Conciliation Advantages

Advantages of resolution of a dispute by conciliation

In contrast to arbitration, conciliation is nonbonding and confidential. If successful, conciliation results in a settlement of the dispute. Like arbitration, conciliators are selected by and serve at the expense of the parties. Conciliation is less formal than arbitration, but is more evaluative than the facilitative process of most forms of mediation.

Conciliators may be retired judges, senior advocates, or non-lawyers with expertise in the subject matter. The court plays no formal role in sponsoring conciliation. Conciliation is becoming increasingly popular, as an alternative to other formal and informal modes of dispute resolution due to its obvious advantages:

a) It offers a more flexible alternative, for a wide variety of disputes, small as well as large;
b) It obviates the parties from seeking recourse to the court system;
c) It reserves the freedom of the parties to withdraw from conciliation without prejudice to their legal position inter se at any stage of the proceedings;
d) It is committed to maintenance of confidentiality throughout the proceedings and thereafter, of the dispute, the information exchanged, the offers and counter offers of solutions made and the settlement arrived at.
e) It is cost-effective and produces quicker resolution of dispute.
f) It facilitates the maintenance of continued relationship between the parties even after the settlement or at least during the period of settlement is attempted at. This feature is of particular significance to the parties who are required to continue their relationship despite the dispute, as in the case of disputes arising out of construction contracts, family relationships, family properties or disputes between members of any business or other organizations;
g) There is no scope for corruption or bias.
h) Therefore these are the benefits of the conciliation proceeding, which are of utmost importance.