section 87 is a short transition rule. Read it after the main process so you can focus on the date test and its conditions.
7International Perspective of ConciliationStudy this last, from the ICSI material, once the Indian provisions are clear, so you can compare them with international practice.

How to prepare Conciliation Proceedings and International Perspective of Conciliation

Treat this chapter as a set of precise rules that you apply to facts. Build the sequence first, then practise cases.

Draw a timeline of conciliation: invitation, acceptance, conduct, proposals, termination, costs. Mark the section number against each stage.
Learn section 62 word for word in plain terms: written invitation, written acceptance, rejection means no proceedings, and thirty days of silence can be treated as rejection if the initiating party informs the other in writing.
Write the four termination routes of section 76 in your own words, and note that each has its own termination date.
Make a short table in your notes of sections 77, 80 and 81, listing the rule, the exception (such as preserving rights in section 77, or 'unless otherwise agreed' in section 80) and one example for each.
Read section 87 and practise the date test: arbitral proceedings commenced before 23 October 2015 stay under the old law, unless the parties agree otherwise.
Read the international perspective topic from the ICSI study material and prepare two or three points on how conciliation is used across borders.
Solve at least four past or practice case questions in the format: provision, analysis of facts, conclusion. Then compare your answer with the section text.

Common mistakes in Conciliation Proceedings and International Perspective of Conciliation

Saying conciliation starts when the invitation is sent.
Fix: Write that conciliation starts only when the other party accepts the invitation in writing. Sending alone is not enough.
Treating silence after thirty days as automatic rejection.
Fix: State that the initiator may elect to treat it as rejection, and must then inform the other party in writing.
Stating that no court or arbitral proceeding can ever be started during conciliation.
Fix: Always add that a party may start proceedings where, in its opinion, this is necessary to preserve its rights.
Mixing up the conciliator's bar in section 80 with the evidence bar in section 81.
Fix: Section 80 limits the conciliator's later roles and testimony. Section 81 limits what the parties may rely on as evidence.
Applying the 2015 amendments to every arbitration.
Fix: Check the date the arbitral proceedings commenced and whether the parties agreed otherwise, then conclude.
Writing general theory with no section numbers or facts in case answers.
Fix: Use the format of provision, analysis and conclusion, and name the section in each answer.

Last-day revision: Conciliation Proceedings and International Perspective of Conciliation

Conciliation begins when the other party accepts the written invitation in writing (section 62).
If the invitation is rejected, there are no conciliation proceedings.
No reply within thirty days (or the period in the invitation) can be treated as rejection, if the initiator informs the other party in writing.
The conciliator acts in an independent and impartial manner and is guided by objectivity, fairness and justice (section 67).
The conciliator may make settlement proposals at any stage, and they need not be in writing or carry reasons.
Section 76 gives four ways to end conciliation: settlement signed, conciliator's declaration, joint declaration, or a party's declaration.
During conciliation, parties must not start arbitral or judicial proceedings on the same dispute, except where a party thinks it is necessary to preserve rights (section 77).
Unless otherwise agreed, the conciliator cannot act as arbitrator, representative or counsel, or be presented as a witness (section 80).
Parties cannot rely on the other party's views, admissions, the conciliator's proposals, or willingness to accept a proposal as evidence in other proceedings (section 81).
Costs are fixed after termination and are shared equally unless the settlement agreement says otherwise (section 78).
If deposits are not paid in full within thirty days, the conciliator may suspend or terminate the proceedings (section 79).
The 2015 amendments do not apply to arbitral proceedings commenced before 23 October 2015, unless the parties agree otherwise (section 87).

Conciliation Proceedings and International Perspective of Conciliation practice questions

Conciliation Proceedings and International Perspective of Conciliation: frequently asked questions

When do conciliation proceedings commence?

They commence when the other party accepts the written invitation to conciliate in writing. If the party rejects it, there are no proceedings. If there is no reply within thirty days, the initiator may treat this as rejection and must tell the other party in writing.

How can conciliation proceedings be terminated?

Section 76 gives four ways. These are signing of the settlement agreement, a written declaration by the conciliator that further efforts are not justified, a written declaration by the parties, and a written declaration by a party to the other party and the conciliator, if appointed. Each takes effect on a stated date.

Can a party go to court while conciliation is going on?

Generally no, for the same dispute. Section 77 allows an exception where a party considers that arbitral or judicial proceedings are necessary to preserve its rights.

Can the conciliator later act as arbitrator in the same dispute?

Not unless the parties agree otherwise. Section 80 bars the conciliator from acting as arbitrator, representative or counsel in proceedings on the dispute, and from being presented as a witness.

Do I need to study the international perspective from the Act?

No. The supplied Act text does not cover it, so prepare it from the ICSI study material. Keep it short, and link it to the Indian provisions where you can.