This is one of the mechanisms to solve dispute outside the court by a conciliator (A impartial third party). Conciliation is different from that of litigation. The conciliator is a government official, he gives report in form of recommendation which is public document. Part III of the Arbitration and conciliation Act, 1996 explains the conciliation (Section 61 to Section 81). It can be done by consent of both the party but it cannot be done in all types of cases. There must be legal relationship between party (right of one party and liability of other) for conciliation. The party initializing should send invitation for other party and other party
accepts in writing then proceeding starts. If rejected by other party then no conciliation. If no answer from other party to invitation within 30 days or within specified time then it should be assumed as rejected. There should be one conciliator or two or more if party agrees. If more than one they should act jointly. Conciliator need not follow the Civil Procedure code, 1908 or the Indian Evidence Act, 1872. Conciliator should act impartial and should follow rule of law. Conciliation provides speedy settlement of dispute. All the document and details should be kept confidentially. In Haresh Dayaram Thakur v State of Maharastra and ors, “the court held that the statutory provisions noted above the position is manifest that a conciliator is a person who is to assist the parties to settle the disputes between them amicably. For this purpose the conciliator is vested with wide powers to decide the procedure to be followed by him untrammelled by the procedural law like the Code of Civil Procedure or the Indian Evidence Act, 1872.” Conciliator plays main role in conciliation and conciliation helps the
parties to dissolve their dispute outside the court.