Difference between Mediation and Conciliation, Meaning, Features

Aspect

Mediation

Conciliation

Definition

A structured negotiation process where a mediator facilitates communication and helps parties voluntarily reach an agreement without imposing decisions.

A dispute resolution process where a conciliator actively participates, suggests solutions and works to bring parties to a compromise settlement.

Role of Third Party

Mediator acts only as a facilitator, ensuring dialogue, identifying issues and guiding parties without suggesting or imposing settlement terms.

Conciliator plays an active role by evaluating issues, proposing solutions and influencing parties toward a mutually acceptable settlement.

Nature of Procedure

Flexible and informal process with no strict procedural rules; parties decide how sessions are conducted based on mutual agreement.

More structured compared to Mediation; may involve formal hearings, evidence submission and defined stages under statutory framework.

Outcome Control

Entire control of outcome lies with parties; mediator does not influence final decision, ensuring voluntary and mutually agreed settlement.

Conciliator significantly influences outcome through suggestions, though final agreement is formally accepted by parties involved.

Legal Framework

Recognised under Civil Procedure Code, 1908 and Mediation Act, 2023, including provisions like pre litigation Mediation under Section 12A of Commercial Courts Act, 2015.

Governed by Arbitration and Conciliation Act, 1996 (Part III), with structured provisions for initiation, proceedings and settlement agreement.

Enforceability

Mediated settlement agreement under Section 27(2) of Mediation Act, 2023 is enforceable like a civil court decree.

Settlement agreement under Section 74 of Arbitration and Conciliation Act, 1996 is enforceable as an arbitral award.

Decision Making Power

Parties retain full authority to decide terms; mediator has no power to impose or draft independent solutions.

Conciliator may draft and reformulate settlement terms based on discussions and suggestions from parties.

Confidentiality

Based on mutual trust and voluntary disclosure; confidentiality is maintained throughout flexible proceedings.

Confidentiality is legally structured and governed by statutory provisions ensuring protection of proceedings and disclosures.

Objective

Focuses on maintaining long term relationships by encouraging dialogue, cooperation and mutual understanding between parties.

Aims to achieve settlement quickly, especially where compromise is necessary to continue contractual or institutional relationships.

Applicability

Suitable for family disputes, commercial disagreements and cases involving ongoing relationships or reputation concerns.

Common in labour disputes, industrial conflicts and situations with unequal bargaining power, such as under Industrial Disputes Act, 1947.

Formality Level

Less formal compared to Conciliation and arbitration; emphasis on voluntary participation and communication.

More formal than Mediation but less than arbitration; includes structured hearings and involvement of conciliator in proceedings.

Initiation Process

Begins through mutual agreement or court referral; proceedings start upon notice or appointment of mediator.

Initiated through written invitation to conciliate, followed by acceptance and appointment of one or more conciliators.

Outcome Nature

Results in mediated settlement agreement or failure report if no consensus is reached between parties.

Results in a written settlement agreement prepared and authenticated by conciliator, binding on both parties.

International Framework

Guided by UNCITRAL Mediation Rules, 2021 and Singapore Mediation Act, 2017 defining mediator’s limited authority.

Influenced by UNCITRAL Conciliation Rules, 1980, providing structured guidelines for international Conciliation proceedings.