Arbitration and Mediation

Arbitration is a private dispute resolution process where parties appoint an arbitrator whose decision (arbitral award) is binding. It is governed by the Arbitration and Conciliation Act, 1996. Courts generally adopt a pro-arbitration approach and interfere only in exceptional cases.

In Serosoft Solutions Pvt. Ltd. v. Dexter Capital Advisors Pvt. Ltd. (2025), the Supreme Court held that High Courts should interfere with arbitral proceedings only when the arbitral tribunal’s order is blatantly stubborn.

Mediation is a voluntary and confidential process where a neutral mediator assists parties in reaching a mutually acceptable settlement. The enactment of the Mediation Act, 2023 has strengthened institutional mediation in India.

Recently, the Supreme Court referred the ₹30,000 crore Sunjay Kapur family trust dispute to mediation, reflecting the judiciary’s increasing preference for consensual dispute resolution.