“Alternative Dispute Resolution” (ADR) is an umbrella term — and under it sit three methods people constantly mix up: arbitration, mediation, and conciliation. They all keep you out of court, but they differ in one decisive way: who decides the outcome. Get the choice right and you save time, money, and often the relationship.
Arbitration — a private judge
In arbitration, a neutral arbitrator hears both sides and issues a decision (an “award”) that is binding on the parties — much like a private judge. It’s the most formal of the three, and the award is enforceable like a court decree under the Arbitration & Conciliation Act, 1996. Choose it when you need a final, enforceable ruling.
Mediation — a facilitated conversation
In mediation, a mediator helps the parties reach their own agreement — they don’t decide anything or impose a result. It’s voluntary and collaborative, and nothing is binding until both sides sign. Under the Mediation Act, 2023, a signed mediated settlement is then enforceable as a court judgment. Choose it when you want to preserve a relationship and control the outcome yourselves.
Conciliation — a guided settlement
Conciliation sits between the two. Like mediation it’s voluntary and aims at a mutual settlement — but the conciliator can take a more active role and propose terms of settlement. Once both parties sign, the settlement agreement is final and binding, with the status of an arbitral award (Section 74). It’s the route most PDR Court disputes resolve through.
Side by side
- Who decides? Arbitration: the arbitrator. Mediation & conciliation: the parties themselves.
- Binding? Arbitration: yes (award). Conciliation: yes, once signed. Mediation: yes, once signed.
- Formality: Arbitration is the most formal; mediation the least.
- Best for: Arbitration → a final ruling. Mediation/conciliation → a faster, cheaper, relationship-preserving settlement.
How to choose
If you need a definitive, enforceable decision and the relationship is already over, arbitration fits. If you’d rather keep working together and shape the outcome yourselves, mediation or conciliation is faster and cheaper — and still enforceable once signed. The good news: you don’t have to pick blind. PDR Court offers all of them on one platform, and most disputes settle at the conciliation stage without ever needing a formal award.