A neutral appointed under Part III of the Arbitration and Conciliation Act, 1996 who assists parties to settle and may actively propose terms of settlement.
Written by Mediate Editorial TeamLast reviewed
**In plain language.** A conciliator is like a mediator who is willing to say what they think the deal
should be. A mediator helps you find your own answer; a conciliator may put an answer on the table.
**The legal meaning.** Part III of the Arbitration and Conciliation Act, 1996 governs conciliation at
Sections 61 to 81. The conciliator is appointed by the parties, with a default procedure where they
cannot agree. The conciliator may conduct proceedings as they think appropriate and may formulate and
reformulate proposals for settlement. A settlement agreement signed by the parties and authenticated by
the conciliator has the status of an arbitral award on agreed terms under Section 74 — directly
enforceable.
**A practical example.** In an MSME payment dispute referred to a Facilitation Council under the MSMED
Act, 2006, the conciliator reviews the invoices and delivery records and proposes a repayment schedule
with a specified interest component. The parties accept it with one modification, and it is signed.
**How the roles differ.** A mediator facilitates and does not decide or propose outcomes. A conciliator
may propose terms but cannot impose them. An arbitrator hears both sides and imposes a binding award.
All three are neutrals; what varies is how directive they are.
**Confidentiality.** Sections 75 and 76 of the Act protect conciliation communications, and the
conciliator cannot be called as a witness in later proceedings about the same dispute.
Conciliation is a process where a neutral conciliator can actively propose settlement terms, unlike mediation. Learn how it works, when it applies, and how conciliated settlements are enforced under Indian law.
Mediation is a voluntary, confidential process where a neutral third party helps disputing parties reach their own settlement. Learn how it works, when it applies, and what makes it binding.