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

Termination of Conciliation Proceedings under Section 76

Updated 11 October 2026 · Fact-checked

Section 76 of the Arbitration and Conciliation Act, 1996 lists four ways conciliation ends: signing of the settlement agreement, a written declaration by the conciliator, a joint written declaration by the parties, or a written declaration by one party. Each mode fixes the date of termination. Name the mode, then state the date.

Understand Termination of Conciliation Proceedings

Conciliation is a voluntary process. No party is forced to continue, and the conciliator cannot force a settlement. So the Act gives clear exits. Section 76 tells you exactly how the proceedings can end and from which date.

There are four modes. First, the parties sign the settlement agreement. This is the success case. Second, the conciliator gives a written declaration, after consulting the parties, that further efforts at conciliation are no longer justified. Third, both parties together give a written declaration to the conciliator that the proceedings are terminated. Fourth, one party gives a written declaration to the other party and the conciliator, if appointed, that the proceedings are terminated.

The date matters. In every mode the proceedings end on a fixed date: the date of the agreement in the first case, and the date of the declaration in the other three. Later steps, such as fixing costs, run from termination.

Notice the contrast. A conciliator must consult the parties before declaring that efforts are no longer justified. A single party needs no one's consent. It simply declares in writing to the other party and the conciliator, if appointed. A declaration must be in writing in modes (b), (c) and (d).

Termination also triggers other consequences. The conciliator fixes the costs (Section 78) and accounts for deposits, returning any unspent balance (Section 79(4)). Another route to termination appears in Section 79(3): if required deposits are not paid in full by both parties within thirty days, the conciliator may suspend the proceedings or make a written declaration of termination, effective on the date of that declaration.

Key rules to remember

Mode (a): settlement agreement: Parties sign settlement agreement → proceedings end on the date of the agreement; Section 76(a). Under Section 73(3), a signed settlement agreement is final and binding on the parties and persons claiming under them.
Mode (b): conciliator's declaration: Written declaration by conciliator, after consulting parties, that further efforts are no longer justified → ends on date of declaration; Section 76(b). Consultation with the parties is required.
Mode (c): joint declaration of parties: Written declaration of the parties addressed to the conciliator → ends on date of declaration; Section 76(c). Both parties act together.
Mode (d): declaration of one party: Written declaration of a party to the other party and the conciliator, if appointed → ends on date of declaration; Section 76(d). One party can end the process alone.
Non-payment of deposits: Deposits not paid in full by both parties within 30 days → conciliator may suspend or declare termination in writing, effective on date of declaration; Section 79(3). The conciliator may direct equal deposits under Section 79(1) and (2).
After termination: Conciliator fixes costs and gives written notice; accounts for deposits and returns unspent balance; Sections 78(1) and 79(4). Costs are borne equally unless the settlement agreement provides otherwise (Section 78(3)).

How to solve Termination of Conciliation Proceedings questions

Use this method for any question on how and when conciliation ends.

1Read the facts and find the event that may end the proceedings: signing, a declaration, or non-payment of deposits.
2Match it to Section 76(a), (b), (c) or (d). Ask who acted: both parties, one party, the conciliator, or none.
3Check the conditions: is a written declaration present, was the conciliator's consultation with the parties done, and was the declaration addressed to the right persons?
4State the date of termination: the date of the agreement for mode (a), the date of the declaration for the others.
5If deposits are in issue, apply Section 79(3): thirty days, both parties, written declaration by the conciliator.
6Add the consequences: costs fixed under Section 78, deposit accounting under Section 79(4), and the binding effect of any settlement under Section 73(3).
7Write a clear conclusion in one line.

Quickest way: Who, how, when

When to use it: Use when time is short and the question asks if conciliation has validly ended.

Who acted? Parties together, one party, or conciliator.
How? Signed agreement or written declaration.
When? Note the date of signing or declaration.
Link the section: 76(a) to (d), or 79(3) for deposits.
Close with the consequence: costs and accounting.

