Powers of Conciliator under Arbitration and Conciliation Act, 1996

Under the Arbitration and Conciliation Act, 1996, the role and powers of a Conciliator are primarily designed to be facilitative rather than adjudicatory. Unlike an arbitrator or a judge, a conciliator does not impose a decision but empowers the parties to reach their own settlement.

The following are the key powers and functional roles of a conciliator as per Part III of the Act:

1. Power to Assist and Guide (Section 67)

The conciliator is vested with the power to assist parties in an independent and impartial manner. They are not bound by the Code of Civil Procedure, 1908 or the Indian Evidence Act, 1872. This allows them the power to conduct proceedings with extreme flexibility, focusing on the "spirit of justice" rather than technical legalities.

2. Power to Regulate Procedure and Communication (Section 69)

The conciliator has the power to meet or communicate with the parties together or separately (a process known as a caucus). They can determine the place and time of meetings in consultation with the parties. This power to have private discussions is a unique tool that allows the conciliator to understand the "true" interests of each side which might not be disclosed in a joint session.

3. Power to Formulate Settlement Terms (Section 73)

This is the most critical "active" power. If a conciliator observes elements of a potential settlement, they have the authority to formulate the terms of a possible agreement and submit them to the parties for their observations. They can then reformulate these terms based on the feedback received until a final agreement is reached.

4. Power to Request Information (Section 65)

The conciliator can ask each party to submit a brief written statement describing the general nature of the dispute and the points at issue. They have the power to request any additional information or documents they deem necessary to facilitate the process.

5. Administrative and Expert Power

Under Section 68, the conciliator can arrange for administrative assistance (like secretarial services) with the parties' consent. While they don't have the power to force an expert on the parties, they can suggest the appointment of experts to clarify technical points.

6. Legal Status of the Result (Section 74)

Once a settlement agreement is signed by the parties and authenticated by the conciliator, it has the same status and effect as an arbitral award on agreed terms. This gives the conciliator the power to oversee a process that results in a legally binding "deemed decree," enforceable by a court of law.

In summary, the conciliator’s power is "persuasive" rather than "coercive," acting as a bridge to turn a legal conflict into a mutual contract.