2.2.1. Tools of Alternative Dispute Redressal

♤ Arbitration is a process in which a neutral third party or parties render a decision based on the merits of the case. It is less formal than a trial, and the rules of evidence are often relaxed.

o It can start only if there exists a valid arbitration agreement between the parties prior to the emergence of the dispute.

♤ Mediation is a process in which a non-partisan third party “the mediator” facilitates the development of a consensual solution by the disputing parties.

o The mediator does not decide the dispute but helps the parties communicate so they can try to settle the dispute themselves. The authority of the mediator vests on the consent of the parties that he should facilitate their negotiations.

♤ Conciliation is a process by which resolution of disputes is achieved by compromise or voluntary agreement. It is a less formal form of arbitration.

o In contrast to arbitration, the conciliator does not render a binding award. The parties are free to accept or reject the recommendations of the conciliator.