Section 64 of the Arbitration and Conciliation Act, 1996 - Appointment of Conciliators

Section 64 of the Arbitration and Conciliation Act, 1996 sets out the procedure for appointing conciliators in conciliation proceedings under Part III of the Act. It explains how a sole conciliator, two conciliators or three conciliators may be appointed and permits parties to seek assistance from a suitable institution or person.

Section 64 - Appointment of conciliators

(1) Subject to sub-section (2), -

(a) in conciliation proceedings with one conciliator, the parties may agree on the name of a sole conciliator;

(b) in conciliation proceedings with two conciliators, each party may appoint one conciliator;

(c) in conciliation proceedings with three conciliators, each party may appoint one conciliator and the parties may agree on the name of the third conciliator who shall act as the presiding conciliator.

(2) Parties may enlist the assistance of a suitable institution or person in connection with the appointment of conciliators, and in particular, -

(a) a party may request such an institution or person to recommend the names of suitable individuals to act as conciliator; or

(b) the parties may agree that the appointment of one or more conciliators be made directly by such an institution or person:

Provided that in recommending or appointing individuals to act as conciliator, the institution or person shall have regard to such considerations as are likely to secure the appointment of an independent and impartial conciliator and, with respect to a sole or third conciliator, shall take into account the advisability of appointing a conciliator of a nationality other than the nationalities of the parties.

Current legal status: Section 64 continues to appear in the current official text of the Arbitration and Conciliation Act, 1996. Although Section 61 and the Sixth Schedule to the Mediation Act, 2023 contemplate substitution of Sections 61 to 81, Section 61 of the Mediation Act was not among the provisions brought into force by the Central Government notification dated 9 October 2023. Therefore, the existing Section 64 continues to be the operative statutory provision unless and until the relevant amendment is commenced.

Meaning of Section 64

Section 64 establishes the mechanism by which conciliators are selected. The procedure depends on the number of conciliators agreed upon by the parties under Section 63.

The section reflects party autonomy. Parties may agree directly on a sole conciliator, individually nominate conciliators where there are two, or nominate one each and jointly agree upon a presiding conciliator where there are three.

Appointment of a sole conciliator

Where the conciliation is to be conducted by one conciliator, Section 64(1)(a) permits the parties to agree on the name of that sole conciliator. The appointment therefore depends upon consensus between the parties.

Appointment where there are two conciliators

Under Section 64(1)(b), where two conciliators are to conduct the proceedings, each party may appoint one conciliator. This gives each side a direct role in constituting the conciliation panel.

Appointment where there are three conciliators

Where three conciliators are appointed, Section 64(1)(c) allows each party to appoint one conciliator. The parties may then agree upon the third conciliator, who acts as the presiding conciliator.

Assistance of an institution or person

Section 64(2) permits parties to obtain assistance from a suitable institution or person in connection with appointment. This assistance can take two principal forms.

Independence and impartiality of conciliators

The proviso to Section 64(2) requires the institution or person making a recommendation or appointment to consider factors likely to secure an independent and impartial conciliator. This safeguard is central to the credibility and neutrality of the conciliation process.

Nationality of sole or third conciliator

For a sole conciliator or the third conciliator, the appointing institution or person must also take into account the advisability of appointing someone whose nationality is different from the nationalities of the parties. This is particularly relevant in disputes involving parties from different countries.

How Sections 63 and 64 work together

Section 63 determines the permissible number of conciliators. Section 64 then explains how those conciliators are appointed. The two provisions should therefore be read together when constituting a conciliation process.

Relation with commencement of conciliation

The appointment mechanism forms part of the broader conciliation procedure. Section 62 deals with commencement of conciliation proceedings, while Section 65 deals with submission of statements to the conciliator after appointment.

Key points under Section 64

Related provisions

For the surrounding statutory framework, see Section 61 - Application and scope, Section 62 - Commencement of conciliation proceedings, Section 63 - Number of conciliators and Section 65 - Submission of statements to conciliator.