Alternative dispute resolution is the collective name for arbitration, conciliation and mediation, which are ways of settling disputes outside the traditional courtroom. It is for businesses and contractors whose contracts contain arbitration clauses, for companies facing commercial or civil claims they would rather settle confidentially, for families and joint households who want to preserve relationships while dividing property, and for litigants whom the court itself refers to mediation. In Odisha, arbitrations seated in Bhubaneswar are conducted by private tribunals with support from the civil courts, mediation runs through court-annexed centres under the Odisha State Legal Services Authority and the Mediation Centre of the High Court of Orissa at Cuttack, and arbitral awards are challenged or enforced through the courts. Alternative dispute resolution is usually faster, cheaper and more confidential than litigation, and for many businesses in Odisha it is now the default first step rather than a reluctant fallback. This page explains, in plain language, how each of these processes works and when to choose it.
What alternative dispute resolution covers
Alternative dispute resolution is not a single procedure but a family of three distinct processes, each with its own law, pace and finality. Choosing among them is a strategic decision that should be made at the contract-drafting stage where possible, not after the dispute has erupted. We routinely advise clients of Bismay Dash & Associates on that choice across commercial, civil and family matters.
The three mechanisms are not interchangeable. Arbitration suits disputes where the parties need a binding decision from an expert tribunal, while conciliation and mediation suit disputes where the parties want to design their own outcome or preserve a working relationship. Selecting between them, and drafting the machinery into contracts before any dispute arises, is where good alternative dispute resolution advice earns its keep.
Arbitration under the Arbitration and Conciliation Act 1996
Arbitration is an adjudicatory process in which the parties appoint one or more arbitrators to decide their dispute privately. It rests on a written arbitration agreement, usually a clause in a commercial contract, which the Arbitration and Conciliation Act 1996 treats as independent of the main contract. Once a valid arbitration agreement exists, Section 8 requires a judicial authority to refer the parties to arbitration if approached before submitting its first statement on the merits, and Section 11 allows the court, or an arbitral institution designated by it, to appoint an arbitrator when the parties cannot agree.
The tribunal’s powers are broad: it administers its own procedure under Section 19, decides its own jurisdiction under Section 16, and must render its award within the time frame set by Section 29A, which is twelve months and extendable by six months with the parties’ consent. The award under Section 31 is final and binding, and it can be set aside only on the limited grounds in Section 34. An award that survives challenge is enforceable in the same manner as a decree of a civil court under Section 36.
Arbitration suits commercial disputes of every kind, from construction and supply contracts to shareholder and partnership disagreements. Odisha’s growing commercial base in Bhubaneswar, from infrastructure contracts to service agreements, means arbitration clauses now appear in most standard commercial paperwork. Our work reviewing and negotiating those clauses sits within our corporate and commercial practice.
The amendments of 2015 and 2019 reshaped this part of alternative dispute resolution in India, tightening timelines, encouraging institutional arbitration and curbing court interference. The result is that arbitration now functions as the commercial world’s private court, with real enforceability and real deadlines. We advise on both ad hoc and institutional arbitrations, and on enforcement strategy from the day the clause is signed.
Conciliation
Conciliation is governed by Part III of the Arbitration and Conciliation Act 1996, and it differs from arbitration in that the conciliator does not impose a decision. In the family of alternative dispute resolution processes, conciliation sits between mediation and arbitration in formality. The conciliator is a neutral facilitator who meets the parties, sometimes separately, identifies the issues and proposes terms of settlement. Conciliation can begin with a simple written invitation accepted by the other side, without any prior agreement.
The process is confidential, and offers and admissions made during it cannot be used in later proceedings. If the parties reach agreement, the settlement agreement is signed by them and authenticated by the conciliator, and Section 74 gives it the same status and effect as an arbitral award. It is therefore enforceable as if it were a decree, which makes conciliation one of the most underrated tools in alternative dispute resolution in Odisha. For ongoing supplier and contractor relationships in particular, it keeps the pipeline of business alive while the disagreement is settled.
Mediation, court-annexed mediation and the Mediation Act 2023
Mediation is a structured negotiation assisted by a neutral mediator who helps the parties craft their own solution. The Mediation Act 2023 now gives statutory recognition to the process: it confirms that mediation is voluntary, requires completion within one hundred and twenty days extendable by up to sixty days with consent, permits online mediation, and provides for the registration and enforcement of mediated settlement agreements as if they were decrees of a court. The Act also establishes the Mediation Council of India to regulate mediators and mediation institutions. Together with arbitration, mediation forms the visible core of alternative dispute resolution in modern Indian practice.
