The act, 1996 is a long step leap in the direction of an alternative dispute resolution system. Arbitration and conciliation act was passed by the government of India in the year of 1996 as a measure of fulfilling the obligation under International treaties and conventions in conformity with the model law UNCITRAL. CONCILIATION: is one of the method of alternative dispute resolution in which dispute resolved between the parties by an independent person who helped the disputed parties to arrive at a negotiated settlement. It is a type of a mutual agreement between the parties.
1. Application and scope: section 61 of arbitration and conciliation act 1996, (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 dispute arising out of legal relationship whether it is based on contract or not. (2) shall not apply where by virtue of any law for the time being in force certain dispute may not submitted to conciliation.
2. Commencement of conciliation proceedings:Section 62 of the arbitration and conciliation act state that: the party who initiating conciliation proceedings shall send a written invitation to conciliate to other party by telling them the subject of dispute. (2) conciliation proceedings shall commence when the other party accept in writing the invitation given by the other party to conciliate. But if the other party reject the invitation given to them there will be no conciliation proceedings.
3. Appointment of conciliator: under section 64 of the arbitration and conciliation act, party appoint conciliator to dissolve their dispute. There may be sole conciliator, two conciliators, or three concilators.
4.Submission of statements to conciliator: the conciliator may request each of the parties to party is to provide a a written statement about the facts relating to dispute. It is mandatory for both the party to submit a written statement to the conciliator. Parties also send their statement to each other as well.
5.Conduct of the conciliation proceedings: Section 67(3) and 69(1): the conciliator may conduct the conciliation proceedings in such a manner as he consider appropriate. The conciliator may decide to talk to the parties through written or oral communication. He may also meet the parties together or separately as per the requirement of the case.
6. Administrative assistance: in order to facilitate the conduct of conciliation proceedings, the conciliator with the consent of the parties, may arrange for administrative assistance by a suitable institution or person.