Arbitration: Rising alternative dispute resolution mechanism


Status as on- 07/10/2021


In the modern era, one and all are opting for various resolution methods to access justice over the old litigations and court proceedings methods. Alternative dispute resolution (ADR) methods are becoming the most favorable procedures to access justice in all civil and commercial matters.

Expansion of Arbitration Mechanism in Modern Era

It is apparent that the court proceedings consume a lot of time and cost. Due to these characteristics of the court system, people are seeking different alternatives methods to settle their disputes. The alternative dispute resolution term is not restricted to a single resolution method, it is far broader. The process of ADR involves several other methods to resolve the dispute including Arbitration, Mediation and Conciliation.

However, the most widely understood of these are arbitration and mediation. In India, Arbitration is governed by Arbitration and Conciliation Act, 1996. The act specify that arbitration agreement must be in writing. It maybe in form of arbitration clause or a separate agreement.

Advantages of Arbitration Mechanism

The Arbitration mechanisms havethe following numerous advantages over the existing litigation process:

  • It can save the financial and public cost of litigation and can resolve the matter faster. While on the other hand the court proceedings and litigations not only rise the cost and duration of the process but also causes physical and mental discomfort.
  • This process can resolve the matter under the confidentiality clause and can avoid the damaging of goodwill.
  • And most significantly, the parties are not bound to follow any legal or procedural rules and regulations, they are free to settle the matter on their terms.

Procedure of Arbitration

The arbitration process involves the following steps:

  • Filing and InitiationLegal Notice should be issued with intent to arbitrate a dispute, informing the nature and basis for the proceeding. Subsequently, the other party then gets a period to respond in writing, indicating whether they agree to resolve this dispute via arbitration. Then arbitration process commences according to the set rules and procedures carefully chosen by the parties or specified by contract.
  • Arbitrator Selection – The parties identify and select an arbitrator based on the criteria determined by the parties.
  • Hearing – Consequently, parties make arguments before the arbitrator(s), call witnesses, and present evidence to establish and defend their respective cases.
  • The Award – Once the hearing is concluded, an arbitrator or panel is given a certain amount of time in which to consider the decision and make a ruling.


The resolution of a dispute via an arbitration mechanism saves time and cost. The proceedings are conducted as agreed by the parties or accordingly. However, if the parties are not satisfied with the award, then it can be challenged also. So, arbitration can definitely be a more favorable option for dispute resolution in most cases depending on the subject matter of the dispute.

Disclaimer: The above article is based on the personal interpretation of the related orders and laws. The readers are expected to take expert opinion before relying upon the article. For more information, please contact us at

Leave a Reply

Your email address will not be published. Required fields are marked *