What is the difference between mediation and conciliation?

Legal systems across the world recognise numerous methods of dispute resolution outside the judiciary. These methods are collectively referred to as alternate dispute resolution mechanisms. Such processes of dispute resolution often help to alleviate the burden on the courts and provide unique ways to settle differences. They are also more economical, informal and also quicker than the regular courts.  Among the numerous methods of alternate dispute resolution, mediation and conciliation are some of the most commonly recognised and practiced around the world. Although both these processes are distinct and unique in their own way, they are often misunderstood for one another. Therefore, it is important to understand the differences between the two to decipher which process best suits your situation.
 

What is Mediation?

Mediation is a form of alternate dispute resolution, where the parties seek the assistance of an independent and impartial third party known as the mediator, who is designated to assist the parties to reach a mutual settlement of their dispute, which is suitable to the interests of both parties. Mediation aims at an amicable resolution of the dispute between the parties and is driven by the mediator’s efforts, who employs all techniques of negotiation to facilitate a mutually acceptable outcome.  A distinctive character of mediation as opposed to a court’s adjudication is the fact the decision of the mediator is not binding on the partis, who may choose to ignore it.
 

What is Conciliation?

Conciliation is a form of alternate dispute resolution which focuses on encouraging the parties to arrive at a mutually beneficial settlement by building a positive relationship on the voluntary participation of the parties to the dispute. Under conciliation, the parties of their own volition appoint an impartial and unbiased third party who takes on the role to create dialogue between the parties to reach a settlement. Conciliation is also characterised by the voluntary will of the parties who want to conciliate a dispute. The parties and the conciliator are not allowed to share any confidential information or disclose any part of the proceedings to any third party.
 

Difference between mediation and conciliation

1. In the process of mediation, an impartial third party is designated to resolve the disputes between the parties by creating channels of communication through techniques of negotiation. In conciliation on the other hand, an unbiassed third party is appointed to enable the parties to reach a mutually acceptable outcome by providing possible resolutions and solutions.

2. The method of mediation finds statutory recognition under the Code of Civil Procedure, 1908 and is governed by the provisions therein. On the other hand, the process of conciliation in India is governed by the provisions of a special statute i.e., the Arbitration and Conciliation Act, 1996.

3. The extend of confidentiality is also a distinguishing character between the processes of mediation and conciliation. Where under mediation, the will and trust between the parties determined the degree of confidentiality, mediation is characterised by the legal mandate on the extent of confidentiality to be maintained.

4. In mediation, the third party plays the role of only a facilitator and only facilitates communication, whereas, in conciliation the role played by the third party is that of someone beyond a facilitator i.e. they not only facilitate the conversation or communication but also provide with solutions as experts.

5. The mediation procedure ends with an agreement between the parties, whereas conciliation ends with a settlement agreement between the two parties.