Alternative dispute resolution is a settlement of dispute between the parties, it provides a confidential and alternative method of tackling the problems which avoids going to courts. There are various methods of alternative dispute resolution like: Arbitration, Conciliation, Mediation, Negotiation.
Arbitration: It is a process in which disputes resolve between the parties by appointing a independent third party who is impartial and neutral person called arbitrator. Arbitrator hear both the parties before arriving at a solution to their dispute.
Conciliation: It is a process in which disputes resolve between the parties by appointing a conciliator who help (amicable) the disputed parties to arrive at a negotiated settlement. Settling the dispute without litigation, it is informal process.He does by lowering tensions, improve communication, interpreting issues, providing technical help.
Difference between Arbitration and Conciliation:
1.The person appointed for the process of arbitration is called arbitrator. Appointment of Arbitrator is done under provision of section 11 of Arbitration and Conciliation act 1996. While, the person appointed for the process of Conciliation is called conciliator. Appointment of conciliator is done under the provisions of section 64 of Arbitration and Conciliation act 1996.
2.An arbitrator has the power to enforce his decision.While, the person appointed to settle the dispute don't have power to enforce the decision taken by him.
3.To settle the dispute through the process of arbitration, prior agreement is required. While, to settle the dispute through the process of Conciliation no prior agreement is required.
4. Arbitration is available for existing and future dispute as well but conciliation is available for existing disputes only, it don't focus on the future dispute.
5. Arbitration is a legal proceeding while conciliation is not a legal proceeding.
Both arbitrator and concilator guiding by the principle of objectivity, fairness, and justice. They conduct the proceedings in such a manner which consider appropriate.They help to settle the dispute between the parties.