Latest News

Tips For Conciliation Agreement

Alternate Dispute Resolution has various mechanisms for providing dispute resolution and one out of this is conciliation. It is a negotiatory and a non-adjudicatory ADR process, which is governed by the provisions of the Arbitration and Conciliation Act, 1986.

Conciliation means the settling of disputes without litigation. A Conciliator is an individual who is to assist the parties to settle the disputes between them, unlike an arbitrator who has an adjudicatory function. The conciliator has to be impartial, fair, and independent and guided by the principles of objectivity, fairness, and justice.

The following are the tips of the Conciliation agreement:

1) If the statue prescribes a procedure for doing a thing in a particular way, it has to be done accordingly. For example, imperative that the procedure as prescribed under- Part III of the Arbitration and Conciliation Act has been followed by the conciliator for the settlement agreement to be valid, binding, and enforceable.

2) The Conciliation Settlement Agreement entered into by the parties should satisfy and comply with all the requirements of Section 73 of the Arbitration and Conciliation Act.

3) The conciliation settlement must be drafted by the conciliator(s) and the parties during Conciliation proceedings as provided in section 73 (2) and bear the signature of the representatives of both parties at the end of the document as required by section 73(3) of the Arbitration and Conciliation Act.

4) It should be authenticated by the conciliator(s) at the end of the document as required by Section 73 (4) of the Arbitration and Conciliation Act.

5) There should be a Settlement Agreement within the meaning of Section 74 of the Act, and there should be the termination of Conciliation proceedings under section 76(a) of the Act by signing of the settlement agreement by the parties on the date of the agreement.

6) Conciliation settlement becomes final and binding on the parties as set out in section 73(3) of the Act. Though, if there was a settlement agreement under Section 73 of the Act, the conciliation proceedings would be terminated under section 76(a) Act. However, a successful conciliation proceeding comes to an end only when the settlement agreement signed by the parties comes into existence.

It is such an agreement which had the statues and effects of the legal sanctity of an arbitral award under section 74 Act, and such a settlement agreement executed within the meaning of Section 74 Act, is to be treated as an Arbitral award under section 30 of the Arbitration and Conciliation Act, so as to be enforceable under Section 36 of the Act.

 This article does not intend to hurt the sentiments of any individual, community, sect, or religion, etcetera. This article is based purely on the author’s personal opinion and views in the exercise of the Fundamental Rights guaranteed under Article 19(1)(A) and other related laws being enforced in India for the time being.

  • Conciliation
  • Conciliation Tips
  • Arbitration and Conciliation Act

BY : Ankona

All Latest News