This Agreement is a way of resolving disputes by getting the parties to compromise and avoid taking the case to trial via an independent third party, the Conciliator.
It is generally needed to provide a legal assurance regarding the terms and conditions of the said conciliation. This prevents any future legal disputes.
This Agreement can be enforced legally by printing it on a non judicial stamp paper duly signed by both the parties and the concerned witnesses.
You may use it if you want a quick and economical way to resolve dispute without having to go to any court.