The document discusses alternative dispute resolution (ADR) mechanisms in India, including arbitration, mediation, and conciliation, highlighting their efficiency, cost-effectiveness, and ability to preserve relationships. It outlines the legal frameworks, processes, and unique features of each method, emphasizing the importance of ADR in reducing court backlog and promoting amicable resolutions. Furthermore, it concludes that the choice of ADR method should depend on the specific nature of the dispute and the preferences of the parties involved.

1. ARBITRATION, MEDIATION
AND CONCILIATION IN
INDIA
UNDERSTANDING ALTERNATE DISPUTE REDRESSAL
(ADR) MECHANISMS

2. Introduction:
■ Alternative Dispute Resolution (ADR) refers to a set of methods and techniques
used to resolve legal disputes outside of traditional courtroom litigation.
■ Includes arbitration, mediation, and conciliation
■ Provides parties with flexible and efficient means to address conflicts and
reach mutually acceptable solutions.
■ ADR promotes collaboration, preserves relationships, and often results in
faster and more cost-effective resolutions compared to formal court
proceedings

3. Importance of ADR in resolving legal
disputes
1. Efficiency
2. Cost effective
3. Flexibility
4. Preservation of relationship
5. Confidentiality
6. Informality
7. Expertise
8. Access to justice
9. Reduced court backlog
10. Compliance and Enforcement

4. ARBITRATION
■ Black’s Law Dictionary: "Arbitration is the process by which parties to a
dispute submit their differences to the judgment of an impartial person or
group appointed by mutual consent or statutory provision.”
■ Section 2(1)(a) of Arbitration and Conciliation Act, 19:”Arbitration” means any
arbitration whether or not administered by a permanent arbitral institution.

5. Features of arbitration in India:
1. Voluntary Nature: Parties voluntarily agree to submit their disputes to arbitration.
■ Section 7: Arbitration agreement to be in writing.
2. Neutral Third-Party Decision-Maker: Arbitration is presided over by a neutral arbitrator or panel
of arbitrators.
■ Section 10: Number of arbitrators and appointment procedures.
3. Informal Proceedings: Arbitration proceedings are less formal compared to court litigation.
■ Section 19: Equal treatment of parties; fair and efficient conduct of proceedings.
4. Binding Decision: Arbitrator's decision (award) is final and binding on the parties.
■ Section 35: Finality of arbitral awards.
5. Confidentiality: Arbitration proceedings are usually confidential.
■ Section 75: Confidentiality of proceedings.
6. Enforceability: Arbitral awards are enforceable in courts.
■ Section 36: Enforcement of arbitral awards.
7. Limited judicial interference: Courts have a limited role in arbitral proceedings.
■ Section 5: Extent of judicial intervention.
8. Flexibility in Procedure: Parties have flexibility in determining procedural rules.
■ Section 19: Freedom to determine procedure.

6. Procedure of arbitration in India
1. Initiation of Arbitration
2. Appointment of Arbitrator(s)
3. Arbitral Tribunal’s Powers
4. Pleadings and Evidence
5. Hearings and Proceedings
6. Interim Measures and Orders
7. Closing of Proceedings
8. Award
9. Enforcement of Award
10. Costs and Expenses
11. Challenge and Set Aside
12. Finality of Award

7. Case laws:
■ Bharat Aluminum Co. v. Kaiser Aluminum Technical Service, Inc. (BALCO case)
■ BCCI v. Kochi Cricket Pvt. Ltd.
■ World Sport Group (Mauritius) Ltd. V. MSM Satellite (Singapore) Pte. Ltd.
■ O.N.G.C. Ltd. V. Saw Pipes Ltd.
■ Sundaram Finance Ltd. V. NEPC India Ltd.

8. MEDIATION
■ Black’s Law Dictionary : "Mediation is a method of dispute resolution involving
a neutral third party who tries to help the disputing parties reach a mutually
agreeable solution.”
■ Mediation not explicitly defined in arbitration and conciliation act and
mediation act.
■ In mediation, parties reach a voluntary settlement with the mediator's
assistance, while in arbitration, the arbitrator renders a binding decision.

9. Legal framework for mediation in
India
■ The Arbitration and Conciliation Act, 1996:While primarily focusing on
arbitration, this Act also includes provisions for conciliation, which is closely
related to mediation.
■ The Civil Procedure Code, 1908 (CPC):Section 89 of the CPC provides for
alternative dispute resolution mechanisms, including mediation.
■ The Mediation Act, 2023:This Act was introduced to enhance the effectiveness
of mediation in India and provide a comprehensive legislative framework for
its implementation. It promotes institutional mediation, provides for the
enforcement of mediated settlement agreements, and establishes a Mediation
Council of India for regulating mediators and mediation institutions.

