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Sections 67–68 of the Arbitration and Conciliation Act, 1996: role of the conciliator and administrative assistance

The conciliator assists the parties in an independent and impartial manner to reach an amicable settlement (section 67(1)). The guide is objectivity, fairness and justice (section...

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October 2, 2026
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Last updated: October 2026Applies to: FY 2026-27 (AY 2027-28)Verified against: Government sources

Section 67 says what a conciliator is there to do: assist the parties, independently and impartially, to reach an amicable settlement. It also sets the principles that guide the conciliator, leaves the conduct of the proceedings largely to the conciliator, and allows proposals at any stage. Section 68 allows administrative assistance from a suitable institution or person. This follows the India Code consolidated text consulted.

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. 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 explains the amendments.

Where these sections fit

After the invitation (section 62), the appointment (sections 63 and 64) and the statements (sections 65 and 66), section 67 describes the conciliator's own role. See our articles on sections 65 and 66 and on sections 63 and 64. If you are about to enter a conciliation and want to understand what the conciliator can and cannot do, our conciliation services team can talk it through with you.

Section 67(1): independent and impartial assistance

The conciliator shall assist the parties in an independent and impartial manner in their attempt to reach an amicable settlement of their dispute.

Two points. The duty is to assist, not to decide. And it is the parties' "attempt" to reach a settlement: the settlement is theirs. The word "shall" makes independence and impartiality a duty of the conciliator under the section.

Section 67(2): the guiding principles

The conciliator shall be guided by principles of objectivity, fairness and justice, giving consideration to, among other things:

  • the rights and obligations of the parties;
  • the usages of the trade concerned; and
  • the circumstances surrounding the dispute, including any previous business practices between the parties.

The list is introduced by "among other things", so it is not closed. For a trader or supplier, the reference to usages of the trade and previous business practices is worth noticing: the conciliator is told to look at how the parties have actually dealt with each other.

Section 67(3): conduct of the proceedings

The conciliator may conduct the conciliation proceedings in such a manner as he considers appropriate, taking into account:

  1. the circumstances of the case;
  2. the wishes the parties may express, including any request by a party that the conciliator hear oral statements; and
  3. the need for a speedy settlement of the dispute.

The conciliator has discretion; the section lists three things to take into account. It says nothing on a timetable, and the text consulted gives none for conciliation as a whole.

Section 67(4): proposals for a settlement

The conciliator may, at any stage of the conciliation proceedings, make proposals for a settlement of the dispute. Such proposals need not be in writing and need not be accompanied by a statement of the reasons therefor.

This is a notable feature. The Act does not require the conciliator to write down proposals or to explain them. Section 81 later deals with what the parties may rely on in other proceedings, and "proposals made by the conciliator" is one of the items listed there; see our article on sections 80 and 81.

Section 68: administrative assistance

In order to facilitate the conduct of the conciliation proceedings, the parties, or the conciliator with the consent of the parties, may arrange for administrative assistance by a suitable institution or person.

The section does not name any institution, and it does not say what "administrative assistance" covers. The text consulted gives no list. Costs of any assistance provided under section 68 come into the "costs" defined in section 78(2)(c); see our article on sections 78 and 79.

Section 68 beside section 6

Section 6, in Part I, is the matching provision for arbitration.

PointSection 6 (Part I)Section 68 (Part III)
PurposeTo facilitate the conduct of the arbitral proceedingsTo facilitate the conduct of the conciliation proceedings
Who may arrangeThe parties, or the arbitral tribunal with the consent of the partiesThe parties, or the conciliator with the consent of the parties
ProviderA suitable institution or personA suitable institution or person

The two sections are in the same terms apart from the proceedings and the person named. See our article on sections 5 and 6 for section 6 in full.

Summary of the conciliator's role in sections 67 and 68

ProvisionSubjectKey words
67(1)DutyAssist; independent and impartial; amicable settlement
67(2)GuidanceObjectivity, fairness, justice; rights and obligations; usages of trade; previous business practices
67(3)ConductAs he considers appropriate; wishes of the parties; oral statements; speedy settlement
67(4)ProposalsAny stage; need not be in writing; no reasons needed
68Administrative helpParties, or conciliator with consent; suitable institution or person

An illustration

Chopra Exports Pvt Ltd and Bhatt Logistics are in conciliation over a disputed freight charge. Chopra asks that the conciliator hear oral statements, and she agrees to do so, noting the need for a speedy settlement (section 67(3)). After two meetings she suggests a settlement figure orally, without giving reasons; the Act does not require a written proposal (section 67(4)). The parties agree that a local institution will arrange the meeting room and the record-keeping, which is administrative assistance under section 68. Names and facts are invented.

Need help in a conciliation?

Understanding the conciliator's role helps you decide what to put forward and when. Our conciliation services team can prepare you for the process, help you assemble the facts on trade usage and past dealings, and review any proposal that is put on the table.

Key takeaways

  • The conciliator assists the parties, independently and impartially, towards an amicable settlement (section 67(1)).
  • Guiding principles are objectivity, fairness and justice, with regard to rights, obligations, trade usages and previous practices (section 67(2)).
  • The conciliator has discretion over conduct, taking account of the case, the parties' wishes and the need for a speedy settlement (section 67(3)).
  • Proposals may be made at any stage and need not be written or reasoned (section 67(4)).
  • Administrative assistance may be arranged by the parties, or by the conciliator with their consent (section 68).
  • The Mediation Act, 2023 provides for replacement of sections 61 to 81; commencement by notification, date not in the sources consulted.

Read next

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.

Quick recapKey facts & short answers

Key Facts About Sections 67

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Does the conciliator decide the dispute?

No. Section 67(1) says the conciliator assists the parties in their attempt to reach an amicable settlement. The sections in Part III that follow deal with the settlement agreement the parties may sign.

Must the conciliator's proposals be in writing?

No. Section 67(4) says proposals need not be in writing and need not be accompanied by reasons.

If a term matters, put it in the document; if it is not in the document, do not rely on it.

— TaxClue Legal Desk

Sections 67: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

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Questions, answered

Short, direct answers to the 7 questions readers ask most on this topic.

No. Section 67(1) says the conciliator assists the parties in their attempt to reach an amicable settlement. The sections in Part III that follow deal with the settlement agreement the parties may sign.

No. Section 67(4) says proposals need not be in writing and need not be accompanied by reasons.

Objectivity, fairness and justice, giving consideration to, among other things, the parties' rights and obligations, trade usages and previous business practices (section 67(2)).

Section 67(3) tells the conciliator to take into account the wishes of the parties, including any request that the conciliator hear oral statements. It leaves the decision on the manner of conduct to the conciliator.

The parties, or the conciliator with the consent of the parties (section 68). The assistance comes from a suitable institution or person.

The text of sections 67 and 68 sets none. Section 67(3) refers only to "the need for a speedy settlement".

The text consulted prints it. The Mediation Act, 2023 provides for sections 61 to 81 to be replaced; commencement by notification, date not in the sources consulted. Check whether that change is in force.