As mentioned in my previous blog, I will run you through various options when you have to solve a dispute.Let us begin with mediation as an option and then discuss about Arbitration.Let us begin
Settlement of disputes in an amicable way is the hall-mark of civilization. Mediation has been interwoven into the social fabric of society. During ancient times before the breakout of war, a mediator was sent to the enemy cap to reach amicable solutions. Our epic Mahabharata is a testimony where Lord Krishna was sent as mediator to resolve the differences between the Kaurava and Pandava kingdoms.
In modern times with changing social and economic factors, mediation has taken various new forms. From resolving disputes arising in families to disputes between giant corporate, mediation is a dispute resolution mechanism that provides complete and cost-effective means of resolving disputes. Even disputes between nations of the world are resolved by mediation. In fact, mediation is the only process of dispute resolution that promotes peace among nations.
Mediation can be applied to all sorts of disputes. One of the main benefits of mediation is that the parties can agree to take into account a broad range of aspects, especially concerning commercial and business interests. The process is flexible and can be tailored to the individual needs of parties.
Mediation is an informal, but structured settlement procedure. The main characteristics of mediation are that it provides; a voluntary, non-binding, confidential and interest-based procedure. Parties are free to terminate mediation at any time after the first meeting. No decision can be imposed on the parties involved, and they may or may not agree upon a negotiated settlement. The confidentiality principle assures that any options the parties discuss will not have consequences beyond the mediation process. As mentioned earlier Mediation is an Interest-based procedure. It means that the criteria established to reach resolution does not solely adhere to the law, instead it can include considerations concerning financial, business and personal interests as well.
The role of the mediator is to assist the parties in reaching a negotiated agreement. Unlike an arbitrator, the mediator is not a decision-maker.
The effectiveness of mediation lies in the effectiveness of the mediator and the type of mediation he chooses to resolve a particular dispute. The mediator tries to help the parties to find common ground using principles of collaboration and mutual-gains.
Disputes where Mediation is a better alternative than other forms of dispute resolution methods
- Family Business Disputes: Like mentioned earlier, in mediation the objective is to solve a dispute while safe guarding the cordial relationship. And what better way to solve family disputes than mediation. The disputes may arise from a major business decision in family. Sometimes there is dead lock situation in the board of directors , where neither party is even on talking terms with each other. At such times an mediator can help resolve the dispute. Most of the family businesses face the challenge when their boards are composed of three generations. Each generation bringing with them new and different styles of leadership.
Mediators will help in this situation by taking into confidence every member’s perspective to create harmony at the Board.
- In construction Sector:
By very nature, the gestation period of construction companies is very long. The industry is characterised by interplay of various participants right from land owners, labour, contract labour, legal department, laisioning departments.
Delay in delivering projects is a serious concern for all the parties involved in the process. This results in unpleasantries with the concerned parties. However, they have to be working in tandem with each other till the project is completed. A mediator in such cases helps in resolve disputes and get the project going up-till completion.
With the rise in number of litigations and the ever-rising cost to resolving disputes in terms of cost and time required to settle a dispute, mediation seems to be a golden mean for resolving the matter. Mediation not just saves the businesses from being at loggerheads with each other but also helps in creating a friendly environment for everyone to survive. Mediation is not just a dispute resolution process but a flexible path that helps in overcoming cultural barriers, improving communications, restoring or maintaining relationships, promoting confidentiality and producing more creative, satisfactory and durable resolutions.
In my next blog , I shall explain about Arbitration. Stay tiuned for more learning and updates.
you can always reach to me on 9820061049 through phone and whatsapp or email me on advdrrajkumaradukia@gmail.com for any suggestions or queries. I will also be happy to cater to any of your legal consultancy needs.
Signing off ..
Adv(Dr.) Rajkumar Adukia
Adv Dr Rajkumar Adukia's Blog 