Introduction
Alternative dispute resolution (ADR) is a technique used to resolve disagreements and disputes between parties without going to court. Two forms of ADR, conciliation and arbitration, are often used for this purpose. This article provides an overview of these methods and highlights their similarities and differences.
What is Conciliation?
Conciliation is a process in which an impartial individual, known as a conciliator, aids in the settlement of a dispute between two parties. The conciliator actively engages with both parties to arrive at an agreeable resolution. They facilitate discussions, negotiate on behalf of the parties, and work towards a settlement. The main advantage of conciliation is that it is not legally binding, allowing for ongoing negotiation until a mutually acceptable agreement is reached.
What is Arbitration?
Arbitration, like conciliation, is a form of dispute resolution without going to court. It involves presenting the case to a panel of arbitrators, along with supporting evidence. Each party selects one arbitrator, who then agree on a third arbitrator. The arbitrators evaluate the evidence and provide a binding decision. Compared to court proceedings, arbitration offers advantages such as the ability to choose preferred arbitrators and increased privacy. However, once a decision is made, there is limited opportunity for appeal unless clear evidence of fraud is presented.
Conciliation vs Arbitration
Conciliation and arbitration serve the common goal of peacefully resolving conflicts between parties outside of the court system. However, there are significant differences between the two methods. In conciliation, communication primarily goes through the conciliator, while in arbitration, a panel of arbitrators hears the case. The decision made by the conciliator is not binding, allowing for negotiation, while the decision of arbitrators is legally binding and may have limited room for appeal.
Difference Between Conciliation and Arbitration
– Conciliation and arbitration are forms of ADR used to resolve disputes without going to court.
– Conciliation involves an impartial conciliator working with the parties to reach a settlement.
– Arbitration is more like a mini court, with a panel of arbitrators hearing the case and making a binding decision.
Highlights
1. Alternative dispute resolution (ADR) is a technique used to resolve disagreements and disputes by coming to an agreeable settlement through discussion and negotiation.
2. Conciliation is a form of dispute resolution where an impartial individual, known as a conciliator, works with the parties involved to arrive at a settlement or resolution.
3. Arbitration is a form of dispute resolution where parties present their case to a panel of arbitrators, along with supporting evidence, and the decision made by the arbitrators is binding.
