Section 61 Arbitration Act: Application and scope of conciliation

Section 61 of Arbitration and Conciliation Act, 1996: Application and scope of conciliation

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

(1) Save as otherwise provided by any law for the time being in force and unless the parties have otherwise agreed, this Part shall apply to conciliation of disputes arising out of legal relationship, whether contractual or not and to all proceedings relating thereto.

(2) This Part shall not apply to the extent to which by virtue of any law for the time being in force, certain disputes may not be submitted to conciliation.

Statutory Defined Terms in this Section: (Click any term for official legal definition)

Arbitration Sec 2(1)(a)

Legal Commentary & Landmark Judgments: Section 61

Section 61 of the Arbitration and Conciliation Act, 1996 defines the application and scope of conciliation under Part III, establishing that it applies to contractual and non-contractual legal relationships, while preserving laws that prohibit conciliation.

Scope of Part III Conciliation: Save as otherwise provided by any law, Part III shall apply to conciliation of disputes arising out of a legal relationship, whether contractual or not, and to all proceedings relating thereto.
Exclusion of Non-Conciliable Disputes: Section 61(2): Part III shall not apply to disputes which by virtue of any law may not be submitted to conciliation (e.g., criminal offences, insolvency, matrimonial dissolution).
Voluntary ADR Mechanism: Emphasizes consensual, non-adversarial resolution guided by an impartial third party.

Key Landmark Precedents:

Mysore Cements Ltd. v. Svedala Barmac Ltd., (2003) 10 SCC 375: The Supreme Court authoritatively analyzed Part III, holding that conciliation under Section 61 is a voluntary consensual process; a settlement arrived at under Section 73 is elevated to the status of an arbitral award on agreed terms.
Haresh Dayaram Thakur v. State of Maharashtra, (2000) 6 SCC 179: The Supreme Court held that the provisions of Part III must be strictly followed; an informal mediation report that does not comply with Section 73 cannot be executed as a decree under Section 74.

Courtroom Practice & Strategic Litigation Guidance:

In commercial contracts, incorporate a multi-tier dispute resolution clause providing for mandatory conciliation under Section 61 before initiating arbitration; if conciliation succeeds, the agreement becomes an executable decree.

Section 61: Application and scope of conciliation

Section 61 of Arbitration and Conciliation Act, 1996: Application and scope of conciliation

Legal Commentary & Landmark Judgments: Section 61