There is a difference between Arbitration and mediation.


According to the strategy paper presented by NITI Aayog, 29,000,000 cases were pending in Indian courts. Given the number of appointed judges, it was estimated that it would take 324 years to clear this backlog. These numbers have certainly increased. These figures show the immense burden placed on the Indian judiciary and the time-consuming perception that Indian judges have. The traditional litigation process is time-consuming and costly, often making it inefficient. People are now looking for alternative methods of resolving disputes because of this. Arbitration and conciliation are two options for dispute resolution.

A brief overview of Arbitration and conciliation

Other than traditional litigation, there are three different options for redress. Arbitration and conciliation are two of the most prominent. These two dispute resolution options can be used to settle disputes between multiple parties. Both options aim to reach a fair and acceptable solution without going to court. While both methods are intended to save time and money, there are critical differences between Arbitration & conciliation. This article will provide an overview of key differences between Arbitration and conciliation and help readers determine the best course of action in different situations.

Arbitration is a legal process for resolving disputes. A neutral group of people is named an arbitration tribunal under the 1996 Arbitration and Conciliation Act. Their main task is to listen to both sides and consider all relevant evidence. Then they make a binding decision, also known as an arbitral order, on their dispute based on the evidence and arguments presented to them. The tribunal’s decision is binding and final. There is no appeal unless fraud or corruption is proven against the parties. Arbitration is used primarily to resolve disputes relating to contractual obligations, such as employment, construction, or other commercial issues. Arbitration is often used instead of traditional court litigation because it is faster, more informal, and cheaper for the parties.

Conciliation is a non-binding process where a neutral person, also known as a conciliator, is appointed. Their main task is to help both parties find a mutually acceptable resolution to their dispute by assisting them in reaching common ground and facilitate communication. The conciliator can make suggestions but not give binding decisions applicable to all parties. The process is used to resolve personal or emotional disputes, such as family law or workplace disputes. Conciliation can be used to save time and money in many cases.

Each of the redressal methods discussed have unique advantages and disadvantages. The choice between them all depends on the particular circumstances of the dispute. When choosing between these two options, parties should consider the nature of the dispute, their desired outcome, and any other needs. Parties can make informed decisions about which redressal mechanism is best for them. This will allow them to choose the right one for their dispute. Parties may also seek the assistance of legal counsellors to help them choose the right redressal mechanism for their specific dispute.

What is Arbitration?

Let’s now understand what “arbitration” actually stands for. Let’s now understand what the word “arbitration” actually means. The term comes from the Latin word arbitrary, which means “to adjudicate.”

Arbitration is often used in civil disputes. Arbitration does not apply to criminal cases. A clause must be included in the agreement by both parties. Parties must include a clause in their agreement when there is a dispute.

In recent years, Arbitration has been a popular method of resolving disputes. There are two main reasons for this. It saves time and helps both the parties and the Indian judiciary by reducing time. A second reason is that parties in normal litigation proceedings are often discredited by the media when they report the outcome of any trial. This can cause damage to the reputation of the parties and draw unnecessary attention to the dispute. Arbitration can help to reduce this unnecessary attention.

What is conciliation?

The term “conciliation” is closely related to the Latin term “conciliare ,” which means “to unify.” Conciliare is a third type of alternative dispute resolution mechanism involving a neutral party, usually one person. Their main task is to solve the dispute between the parties through communication and negotiation and to bring them to an agreement. Conciliation proceedings are designed to facilitate communication and negotiation between the parties and bring them to a common ground.

Conciliation is preferable in a wide range of disputes, including those that arise from employment, family, or commercial disputes. Conciliation is confidential, flexible, informal, and confidential. This process is more efficient than traditional court proceedings and helps to resolve disputes faster. Parties can retain control of the outcome and can tailor the conciliation process to suit their needs and interests.

A settlement agreement reached through conciliation is typically written down and signed by both the parties. It then becomes legally binding. Conciliation offers significant advantages, including the flexibility and informality of conciliation, confidentiality of proceedings and the possibility for the parties to reach an acceptable solution. Before agreeing to this type of dispute resolution, however, it is important that you carefully review the qualifications of the conciliator as well as the terms of any conciliation agreement.

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