Section 67 of ACA : Section 67: Role Of Conciliator

Explanation using Example

Imagine that two businesses, Company A and Company B, are involved in a dispute over the terms of a contract for the supply of goods. Company A claims that Company B has failed to meet the agreed quality standards, while Company B argues that the standards were met and that any perceived issues are due to improper handling by Company A.

To avoid lengthy and costly litigation, both companies agree to engage a conciliator. Under Section 67 of The Arbitration and Conciliation Act, 1996, the conciliator steps in to help Company A and Company B find an amicable solution. The conciliator approaches the situation with impartiality, aiming to understand the concerns and interests of both parties.

During the proceedings, the conciliator considers the contract terms, trade practices, and the companies' past dealings. The conciliator also listens to both parties' preferences, such as Company A's request for an oral hearing to present evidence of the goods' quality.

After thorough discussion and analysis, the conciliator proposes a settlement where Company B agrees to replace the disputed goods and Company A agrees to implement stricter quality checks upon receipt. This proposal, while informal and not binding, provides a basis for resolving the dispute amicably and swiftly, demonstrating the use of Section 67 in a practical business scenario.