Conciliation is the process in which an agreed neutral person i.e. the conciliator tries to induce the parties to come to an agreed settlement themselves without deciding anything himself. However, the conciliator can offer advice or suggestions to the parties for helping them in a dispute to find out a solution to their problems on their own. The conciliator does not impose any decision on the parties and is not an arbitrator.
Provision has been made in the law even for staying on going arbitrations, while the parties are trying out conciliation for dispute resolution, in order to strengthen the process.
Scope and Concept
Now a days even arbitration proceedings are becoming expensive. Both cost of the lawyers and the rising fees of the arbitrators are pinching the parties. Moreover arbitration awards are often challenged in courts right up to appeals. Disillusionment is setting in with arbitration as an alternative mode of dispute resolution. In contrast conciliation is prompt, cost effective and preserves business and social relationships among the parties.
In conciliation in presence of the conciliator the parties look to reason, try to understand the views of each other and redress their respective grievances in an amicable manner. Unlike in arbitration or litigation here both parties are winners returning with a deep sigh of relief.
Appointment of Conciliator
The parties can mutually agree upon conciliation for attempting resolution of their differences and disputes amicably. The number of conciliators may vary from one to three. There shall always be one conciliator unless agreed otherwise. In case of sole conciliator, the parties must agree on his name. For two conciliators, both the parties shall appoint one each. When there is provision for three conciliators, one each shall be appointed by both the parties and the third conciliator will be a mutually agreed common person of the parties. When there are several conciliators they shall act jointly.
Wherever the term ‘conciliator’ occurs, it shall mean the sole conciliator or two or three conciliators as the case may be.
In this connection the parties may choose their conciliator from any panel maintained by an ADR institution or authorize such institution to appoint suitable person as conciliator directly.
