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Arbitration v/s Litigation in India

With growing business transactions, disputes over contracts, payments, or performance are inevitable. In India, conflicts are resolved through arbitration or litigationu2014each with its own benefits and limitations. Arbitration offers speed, privacy, party autonomy, and cross-border enforceability, while litigation ensures wider jurisdiction, appeals, and statutory remedies. Choosing the right approach is crucial for saving time, cost, and relationships. SKMC Global assists businesses by drafting effective dispute resolution clauses, guiding through arbitration or litigation, ensuring compliance.

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Arbitration v/s Litigation in India

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  1. ARBITRATION V/S LITIGATION IN INDIA Arbitration v/s Litigation in India refers to two distinct methods of resolving disputes. Arbitration is a private, flexible, and faster process where parties appoint an arbitrator to decide the matter, while Litigation involves formal proceedings in court with strict procedures, longer timelines, and public hearings. Both play a crucial role depending on the nature of the dispute. POINT OF DIFFERENCE ARBITRATION LITIGATION Private dispute resolution method based on party agreement. Public conducted in courts under law. dispute resolution Nature Civil Procedure Code, 1908 & other relevant statutes. Governing Law Arbitration and Conciliation Act, 1996. Strict, formal procedure governed by court rules. Process Flexible, less formal, parties decide rules and arbitrator(s). Confidentiality Proceedings are private and confidential. Proceedings are generally public. Usually faster, with statutory limit of 12–18 months. Often lengthy due to multiple stages, appeals, and backlog. Timeframe Can be lower, but depends on arbitrator’s fees. Court fees are lower, but long duration increases overall cost. Cost Appeal Limited grounds for challenge in courts. Multiple appeal stages available. Awards are binding and enforceable like a court decree. Judgments are binding but can be appealed. Finality Parties may choose arbitrators with subject- matter expertise. Judges may not have specialized technical knowledge. Expertise Suitable for criminal, matrimonial, constitutional, and public law matters. Preferred for commercial, contractual, and cross-border disputes. Suitability At SKMC Global helps businesses choose the right path between arbitration and litigation by offering expert legal guidance and strategic dispute resolution support. We ensure faster, cost- effective, and compliant solutions tailored to business needs. +91 989-125-5499 www.skmcglobal.com info@skmcglobal.com

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