(1) The Internal Committee or, as the case may be, the Local Committee, may, before initiating an inquiry under section 11 and at the request of the aggrieved woman take steps to settle the matter between her and the respondent through conciliation:
Provided that no monetary settlement shall be made as a basis of conciliation.
(2) Where a settlement has been arrived at under sub-section (1), the Internal Committee or the Local Committee, as the case may be, shall record the settlement so arrived and forward the same to the employer or the District Officer to take action as specified in the recommendation.
(3) The Internal Committee or the Local Committee, as the case may be, shall provide the copies of the settlement as recorded under sub-section (2) to the aggrieved woman and the respondent.
(4) Where a settlement is arrived at under sub-section (1), no further inquiry shall be conducted by the Internal Committee or the Local Committee, as the case may be.
Legal Commentary & Landmark Judgments: Section 10
Section 10 provides an optional, non-coercive conciliation mechanism that may be initiated exclusively at the request of the aggrieved woman before initiating a formal inquiry.
Under sub-section (2), where a settlement is reached, the Committee records the terms and forwards them to the employer or District Officer to take action as specified. Copies are provided to both parties. Under sub-section (4), once conciliation succeeds, no further inquiry is conducted by the Committee, unless the respondent fails to comply with the settlement terms.
The statutory embargo against monetary settlements prevents wealthy employers and influential perpetrators from coercing impoverished victims into monetary payoffs to suppress serious workplace misconduct. Conciliation remains an exclusive prerogative of the complainant and cannot be invoked at the instance of the accused.