(1) The conciliator may direct each party to deposit an equal amount as an advance for the costs referred to in sub-section (2) of section 78 which he expects will be incurred.
(2) During the course of the conciliation proceedings, the conciliator may direct supplementary deposits in an equal amount from each party.
(3) If the required deposits under sub-sections (1) and (2) are not paid in full by both parties within thirty days, the conciliator may suspend the proceedings or may make a written declaration of termination of the proceedings to the parties, effective on the date of that declaration.
(4) Upon termination of the conciliation proceedings, the conciliator shall render an accounting to the parties of the deposits received and return any unexpended balance to the parties.
Legal Commentary & Landmark Judgments: Section 79
Section 79 of the Arbitration and Conciliation Act, 1996 empowers the conciliator to direct the parties to deposit an equal advance for the estimated costs of conciliation, and to terminate proceedings upon default.
Pay the advance deposit requested under Section 79 promptly; if the other party fails to pay their share within 30 days, pay their share to keep conciliation alive, or request the conciliator to terminate under Section 76(b).