Arbitration, Mediation and Conciliation · Conciliation Proceedings and International Perspective of Conciliation

Admissibility of Evidence in Other Proceedings under Section 81

Updated 11 October 2026 · Fact-checked

Section 81 of the Arbitration and Conciliation Act, 1996 stops parties from relying on or introducing, in arbitral or judicial proceedings, four things from conciliation: the other party's views or suggestions, its admissions, the conciliator's proposals, and its 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 when parties speak freely. A party will not admit a weakness or float a compromise if the other side can use it later in court. Section 81 removes that fear.

The rule is simple. In conciliation, a party may suggest settlement terms, make admissions and react to the conciliator's proposals. Section 81 says the parties shall not rely on or introduce as evidence these things in any later arbitral or judicial proceedings.

Note the width of the bar. It applies whether or not such proceedings relate to the dispute that was the subject of the conciliation. So you cannot use the material even in a different case between the same parties.

The section lists four items: (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 conciliation; (c) proposals made by the conciliator; (d) the fact that the other party indicated willingness to accept the conciliator's proposal.

The bar is on the parties relying on or introducing this material. Read it with Section 80, which separately says the conciliator cannot act as arbitrator or counsel, and cannot be presented as a witness, unless the parties agree otherwise. Together they keep conciliation walled off from later proceedings.

Key rules to remember

Core rule of Section 81: Parties shall not rely on or introduce as evidence, in arbitral or judicial proceedings, items (a) to (d); Applies whether or not the later proceedings relate to the conciliated dispute.
Four barred items: (a) other party's views or suggestions on settlement; (b) other party's admissions; (c) conciliator's proposals; (d) other party's willingness to accept a proposal; Learn them in this order. Items (a), (b) and (d) refer to the other party; (c) is the conciliator's own proposal.
Related rule: Section 80: Unless parties otherwise agree, conciliator cannot act as arbitrator or representative or counsel, and cannot be presented as a witness; Use it with Section 81 when the question also involves the conciliator.
Related rule: Section 67(4): Conciliator may make proposals at any stage; they need not be in writing or carry reasons; Explains what a conciliator's proposal under Section 81(c) can look like.

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 setting: was the material produced during conciliation proceedings?
2Identify the later forum: arbitral or judicial proceedings. Note that it does not matter whether the dispute is the same.
3Classify the material against items (a) to (d): suggestion or view, admission, conciliator's proposal, or willingness to accept a proposal.
4State Section 81: parties shall not rely on or introduce it as evidence.
5Check who is acting: the bar is on the parties relying on or introducing the material. If the conciliator is called as a witness, bring in Section 80(b).
6Check whether the material falls outside the four items, for example facts independently proved by other evidence, and say the section does not cover what is not listed.
7Conclude plainly: admissible or not, with the reason.

Quickest way: Four-item match test

When to use it: When time is short and the question asks whether conciliation material can be used later.

Ask: did it arise in conciliation?
Match it to one of the four items.
If it matches, write: barred under Section 81, even in a different dispute.
Add one line on Section 80 if the conciliator is involved.

Common mistakes in Admissibility of Evidence in Other Proceedings

Saying the bar applies only if the later case is about the same dispute.
Students assume confidentiality is tied to the same subject matter.
Fix: Quote the words: whether or not such proceedings relate to the dispute that is the subject of the conciliation.
Applying Section 81 only to court cases.
Students think of evidence as a court matter.
Fix: The section says arbitral or judicial proceedings. Name both.
Forgetting the conciliator's proposals, item (c).
Students focus on party admissions.
Fix: List all four items and tick each one.
Mixing up Section 81 with Section 80.
Both limit use of conciliation in later proceedings.
Fix: Section 81 bars evidence of what was said or proposed. Section 80 bars the conciliator acting as arbitrator, counsel or witness unless parties agree otherwise.
Claiming that a party's own statements are also barred by the text.
Students generalise the rule to all conciliation material.
Fix: Items (a), (b) and (d) refer to the other party. Stick to the wording and avoid going beyond it.

Worked examples

Example 1

Mehta Textiles Ltd and Rao Dyes Pvt Ltd attempted conciliation over unpaid dues. In conciliation, Rao Dyes' manager said the invoices were correct but the company lacked funds. Conciliation failed. Mehta Textiles now starts arbitration and wants to use this statement. Advise.

Show the solution

The statement was made in conciliation proceedings.
It is an admission made by the other party in the course of conciliation, item (b).
The later forum is arbitral proceedings, covered by Section 81.
Section 81 says parties shall not rely on or introduce such admissions as evidence.
Mehta Textiles may still prove the debt by independent evidence, such as the invoices and delivery records, since those are not conciliation material.

Answer: Mehta Textiles cannot rely on or introduce the manager's admission in the arbitration. It must prove its claim by other evidence.

Example 2

During conciliation between Sharma Infra Ltd and Iyer Builders, the conciliator proposed a settlement of ₹40,00,000. Iyer Builders indicated willingness to accept it, but Sharma Infra did not. Sharma Infra later files a civil suit on a different contract with Iyer Builders. Can Sharma Infra use Iyer's willingness to accept the proposal?

Show the solution

The willingness was indicated in the conciliation proceedings.
It falls under item (d): the fact that the other party indicated willingness to accept the conciliator's proposal.
The conciliator's proposal itself is item (c).
The later proceeding is judicial. Section 81 applies whether or not it relates to the conciliated dispute, so the different contract does not help.
Therefore both the proposal and the willingness are barred from reliance as evidence.

Answer: No. Under Section 81(c) and (d), neither the proposal of ₹40,00,000 nor Iyer Builders' willingness to accept it can be relied on or introduced in the civil suit, even though the suit concerns a different contract.

Exam tips

Write the section number and quote the key phrase: rely on or introduce as evidence.
Always name both forums: arbitral or judicial proceedings.
List the four items by letter and match the facts to one.
Mention that the bar applies even if the later dispute is different.
Add Section 80(b) in one line when a conciliator is called as a witness.

Practice questions from Conciliation Proceedings and International Perspective of Conciliation

Admissibility of Evidence in Other Proceedings: frequently asked questions

Is evidence from conciliation admissible in arbitration or court?

The four items listed in Section 81 cannot be relied on or introduced as evidence in arbitral or judicial proceedings. These are the other party's views or suggestions, admissions, the conciliator's proposals and willingness to accept a proposal.

Does Section 81 apply only to the same dispute?

No. It applies whether or not the later proceedings relate to the dispute that was the subject of the conciliation.

Can the conciliator be called as a witness?

Section 80(b) says the conciliator shall not be presented by the parties as a witness in arbitral or judicial proceedings, unless the parties otherwise agree.

Can I prove the same facts through other evidence?

Section 81 bars reliance on the listed conciliation material. It does not stop you proving your case with independent evidence, such as documents that exist outside the conciliation.