Mediation and conciliation require both parties to agree, so a refusal blocks those routes — but arbitration can be compelled where a contract contains an arbitration clause, under Section 8 of the Arbitration and Conciliation Act, 1996, and a tribunal can proceed even if a party does not participate.
Generally no. Mediation is voluntary and needs both parties to participate for it to work. However, a court can refer a pending case to mediation under Section 89 of the Code of Civil Procedure, and many parties who initially refuse change position once they understand mediation is faster and cheaper for them too.
You can apply under Section 8 of the Arbitration and Conciliation Act, 1996 for the court to refer the parties to arbitration. Where a valid arbitration agreement covers the dispute, the judicial authority must refer the parties to arbitration rather than hear the suit.
Source: Arbitration and Conciliation Act, 1996, Section 8
The Act provides a fallback so that one party cannot stall the process. Where the parties or their appointees fail to agree, an application can be made under Section 11 for appointment. Since the 2019 amendment, designated arbitral institutions can make the appointment, which is quicker than a court route.
Source: Arbitration and Conciliation Act, 1996, Section 11
Yes. Where a party fails to participate despite proper notice, the tribunal can continue and make an award. This is not a defect in the process — it is the mechanism that prevents unilateral obstruction. The resulting award is enforceable in the usual way.
Without a clause you cannot compel arbitration, so litigation becomes the remaining route. Note that a court can still refer the matter to mediation once proceedings begin, and many disputes settle after filing precisely because the cost and delay of litigation become concrete.
It does not carry an automatic penalty in India, but it is rarely a costless choice. A party who refuses a reasonable settlement route usually ends up in litigation that is slower and more expensive for both sides, and courts increasingly encourage parties to attempt settlement.
General information only — not legal advice and not a solicitation.
Arbitration is a binding process where an arbitrator decides the dispute after hearing both sides, similar to a private court. Learn how it works, when it fits, and how awards are enforced in India.
Mediation is a voluntary, confidential process where a neutral third party helps disputing parties reach their own settlement. Learn how it works, when it applies, and what makes it binding.
Whether a mediated settlement, conciliation agreement, or arbitral award is legally binding depends on which process produced it. Here's how enforceability actually works in India.
Ex parte refers to a proceeding or communication involving only one party, without notice to or participation of the other — generally prohibited in ADR but permitted in some court proceedings.