Court-annexed mediation is the form most people encounter. When a suit is pending, the judge refers the parties to the mediation centre attached to the court complex, and in Bhubaneswar and Cuttack these centres function under the aegis of the Odisha State Legal Services Authority. The High Court of Orissa operates its own Mediation Centre at Aain Seva Bhawan in Cuttack for matters before it. Under Section 12A of the Commercial Courts Act 2015, parties to qualifying commercial suits are expected to exhaust pre-institution mediation before filing suit, which has made mediation a routine first step rather than a last resort. This is what alternative dispute resolution looks like from the litigant’s chair: a quiet room, a trained neutral and a settlement that closes the file without a trial.
Mediation also has a firm place in family disputes, where preserving a working relationship between parents matters more than a crushing win. Our family matrimonial practice treats a well-negotiated mediated settlement as often the best possible outcome for the family. Mediation is the gentlest form of alternative dispute resolution, and often the most durable.
How an arbitration actually proceeds
Every arbitration has its own texture, but the stages below are common to nearly every commercial arbitration conducted in Bhubaneswar. Understanding the sequence in advance is what separates an alternative dispute resolution strategy from a reaction. The same skeleton applies whether the dispute involves crores in a construction contract or a modest supply agreement.
- Clause review and strategy. We first examine the arbitration clause to confirm it is valid, identifies the seat and the number of arbitrators, and names an institution or a procedure for appointment. Weak or pathological clauses are litigated over before the merits are ever reached, so this review is decisive.
- Notice invoking arbitration. The aggrieved party serves a written notice invoking the arbitration clause, describing the dispute and proposing an arbitrator or an appointment procedure. The notice starts limitation running and frames the dispute for the tribunal.
- Appointment of the arbitrator. If the parties agree, the arbitrator is appointed by consent. If they do not, an application is made under Section 11, which since the 2019 amendment lies before the court or the arbitral institution designated by it, and the appointment is decided on the existence of the agreement rather than the merits. A party who rushes to court instead risks being sent back under Section 8, with costs consequences for ignoring the clause.
- First procedural hearing. The tribunal holds an organisational meeting to fix the timetable, the language, the seat, and the procedure for documents and witness statements. A disciplined first hearing compresses the entire arbitration by months.
- Statements of claim and defence. Under Section 23, the claimant files the statement of claim and the respondent the statement of defence, each with supporting documents. The claimant may reply to new matters raised in the defence, and the tribunal then frames the issues that actually divide the parties.
- Hearings and evidence. The tribunal conducts oral hearings, records witness evidence and cross-examination, and may appoint experts. Documentary disclosure is narrower than in court, which is one reason arbitration moves faster.
- The award. After hearings close, the tribunal delivers its reasoned award under Section 31 within the Section 29A timeline, deciding each claim and the costs of the arbitration. The award is final and binding on the parties.
- Challenge and enforcement. A dissatisfied party may apply under Section 34 to set the award aside on limited public policy and procedural grounds, within the prescribed limitation. If no challenge succeeds, the award becomes enforceable as a decree under Section 36, and execution proceeds through the court.
Interim relief is available throughout: Section 9 allows a party to approach the court before or during arbitration for interim orders protecting assets or evidence. Section 17 empowers the tribunal itself to grant interim measures, which courts enforce like orders of their own. Cases that must go to court instead, for instance most consumer claims, are routed through our consumer protection practice. Each stage of this sequence has a court-supervised backstop, which is what makes alternative dispute resolution reliable rather than informal: the tribunal acts privately, but the law stands behind every step.
Key laws and rules
Alternative dispute resolution in India rests on a short statutory spine, supplemented by procedural rules made under it. The table below sets out the four instruments we most frequently rely upon. Keeping them in view is the fastest way to understand what any alternative dispute resolution clause in your contract actually does.
| Law | What it governs |
|---|---|
| Arbitration and Conciliation Act 1996 | Arbitration agreements, appointment of arbitrators, conduct of proceedings, awards and their challenge and enforcement, and conciliation |
| Mediation Act 2023 | Voluntary and pre-litigation mediation, mediated settlement agreements and their enforcement, online mediation and the Mediation Council of India |
| Commercial Courts Act 2015 | Commercial courts and divisions, and mandatory pre-institution mediation under Section 12A |
| Legal Services Authorities Act 1987 | Lok Adalats and Permanent Lok Adalats, whose awards are deemed civil court decrees |
The official texts of both principal Acts are published on the India Code portal of the Legislative Department, and we cite those texts in our drafting rather than secondary compilations. Anyone comparing litigation with alternative dispute resolution should read those two texts first. Disputes that fall outside these mechanisms, such as suits with no arbitration agreement, proceed through our civil litigation practice.
How Bismay Dash & Associates approaches alternative dispute resolution
Our first question is never how to win the dispute but how to end it. It is the first diagnostic we run on any alternative dispute resolution mandate. We assess whether the dispute is really about money, about principle or about a relationship that must survive the fight, because that diagnosis dictates whether arbitration, conciliation or mediation serves the client best. Choosing the wrong track is the most expensive error in alternative dispute resolution.
