Conciliation in ADR

Conciliation, bringing two opposing sides together to reach a compromise in an attempt to avoid taking a case to trial. Conciliation is one of the (ADR) alternative dispute resolutions, this method provides the disputing parties with an opportunity to explore options aided by an objective third party to exhaustively determine if a settlement is possible. Like arbitration, the Act covers both domestic and international disputes in the context of conciliation. International conciliation is confined only to disputes of commercial nature. As per the Act, the definition of international commercial conciliation is exactly similar to that of international commercial arbitration.

Accordingly, the Act defines international commercial conciliation as conciliation proceedings relating to a dispute between two or more parties where at least one of them is a foreign party. The foreign party may be an individual who is foreign national, a company incorporated outside India, or the government of a foreign country.

Types of Conciliation

Voluntary Conciliation: In this method parties can voluntarily participate in the process of conciliation for resolving their dispute.

Compulsory Conciliation: If parties do not want to take the opportunity of voluntary conciliation then they can go for compulsory conciliation. In this method, if the parties do not want to meet the other party to resolve the dispute then the process is said to be compulsory. This method is commonly used in labor cases.

Who is Conciliator?

A Conciliator, also called an administrative judge, is responsible for helping two parties come to an agreement or negotiate terms outside of the court. Conciliators act as neutral entities between opposing parties and work to ensure they both can settle their dispute without turning to a court trial.

What Conciliator does?

Role & Responsibilities of a Conciliator:

Conciliator also called an administrative judge, conciliator does not decide for the parties, but strives to support them in generating options in order to find a solution that is compatible for both of them, thereby fulfilling the mandate of section 67 of the Act under which the main function of the conciliator is to assist the parties to reach an amicable settlement.

For achieving this, a conciliator is pleased to:

Act in an independent and impartial manner.

Take the principles of objectivity, fairness and justice.5 Section 67.

Specifically enables the conciliator to make proposals for settlement of the dispute at any stage of the conciliation proceedings.

The above provisions make it clear that the conciliator, apart from assisting the parties to reach a settlement, is also permitted and empowered to make proposals for a settlement and formulate/reformulate the terms of a possible settlement. You can be prepared for potential legal disputes by hiring a conciliator.

Conciliation Proceedings

Commencement of the conciliation proceedings

Submission of Statement to Conciliator

Conduct of Conciliation Proceedings

Administrative assistance

Conciliation Advantages And Disadvantages

Advantages Of Conciliation

When compared with arbitration and litigation, following are the advantages of conciliation:

It is more flexible, inexpensive and informal.

Parties are directly engaged in negotiating a settlement.

Parties who require an alternative, unbiased and independent opinion would also benefit from Conciliation.

Conciliation enhances the likelihood of the parties continuing their amicable business relationship during and after the proceedings. The reason is that the parties are in a conciliatory mode, away from the hostile environment of a court or an arbitral tribunal where exhaustive arguments take place and reach a mutually acceptable settlement done volitionally, and in a congenial manner. Thus, the end result of a conciliation proceeding is that both parties are relatively pleased with the final outcome. Most successful people who work in conciliation quietly persevere and allow the progressive movements in the parties’ healing guide them.

In general view, the chances of an appeal after the conclusion of conciliation proceedings are considerably lower as a mutual settlement is arrived at between the parties. However, there is no judicial precedent establishing this.

Later, parties should prior to initiating arbitration or judicial proceedings, opt for conciliation as a means for resolving disputes. In case conciliation proceedings fail, only then should the disputants look at arbitration or litigation.

Disadvantages Of Conciliation

Equally, there can be no authoritative or enforceable decision made by the Conciliator and the parties are therefore free to litigate or pursue other avenues for resolution should no agreement be reached.

Able to identify and articulate any weaknesses with each party’s case.  This has the potential for either party to attempt to exploit the other side’s weaknesses and leverage the disproportionate positions outlined by the Conciliator. Parties agree to undertake Conciliation under the duty of good faith, there is a possibility that one or both parties may choose not to disclose all or some of the information in relation to the dispute.

Differences between Mediation and Conciliation

Conciliation vs. Mediation

Mediation it is the process of resolving issues between party where third party assist them in resolving dispute, while in conciliation method in which an expert is appointed to settle dispute between the parties.

Mediation mainly refer to code of civil procedure 1908 while, conciliation refers to arbitration and conciliation act 1996.

Confidentiality That depends on trust in mediation, while confidentiality those extent by law.

Mediator and act as facilitator, while conciliator act as facilitator and evaluator

In mediation there is an agreement between the parties. But in conciliation there is a settlement agreement between the party.

Mediation is enforceable by law, while it is executable as decree of Civil Court.

Conciliation Meaning

Conciliation Meaning In Hindi – सुलह  |  Conciliation Meaning In Tamil  – சமரசம்

Conciliator meaning in Hindi  –  सुलह करनेवाला  |  Conciliator meaning in Tamil  –  சமரசம்

Conciliation Meaning In Telugu  సయోధ్య  |  Conciliation Meaning In Kannada  ರಾಜಿ

**Above mentioned information is only for knowledge purpose. It is better to consult Conciliator for better understanding the case.

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