Dispute Settlement Agreement

Mediation- The first method of solving disputes is mediation which involves usually a voluntary arrangement whereby the parties appoint by a method agreed by the parties to listen to the arguments of each side a third party as a mediator to discuss the case with either separately or together and tries to help the parties to reach a settlement.

The mediator does not have any authority except assisting the parties in recognizing the strengths and the weaknesses of their arguments and to look forward for a solution on which they can agree, which is usually done through an agreement on common ground. Unlike the arbitration or conciliation there is no specific law that deals with mediation in India. Hence, unlike the other statutorily-recognized forms of non-binding alternative mechanism dispute resolution (being conciliation), confidentiality in the mediation process is not specifically provided for in any law in India.

Arbitration- Arbitration is a process where a neutral third party is appointed as an Arbitrator for resolving the disputes; they are more like private judges also there can be one or more than one arbitrators involved. It is the most reliable way of solving a dispute between the parties. An agreement is formed already called an Arbitration Agreement which is a way of solving disputes if any arises in future. The Arbitration in India is governed by Arbitration and Conciliation Act, 1996.