It’s not uncommon for businesses to land in a contractual dispute and to resolve it through litigation, doing rounds of the court which results in wastage of a lot of time and money. So will arbitration be a better alternative dispute resolution for businesses conflicts? With the statistics indicating a rise in the number of companies opting arbitration to solve consumer and the commercial dispute over litigation.


Firstly what is the difference between arbitration and litigation?

Arbitration is an informal hearing and settlement of a dispute between parties. The decision is made by an arbitrator or an arbitral tribunal ( consists of a group of people) who follow the procedures rules laid down by the ICCC or the nation’s arbitration authority. The decision made by the arbitrator on arbitral tribunal is final and cannot be appealed further.

Litigation is a formal, public process where the disputes are resolved in a court with a judge or jury. It is subject to strict rules like formal rules of evidence imposed by the law governing the conduct of the proceeding.

Let’s find out the reasons for the increasing preference among businesses:


Unlike litigation, dispute resolved by arbitration don’t take years to work its way through the trial court and the appellate court. Arbitrations provide quick, non-appealable resolution except for certain rare cases.


Unlike litigation wherein there are document dumps and a heap of mostly irrelevant materials, arbitration offers the controllability of the discovery process from the contractual terms agreed upon by both the parties. This results in lesser depositions, reduced interrogatories, and fewer requests for production.


Unlike litigation process, arbitration doesn’t open up proceeding to the public, and hence the information shared between the parties and the arbitral tribunal is confidential., especially beneficial to the business law if the portions of the proceeding can create embarrassment or reveal trade secrets.


Although arbitration also follows a set of legal protocols but unlike litigation, the set of rules and guidelines are flexible and can be varied by the parties.


Since arbitration offers fast-track resolution, it saves a lot of time and money otherwise spent on the hourly billing of litigation. Also with litigation, there is an increased potential for inefficiencies with unnecessary time delay and expenditure.


Since the scope of evidence and discovery is controlled in arbitration, the proceedings are less adversarial when compared to litigation, it provides the range for proof and exploration in the process. Since throughout the proceedings both the parties have to work together with a common objective of reaching a pint of satisfactory compromise, arbitration offers a streamlined approach to resolve the dispute between the parties.


Speed in resolving the conflict offers certainty and finality to the process.


Arbitration is done on the grounds and clause laid down in the arbitration agreement, with arbitration provision drafted and negotiated into a contract approved by both the parties. Since the rules and parameters have already been ascertained, how the arbitration is to be handled by both the parties is certain.

If you are involved in a commercial or consumer dispute and both the parties in the conflict agree upon settling their conflict through arbitration, but are having trouble finding an adept arbitral tribunal, they should seek the help of a legal professional or a law firm which provides arbitration services. You can reach out to these law firms through their website and trust upon then on giving you best possible legal assistance with their extensive experience and high level of sophistication.