What is Conciliation?
Conciliation is a private mode for the settlement of disputes, where the parties appoint a neutral third party called the Conciliator. The conciliator actively participates in the process and assists the parties in reaching a middle ground. It is a way to resolve disputes by deriving a compromise between the parties. Here, the parties have the freedom to appoint more than one conciliator.
Conciliation is one step ahead of Mediation. Here, the conciliator is duty-bound to act in a just and impartial manner and give both parties a fair hearing. If at any point of time, the conciliator thinks there is a possibility for the settlement of disputes, the conciliator can propose a settlement to the parties. Based on the suggestion from the parties, the conciliator prepares a settlement agreement that becomes binding on the parties and enforceable in the court of law as a Settlement Agreement.
Difference between Mediation and Conciliation
Mediation and Conciliation are the two most important mechanisms of Alternate Dispute Resolution (ADR). Although these two are distinct concepts, they are mostly seen in a similar light. Moreover, they were accepted by the legislation much later than the arbitration. Therefore, Mediation and Conciliation remain to be seen as clubbed together, on the other side.