Sections 61 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sections 61 and 62 open Part III, headed "Conciliation". Section 61 says which disputes Part III covers and when it does not apply. Section 62 says how conciliation starts: a written invitation, acceptance in writing, and what happens on rejection or silence. This follows the India Code consolidated text consulted.
Part III applies, unless the parties have otherwise agreed and save as any other law provides, to conciliation of disputes arising out of legal relationship, whether contractual or not (section 61(1)). Conciliation commences only when the other party accepts the written invitation in writing (section 62(2)). A rejection ends the matter, and no reply within thirty days (or the period stated in the invitation) lets the inviting party treat it as a rejection by informing the other party in writing (section 62(3) and (4)).
The Mediation Act, 2023 and Part III
The India Code text consulted prints these sections. The Mediation Act, 2023 provides for sections 61 to 81 of this Act to be replaced by two sections: a new section 61 on the reference of conciliation in other enactments and a new section 62 as a saving for conciliation begun under the old sections. Its commencement is by notification, and the date is not in the sources consulted, so check whether that change is in force before relying on Part III. Our article on sections 58 to 61 of the Mediation Act, 2023 sets out those amendments.
Where Part III sits
The text consulted prints the Act in parts. Part IA is headed "Arbitration Council of India", Part II "Enforcement of certain foreign awards", Part III "Conciliation" (sections 61 to 81) and Part IV "Supplementary provisions". Part III is short and self-contained: it runs from the scope in section 61 to the status of a settlement in sections 73 and 74, confidentiality in section 75, termination in section 76 and costs in sections 78 and 79. For a one-page overview of the whole Part, see our guide on conciliation under the Act, sections 61 to 81.
If you are thinking of inviting the other side to conciliate, our conciliation services team can help you word the invitation and plan what comes after.
Section 61(1): what Part III covers
Section 61(1) reads, in substance: save as otherwise provided by any law for the time being in force, and unless the parties have otherwise agreed, Part III applies to conciliation of disputes arising out of legal relationship, whether contractual or not, and to all proceedings relating thereto.
Three parts of that sentence matter:
- "Save as otherwise provided by any law": another law can displace Part III. The text consulted does not list such laws.
- "Unless the parties have otherwise agreed": the parties can agree to proceed differently. The section does not say what the alternative may be.
- "Disputes arising out of legal relationship, whether contractual or not": the sweep is wider than a contract dispute. The words "commercial" or "international" do not appear in section 61(1).
Section 61(2): where Part III does not apply
Section 61(2) says Part III shall not apply where, by virtue of any law for the time being in force, certain disputes may not be submitted to conciliation. The Act itself names no such disputes; the answer lies in the other law.
Section 62: how conciliation commences
| Step | Section | What the text says |
|---|---|---|
| Invitation | 62(1) | The party initiating conciliation sends the other party a written invitation to conciliate under Part III, briefly identifying the subject of the dispute |
| Commencement | 62(2) | Conciliation proceedings commence when the other party accepts in writing the invitation to conciliate |
| Rejection | 62(3) | If the other party rejects the invitation, there will be no conciliation proceedings |
| Silence | 62(4) | No reply within thirty days from the date on which he sends the invitation, or within such other period as specified in the invitation: the inviting party may elect to treat it as a rejection and, if so, shall inform the other party in writing |
Points to notice in section 62
- The invitation is in writing and identifies the subject. The section asks for the subject to be identified "briefly". It prescribes no form and no content beyond that.
- Commencement turns on written acceptance. An invitation alone starts nothing. Until the other party accepts in writing, there are no conciliation proceedings.
- Silence does not reject the invitation by itself. Under sub-section (4), the inviting party "may elect" to treat silence as a rejection; if it does so elect, it must inform the other party in writing. The section does not say what happens if the inviting party makes no election.
- Thirty days is the default; the invitation may state another period. The words are "thirty days from the date on which he sends the invitation, or within such other period of time as specified in the invitation".
- Printing note. Sub-section (2) is printed "Conciliation proceedings, shall commence": the comma is as printed.
An illustration
Kavya Components Ltd supplies parts to Rathod Engineering Pvt Ltd. A dispute arises over a rejected consignment. Kavya sends a written invitation to conciliate, briefly stating the dispute as the quality of the consignment, and states in the invitation that it will wait forty-five days for a reply. Rathod replies in writing accepting the invitation on the twentieth day: conciliation proceedings commence on that acceptance (section 62(2)). Had Rathod stayed silent for forty-five days, Kavya could have elected to treat that as a rejection and would have had to tell Rathod so in writing (section 62(4)). The names and facts are invented, and the forty-five day period is the invitation's own, which the section permits.
What these sections do not say
- They do not say who may act as conciliator or how many; sections 63 and 64 do. See our article on sections 63 and 64.
- They do not require an arbitration agreement or an existing arbitration. Part III applies to "conciliation of disputes" generally, subject to section 61.
- They do not say how long the conciliation may last or how it ends; section 76 deals with termination. See our article on sections 76 and 77.
Need help with starting conciliation?
A well-framed invitation records the dispute, the period for reply and the proposed way forward, so that a later step does not rest on guesswork. Our conciliation services team can help you prepare the written invitation and track the reply period. For the wider choice between processes, see our comparison of arbitration, litigation and mediation.
Key takeaways
- Part III applies to conciliation of disputes arising out of legal relationship, whether contractual or not, unless the parties have otherwise agreed or another law provides otherwise.
- Part III does not apply where another law bars certain disputes from conciliation.
- The initiating party sends a written invitation briefly identifying the subject.
- Conciliation commences only when the other party accepts in writing.
- Thirty days of silence, or the period in the invitation, allows the inviting party to treat the invitation as rejected, by telling the other party in writing.
- The Mediation Act, 2023 provides for sections 61 to 81 to be replaced; its commencement is by notification and the date is not in the sources consulted.
Read next
- Sections 63 and 64: number and appointment of conciliators
- Sections 65 and 66: statements to the conciliator
- Sections 72 to 74: settlement agreement in conciliation and its status
- Mediation Act, 2023: mediation in commercial and trade disputes
Disclaimer: Based on the India Code consolidated text of the Arbitration and Conciliation Act, 1996, whose footnotes show amendments up to Act 3 of 2021 and a latest date of 12 October 2023, as consulted on 2 October 2026. Rules, regulations and notifications under the Act, later amendments and the commencement of the Mediation Act, 2023 should be checked. This article is general information, not legal advice; check the official text before acting.