The New Arbitration Guidelines: Evaluating The Landscape Of Arbitration And Mediation In India

Arbitration is seen as an effective dispute mechanism and is sought to achieve dispute resolution in a timely and cost-effective manner. Mediation enables parties to reconsider each other's mutual interests and rights, fostering amicable and innovative solutions.

The ministry of Finance in the month of July, 2024 released the guidelines relating to use of arbitration and mediation in which it advocated the use of mediation mechanism for disputes valuing over ten crore rupees, the guidelines endorse restricting the arbitration clauses to values of less than ten crore. In this article, firstly we shall be discussing why arbitration as a mechanism is losing its popularity. Secondly, we shall be comparing mediation and arbitration by analyzing the Mediation Act of 2023. Thirdly and lastly, we shall be analyzing the effectiveness of the guidelines.