(1) Upon termination of the conciliation proceedings, the conciliator shall fix the costs of the conciliation and give written notice thereof to the parties.
(2) For the purpose of sub-section (1), "costs" means reasonable costs relating to—
(a) the fee and expenses of the conciliator and witnesses requested by the conciliator with the consent of the parties;
(b) the cost of any assistance provided pursuant to clause (b) of sub-section (2) of section 64 and section 68;
(c) any other expenses incurred in connection with the conciliation proceedings and the settlement agreement.
(3) The costs shall be borne equally by the parties unless the settlement agreement provides for a different apportionment. All other expenses incurred by a party shall be borne by that party.
Legal Commentary & Landmark Judgments: Section 78
Section 78 of the Arbitration and Conciliation Act, 1996 governs the costs of conciliation, defining allowable items (conciliator's fee, travel, expert advice, administrative assistance) and mandating that costs shall be borne equally by the parties unless agreed otherwise.
In conciliation settlement agreements under Section 73, specify whether any party is reimbursing the other's share of costs; in absence of agreement, Section 78(2) mandates a strict 50:50 equal split.