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Title: Understanding the Role of Conciliators as per Section 67 of The Arbitration and Conciliation Act
In our ongoing mission at SimranLaw to simplify complex legal issues, our legal experts delve deep into the Arbitration and Conciliation Act to better comprehend the role of conciliators under Section 67. Drawing from years of experience, we seek to illuminate the rule of law concerning conciliators for our readers.
Section 67 of The Arbitration and Conciliation Act, 1996 outlines the role of a conciliator in detail. In essence, it provides that the conciliator is not merely a messenger between the disputing parties but plays a proactive role in resolving disputes.
Role of Conciliators
The role of a conciliator under the Act is fundamentally to mediate between the parties involved in a dispute. This mediation process is initiated by making communication easier between them and by considering each side’s arguments, allowing for creative solutions to resolve the dispute at hand. The primary aim of conciliation is coming up with a resolution that is mutually agreed upon by all parties involved.
Impartiality & Privacy
Additionally, Section 67 asserts that the conciliator must remain impartial throughout the procedure. Maintaining privacy and confidentiality forms an integral part of their responsibilities. Any disclosure of confidential information can be construed as a violation of this principle.
Role in Settlements
The conciliator has a crucial role in drafting the settlement agreement if such an event arises during the course of dispute resolution. They must ensure that the agreement is legal, enforceable and satisfies all parties involved.
According to Section 67(4), if the parties reach an agreement during conciliation, the conciliator must draw up a settlement agreement. The parties must sign this document, which becomes legally binding and enforceable.
The role of a conciliator as per section 67 was discussed in the case of Bharat Heavy Electricals Ltd. vs. The Tata Power Company Ltd. (2006). The Supreme Court of India observed that the major responsibility of a conciliator is to assist the parties in an impartial and independent manner and facilitate them in drawing up a settlement agreement.
In another significant case, Canara Bank vs. N.G. Subbaraya Setty (2003), the Supreme Court held that the conciliator is obligated to treat each party equally and with impartiality, ensuring the fair resolution of the dispute.
In terms of maintaining confidentiality as per Section 67, the case of ONGC vs. Western Geco International Ltd (2014) becomes relevant. In this case, the Supreme Court emphasized that the conciliator should maintain confidentiality and should not be influenced by any party during conciliation proceedings.
In conclusion, the conciliator has a significant role in amicably resolving disputes as per Section 67 of The Arbitration and Conciliation Act. Their impartiality, active involvement in proceedings, confidentiality maintenance, and facilitation in reaching settlement agreements constitute their main responsibilities. Understanding these legal tenets is crucial for any disputing party looking to utilize conciliators in the process of arbitration and conciliation. At SimranLaw, we continue to strive towards simplification and clarity of these complex legal principles to provide everyone a deeper understanding of their rights and duties under the Act.