Corporate Preference For Arbitration Over Litigation In Commercial Disputes: A Strategic Legal And Practical Analysis
- IJLLR Journal
- 3 minutes ago
- 1 min read
Rishav Thakur, B.A. LL.B. (Hons.), ICFAI University Dehradun
ABSTRACT
In today’s world commercial disputes are very common, especially due to globalization and the increased complexity of contracts. Although litigation remains a good option for resolving disputes, it may not be the most effective option for businesses especially when it comes to getting a quick resolution, maintaining confidentiality, and being sure about the outcome. As a result, many businesses are now opting for commercial arbitration as their preferred dispute resolution method. This paper gives a pragmatic and lawful explanationon whythoseinbusinesstendtooptforarbitrationprocessesas opposed to court litigation as a conflict resolution method in business disputes. The paper discusses the disadvantages of court litigation as a mechanism for resolution of dispute, advantage of arbitration to business entities and legal framework in India on which arbitration is being based for settlement of disputes. The commercial arbitrations in India, with their judicial outlooks and realities, would also be studied, including the reality of commercial arbitration in relation to the cost implications. However, despite the realities, corporates still favor arbitration as a tool of dispute resolution on account of its flexibility, autonomy, and enforceability. This article would finally culminate by providing recommendations to enhance institutionalized arbitration and further make India an arbitration leader.
