Differences between Arbitration and Mediation

     Differences between Arbitration and Mediation

Points

Arbitration

Mediation

Meaning

Arbitration can be regarded as a quasi-judicial process. It is a mode or system of solving disputes among the parties through a unbiased third party called the arbitrator whose decision is binding on the parties.

Mediation is a voluntary and party-centric procedure where the parties to the dispute settle their issues with the help of a neutral third party called the mediator. It is collaborative and non-binding.

Procedure

It is a formal procedure like judicial proceedings.

It is an informal process.

Third party

Third party is termed as the arbitrator.

The third party is termed as a mediator.

Number of third party

One arbitrator is known as the sole arbitrator, and there can be more than one arbitrator.

One mediator.

Nature of award

They are binding upon both parties.

They are non-binding in nature.

Control over outcome

The outcome of the arbitration depends upon the evidence, documents, etc.; the decision depends upon the arbitrators.

The outcome of the mediation depends upon the parties.

Decision

In arbitration the parties put forward their issue or difference before the arbitrator. The arbitrator after hearing both the parties gives their decision i.e, an arbitral award. The arbitral award is legally enforceable and binding upon both the parties.

The Mediator cannot pass any order. A binding settlement is concluded only when the parties arrive at a mutually agreeable solution.

 

References:

1. Characteristics of Alternate Dispute Resolution (ADR) and Advantages and Disadvantages of Alternate Dispute Resolution (ADR)

 2. Legal Education in India: Challenges, Innovations, and a Vision

3. Sources of Law

4. Salient features of Arbitration and Conciliation Act, 1996.

5. Disscuss the Differences between Arbitration and Conciliation

6. What type of Matter Cannot be subject to ADR (Alternative Dispute Resolution)

7. Discuss the historical background and objectives of the Arbitration and Conciliation Act, 1996

8. What is an Interim Measure by Court Under Section 9 of the Arbitration and Conciliation Act 1996

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