10. Mediation Act,2023
■ Promotion of Mediation
■ Institutional Mediation
■ Enforcement of Mediated Settlement Agreements:
■ Registration of Mediators
■ Pre-litigation Mediation
■ Confidentiality
■ Time-Bound Process
■ Flexibility
■ Recognition of Online Mediation

11. Case laws:
■ S. Gian Singh v. State of Punjab (2012)
■ Salem Advocate Bar Association v. Union of India (2005)
■ Afcons Infrastructure Ltd. V. Cherian Varkey Construction Co. Pvt. Ltd. (2010)

12. CONCILIATION
■ Black’s Law Dictionary: “a form of alternative dispute resolution in which the
parties to a dispute use a conciliator, who meets with the parties separately in
an attempt to resolve their differences. Unlike mediation, conciliation often
involves the conciliator giving advice to the parties.”
■ Section 61(1) of Arbitration and Conciliation Act, 1996: "conciliation" means a
process in which a conciliator assists the parties in an impartial manner in
their attempt to reach an amicable settlement of their dispute arising out of
or relating to the agreement.

13. Features of conciliation:
1. Impartial Assistance-S. 61(1)
2. Advisory Role- S. 62
3. Informal Procedure- S. 63
4. Confidentiality- S. 67
5. Non-Binding Outcome- S.73
6. Voluntary Participation-S.62(1)
7. Preservation of Relationship-S.61(3)

14. Procedure of conciliation:
1. Commencement of Conciliation Proceedings:
■ Section 62: The conciliation proceedings commence when a party sends a written invitation to
the other party to conciliate.
2. Appointment of Conciliator:
■ Section 64: Upon receiving the invitation, the parties jointly appoint a conciliator.
■ Section 64(1)(b): If the parties fail to agree on a conciliator, either party may request the court to
appoint one.
3. Role of Conciliator:
■ Section 65: The conciliator conducts the proceedings in a manner he considers appropriate, taking
into account the circumstances of the case.
■ Section 67: The conciliator assists the parties in identifying issues, exploring settlement options,
and formulating settlement terms.
4. Confidentiality of Proceedings:
■ Section 75: All communications made during conciliation proceedings are confidential, and no
party can rely on them as evidence in any judicial or arbitral proceedings.
5. Settlement Agreement:
■ Section 74: If the parties reach a settlement agreement, the conciliator draws up and signs the
settlement agreement, which becomes binding on the parties.

15. 6. Termination of Conciliation Proceedings:
■ Section 73: Conciliation proceedings terminate upon the execution of a
settlement agreement, or if the parties notify the conciliator of their decision
to terminate the proceedings.
7. Role of Court in Conciliation:
Section 73(5): The court may, on the application of either party or the conciliator,
extend the time for conciliation proceedings if it deems necessary.
8. Enforcement of Settlement Agreement:
Section 74: A settlement agreement reached through conciliation may be enforced
by the court upon application by either party.

16. Arbitration Mediation Conciliation
Decision-
Making
Authority
make a binding
decision.
Parties control
the outcome;
mediator
facilitates
discussion.
Conciliator may provide advice but does not
make a binding decision.
Formality Formal process
with rules of
evidence.
Informal
process with
flexible rules.
Informal process similar to mediation.
Outcome Binding
decision
(award).
Non-binding;
parties reach a
voluntary
agreement.
Non-binding unless parties agree to formalize
the settlement.
Role of Neutral
Third Party
Arbitrator(s)
act as decision-
makers.
Mediator
facilitates
communication
and
negotiation.
Conciliator may provide advice and suggestions.

17. Conclusion
■ Arbitration, Mediation, and Conciliation offer effective alternatives to
traditional litigation.
■ Each method has unique features and advantages.
■ Arbitration provides a binding decision by a neutral arbitrator.
■ Mediation and Conciliation focus on facilitating communication and
negotiation.
■ The choice of ADR method depends on the nature of the dispute and parties’
preferences.
■ A well-established legislative framework supports ADR in India.
■ ADR methods play a significant role in easing the burden on courts and
promoting efficient dispute resolution.

18. Thank you for your time and interest