Distinguish Arbitration from Conciliation

Question 1: Distinguish Arbitration from Conciliation.

Arbitration: According to the dictionary, arbitration is a sometimes amicable or peaceful but always adjudicative method of resolution of a dispute by an authority (the arbitrators) that derives its decisional power not from a permanent delegation of the state or an international institution, but from the agreement of both parties (who may be individuals or states). Arbitration is an Alternative Dispute Resolution method where the disputing parties involved present their disagreement to one arbitrator or a panel of private, independent, and qualified third party arbitrators. The arbitrator/s determines the outcome of the case or the terms of settlement. Resolving to arbitration to settle a dispute is less expensive and more accessible than trial. Both of the parties involved agree about who the arbitrator should be and the decision of the arbitrator is binding on them all.

Arbitration has given the economy a large number of choices, while resolving complicated disputes. Choices such as the appointment of an arbitrator, location of proceedings, selecting governing laws and operational aspects of proceedings have made the arbitration process easier.

India historically followed various means of arbitration or mediation in different forms. It typically used to be a kind intervening between a dispute of two people or an official Panchayat intervening and giving their decisions. The Alternate Dispute Resolution picked up pace in the country, with the inception of the Bengal Resolution Act, 1772 and 1781, which provided parties an option to submit the dispute to an arbitrator, appointed after mutual agreement and whose verdict would be binding on both of the parties. ADR gained further importance in India, post the implementation of the Arbitration Act, 1940, and the Arbitration and Conciliation Act, 1996, which was passed in consonance with the UNCITRAL Model Law of Arbitration. An important International...