On the drafting side, we write arbitration clauses that name the seat, the number of arbitrators, the language and the appointing authority, because vague clauses become satellite litigation. A well-drafted clause is the cheapest form of alternative dispute resolution there is. On the dispute side, we prepare arbitration as trial counsel prepares a commercial suit: documents marshalled early, witnesses identified, and the theory of the case reduced to one page.
When we act in mediation, we treat it as a negotiation with structure, not a softened lawsuit. We prepare clients for the private sessions, hold realistic bottom lines in writing, and convert agreements into enforceable settlement documents the same week. We also set out the commercial arithmetic of alternative dispute resolution candidly: institutional and arbitrator fees set against the price of two extra years in court. Speed matters, because a settlement that loses momentum usually loses itself.
Above all, we are candid about when alternative dispute resolution is the wrong tool, and we say so at Bismay Dash & Associates even when it costs us the engagement. Where a matter needs interim protection, criminal remedies or a public precedent, we advise the courtroom. Clients trust plain advice more than enthusiasm, and that trust is the foundation of our alternative dispute resolution practice in Odisha.
Frequently Asked Questions
Is an arbitral award as binding as a court decree?
Yes. An award under Section 31 of the Arbitration and Conciliation Act 1996 is final and binding between the parties, and once the limitation for challenge expires or a challenge fails, it is enforceable as a decree of a civil court under Section 36. There is no appeal on merits from an award, only the narrow challenge available under Section 34. That finality is precisely why businesses choose alternative dispute resolution over conventional litigation.
Can I be forced into arbitration if I never signed the contract?
Only if you are a party to the arbitration agreement or a person claiming through or under such a party, including through novation or a group-of-companies situation recognised by the courts. A stranger to the agreement cannot be dragged into arbitration. We examine signing authority and the chain of privity before advising a client to resist or accede to a Section 8 application.
On what grounds can an award be challenged under Section 34?
The grounds are procedural and public-policy based: incapacity or invalid agreement, want of proper notice, tribunals exceeding jurisdiction, improper composition, and awards vitiated by fraud, conflict of interest, patent illegality on the face of the award or contravention of the fundamental policy of Indian law or morality. Errors of fact or alternative readings of evidence are not grounds. The challenge must be filed within the prescribed limitation period.
What is the difference between mediation and conciliation?
In mediation, the mediator facilitates the parties’ own settlement without proposing terms, whereas a conciliator plays a more interventionist role, including suggesting settlement terms. Conciliation is codified in Part III of the 1996 Act, while mediation now has its own statute in the Mediation Act 2023. Both produce settlements that are enforceable rather than mere gentlemen’s agreements.
How long does arbitration take in India?
Statute targets completion within twelve months from the tribunal entering reference, extendable by six months with consent under Section 29A. In practice, commercial arbitrations seated in Bhubaneswar commonly conclude within eighteen months to two years, depending on the volume of evidence and adjournments. A disciplined procedural order at the first hearing is the single best predictor of speed. Compared with a commercial suit and its appeal, alternative dispute resolution typically saves years, not months.
Is a mediated settlement agreement enforceable?
Yes. Under the Mediation Act 2023, a mediated settlement agreement arrived at after the Act came into force is enforceable as if it were a decree of a court, and it can be registered with the designated authority. Settlements recorded in court-annexed mediation are adopted by the court and bind the parties like a compromise decree. That enforceability is what makes mediation a first-class alternative dispute resolution outcome.
Can parties arbitrate after litigation has already started?
Yes. Parties may settle or refer the dispute to arbitration even after a suit is filed, subject to the case being taken out of the court’s hands, and Section 8 preserves this only before submission of the first statement on the merits. Courts also routinely refer pending matters to mediation under court-annexed schemes. We assess timing carefully, because delay can be treated as abandonment of the arbitration agreement, and late-stage moves are common in alternative dispute resolution practice.
Key takeaways
- Alternative dispute resolution spans arbitration, which ends in a binding award, and conciliation and mediation, which end in enforceable settlements.
- Section 8 obliges courts to hold parties to their arbitration agreements, and Section 11 ensures a tribunal can always be constituted.
- An award is final, challengeable only under Section 34, and enforceable as a decree under Section 36 once it survives.
- Section 29A sets a twelve-month target extendable by six, making timetable discipline at the first hearing critical.
- Conciliated and mediated settlements both carry decree-grade enforceability, under Section 74 of the 1996 Act and the Mediation Act 2023 respectively.
- In Odisha, mediation runs through court-annexed centres under the Odisha State Legal Services Authority and the High Court of Orissa Mediation Centre at Cuttack.
- Drafting an alternative dispute resolution clause properly at contract stage is cheaper than any remedy available after the dispute has arisen.
This page is general information published for guidance and is not legal advice. For advice on a specific matter, please contact the firm.