Sections 76 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.
Section 76 lists four ways in which conciliation proceedings end, and in each case says on which date. Section 77 stops the parties from starting arbitral or judicial proceedings on the same dispute during conciliation, except where a party considers it necessary to preserve its rights. This follows the India Code consolidated text consulted.
Conciliation ends by (a) signing of the settlement agreement, on the date of the agreement; (b) a written declaration of the conciliator, after consultation with the parties, that further efforts are no longer justified; (c) a written declaration of the parties addressed to the conciliator; or (d) a written declaration of a party to the other party and the conciliator, if appointed. Each takes effect on the date of the declaration. During conciliation, the parties shall not initiate arbitral or judicial proceedings on the same dispute, except where, in a party's opinion, they are necessary for preserving his rights (section 77).
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
Section 62 starts conciliation: see our article on sections 61 and 62. Sections 76 and 77 mark its end and its edges. The costs and deposits that follow termination are in sections 78 and 79, covered in our article on sections 78 and 79. If you are deciding whether to leave a conciliation or to file elsewhere to protect a right, our conciliation services team can help you think it through before you act.
Section 76: four ways to end conciliation
Section 76 says the conciliation proceedings shall be terminated:
| Clause | How | Who acts | Date of termination |
|---|---|---|---|
| (a) | By the signing of the settlement agreement by the parties | The parties | The date of the agreement |
| (b) | By a written declaration of the conciliator, after consultation with the parties, to the effect that further efforts at conciliation are no longer justified | The conciliator | The date of the declaration |
| (c) | By a written declaration of the parties addressed to the conciliator to the effect that the conciliation proceedings are terminated | The parties together | The date of the declaration |
| (d) | By a written declaration of a party to the other party and the conciliator, if appointed, to the effect that the conciliation proceedings are terminated | One party | The date of the declaration |
Points to notice in section 76
- Three of the four routes need a written declaration. Clause (a) needs signing of the settlement agreement; clauses (b), (c) and (d) each speak of a written declaration.
- The conciliator's route requires consultation. Clause (b) says "after consultation with the parties". It does not say that the parties must agree, and the text consulted prescribes no form for the consultation.
- One party can end it alone. Clause (d) lets a single party end the proceedings by written declaration to the other party and the conciliator. The words "if appointed" cover the case where no conciliator has yet been appointed.
- The date is fixed in each clause. "On the date of the agreement" or "on the date of the declaration".
- The section is exhaustive in its words. The section says proceedings "shall be terminated" in these four ways; the text consulted names no other.
Section 79(3) provides one more event, outside section 76: if deposits are not paid in full within thirty days, the conciliator may suspend the proceedings or make a written declaration of termination, effective on the date of that declaration. Section 79(3) is printed as a separate sub-section, and this article records it as printed without reconciling it with the four clauses of section 76.
Section 77: resort to arbitral or judicial proceedings
The parties shall not initiate, during the conciliation proceedings, any arbitral or judicial proceedings in respect of a dispute that is the subject-matter of the conciliation proceedings, except that a party may initiate arbitral or judicial proceedings where, in his opinion, such proceedings are necessary for preserving his rights.
| Element | Text |
|---|---|
| The rule | The parties shall not initiate arbitral or judicial proceedings |
| When | During the conciliation proceedings |
| About what | A dispute that is the subject-matter of the conciliation proceedings |
| The exception | A party may initiate them where, in his opinion, they are necessary for preserving his rights |
Reading section 77
- "Initiate". The bar is on starting proceedings. The section does not speak of proceedings already pending.
- "During the conciliation proceedings". The bar lasts while the conciliation lasts; section 76 fixes when it ends. Before it commences (section 62(2)) and after it terminates, this section's bar does not by its words apply.
- Both arbitral and judicial proceedings are covered.
- The exception turns on the party's own opinion. The words are "in his opinion". The section does not say that anyone else reviews that opinion, and the text consulted does not elaborate. No court decision is cited here.
- The exception is for "preserving his rights", not for pursuing the dispute generally.
For limitation, see our Limitation Act articles, because the text of section 77 itself states no period and no effect on limitation. Section 43 of this Act applies the Limitation Act, 1963 to arbitrations; see our article on section 43.
Section 77 beside section 80
Section 80 deals with the conciliator's role in other proceedings: unless otherwise agreed by the parties, the conciliator shall not act as an arbitrator or as a representative or counsel of a party in any arbitral or judicial proceeding in respect of a dispute that is the subject of the conciliation proceedings, and shall not be presented by the parties as a witness. See our article on sections 80 and 81.
| Provision | Who is restrained | Subject |
|---|---|---|
| Section 77 | The parties | Initiating arbitral or judicial proceedings during conciliation |
| Section 80 | The conciliator | Acting as arbitrator, representative, counsel or witness in other proceedings |
An illustration
Iyer Pharma Ltd and Dutta Distributors are in conciliation over short supply. Dutta's counsel considers filing a suit now. Section 77 says the parties shall not initiate judicial proceedings on that dispute during the conciliation, unless Dutta is of the opinion that filing is necessary to preserve its rights. If Dutta files for that reason, the exception in section 77 is the provision it would point to. Separately, if Iyer writes to the conciliator and to Dutta saying that it terminates the conciliation, section 76(d) ends the proceedings on the date of that declaration. Names and facts are invented.
Need help deciding when to stop conciliating?
Ending conciliation, or filing elsewhere while it runs, has consequences for your position. Our conciliation services team can help you draft a written declaration, plan the timing and keep a clear record of the date on which the proceedings ended.
Key takeaways
- Conciliation ends by signing of the settlement agreement, or by a written declaration of the conciliator, of both parties, or of one party (section 76).
- Each route takes effect on a stated date: the date of the agreement or of the declaration.
- During conciliation the parties shall not initiate arbitral or judicial proceedings on the same dispute (section 77).
- The exception is where a party, in his opinion, considers proceedings necessary for preserving his rights.
- Section 79(3) separately allows termination for unpaid deposits.
- The Mediation Act, 2023 provides for replacement of sections 61 to 81; commencement by notification, date not in the sources consulted.
Read next
- Sections 78 and 79: costs and deposits in conciliation
- Sections 80 and 81: conciliator in other proceedings and admissibility of evidence
- Sections 72 to 74: settlement agreement in conciliation and its status
- Sections 21, 24 and 29 of the Mediation Act, 2023: non-settlement report, termination and limitation
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.