Alternate Dispute Resolution

Mediation

(Non Binding)

Mediation is the facilitation of a negotiated agreement by a neutral third party who has no decision-making power.

Mediation is now recognized as one of the quickest and most cost-effective ways of resolving a dispute and is the most common form of ADR. The number of disputes mediated annually has increased rapidly in the past decade and evidence suggests that the numbers of mediations each year will continue to increase.

A mediator is an independent third party who is appointed by the parties to help them attempt to negotiate a solution. He will not propose his own solution. The mediation process involves each party sending short written submissions to the mediator followed by a mediation hearing. At the mediation hearing each party will begin by making a presentation to the mediator and normally the other side. The mediator will then meet with each party individually in private in an attempt to facilitate a settlement. The individual private meetings are often known as caucuses. Caucusing may be followed by one or more joint sessions (plenary sessions).

Arbitration

(Binding)

Arbitration is like a court procedure because the parties submit evidence similar to a trial where the third party hear the entire situation and give his decision which is binding upon the parties. In the case of Collins v Collin, the Court held that “An arbitration is a reference to the decision of one or more persons, either with or without an umpire, of some matter or matters in difference between the parties.” an arbitrator listens to the evidence which is brought by both parties and makes a decision which is generally binding upon both parties. Arbitration means getting an arbitral award on an ongoing conflict, by the arbitrator. In the process of arbitration, the cause is heard and determined between the parties in a dispute before the person selected by the parties or appointed under statutory authority i.e., The Arbitration and Conciliation Act, 1996. The objective of Arbitration is to settle the dispute which arose between the parties by one or more arbitrators appointed by them by going through the documents and evidences. According to Kurt Brenn “The objective of arbitration is not compromise but adjudication through the parties are at liberty to comprise.” A wise arbitrator would certainly promote such agreement, but as a rule there is no zest, if there is compromise in arbitral awards. While taking a decision in arbitral matter, the arbitrator must consider the fact that the decision imparted by him must be in the interest of principle of natural justice.