Mediation: How It Works and When to Use It
Mediation is a voluntary, confidential process in which a neutral helps the parties reach their own settlement. How it works in India and when it binds.
A neutral is an impartial third party — mediator, arbitrator, or conciliator — who assists parties in resolving a dispute without taking sides.
The term neutral encompasses any impartial third party who assists in resolving a dispute without acting as an advocate for either side. The specific role of the neutral — and how much power they have over the outcome — varies significantly depending on the process.
Mediator. Facilitates negotiation between the parties but has no power to impose an outcome. The parties reach their own agreement, or they do not. The mediator's value is in helping them communicate more effectively, explore interests behind stated positions, and identify options they might not have considered alone.
Arbitrator. Hears evidence and argument from both sides and then issues a binding decision (an award). An arbitrator is essentially a private judge — their authority comes from the parties' agreement to arbitrate, and their decision is imposed rather than negotiated.
Conciliator. A position between mediator and arbitrator. A conciliator can actively propose settlement terms and formulate proposals for the parties to accept or modify, taking a more directive role than a mediator while still requiring the parties' consent to any settlement.
A neutral should be impartial and independent. The precise disclosure and challenge rules depend on the process, governing law, applicable institutional rules, and the parties' agreement.
Qualifications and appointment requirements depend on the process and the applicable court, institutional, statutory, or contractual framework.
Also known as: third-party neutral, ADR neutral
General information only — not legal advice.
Mediation is a voluntary, confidential process in which a neutral helps the parties reach their own settlement. How it works in India and when it binds.
Arbitration is a binding process where an arbitrator decides the dispute after hearing both sides. How it works in India and how awards are enforced.
Conciliation lets a neutral conciliator propose settlement terms, unlike mediation. How it works in India, when it applies, how settlements are enforced.