Arbitration is a private dispute resolution process, often agreed to in advance through a contract clause, that results in a binding award and is generally faster and more confidential. Civil litigation takes place before a court and is the default route where no arbitration agreement exists.
It typically begins with a legal notice to the defaulting party, followed by negotiation or mediation, and if unresolved, a civil suit for damages or specific performance, or arbitration if the contract provides for it.
Depending on the amount and nature of the transaction, options include a civil recovery suit, a summary suit under Order XXXVII of the Code of Civil Procedure for quicker recovery on written contracts, or, where a cheque was involved and dishonoured, proceedings under Section 138 of the Negotiable Instruments Act.
Yes. Commercial disputes are increasingly resolved through mediation or conciliation, including pre-institution mediation under the Commercial Courts Act, 2015, which can lead to a faster and less costly resolution than a full trial.
