61. Application and scope.—(1) Save as otherwise provided by any law for the time being in force
and unless the parties have otherwise agreed, this Part shall apply to conciliation of disputes arising out of
legal relationship, whether contractual or not and to all proceedings relating thereto.
(2) This Part shall not apply where by virtue of any law for the time being in force certain disputes
may not be submitted to conciliation.
62. Commencement of conciliation proceedings.—(1) The party initiating conciliation shall send to
the other party a written invitation to conciliate under this Part, briefly identifying the subject of the
dispute.
(2) Conciliation proceedings, shall commence when the other party accepts in writing the invitation to
conciliate.
(3) If the other party rejects the invitation, there will be no conciliation proceedings.
(4) If the party initiating conciliation does not receive a reply within thirty days from the date on
which he sends the invitation, or within such other period of time as specified in the invitation, he may
elect to treat this as a rejection of the invitation to conciliate and if he so elects, he shall inform in writing
the other party accordingly.
63. Number of conciliators.—(1) There shall be one conciliator unless the parties agree that there
shall be two or three conciliators.
(2) Where there is more than one conciliator, they ought, as a general rule, to act jointly.
64. Appointment of conciliators.—(1) Subject to sub-section (2)—
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(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.
65. Submission of statements to conciliator.—(1) The conciliator, upon his appointment, may
request each party to submit to him a brief written statement describing the general nature of the dispute
and the points at issue. Each party shall send a copy of such statement to the other party.
(2) The conciliator may request each party to submit to him a further written statement of his position
and the facts and grounds in support thereof, supplemented by any documents and other evidence that
such party deems appropriate. The party shall send a copy of such statement, documents and other
evidence to the other party.
(3) At any stage of the conciliation proceedings, the conciliator may request a party to submit to him
such additional information as he deems appropriate.
Explanation.—In this section and all the following sections of this Part, the term "conciliator" applies
to a sole conciliator, two or three conciliators, as the case may be.
66. Conciliator not bound by certain enactments.—The conciliator is not bound by the Code of
Civil Procedure, 1908 (5 of 1908) or the Indian Evidence Act, 1872 (1 of 1872).
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 principles 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 conciliation 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 conciliation 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.
68. Administrative assistance.—In order to facilitate the conduct of the conciliation proceedings, the
parties, or the conciliator with the consent of the parties, may arrange for administrative assistance by a
suitable institution or person.
69. Communication between conciliator and parties.—(1) The conciliator may invite the parties to
meet him or may communicate with them orally or in writing. He may meet or communicate with the
parties together or with each of them separately.
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(2) Unless the parties have agreed upon the place where meetings with the conciliator are to be held,
such place shall be determined by the conciliator, after consultation with the parties, having regard to the
circumstances of the conciliation proceedings.
70. Disclosure of information.—When the conciliator receives factual information concerning the
dispute from a party, he shall disclose the substance of that information to the other party in order that the
other party may have the opportunity to present any explanation which he considers appropriate:
Provided that when a party gives any information to the conciliator subject to a specific condition that
it be kept confidential, the conciliator shall not disclose that information to the other party.
71. Co-operation of parties with conciliator.—The parties shall in good faith co-operate with the
conciliator and, in particular, shall endeavour to comply with requests by the conciliator to submit written
materials, provide evidence and attend meetings.
72. Suggestions by parties for settlement of dispute.—Each party may, on his own initiative or at
the invitation of the conciliator, submit to the conciliator suggestions for the settlement of the dispute.
73. Settlement agreement.—(1) When it appears to the conciliator that there exist elements of a
settlement which may be acceptable to the parties, he shall formulate the terms of a possible settlement
and submit them to the parties for their observations. After receiving the observations of the parties, the
conciliator may reformulate the terms of a possible settlement in the light of such observations.
(2) If the parties reach agreement on a settlement of the dispute, they may draw up and sign a written
settlement agreement. If requested by the parties, the conciliator may draw up, or assist the parties in
drawing up, the settlement agreement.
(3) When the parties sign the settlement agreement, it shall be final and binding on the parties and
persons claiming under them respectively.
(4) The conciliator shall authenticate the settlement agreement and furnish a copy thereof to each of
the parties.
74. Status and effect of settlement agreement.—The settlement agreement shall have the same
status and effect as if it is an arbitral award on agreed terms on the substance of the dispute rendered by
an arbitral tribunal under section 30.
75. Confidentiality.—Notwithstanding anything contained in any other law for the time being in
force, the conciliator and the parties shall keep confidential all matters relating to the conciliation
proceedings. Confidentiality shall extend also to the settlement agreement, except where its disclosure is
necessary for purposes of implementation and enforcement.
76. Termination of conciliation proceedings.—The 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 consultation 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.
77. Resort to arbitral or judicial proceedings.—The parties shall not initiate, during the
conciliation proceedings, any arbitral or judicial proceedings in respect of a dispute that is the subjectmatter of the conciliation proceedings except that a party may initiate arbitral or judicial proceedings
where, in his opinion, such proceedings are necessary for preserving his rights.
78. Costs.—(1) Upon termination of the conciliation proceedings, the conciliator shall fix the costs of
the conciliation and give written notice thereof to the parties.
(2) For the purpose of sub-section (1), “costs” means reasonable costs relating to—
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(a) the fee and expenses of the conciliator and witnesses requested by the conciliator with the
consent of the parties;
(b) any expert advice requested by the conciliator with the consent of the parties;
(c) any assistance provided pursuant to clause (b) of sub-section (2) of section 64 and section 68.
(d) any other expenses incurred in connection with the conciliation proceedings and the
settlement agreement.
(3) The costs shall be borne equally by the parties unless the settlement agreement provides for a
different apportionment. All other expenses incurred by a party shall be borne by that party.
79. Deposits.—(1) The conciliator may direct each party to deposit an equal amount as an advance
for the costs referred to in sub-section(2) of section 78 which he expects will be incurred.
(2) During the course of the conciliation proceedings, the conciliator may direct supplementary
deposits in an equal amount from each party.
(3) If the required deposits under sub-sections (1) and (2) are not paid in full by both parties within
thirty days, the conciliator may suspend the proceedings or may make a written declaration of termination
of the proceedings to the parties, effective on the date of that declaration.
(4) Upon termination of the conciliation proceedings, the conciliator shall render an accounting to the
parties of the deposits received and shall return any unexpended balance to the parties.
80. Role of conciliator in other proceedings.—Unless otherwise agreed by the parties,—
(a) the conciliator shall not act as an arbitrator or as a representative or counsel of a party in any
arbitral or judicial proceeding in respect of a dispute that is the subject of the conciliation
proceedings;
(b) the conciliator shall not be presented by the parties as a witness in any arbitral or judicial
proceedings.
81. Admissibility of evidence in other proceedings.—The parties shall not rely on or introduce as
evidence in arbitral or judicial proceedings, whether or not such proceedings relate to the dispute that is
the subject of the conciliation proceedings,—
(a) views expressed or suggestions made by the other party in respect of a possible settlement of
the dispute;
(b) admissions made by the other party in the course of the conciliation proceedings;
(c) proposals made by the conciliator;
(d) the fact that the other party had indicated his willingness to accept a proposal for settlement
made by the conciliator.