Conciliator

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.

For the statutory MSME route, see the MSME conciliation guide.