DIFFERENCES BETWEEN

ARBITRATION, MEDIATION
AND CONCILIATION.
ALTERNATE DISPUTE RESOLUTION
BY:- ABHIJIT MOHANTY
BBALLB(H)
10TH SEMESTER
WHAT IS ALTERNATE DISPUTE RESOLUTION?

• Dispute resolution involves bringing two or more discordant parties to clear

understanding wherein their differences are ironed out.
• It points to every technique applied for settling dispute between entities.
• The Article 39A of the Indian Constitution clearly states that The State shall secure that
the operation of the legal system promotes justice, on a basis of equal opportunity, and
shall, in particular, provide free legal aid, by suitable legislation or schemes or in any
other way, to ensure that opportunities for securing justice are not denied to any citizen by
reason of economic or other disabilities.
CONTINUED..

• So, to implement their orders, the Parliament came up with various alternative dispute
Resolution (ADR) methods such as arbitration, conciliation, mediation etc to strengthen
the judicial system of the country. Not only Constitution , CPC also provides Section 89
Order 10 Rule 1-A to 1-C to the parties to opt for ADR processes.
WHAT IS ARBITRATION?

• “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.
• The objective of arbitration is not compromise but adjudication through the parties are at
liberty to comprise.
WHAT IS CONCILIATION?

• Part III of the Arbitration and conciliation Act, 1996 deals with conciliation. it is a
voluntary proceeding where parties in dispute agree to resolve their dispute through
conciliation. It is a flexible process which allows the parties to decide the time and place
for conciliation, structure, content and terms of negotiations.
• In Conciliation, the conciliators are trained and qualified neutral person who help the
conflicting parties to make them understand the issues in dispute and their interest to
reach mutually accepted agreements.
WHAT IS MEDIATION?

• Mediation is an informal method of settling disputes, while it consists of basic rules or procedures. The
decision of the mediation is non-binding upon the parties. If the disputed parties have agreed for the
process of mediation then it is not binding upon them to agree upon the proposed opinion of the Mediator.
• Mediation is one of the ancient methods of resolving disputes between the parties. Various forms of
Mediation among businessmen gained recognition during Pre-British rule in India which is referred to as
Med-Arb in the western world.
• As a facilitator, mediator attempts to facilitate discussion and build an agreement between the parties with
an aim to settle the dispute. The decision made by the mediator is not binding like an arbitral award.
 DIFFERENCES
Arbitration
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.
They are binding upon both the
parties.
Arbitral award is final and binding
upon parties.
An arbitrator has the power to
enforce his decision.
Mediation
Mediation refers to a process of
settling disputes by independent and
impartial third party who assists the
parties to reach a common outcome.
They are non binding
The outcome of the mediation
depends upon the parties.
The decision made by the mediator is
not enforceable like an arbitral award.
Conciliation
Conciliation is an alternative dispute
resolution method in which an expert
is appointed to resolve a dispute by
convincing the parties to agree upon
an agreement.
They are non binding in nature.
Conciliation does not always ensure
that a mutually agreed result will arise
between the parties.
A conciliator does not have the power
to enforce his decision.
Arbitration Mediation Conciliation
As per new provision of 2019 In mediation confidentiality In Conciliation Confidentiality is
amendment section 42-A speaks depends upon thrust, and it is determined by the law.
about confidentiality as  ”anything advised for all parties to sign a
contained in any other law for the Confidentiality Clause for extra
time being in force, the arbitrator, measure.
the arbitral institution and the
parties to the arbitration agreement
shall maintain confidentiality of all
arbitral proceedings except award
where its disclosure is necessary for
the purpose of implementation and
enforcement of award.”

Examples:- Damages in case of Examples:- Commercial Examples:- Resolving disputes

breach of contract, matters of the transactions in patents, trademark between contractors and
right to the office, time barred licenses, Joint ventures and R & D subcontractors etc.
claims etc. Contracts, music and film contracts
THANK YOU