Arbitration and Conciliation Act, 1996 - Part III: Conciliation
Section 76 of the Arbitration and Conciliation Act, 1996: Termination of Conciliation Proceedings
Section 76 of the Arbitration and Conciliation Act, 1996 forms part of the statutory framework governing conciliation. It identifies the events that legally bring conciliation proceedings to an end and fixes the effective date of termination for each event.
Text of Section 76 - Termination of Conciliation Proceedings
The conciliation proceedings shall be terminated-
(a) by the signing of the settlement agreement by the parties, on the date of the agreement; or
(b) by a written declaration of the conciliator, after consultation with the parties, to the effect that further efforts at conciliation are no longer justified, on the date of the declaration; or
(c) by a written declaration of the parties addressed to the conciliator to the effect that the conciliation proceedings are terminated, on the date of the declaration; or
(d) by a written declaration of a party to the other party and the conciliator, if appointed, to the effect that the conciliation proceedings are terminated, on the date of the declaration.
What Section 76 Means
Section 76 recognizes four separate methods of termination. A conciliation may end successfully through a signed settlement agreement, or it may end without settlement through a written declaration by the conciliator, by all parties jointly, or by one party.
| Clause | How conciliation ends | Effective date |
|---|---|---|
| Section 76(a) | The parties sign the settlement agreement. | The date of the settlement agreement. |
| Section 76(b) | The conciliator, after consulting the parties, declares in writing that further conciliation efforts are no longer justified. | The date of the conciliator's declaration. |
| Section 76(c) | The parties jointly make a written declaration to the conciliator terminating the proceedings. | The date of the declaration. |
| Section 76(d) | One party makes a written declaration to the other party and the conciliator, if appointed, terminating the proceedings. | The date of the declaration. |
Important Legal Points
1. Settlement ends the conciliation
Under Section 76(a), the signing of the settlement agreement itself terminates the conciliation proceedings. The settlement agreement referred to here is connected with Section 73 of the Arbitration and Conciliation Act, 1996, which deals with the settlement agreement reached through conciliation.
2. The conciliator may conclude that further efforts are not justified
Section 76(b) permits termination by the conciliator, but only through a written declaration made after consultation with the parties. The declaration must state, in substance, that continuing the conciliation is no longer justified.
3. The parties may jointly terminate the proceedings
Section 76(c) allows all parties to end the conciliation by making a written declaration addressed to the conciliator. No settlement agreement is required for this form of termination.
4. One party may terminate the conciliation
Section 76(d) also recognizes unilateral termination. A party may end the proceedings by making a written declaration to the other party and to the conciliator, if one has been appointed.
Related Provisions
Section 76 should be read with the surrounding provisions in Part III of the Act. In particular, Section 75 deals with confidentiality, while Section 77 concerns resort to arbitral or judicial proceedings during conciliation.
Where a settlement agreement is signed in accordance with Section 73, Section 74 addresses its statutory status and effect.