Key takeaway
For NRIs, resolving a dispute without a full trial saves years and repeated trips. Mediation helps the parties reach their own settlement; arbitration produces a binding award by a private tribunal under the Arbitration and Conciliation Act, 1996. Courts encourage both, sessions can often be held online, and settlements and awards can be enforced like court decrees.
Mediation
- A neutral mediator helps the parties negotiate; nothing is imposed.
- Courts refer many cases — especially family, property and money disputes — to court-annexed mediation centres.
- For commercial disputes, pre-institution mediation is generally mandatory before filing a suit under the Commercial Courts Act, 2015, unless urgent interim relief is sought.
- The Mediation Act, 2023 provides a statutory framework, including online mediation and enforceability of mediated settlement agreements.
- Family disputes, including divorce terms and partition, often settle in mediation.
Arbitration
- Requires an arbitration agreement — a clause in a contract or a separate agreement after the dispute arises.
- Parties choose the arbitrator(s), seat, rules and language; institutional or ad hoc.
- Courts can grant interim measures in support of arbitration.
- The award is binding and enforceable as a decree, subject to limited grounds of challenge.
- Foreign arbitral awards from New York Convention countries can be enforced in India under Part II of the Act.
Some disputes are not arbitrable — for example, many family law matters, criminal matters and certain tenancy disputes governed by special statutes.
Lok Adalats
Lok Adalats settle pending and pre-litigation disputes by compromise. An award is final and binding, with no appeal. National Lok Adalats are held periodically; they suit money claims, motor accident claims and some civil disputes.
Choosing the right route
| Dispute | Often suitable |
|---|---|
| Family property division | Mediation, family settlement |
| Business or shareholder disputes with an arbitration clause | Arbitration |
| Divorce terms | Court-referred mediation |
| Small money claims | Lok Adalat, mediation |
Participating from abroad
Many mediation centres and arbitral institutions conduct sessions online. A representative with authority to settle can attend, but settlements involving property or personal rights should be confirmed by you.
Want to resolve a dispute without a long trial?
Ask whether mediation or arbitration suits your case.
Related guides
- All NRI legal guides
- Handling a court case in India while living abroad
- Property partition
- Civil litigation for NRIs (service)
References
- Arbitration and Conciliation Act, 1996 — India Code
- Mediation Act, 2023; Commercial Courts Act, 2015, section 12A
- Legal Services Authorities Act, 1987 (Lok Adalats); Code of Civil Procedure, 1908, section 89
Last reviewed: November 2026.
The information provided is for general educational purposes only and does not constitute legal advice. Applicable laws and procedures may vary depending on the facts, jurisdiction, and circumstances of each matter. Consult a qualified legal professional before taking action.
