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Section 71 of Arbitration and Conciliation Act, 1996: Co-operation of Parties with Conciliator

Section 71 places a duty on the parties to cooperate with the conciliator in good faith. It specifically requires the parties to endeavour to comply with requests for written materials, evidence and attendance at meetings so that the conciliation process can function effectively.

Text of Section 71

Meaning of Section 71

Section 71 recognizes that conciliation depends upon active and genuine participation by the parties. Unlike adjudication, where a tribunal determines the dispute, conciliation seeks an amicable settlement with the assistance of a neutral conciliator. The process therefore requires both parties to participate constructively.

Duty to Co-operate in Good Faith

The central requirement is good faith co-operation. This means that the parties should participate honestly and meaningfully in the conciliation process and should not obstruct reasonable procedural steps taken by the conciliator for facilitating settlement discussions.

Submitting Written Materials

The conciliator may need written statements, documents or other material to understand the nature of the dispute, the parties' positions and possible areas of settlement. Section 71 requires parties to endeavour to comply with such requests in good faith.

Providing Evidence

The provision also refers expressly to providing evidence. In the context of conciliation, evidence assists the conciliator and the parties in understanding disputed facts and evaluating settlement options. The conciliator is not acting as an adjudicator, but relevant supporting material may still be important to meaningful settlement discussions.

Attendance at Meetings

Parties are also expected to endeavour to attend meetings requested by the conciliator. This complements Section 69, which permits the conciliator to meet or communicate with the parties together or separately.

Key Features of Section 71

• The duty applies to all parties participating in the conciliation.
• Co-operation must be in good faith.
• Parties should endeavour to comply with requests for written materials.
• Parties should endeavour to provide evidence requested by the conciliator.
• Parties should endeavour to attend meetings requested by the conciliator.
• The provision supports an efficient and meaningful settlement process.

Relationship With Other Conciliation Provisions

Section 71 should be read as part of the wider conciliation framework in Part III. Section 67 describes the conciliator's independent and impartial role. Section 69 deals with communication and meetings, while Section 70 regulates disclosure of factual information received from a party.

The next provision, Section 72, permits each party to submit suggestions for settlement either on its own initiative or at the invitation of the conciliator. Together, Sections 71 and 72 emphasize active participation by the parties in attempting to resolve the dispute.

Mediation Act, 2023 and Section 71

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 commencement 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 71 continues to remain relevant unless and until the substitution provision is brought into force by a later commencement notification. Readers should verify any subsequent notification before relying upon the provision in a current legal proceeding.

Related Sections of the Arbitration and Conciliation Act

Section 71 - Co-operation of parties with conciliator
Section 72 - Suggestions by parties for settlement of dispute
Section 73 - Settlement agreement
Section 74 - Status and effect of settlement agreement
Section 75 - Confidentiality
Section 76 - Termination of conciliation proceedings
Section 77 - Resort to arbitral or judicial proceedings
Section 78 - Costs
Section 79 - Deposits
Section 80 - Role of conciliator in other proceedings

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.