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Difference between Arbitration and Mediation

Alternative dispute resolution it is the process of settling down the  dispute between the parties outside the court. Arbitration is one of the modes of alternative dispute resolution to resolve civil dispute outside the court. Arbitration is normally used for the commercial disputes, especially in the context of international commercial transaction. The person who arbitrates, is known as arbitrator. Like arbitration mediation is also one of the modes of alternative dispute resolution to resolve civil dispute outside the court. Usually, under the mediation process a neutral and impartial third party who is an expert of law others experience person called as mediator resolve the dispute arise between two parties. Types of dispute that can be mediated are commercial, contract, diplomatic, workplace, community, property, and family and matrimonial matters.

Dispute resolved by Arbitration and Mediation has the value has the decision passed by court of law. And arbitration award mediator settlement if aacepted and duly signed by both the parties it is a valid decision.

Based on Nature: arbitration is a formal process and it follows almost same proceeding as in litigation but outside the court whereas, mediation is a informal process 

Based on Elements: arbitration need steps in evidence. Mediation does not require any kind of evidence.

Arbitration is more expensive where is mediation is less expensive process.

Arbitration gives decision under which one party wins and other party loses; after arbitration the relation among parties may be strained. In in mediation the dispute is resolved,  it is win win situation for the party with little compromise so there is a possibility of friendly relation between the parties after the settlement.

In arbitration, parties have hardly any personal relationship as well as private communication with the arbitrator is prohibited. In Mediation there is as such no restriction.

Both Arbitration and Mediation help the disputed parties to resolve the dispute without going to the court and it provides efficient and speedy justice to the parties.


  • Introduction
  • Difference between Arbitration and Mediation
  • Conclusion

BY : Amrisha Jain

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