Kinds of Conciliation

Statute: Arbitration and Conciliation Act, 1996 (Part III — Sections 61–81); Industrial Disputes Act, 1947; Family Courts Act, 1984; Hindu Marriage Act, 1955.

Meaning of Conciliation

Conciliation is a voluntary, confidential, non-binding process where a neutral third party (the conciliator) actively assists disputing parties to settle their dispute — and may even suggest terms of settlement (unlike a mediator who only facilitates).

Section 61(1), A&C Act, 1996: “This Part shall apply to conciliation of disputes arising out of legal relationship, whether contractual or not.”

Once parties sign the settlement agreement, it has the same status as an arbitral award on agreed terms (Section 74).

Kinds of Conciliation

1. By Approach

(a) Facilitative Conciliation

• Conciliator helps parties explore options and facilitates dialogue.
• Does NOT suggest settlement terms.
• Closest to mediation.

(b) Evaluative Conciliation

• Conciliator gives opinions on the strengths/weaknesses of each side.
• Suggests settlement terms under Section 67(4).
• More directive; common in commercial disputes.

2. By Mode

(c) Voluntary Conciliation

• Both parties willingly agree to enter conciliation.
• Section 62, A&C Act — commences when the invited party accepts in writing.

(d) Compulsory / Mandatory Conciliation

• Required by statute; parties cannot opt out.
• Example: Section 12, Industrial Disputes Act, 1947 — conciliation officer must intervene in disputes involving public utility services.

3. By Forum

(e) Court-Annexed Conciliation

• Court refers parties to conciliation under Section 89 CPC.
• Settlement filed back in court → becomes a consent decree.

(f) Out-of-Court Conciliation

• Parties directly approach a conciliator under Part III, A&C Act.
• No court involvement until settlement is filed.

4. By Statute

Conciliation vs Mediation vs Arbitration (Quick Compare)