Conciliation Lawyers in Kochi – Statutory Alternative Dispute Resolution
Conciliation is a structured form of Alternative Dispute Resolution (ADR) recognised under the Arbitration and Conciliation Act, 1996. It is similar to mediation in that parties negotiate with the help of a neutral conciliator, but the key difference is that a conciliation settlement has statutory enforceability.
In Kerala, conciliation is increasingly used in commercial, contractual, and cross-border disputes where parties prefer a negotiated outcome that carries the same weight as an arbitral award.
Key Features of Conciliation
- Voluntary Process: Parties must agree to enter conciliation.
- Neutral Conciliator: Guides negotiations, identifies solutions, and promotes settlement.
- Confidential Discussions: Statements and proposals cannot be used in later litigation or arbitration.
- Binding Settlement: A signed settlement agreement is enforceable as if it were an arbitral award.
- Flexibility: Allows customised outcomes that go beyond the strict remedies available in court.
Disputes Suitable for Conciliation
- Contractual disputes in trade and commerce
- Infrastructure and construction disagreements
- Cross-border commercial conflicts
- Technology and licensing disputes
- Business-to-business settlement of outstanding dues
Conciliation is often chosen when parties seek a negotiated outcome but also want the assurance of enforceability.
Conciliation Process
1. Agreement to Conciliate
Parties enter into a conciliation agreement or accept an invitation to conciliate under the Arbitration and Conciliation Act.
2. Appointment of Conciliator
A neutral conciliator is appointed, often selected jointly by the parties.
3. Sessions & Negotiation
The conciliator facilitates dialogue, proposes options, and helps narrow differences while maintaining neutrality.
4. Settlement Agreement
If parties reach agreement, the conciliator drafts a written settlement agreement, which once signed, is final and enforceable as an arbitral award.
Advantages of Conciliation
- Provides the flexibility of mediation with the enforceability of arbitration
- Maintains confidentiality and protects business reputation
- Reduces costs and time compared to litigation
- Builds durable settlements that both parties agree upon
- Especially effective in commercial disputes where ongoing business relations are valuable
Conciliation vs. Mediation
- Mediation: Non-binding, voluntary settlement unless formalised as a consent decree.
- Conciliation: Settlement agreement automatically carries the same enforceability as an arbitral award under statute.
This makes conciliation a stronger legal pathway in cases where enforceability is a priority.
FAQs – Conciliation in Kerala
Q1. How is conciliation different from arbitration?
In arbitration, a third-party arbitrator delivers a binding decision. In conciliation, the parties themselves reach a settlement, but the agreement has binding legal force.
Q2. Is a conciliation settlement enforceable in Kerala courts?
Yes. Under the Arbitration and Conciliation Act, a conciliation settlement is enforceable as if it were an arbitral award.
Q3. Can conciliation be used for international disputes?
Yes. Conciliation is frequently used in cross-border commercial disputes, particularly where parties wish to avoid lengthy litigation.
Q4. Who appoints the conciliator?
Conciliators are typically appointed by mutual agreement between the parties, though institutions and ADR centres also maintain panels of qualified professionals.
Closing Note
Conciliation bridges the gap between mediation and arbitration. By combining flexible negotiations with statutory enforceability, it provides businesses and individuals in Kerala with a reliable and efficient path to resolve disputes outside the courtroom.