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narainreddy (Lawyer)     29 July 2007

Arbitration and Mediation

What is the difference between arbitration and mediation. Are both one and the same.


 11 Replies

manishyogi (n/a)     29 July 2007

There is surely a difference which could be seen from their very meaning.


A process of dispute resolution in which a neutral third party (arbitrator) render a decision after a hearing at which both parties have an opportunity to be heard. Where arbitration is voluntary, the disputing parties select the arbitrator who has the power to render a binding decision.


Private, informal dispute resolution process in which a neutral third person, the mediator, helps disputing parties to reach an agreement. The mediator has no power to impose a decision on the parties.

Shaji Joseph (Lawyer)     01 August 2007

The simple thing that in arbitration there is an adjudication on merits of the case and hence is binding on the parties like a court decree.

Mediation is nothing but a mode of settlement attempted at between the litigating parties.

yedhash (n/a)     01 August 2007

[font=""trebuchet ms""]THANXXXX.....for the information. I also want to know what is ADR often referred to in Arbitration topics.[/font]

[font=""Trebuchet MS""]I will start a fresh topic on it better.....:P[/font]

Shambasiv (n/a)     08 September 2007

[font=""trebuchet ms""]The terms mediation and arbitration often are mistakenly used interchangeably.[/font]
[font=""trebuchet ms""]During mediation, a neutral third party merely steers the two disputing parties toward a settlementΓÇöbut has no authority to establish a binding outcome.[/font]

[font=""trebuchet ms""]Arbitration enables a neutral third party to issue a final decision on the matter at hand. The arbiter can rule entirely in favor of one side or the otherΓÇöor can establish a compromise. Prior to an arbitration hearing, both sides should establish limitations on the issues to be resolved and the scope of any relief to be awarded.[/font]

Shaji Joseph (Lawyer)     09 September 2007

Both are forms of ADR. The difference is rightly poined out by Shamasiv.

Shambasiv (n/a)     15 September 2007

[font=""comic sans ms""]

[font=""comic sans ms""]Mediation of a dispute involves using a neutral third party to act as a guide or negotiator. This person may or may not be a legal professional, although a number of legal firms do offer mediation services as an alternative to court. A trained mediator agrees to hear both sides of a dispute objectively, but the main focus remains on the two parties as they work towards a mutually beneficial solution. During mediation, the mediator often meets with each side privately, then schedules face-to-face meetings.[/font]

[font=""comic sans ms""]Arbitration, on the other hand, is generally more formal than mediation. An arbitrator could be a retired or active judge, or a very experienced attorney. During arbitration, both parties are given an opportunity to explain their positions in front of the arbitrator. Much like a regular court proceeding, attorneys can also question witnesses from both sides. During arbitration, there is usually little if any out-of-court negotiations between parties. The arbitrator has the power to render a legally binding decision which both parties must honour.[/font]

adv.ranchi (n/a)     23 September 2007

Simple funda man,

In Arbitration you decide while in mediation you can't decide a dispute, you could only help the parties to settle the dispute arbitrarily.

Hope the concept seems clear

Guest (n/a)     08 March 2008

Thanks for the posts

vijay krishna narala (advocate and studend company secretary)     28 March 2008

and one more important difference is that , the award given by arbitrator is equal to decree of court and is enforceable and has legal validity where the same is absent in mediation and any agreement in mediation process is not legally bound.

SANJAY DIXIT (Advocate)     12 April 2008

Thanks to one and all on the point.

Guest (n/a)     11 August 2008

There are no proper guidelines as far as private mediators are concerned. Is there anyone who has a better information than i do? Can a person trained in mediation practice mediation or he needs some approval from some regulatory body?

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