CONCILIATION

By,PALLAVI VERMA

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Dispute

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Modes of Resolution of Disputes

LitigationArbitrationConciliationMediationNegotiation

The Act is divided in to the following parts:-

(a) Part I - Domestic arbitration. (b) Part II - Enforcement of foreign

awards. (c) Part III - Conciliation procedures. (d) Part IV - Supplementary provisions.

Arbitration and conciliation act 1996:

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Adjustment and settlement of a dispute in a friendly and non-antagonistic manner by

using a non binding procedure.

Conciliation:-Introduction:•The most important method for prevention and settlement of industrial disputes through third party intervention. •The settling of disputes without litigation.•It is a method of settlement.•It is a process by which discussion between parties is kept going through the participation of a conciliator.•It brought both the parties of dispute into harmony.

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INTRODUCTION…

Applies to conciliation of disputes arising out of legal relationships, whether contractual or not, and to all proceedings relating thereto.S.61

Party wanting conciliation shall “INVITE” other party to conciliate.

Proceedings commence only when a reply is received within 30 days, else deemed rejection of invitation

On rejection or deemed rejection first party to re-inform the other.

Conciliation

‘Conciliation’ is limited to encouraging the parties to discuss their differences and to help them develop their own proposed solutions.

It is voluntary, flexible, confidential, and interest based process. The parties seek to reach an amicable dispute settlement with the assistance of the conciliator, who acts as a neutral third party.

Commencement of conciliation proceedings :- S.62 The conciliation proceedings can start when one of the

parties makes a written request to other to conciliate, briefly identifying the dispute.

The conciliation can start only if other party accepts in writing the invitation to conciliate.

Unless there is written acceptance, conciliation cannot commence. If the other party does not reply within 30 days, the offer for conciliation can be treated as rejected

CONCILIATOR:- The conciliator is a neutral party, who without using

any force, seeks to find some middle course for mutual agreement between the disputants so that the deadlock is brought to an end at the earliest possible moment and normal peace restored.

He tries to bridge the gulf between the two contending parties; and if he does not succeed, he tries to reduce the differences as far as possible, by tendering advice to them and working out an amicable settlement.

He cannot suggest solutions but suggests alternative solutions

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Appointment of conciliators. – s. 64 (1) &(2) (1) . Subject to sub-section (2), - of sec.64 (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;  (b). The parties may agree that the appointment of one or more conciliators be made directly by such an institution or person: 

Role of a Conciliator:- S.67

As a Discussion Leader As a safety valve As a Communication link As an Innovator As a Sounding board As a Protector As a Fail-safe device

Conciliator not bound by certain Enactments: - S. 66

•The conciliator is not bound by the Code of Civil Procedure, 1908 (5 of 1908) or

•The Indian Evidence Act, 1872 (1 of 1872).

What Can Be Referred To Conciliation?

Matters of a –

Civil nature

Breach of contract

Disputes of movable or immovable property

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What Cannot Be Referred To Conciliation?

Matters of –

Criminal nature

Illegal transactions

Matrimonial matters like divorce suit etc.

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Statements-Before, During & After the proceedings:- s.71 cooperation of parties with concilator Before proceedings conciliator shall request each party

to submit a statement explaining nature of dispute.

The statement must clearly specify and state the conciliators position and the facts and grounds in support thereof.

During the proceedings the conciliators can call for further information from the parties and S.71 calls for cooperation by parties.

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Section 76Termination of Conciliation ProceedingsThe conciliation proceedings shall be terminated –(a) by the signing of the settlement agreement by the parties, on the date of the agreement; or(b) by a written declaration of the conciliator, after consolation with the parties, to the effect that further efforts at conciliation are no longer justified, on the date of the declaration; or(c) by a written declaration of the parties addressed to the conciliator to the effect that the conciliation proceedings are terminated, on the date of the declaration; or(d) by a written declaration of a party to the other party and the conciliator, if appointed, to the effect that the conciliation proceedings are terminated, on the date of the declaration.

Advantages of conciliation:

Conciliation ensures party autonomy.

Conciliation ensures the expertise of the decision maker.

Conciliation is time and cost efficient.

Conciliation ensures confidentiality.

Uniqueness of Conciliation:-A conciliator generally does not follow the same procedure in every case.

Conciliator makes adjustments to his approach, strategy and technique according to the circumstances of each dispute.