Mediation is a method of ADR in which parties appoint a neutral third party who facilitates the mediation process in order to assist the parties in achieving an acceptable, voluntary agreement. Mediation is relatively inexpensive, fast, and confidential. Further, mediation and arbitration differ on the grounds of the nature of award rendered. The outcome of mediation does not have similar binding like an arbitral award. However, though nonbinding, these resolution agreements may be incorporated into a legally binding contract, which is binding on the parties who *** the contract.
Thus, in the process of mediation, the mediator merely facilitates the resolution of disputes and does not suggest any solutions. However, in the case in question, the mediator has decided on a solution for the parties.
Moreover, the outcome of mediation is not binding on the parties, though in the case in question, the mediator has claimed that the outcome of mediation is legally binding.
These are the two errors in the case discussed above.
Benefits of ADR over litigation are as follows:
The lack of number of courts and judges which creates an inadequacy within the justice delivery system;
The increasing litigation in India due to increasing population, complexity of laws and obsolete continuation of some pre-existing legal statutes;
Delay in disposal of cases resulting in huge pendency in all the courts.
