A Conciliator is a neutral third party who assists parties in reaching an amicable settlement of their dispute.
Role (Section 67): Unlike an arbitrator, a conciliator is an active facilitator. They do not just listen to evidence; they suggest potential solutions and can even formulate the terms of a settlement for the parties to consider.
Neutrality: They must remain impartial and assist the parties in an independent and fair manner.
Confidentiality: Under Section 75, the conciliator is bound to keep all matters relating to the proceedings confidential.
Non-Adversarial: The conciliator’s goal is to help parties "find a middle ground" rather than declaring a winner and a loser.
The appointment of a conciliator is governed by Section 64 of the Arbitration and Conciliation Act, 1996. The process is based primarily on party autonomy, following these standard procedures:
Sole Conciliator: Where the parties agree on a single name, they may appoint one sole conciliator.
Two Conciliators: Each party may appoint one conciliator. They act together as a panel.
Three Conciliators: Each party appoints one conciliator, and the parties then agree on the third person, who serves as the presiding conciliator.
Methods of Selection:
Direct Appointment: Parties mutually agree on the names and finalize the appointment.
Institutional Assistance: Parties may enlist the help of a suitable institution or person to recommend names or to act as the appointing authority.
The List Procedure: To ensure neutrality, the institution may send both parties an identical list of names. Each party deletes names they object to and ranks the remainder. The institution then appoints the person with the highest shared approval.
The primary requirement is that the conciliator must be independent and impartial. In international conciliation, it is standard practice to appoint a conciliator of a nationality different from the parties involved.
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