Assignment – 2

What is conciliation ? Procedure of appointment and removal of conciliator

and , The role of conciliator in conciliation proceeding.
Conciliation is one of the non binding procedures where an impartial third party, known as
the conciliator, assist the parties to a dispute in reaching a mutually agreed settlement of the
dispute. As per the Halsbury Laws of England, conciliation is a process of persuading parties
to each an agreement. Because of its non judicial character, conciliation is considered to be
fundamentally different from that of litigation. Generally Judges and Arbitrators decide the
case in the form of a judgment or an award which is binding on the parties while in the
procedure of the conciliation ,the conciliator who is often a government official gives its
report in the form of recommendations which is made public.

Appointment of conciliators-

Section 64 deals with the appointment of the conciliators. When the invitation to the
conciliation is accepted by the other party, the parties have to agree on the composition of the
conciliation tribunal. In the absence of any agreement to the contrary ,there shall be only one
conciliator. The conciliation proceeding may be conducted by a sole conciliator to be
appointed with the concent of both the parties, failing to which the same may be conducted
by two conciliators (maximum limit is three), then each party appoints own conciliator ,and
the third conciliator is appointed unanimously by both the parties. The third conciliator so
appointed shall be the presiding conciliator. The parties to the arbitration agreement instead
of appointing the conciliator themselves may enlist the assistance of an institution or person
of their choice for appointment of conciliators. But the institution or the person should keep
in view during appointment that, the conciliator is independent and impartial.

SECTION – 64

(1) Subject to sub-section (2), -

(a) in conciliation proceedings with one conciliator, the parties may agree on the name of a
sole conciliator;

(b) in conciliation proceedings with two conciliators, each party may appoint one conciliator;
(c) in conciliation proceedings with three conciliators, each party may appoint one conciliator
and the parties may agree on the name of the third conciliator who shall act as the presiding
conciliator.

(2) Parties may enlist the assistance of a suitable institution or person in connection with the
appointment of conciliators, and in particular, -

(a) a party may request such an institution or person to recommend the names of suitable
individuals to act as conciliator; or

(b) the parties may agree that the appointment of one or more conciliators be made directly
by such an institution or person : Provided that in recommending or appointing individuals to
act as conciliator, the institution or person shall have regard to such considerations as are
likely to secure the appointment of an independent and impartial conciliator and, with respect
to a sole or third conciliator, shall take into account the advisability of appointing a
conciliator of a nationality other than the nationalities of the parties.

Termination of proceedings on settlement

As and when the parties reach an amicable settlement on the disputes which had been
referred to the conciliator, and a duly authenticated copy (by the conciliator) of the settlement
agreement is handed over to the parties, the conciliation proceedings shall stand terminated
on that date. There is no provision in the Act for review of the settlement agreement, nor
there do any provision under which any of the parties to the settlement agreement can retrace
its steps and wriggle out of the written commitments in the form of a settlement agreement.

A conciliation proceeding comes to an end & stands terminated if any of the following
condition is fulfilled;

( i) On signing of the settlement agreement by the parties.

(ii) If no settlement of dispute is arrived at in any of the following manner

a) By a written declaration of the conciliator that further efforts at conciliation are no more
justified.

b) By joint written declaration of the parties that the conciliation proceedings are terminated.
c) By the declaration of either party to other party & conciliator, that conciliation proceeding
is terminated. It is open to the parties to terminate conciliation proceedings at any time before
settlement.

The conciliation proceedings can also be terminated:

(i) When the conciliator declares, after consultation with the parties, that any further exercise
on conciliation shall be an exercise in futility; or

(ii) When the parties jointly request the conciliator; or

(iii) When one party communicates to the other, with a copy to the conciliator, that no more
efforts be made in the conciliation matter.

There is no bar on the number of times the efforts for conciliation can be made. Termination
of conciliation proceedings can by no means be taken to be the end of the conciliation efforts
for all times to come.

Section 67 Role of Conciliator

(1) The conciliator shall assist the parties in an independent and impartial manner in their
attempt to reach an amicable settlement of their dispute.

(2) The conciliator shall be guided by principle of objectivity, fairness and justice, giving
consideration to, among other things, the rights and obligations of the parties, the usages of
the trade concerned and the circumstances surrounding the dispute, including any previous
business practices between the parties.

(3) The conciliator may conduct the conciliator proceedings in such a manner as he considers
appropriate, taking into account the circumstances of the case, the wishes the parties may
express, including any request by a party that the conciliator hear oral statements, and the
need for a speedy settlement of the dispute.

(4) The conciliator may, at any stage of the conciliator proceedings, make proposals for a
settlement of the dispute. Such proposals need not be in writing and need not be accompanied
by a statement of the reasons therefor.
‘ALTERNATIVE DISPUTE RESOLUTION ASSIGNMENT’

SUBMITTED TO - ASST. PROF. JASKIRAT KAUR

SUBMITTED BY- ALKA LAKRA

BBA-LL.B (Hons) 4TH YEAR 7TH SEMESTER

MATS LAW SCHOOL, MATS UNIVERSITY RAIPUR,(C.G)