When it comes to the traditional method of seeking justice in India, litigation is the way out. It is usually identified by advocates representing before the courts the facts of the matter as per their own clients. Supporting evidence is produced by the respective parties before the court. The presiding officer, i.e. the judge takes into consideration whatever is presented before him/ her in form of statements, evidence, documents, etc., and decides the case based on applicable laws.
On the other hand, people are not much aware of the methods of alternate dispute resolution (ADR). They may figure out through the terminology, but they do not possess the exact idea of what it actually is and how it helps resolve disputes with more convenience. More or less, this lack of knowledge is also one of the many reasons people opt for traditional litigation rather than going for arbitration or any other mode of ADR.
If we seek to understand, litigation and arbitration are examples of rights-oriented processes. Arbitration is an out-of-court process for deciding disputes through a third party appointed by parties at dispute. Here on this page, there are similarities between arbitration and litigation, and there are concrete differences as well which alienate the two methods of dispute resolution.
Difference Between Litigation and Arbitration
The table below focuses upon the various aspects come across during resolution of disputes, and the specificity under traditional litigation as well as the practical arbitral proceedings. Each of them is taken up and the characteristics defining arbitration or typical court proceedings have been explained hereunder.
Six Key Differences Between Litigation and Arbitration
|
Particulars |
Litigation |
Arbitration |
|
Procedure |
Litigation is a public procedure unless in-camera proceedings are sought (for very specific matters) |
Arbitration proceedings are confidential and private in nature conducted at a place arranged and agreed upon by the parties themselves |
|
Deciding Authority |
A judge is not appointed by parties’ choice |
An arbitrator is usually appointed with confirmation from both the parties |
|
Formalities |
The court process involves various procedural formalities, whose absence may affect the interests of parties. Examples include payment of court fees, jurisdictional courts, etc. |
Arbitration does not involve any strict procedure, provided that the principles of natural justice are duly followed - Everyone is given a chance to be heard, the decision maker is not biased, etc. |
|
Appeal |
Appeals, revision or review is allowed against the decisions of courts |
Challenge against arbitration award is allowed in limited circumstances |
|
Costs and Time |
Litigation is an expensive and time consuming affair |
As compared to traditional litigation, arbitration is less expensive and can be wrapped sooner |
|
Law |
Procedural laws like CrPC, CPC are the major statutes governing the process under litigation |
The Arbitration and Conciliation Act, 1996 governs process and rules to be followed by parties and arbitrator during arbitral proceedings |
Similarities Between Arbitration and Litigation
Since the difference between litigation and arbitration is clear by now, there is some need to understand what makes them seek the same end result - decision in a legal dispute. In both situations, one party wins while the other loses. Hence, the common features which make litigation as well as arbitral proceedings look alike.
Tabular Depiction of Factors Connecting the Dots of Litigation - Arbitration
|
Particulars |
Similarity |
|
Aim |
Both litigation and arbitration focus upon resolution of disputes upholding some legal rights of the parties. |
|
Tools |
The main aspect in a dispute to be resolved is the applicable laws based on the matter in hand. |
|
Representation |
While litigants require lawyers with expertise in specific matters to represent them in courts, there are arbitration lawyers representing parties before the arbitrator to speak for their clients. |
|
Third party |
In both the cases, apart from parties subject to dispute, there is a neutral third party specifically assigned with the duty to resolve the matter. |
|
Expected Outcome |
Regardless of whether it is arbitration or litigation proceedings, one party wins while the other loses out on the claims regarding dispute. |
|
Execution |
Once the decision comes in both litigation and arbitration, the task of execution has to be taken care of by the state authorities only. |
Concluding Remarks
Both arbitration as well as litigation seek to uphold justice by following the applicable laws. The system of litigation is traditionally established by the state itself. While arbitration mostly becomes the private affair of the parties concerned, the state promotes convenience throughout the process. Hence, the state is not totally disconnected from the arbitration procedure. The idea is speedy resolution of disputes without strict procedural pathways. That is why people associated with the justice system bat for alternative dispute resolution since it is more convenient and holds the potential to reduce the burden of courts fairly.
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