Arbitration: Need, Process & Criticism – A Comprehensive Analysis Of Its Effectiveness As An ADR Mechanism
- IJLLR Journal
- Apr 26
- 1 min read
Shivam Tripathi, Amity Law School, Lucknow
Dr. Srijan Mishra, Amity Law School, Lucknow
ABSTRACT
Arbitration has emerged as a widely accepted method of Alternative Dispute Resolution (ADR), providing an effective mechanism for resolving disputes outside traditional court systems. This study explores the need for arbitration, its process, and the criticisms it faces, offering a comprehensive analysis of its effectiveness as an ADR mechanism. Arbitration is increasingly preferred due to its ability to deliver faster resolutions, cost-effectiveness, and confidentiality compared to litigation. The process involves the appointment of an impartial arbitrator, submission of evidence by the parties, and a binding decision that is enforceable under law. Despite its advantages, arbitration is not without challenges. Critics argue that arbitration can be biased, particularly in cases involving large corporations, where the weaker party may face unequal bargaining power. Additionally, the lack of transparency and limited scope for appeal raise concerns about fairness and accountability. The study evaluates these concerns while highlighting how arbitration has adapted to modern legal and commercial environments through institutional frameworks and international agreements. It further examines the balance between efficiency and justice, emphasizing the importance of impartiality and procedural fairness in maintaining the legitimacy of arbitration. The analysis concludes that while arbitration remains a valuable ADR tool, addressing its limitations through improved regulations and increased oversight is essential for sustaining its credibility and effectiveness.
Keywords: Arbitration, Alternative Dispute Resolution, ADR, dispute resolution, arbitration process, criticism, effectiveness, impartiality, fairness, legal framework.
