Section 70 of Arbitration and Conciliation Act, 1996: Disclosure of Information

Section 70 governs disclosure of factual information received by a conciliator from one party during conciliation. Its basic rule is disclosure of the substance of the information to the other party so that the other party has an opportunity to respond, subject to an express confidentiality exception.

Current legal status: Section 70 continues to form part of the operative conciliation framework in Part III of the Arbitration and Conciliation Act, 1996. The Mediation Act, 2023 contains provisions intended to substitute Sections 61 to 81 of the 1996 Act, but the relevant substitution provision in Section 61 of the Mediation Act has not yet been brought into force.

Text of Section 70

70. Disclosure of information.

When the conciliator receives factual information concerning the dispute from a party, he shall disclose the substance of that information to the other party in order that the other party may have the opportunity to present any explanation which he considers appropriate:

Provided that when a party gives any information to the conciliator subject to a specific condition that it be kept confidential, the conciliator shall not disclose that information to the other party.

Meaning of Section 70

Section 70 balances two important features of conciliation: procedural fairness and confidentiality. Ordinarily, where the conciliator receives factual information from one party concerning the dispute, the substance of that information must be disclosed to the other party. This gives the other party an opportunity to explain, clarify or respond to the information.

General Rule: Disclosure of the Substance of Factual Information

The provision does not require every communication or every word received from a party to be reproduced verbatim. It requires disclosure of the substance of factual information concerning the dispute so that the other party is not deprived of an opportunity to respond to relevant factual material.

Section 70 therefore supports fairness in the conciliation process by preventing one party's factual assertions from being relied upon without giving the other party a reasonable opportunity to offer an explanation.

Exception: Information Given on a Specific Condition of Confidentiality

The proviso creates an important exception. If a party gives information to the conciliator subject to a specific condition that the information be kept confidential, the conciliator must not disclose that information to the other party.

The wording is significant because the confidentiality condition must be specific. Where information is expressly supplied on that basis, the statutory duty to preserve that confidentiality overrides the general disclosure rule in the main part of Section 70.

Key Features of Section 70

Relationship With Sections 69 and 75

Section 69 permits the conciliator to communicate with the parties jointly or separately. Section 70 then regulates what happens when factual information is received from a party during such communication.

Section 70 should also be read with the wider confidentiality rule in Section 75 of the Arbitration and Conciliation Act, 1996. Section 75 requires confidentiality in relation to conciliation proceedings and the settlement agreement, subject to the statutory exception for implementation and enforcement. Section 70 deals more specifically with disclosure of factual information between the parties during the conciliation itself.

Mediation Act, 2023 and Section 70

The Mediation Act, 2023 provides through Section 61 and the Sixth Schedule for substitution of Sections 61 to 81 of the Arbitration and Conciliation Act, 1996. However, the Central Government's notification dated 9 October 2023 brought only specified provisions of the Mediation Act into force and did not bring Section 61 into force.

Accordingly, Section 70 continues to remain relevant unless and until the substitution provision is brought into force by a subsequent commencement notification. Readers should therefore verify any later notification when relying upon the provision in a current proceeding.

Related Sections of the Arbitration and Conciliation Act

Section 61 - Application and scope
Section 62 - Commencement of conciliation proceedings
Section 63 - Number of conciliators
Section 64 - Appointment of conciliators
Section 65 - Submission of statements to conciliator
Section 66 - Conciliator not bound by certain enactments
Section 67 - Role of conciliator
Section 68 - Administrative assistance
Section 69 - Communication between conciliator and parties
Section 70 - Disclosure of information

Note: This article provides general legal information about the statutory provision. Verify the latest statutory text, commencement notifications and applicable judicial decisions before relying on it in a legal proceeding.