Role Of Arbitration In Resolving Business Disputes

Chaitanya Datta, LLM, Christ (Deemed to be University)

ABSTRACT

In reaction to shifting economic landscapes and shifting global paradigms, the dynamics of conflict settlement have experienced substantial change. Traditional litigation systems have been heavily criticized for their inefficiency and combative nature, which frequently exacerbates rather than facilitates the effective resolution of conflicts. Alternative Dispute Resolution (ADR) processes, which include conciliation, mediation, expert decision, adjudication, negotiation, and arbitration, have gained popularity as a preferred method of dispute settlement. This research study investigates the changing landscape of conflict resolution in the present globalized world, where inflexible legal requirements are giving way to more flexible and consensual approaches. Arbitration has established as the preferred method for resolving business disputes, particularly those involving foreign parties. Governments and international organizations have recognized and supported this trend. The major goal of this research paper is to explain the critical role of arbitration in resolving business disputes, emphasizing that parties freely agree to send prospective disagreements to a pre-established arbitral tribunal for final resolution. Arbitration provides the autonomy and flexibility that parties typically demand in conflict resolution, matching it with the needs of today's corporate world.