What is Online Dispute Resolution – Mediation?
Online Dispute Resolution (ODR) is a digital-first method for resolving disputes efficiently,
cost-effectively and confidentially, without the need for physical court hearings.
Mediation is a voluntary, confidential process where a neutral mediator helps parties reach a
mutually acceptable settlement without deciding who is right or wrong. It focuses on interests and
practical solutions rather than rigid legal positions, helping save time, cost and relationships.
Indian courts actively encourage mediation. Civil courts can refer matters to mediation, and
pre-institution mediation is mandatory for many commercial disputes. Online mediation (ODR) is
recognised, allowing parties to participate securely from anywhere, sign documents digitally and manage MSME
or cross-city disputes with ease. The process is private: offers, admissions and draft terms shared
in mediation are generally inadmissible in later proceedings, encouraging open, solution-oriented dialogue.
The Mediation Act, 2023 provides a dedicated statutory framework. A duly
executed Mediation Settlement Agreement (MSA), authenticated in the prescribed manner, becomes final and binding
and is enforceable like a court decree, with limited grounds to challenge (such as fraud or
impersonation). The Act recognises pre-litigation, community and online mediation, sets ethical norms for
mediator neutrality, protects confidentiality and privilege, and dovetails with sector-specific statutes
to promote speedy, robust resolution.
Who can apply for mediation?
- Individuals with commercial, personal or family disputes seeking a quicker, confidential solution.
- Businesses and MSMEs facing disputes impacting cash flow, contracts or long-term relationships.
- Companies and institutions wanting a legally robust, digital alternative to prolonged litigation.
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Types of Cases Suitable for Online Mediation (Part 2)
4. Cross-Border & International Disputes
- Import–export and shipping disputes.
- Maritime and charterparty disagreements.
- International services or consulting contracts.
- Cross-border payment defaults and settlement issues.
- Technology, IP and licensing disputes suited for negotiated outcomes.
- Joint venture or investment-related misunderstandings.
- Government / PSU and institutional matters where mediation is permitted.
5. Real Estate & Property
- Landlord–tenant disputes – rent, maintenance, deposits, usage.
- Co-operative society / RWA / housing association disagreements.
- Property sharing and related family arrangements where parties prefer settlement.
6. Financial & Fintech Disputes
- BNPL / deferred payment disagreements.
- Loan settlement negotiations and restructuring.
- Payment gateway and chargeback disputes.
- Investor–startup and shareholder disputes where a commercial solution is preferable.
These categories benefit significantly from ODR–mediation because they demand speed, confidentiality, commercial practicality and the option to preserve ongoing relationships.
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Mediation vs Litigation & Arbitration (Part 1)
| Criterion |
Litigation |
Arbitration |
Mediation |
| Nature of Outcome |
Judge delivers a binding judgment. |
Arbitrator(s) issue a binding award. |
Parties mutually agree on a voluntary settlement. |
| Time to Resolution |
Longest; multi-stage with possible appeals. |
Moderate; formal but more streamlined. |
Fastest; can often conclude in a few focused sessions. |
| Cost |
Highest (court fees, multiple hearings, travel & legal costs). |
Medium–high (tribunal + counsel fees). |
Generally lowest (fewer sessions, lean procedure). |
| Confidentiality |
Mostly public proceedings. |
Private to an extent, based on rules and agreements. |
Core feature; discussions are confidential and protected under the Mediation Act. |
| Party Control |
Low – court controls process and timelines. |
Medium – parties select arbitrators/rules, but process remains formal. |
High – parties shape process and solution; mediator facilitates, not decides. |
| Procedure & Evidence |
Strict CPC / Evidence Act requirements. |
Formal procedure with some flexibility. |
Highly flexible, interest-based dialogue; no rigid evidentiary rules. |
Mediation can be attempted before, alongside or after litigation/arbitration, offering a fast and low-conflict route without waiving legal rights if settlement is not achieved.
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Mediation vs Litigation & Arbitration (Part 2)
| Criterion |
Litigation |
Arbitration |
Mediation |
| Appeal / Challenge |
Broad appellate rights; lengthy process. |
Very limited statutory grounds to set aside award. |
Settlement is consensual; challenge only on narrow grounds (fraud, coercion, serious irregularity). |
| Relationship Impact |
Often adversarial; can damage relationships. |
Adversarial but structured. |
Collaborative; aims to preserve or reset relationships. |
| Interim Relief |
Court can grant coercive interim relief. |
Tribunal and/or court can grant interim measures. |
No coercive powers; parties may still seek court relief while mediating. |
| Enforceability (India) |
Decree executable through court. |
Award enforceable under A&C Act, 1996. |
Mediation Settlement Agreement under the Mediation Act, 2023 is enforceable like a decree when executed in the prescribed manner. |
For many civil and commercial disputes, ODR–mediation delivers enforceability, confidentiality, speed and party control, making it a strong first-choice mechanism in a modern dispute resolution strategy.
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