Efficient, Enforceable, and Confidential Dispute Resolution — Without the Delays of Court
Arbitration is a private, legally recognised method of resolving disputes outside the court system. Parties agree to refer their dispute to one or more arbitrators, who hear arguments, examine evidence, and issue a binding decision known as an Arbitral Award.
In India, arbitration is governed by the Arbitration and Conciliation Act, 1996 (as amended in 2015, 2019, and 2021). An arbitral award passed in India is binding and enforceable as a decree of a civil court under Section 36 of the Act.
Mediation is a voluntary, confidential process in which a neutral third-party mediator assists disputing parties in reaching a mutually acceptable settlement. Unlike arbitration, the mediator does not impose a decision — the resolution comes from the parties themselves.
India has now enacted the Mediation Act, 2023, which provides a statutory framework for mediation in India, including online mediation, and makes mediated settlement agreements enforceable.
• Speed: Arbitrations are typically concluded within defined timelines — far faster than courts.
• Confidentiality: Proceedings and awards are private — not public court records.
• Cost-Effectiveness: Reduced procedural complexity often means lower overall costs.
• Party Autonomy: Parties choose the arbitrator, venue, language, and procedural rules.
• Finality: Limited grounds to challenge an arbitral award under Section 34 of the Act.
• Enforcement: Domestic awards are enforceable as court decrees. Foreign awards are enforceable under the New York Convention (Part II of the Act).
• Expert Decision-Makers: Parties can appoint arbitrators with subject-matter expertise.
• Online Proceedings: Arbitrations and mediations can be conducted virtually, removing geographical barriers.
• Commercial and business disputes
• Contract breaches and payment recovery
• MSME payment disputes
• Partnership and shareholder disputes
• Construction and real estate disputes
• Textile, trading, and export-import disputes
• Insurance and indemnity claims
• Technology and service agreement disputes
• Cross-border commercial matters
• Employment and compensation disputes (where agreement exists)
1. Arbitration Agreement: Parties must have an arbitration clause in their contract or enter a separate arbitration agreement.
2. Notice of Arbitration: The claimant issues a notice invoking the arbitration clause.
3. Appointment of Arbitrator: Parties agree on an arbitrator, or seek appointment through a court under Section 11 of the Act.
4. Statement of Claim & Defence: Parties file their written claims and defences.
5. Hearings: The arbitrator conducts hearings — which may be oral or documentary, in person or online.
6. Evidence & Arguments: Parties present evidence and legal submissions.
7. Arbitral Award: The arbitrator issues a reasoned, written award within the agreed or statutory timeframe.
8. Enforcement: The award is enforceable as a decree of a civil court under Section 36.
Under Section 36 of the Arbitration and Conciliation Act, 1996, once the time for filing an objection under Section 34 has expired (or any objection has been dismissed), an arbitral award shall be enforced as if it were a decree of the court. This makes arbitral awards legally powerful instruments of dispute resolution.
For international commercial arbitrations, foreign awards made in countries that are parties to the New York Convention or the Geneva Convention are enforceable in India under Part II of the Act.
Pramod Kumar Bhardwaj ADR offers online arbitration and mediation services for clients across India. Proceedings can be conducted by video conferencing, with document exchange by email and secure digital platforms — providing the full benefit of arbitration without the need to travel.