Common mistakes in Termination of Conciliation Proceedings

Saying a party needs the conciliator's or the other party's consent to end conciliation.
Students mix this with arbitration, where termination follows the tribunal's order under Section 32.
Fix: Remember Section 76(d): a written declaration of a party to the other party and the conciliator, if appointed, is enough.
Forgetting that the conciliator must consult the parties before declaring that efforts are no longer justified.
Students remember the declaration but skip the condition.
Fix: Write 'after consultation with the parties' every time you cite Section 76(b).
Giving the wrong termination date.
Students assume termination occurs on receipt or later formalities.
Fix: The Act fixes the date: the date of the agreement under (a), the date of the declaration under (b), (c) and (d).
Treating an oral statement as valid termination.
Conciliation is informal, so students assume oral notice suffices.
Fix: Modes (b), (c) and (d) require a written declaration.
Missing the deposit route to termination.
It sits in Section 79, not Section 76.
Fix: Note Section 79(3): non-payment in full by both parties within thirty days lets the conciliator suspend or terminate by written declaration.
Confusing Section 76 with Section 32.
Both are titled termination of proceedings.
Fix: Section 76 is conciliation (Part III); Section 32 is arbitration, where the tribunal issues the order.

Worked examples

Example 1

Alpha Textiles Ltd and Beta Dyes Pvt Ltd are in conciliation over a supply dispute. On 10 March, after the conciliator formulated terms, both signed a written settlement agreement. The conciliator authenticated it on 12 March. On what date did the proceedings terminate, and what is the effect of the agreement?

Show the solution

Identify the event: the parties signed a settlement agreement.
This is Section 76(a): the proceedings terminate by signing of the settlement agreement, on the date of the agreement.
The date of the agreement is 10 March, the date of signing, not the date of authentication.
Under Section 73(3), once the parties sign, the agreement is final and binding on them and persons claiming under them.
Under Section 73(4), the conciliator authenticates it and furnishes a copy to each party. This is a follow-up step.
Costs are then fixed by the conciliator under Section 78 and borne equally unless the agreement says otherwise.

Answer: The proceedings terminated on 10 March under Section 76(a). The agreement is final and binding on the parties and persons claiming under them.

Example 2

In a conciliation between Rao Infra Ltd and Sen Logistics LLP, Rao Infra becomes dissatisfied. On 5 June it sends a written notice to Sen Logistics and to the conciliator stating that it terminates the conciliation. Sen Logistics objects and says the conciliator has not been consulted. Is the termination valid?

Show the solution

Identify who acted: one party, in writing.
Section 76(d) allows termination by a written declaration of a party to the other party and the conciliator, if appointed, that the proceedings are terminated.
Check conditions: the declaration is written and was sent to both the other party and the conciliator.
Consultation with the conciliator or consent of the other party is not required under clause (d). Consultation is a condition only for the conciliator's own declaration under clause (b).
The date of termination is the date of the declaration: 5 June.
Consequences: the conciliator fixes costs under Section 78 and accounts for deposits, returning any unspent balance, under Section 79(4).

Answer: Yes. The termination is valid under Section 76(d) and takes effect on 5 June. Sen Logistics' objection does not change this.

Exam tips

Quote Section 76(a) to (d) in order and name each mode in your own words. Marks are awarded per mode.
State the date of termination for every mode. Examiners look for it.
In case questions, identify who acted (parties, one party or conciliator) before naming the clause.
Link to Section 79(3) when facts mention unpaid deposits, and to Sections 78 and 79(4) for consequences.
Use the pattern: provision, facts, conclusion. Keep the conclusion to one sentence.

Practice questions from Conciliation Proceedings and International Perspective of Conciliation

Termination of Conciliation Proceedings: frequently asked questions

How many ways can conciliation proceedings be terminated under Section 76?

Four: signing of the settlement agreement, written declaration of the conciliator, written declaration of the parties addressed to the conciliator, and written declaration of one party to the other party and the conciliator, if appointed. Section 79(3) also allows the conciliator to terminate by written declaration for non-payment of deposits.

Can one party end conciliation on its own?

Yes. Under Section 76(d), a party can give a written declaration to the other party and the conciliator, if appointed, that the proceedings are terminated. No consent is needed.

From which date does termination take effect?

If the parties sign a settlement agreement, from the date of the agreement. In the other modes, from the date of the written declaration.

What happens after conciliation terminates?

The conciliator fixes the costs and gives written notice to the parties. The conciliator also accounts for the deposits received and returns any unspent balance. Costs are borne equally unless the settlement agreement provides differently.