Arbitration, Mediation and Conciliation · Conciliation Proceedings and International Perspective of Conciliation
Commencement of Conciliation Proceedings under Section 62
Updated 11 October 2026 · Fact-checked
Under Section 62 of the Arbitration and Conciliation Act, 1996, one party sends the other a written invitation to conciliate, briefly identifying the dispute. Conciliation commences only when the other party accepts in writing. Rejection means no proceedings. Silence for 30 days (or the period in the invitation) may be treated as rejection.
Understand Commencement of Conciliation Proceedings
Conciliation is a voluntary process. A neutral conciliator helps parties reach a settlement. Because it depends on consent, the law needs a clear point at which the process begins. Section 62 gives that point.
The process starts with an invitation. The party who wants conciliation sends a written invitation to conciliate under this Part to the other party. The invitation must briefly identify the subject of the dispute. It need not be a detailed claim.
The invitation alone does not start anything. Under Section 62(2), conciliation proceedings commence when the other party accepts in writing. So you need two things: a written invitation and a written acceptance. The date of commencement is the date of acceptance.
If the other party rejects the invitation, there are no conciliation proceedings (Section 62(3)). If the other party does not reply, the inviting party is not stuck. Under Section 62(4), if no reply comes within thirty days from the date the invitation is sent, or within another period specified in the invitation, the inviting party may elect to treat this as rejection. If it so elects, it must inform the other party in writing.
Compare this with arbitration. Under Section 21, arbitral proceedings commence when the respondent receives a request to refer the dispute to arbitration, unless the parties agree otherwise. Arbitration needs no acceptance. Conciliation does.
Key rules to remember
- Invitation (Section 62(1))
- Invitation = written + sent by initiating party + briefly identifies the subject of the dispute
- An oral invitation does not satisfy Section 62(1).
- Commencement (Section 62(2))
- Commencement = date the other party accepts the invitation in writing
- Sending the invitation does not start proceedings.
- Rejection (Section 62(3))
- Invitation rejected ⇒ no conciliation proceedings
- No further step is needed to end the matter.
- Deemed rejection (Section 62(4))
- No reply within 30 days of sending (or the period in the invitation) ⇒ initiating party MAY elect to treat as rejection and must inform the other party in writing
- It is the initiating party's choice. Silence is not automatic rejection. The 30 days run from the date of sending.
How to solve Commencement of Conciliation Proceedings questions
Use this method for any question on how conciliation begins.
- 1Identify who is the initiating party and who is the other party.
- 2Check the invitation: is it in writing, sent to the other party, and does it briefly identify the dispute?
- 3Check the response: was there a written acceptance, a rejection, or silence?
- 4If accepted in writing, state that proceedings commenced on the date of acceptance (Section 62(2)).
- 5If rejected, state there are no proceedings (Section 62(3)).
- 6If silent, count 30 days from the date of sending, or the period in the invitation. State that the initiating party may elect to treat it as rejection and must inform the other party in writing (Section 62(4)).
- 7Conclude clearly with the date or status of the proceedings.
Quickest way: Invitation, response, date
When to use it: Use this for short fact-based questions where you must state whether and when conciliation began.
- Write: invitation in writing, subject identified.
- Write the response: accepted in writing, rejected, or silent.
- Apply the matching sub-section: 62(2), 62(3) or 62(4).
- Give the commencement date as the date of written acceptance, or state that none exists.
Common mistakes in Commencement of Conciliation Proceedings
Saying conciliation commences when the invitation is sent or received.
Students mix it up with arbitration under Section 21, where the request received by the respondent starts proceedings.
Fix: For conciliation, remember that acceptance in writing is the trigger.
Treating oral acceptance as enough.
Conciliation is informal, so students assume writing is not needed.
Fix: Section 62 requires a written invitation and written acceptance.
Saying silence for 30 days automatically ends the invitation.
Students read Section 62(4) loosely.
Fix: The initiating party may elect to treat silence as rejection, and must inform the other party in writing.
Counting the 30 days from the date of receipt.
Students assume time runs from receipt.
Fix: The text says thirty days from the date on which the invitation is sent, or such other period as the invitation specifies.
Writing that the invitation must set out a full statement of claim.
Students confuse it with arbitration pleadings.
Fix: It only needs to briefly identify the subject of the dispute.
Worked examples
Example 1
Sharma Textiles Ltd., Surat, sends a written invitation to Kaveri Dyes Pvt. Ltd. on 1 March to conciliate a payment dispute, briefly describing it. On 10 March, Kaveri Dyes replies in writing accepting. On what date do conciliation proceedings commence?
Show the solution
- The invitation is in writing, sent to the other party, and briefly identifies the dispute. It satisfies Section 62(1).
- Under Section 62(2), proceedings commence when the other party accepts in writing.
- Kaveri Dyes accepted in writing on 10 March.
Answer: Conciliation proceedings commence on 10 March, the date of written acceptance, not 1 March.
Example 2
Mehta Infra Ltd. sends a written invitation to conciliate to Rao Builders on 5 April. The invitation specifies no reply period. Rao Builders does not respond. Advise Mehta Infra on 10 May.
Show the solution
- No conciliation has commenced, as there is no written acceptance (Section 62(2)).
- Under Section 62(4), the 30 days run from the date of sending, 5 April. Thirty days ended on 5 May.
- By 10 May, no reply has been received within that period.
- Mehta Infra may elect to treat the silence as rejection. If it so elects, it must inform Rao Builders in writing.
Answer: No proceedings exist. Mehta Infra may elect to treat the silence as rejection and must inform Rao Builders in writing. The rejection is not automatic.
Exam tips
- Always quote Section 62 sub-sections with the rule. A case-based answer should apply the rule to the facts, then conclude.
- Check the facts for the word 'written'. Many questions hide an oral invitation or oral acceptance.
- Mention the contrast with Section 21 if the question compares arbitration and conciliation.
- For silence, state both the 30-day period and the 'other period specified in the invitation' alternative.
Practice questions from Conciliation Proceedings and International Perspective of Conciliation
- Conciliator Mr. Bose proposed that Lotus Pharma pay Orion Labs Rs 40 lakh to settle a licence dispute. Orion Labs told him it was willing to…
- Anand Pharma and Zenith Labs conciliated a licensing dispute and failed. In a later arbitration about an entirely different supply contract …
- During conciliation of a dispute between Patel Agro and Sunrise Foods, Sunrise's manager admitted that part of the invoice was unpaid. Conci…
- Gupta Steels invited Hindustan Alloys to conciliate and Hindustan accepted in writing. During the proceedings, Hindustan's manager suggested…
- Rahul Traders and Sundaram Agro are conciliating a dispute with a conciliator appointed by them. Without consulting the conciliator, Sundara…
Commencement of Conciliation Proceedings: frequently asked questions
When do conciliation proceedings commence under Section 62?
They commence when the other party accepts the written invitation to conciliate in writing. The date of acceptance is the commencement date.
What happens if the other party does not reply to the invitation?
If no reply is received within thirty days from the date of sending, or the period stated in the invitation, the initiating party may elect to treat it as rejection. It must then inform the other party in writing.
Does the invitation have to describe the dispute in detail?
No. Section 62(1) requires it to briefly identify the subject of the dispute.
How is commencement of conciliation different from arbitration?
In arbitration, proceedings commence when the respondent receives the request for reference, unless the parties agree otherwise (Section 21). In conciliation, written acceptance by the other party is required.