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Section 67 of the Arbitration and Conciliation Act, 1996: Role of Conciliator

Section 67 explains how a conciliator is expected to assist parties in resolving a dispute amicably. It emphasizes independence, impartiality, objectivity, fairness, justice, procedural flexibility and the conciliator's ability to suggest settlement terms.

Current legal position: The Mediation Act, 2023 contains a Sixth Schedule that, once the relevant provision is brought into force, will substitute Sections 61 to 81 of the Arbitration and Conciliation Act, 1996. However, Section 61 of the Mediation Act, 2023 has not been notified into force as of September 2026. Section 67 therefore continues to remain relevant to conciliation under Part III of the 1996 Act. Users should check the latest Central Government commencement notification before relying on this provision for a current proceeding.

Text of Section 67 - Role of conciliator

(1) The conciliator shall assist the parties in an independent and impartial manner in their attempt to reach an amicable settlement of their dispute.

(2) The conciliator shall be guided by principles of objectivity, fairness and justice, giving consideration to, among other things, the rights and obligations of the parties, the usages of the trade concerned and the circumstances surrounding the dispute, including any previous business practices between the parties.

(3) The conciliator may conduct the conciliation proceedings in such a manner as he considers appropriate, taking into account the circumstances of the case, the wishes the parties may express, including any request by a party that the conciliator hear oral statements, and the need for a speedy settlement of the dispute.

(4) The conciliator may, at any stage of the conciliation proceedings, make proposals for a settlement of the dispute. Such proposals need not be in writing and need not be accompanied by a statement of the reasons therefor.

Meaning and scope of Section 67

Section 67 gives the conciliator an active but neutral settlement role. The conciliator does not decide the dispute like a judge or arbitrator. Instead, the conciliator assists the parties in finding an agreed solution while remaining independent and impartial.

1. Independent and impartial assistance

Under Section 67(1), the conciliator must assist both parties without favoring either side. The purpose of the process is an amicable settlement reached by the parties themselves.

2. Objectivity, fairness and justice

Section 67(2) requires the conciliator to be guided by objectivity, fairness and justice. Relevant considerations may include the parties' legal rights and obligations, applicable trade usages, the circumstances of the dispute and previous business practices between the parties.

3. Flexible conduct of conciliation proceedings

Section 67(3) gives the conciliator procedural flexibility. The conciliator may conduct the proceedings in a manner considered appropriate after taking account of the facts of the case, the wishes expressed by the parties, any request to hear oral statements and the need for a speedy settlement.

4. Power to propose settlement terms

Section 67(4) permits the conciliator to make settlement proposals at any stage. A proposal does not have to be in writing and the conciliator is not required to give reasons for it. The proposal is intended to facilitate settlement; it is not an adjudicatory decision.

How Section 67 fits within Part III

Section 67 forms part of the conciliation framework in Part III of the Arbitration and Conciliation Act, 1996. It should be read together with provisions dealing with commencement of conciliation, appointment of conciliators, submission of statements, communications between the conciliator and parties, disclosure of information, settlement agreements, confidentiality and termination of proceedings.

Effect of the Mediation Act, 2023

The Mediation Act, 2023 was enacted to create a broader statutory framework for mediation. Its Sixth Schedule provides for substitution of Sections 61 to 81 of the Arbitration and Conciliation Act, 1996 with new Sections 61 and 62 when the relevant amendment provision comes into force. The proposed new Section 61 treats statutory references to conciliation under the 1996 Act as references to mediation under the Mediation Act, 2023, while the proposed new Section 62 protects earlier conciliation proceedings.

As of September 2026, the Central Government commencement notification dated 9 October 2023 has brought only specified provisions of the Mediation Act, 2023 into force and does not include Section 61. Therefore, the Sixth Schedule substitution affecting Section 67 has not yet taken effect.

Official legal resources

For the latest statutory text and commencement position, refer to the India Code page for the Arbitration and Conciliation Act, 1996, the official text of the Mediation Act, 2023, and the 9 October 2023 commencement notification S.O. 4384(E).

Note: This page provides general legal information. Statutory commencement notifications and amendments may change the applicable position. For a specific dispute, consult the latest official text and professional legal advice.