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DAC Conciliation

An amicable settlement —
with the force of an award.

Conciliation is a voluntary, flexible, confidential and interest-based process of out-of-court settlement. The parties negotiate with the assistance of a neutral conciliator who — unlike a mediator — may, when asked, place a concrete settlement proposal before them. And when the parties sign the settlement, the law gives it real teeth: a conciliated settlement carries the same status and effect as an arbitral award on agreed terms.

Request a Conciliation How It Works
A Proposal on the TableThe conciliator does not merely facilitate — when the parties ask, the conciliator formulates a concrete, non-binding settlement proposal for their consideration.
Settlement with Legal ForceA settlement agreement signed in conciliation has the status and effect of an arbitral award on agreed terms under the Arbitration and Conciliation Act, 1996.
Voluntary & FlexibleThe parties choose the timing, language, place, structure and content of the proceedings — the process bends to the dispute, not the reverse.
Confidential & Interest-BasedProceedings remain private; the conciliator weighs not only legal positions but the parties' commercial, financial and personal interests.
The Process Explained

What conciliation is — and how it differs from mediation

Like mediation, conciliation is an alternative, out-of-court instrument of dispute resolution: voluntary, flexible, confidential and interest-based. The parties seek an amicable settlement with the assistance of the conciliator, a neutral third party. The proceedings are rarely public, and the ultimate decision to settle always remains with the parties — no settlement is ever imposed.

The distinction lies in the role of the neutral. A mediator facilitates; a conciliator may also propose. At some point in the conciliation, the parties may ask the conciliator to place before them a non-binding settlement proposal — a concrete set of terms shaped by the conciliator's assessment of the case and of the parties' real interests. A mediator, by contrast, will as a matter of principle refrain from making such a proposal. For parties who have negotiated to a standstill and need a respected neutral to put a fair number on the table, conciliation is often precisely the instrument required.

Mediation — the facilitated dialogue

The mediator structures the negotiation, manages joint sessions and private caucuses, and helps the parties author their own solution — but does not suggest the terms of settlement.

Conciliation — the guided proposal

The conciliator does everything a mediator does — and, when the parties seek it, additionally formulates a reasoned, non-binding settlement proposal reflecting the merits and the parties' interests.

Main Benefits

Why parties choose conciliation at DAC

Party AutonomyThe parties control the timing, language, place, structure and content of the proceedings from beginning to end.
Choice of the NeutralThe parties freely select their conciliator — for experience, professional or personal expertise, availability, language and cultural skills. Every conciliator is impartial and independent.
Time & Cost EfficiencyThe informal, flexible nature of the proceedings allows disputes to be resolved in a fraction of the time and cost of litigation.
ConfidentialityDisputes are settled discreetly; commercial terms and business secrets remain protected throughout and after the proceedings.
Interest-Based OutcomesThe conciliator's proposal accounts for commercial, financial and personal interests — not merely the parties' legal positions.
Institutional AdministrationDAC administers the reference — appointment, scheduling, facilities at Tis Hazari or online, and the record — end to end.
The scales of balance — fair, interest-based settlement in conciliation at the Delhi Arbitration Centre
Balance, not battle — a settlement weighed on the parties' real interests, proposed by a neutral.
The Process

How a conciliation proceeds at DAC

Invitation to conciliateOne party invites the other in writing to conciliate the dispute; conciliation commences when the other party accepts. Parties may equally adopt a conciliation clause in their contract or approach DAC jointly.
Appointment of the conciliatorThe parties agree upon a sole conciliator from the DAC panel — or, failing agreement, the conciliator is appointed through the Registrar, DAC.
Statements and meetingsEach party submits a brief written statement of its case. The conciliator meets the parties jointly and separately, at the Centre or online, exploring the dispute and the parties' underlying interests in complete confidence.
The conciliator's proposalWhen the parties seek it, the conciliator formulates the terms of a possible settlement and places the proposal before the parties — non-binding, and open to reformulation in light of their observations.
The settlement agreementWhen the parties reach agreement, the settlement is drawn up in writing and signed. Upon signature and authentication by the conciliator, it is final and binding — with the status and effect of an arbitral award on agreed terms.
The Legal Frame

A settlement with the status of an award

What sets conciliation apart from a private compromise is the force the law attaches to its outcome:

Part III, Arbitration and Conciliation Act, 1996 (Sections 61–81)

India's statutory framework for conciliation governs the commencement of proceedings, the role and independence of the conciliator, confidentiality, and the settlement. Under Sections 73 and 74, a settlement agreement signed by the parties and authenticated by the conciliator is final and binding, and has the same status and effect as an arbitral award on agreed terms — placing it on the footing of an enforceable award.

The Mediation Act, 2023

India's new mediation statute recognises conciliation within the modern statutory framework of amicable dispute resolution, reinforcing confidentiality and the enforceability of negotiated settlements administered through institutions such as DAC.

Negotiate like a settlement. Enforce like an award. That is the promise of conciliation at DAC.

To provide for conciliation in your contracts — or a tiered clause combining conciliation with arbitration — write to the Registrar, DAC for a customised clause, or adapt the model clauses on the DAC Clauses page.

Invite the other side to the table

To initiate a conciliation, appoint a conciliator from the DAC panel, or enquire about fees and the conduct of proceedings, write to the Registrar, DAC.

Request a Conciliation

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