Cross-Border Business Dispute Resolution in India: The Role of Mediation and Online Dispute Resolution (ODR) Amid Legal and Ethical Challenges

Abstract

The growing complexity of commercial disputes in India has led to a significant shift from traditional litigation in courts to Alternative Dispute Resolution (ADR) methods, with mediation emerging as a favoured option. Mediation is particularly effective for addressing business-related disputes because of its flexible, confidential, and time-saving characteristics. Specifically, international commercial mediation offers a valuable alternative to traditional arbitration, presenting distinct advantages. This paper seeks to analyse the key features of international mediation in commercial contexts and its practical significance across various scenarios, emphasising its contribution to supporting judicial systems. As the global economy becomes increasingly interconnected, cross-border arbitration and mediation have become essential for resolving international business disputes. These approaches provide a more efficient and less rigid substitute for court processes, which often encounter jurisdictional and procedural hurdles. In contrast to arbitration, which leads to binding resolutions via arbitral awards, mediation focuses on reaching a consensus facilitated by a neutral mediator, enabling the parties to preserve their professional relationships. These procedures are overseen by respected international organisations, ensuring their legitimacy and acceptance across diverse legal frameworks. Consequently, mediation has become vital for resolving global commercial disputes, offering a cooperative and cost-effective alternative to litigation. This paper investigates mediation practice in India and internationally, providing comparative insights. In India, the legal basis for mediation is outlined in the Arbitration and Conciliation Act, 1996, and further strengthened by the Commercial Courts Act, 2015, which requires pre-litigation mediation in commercial cases. These legislative measures reflect India’s commitment to institutionalising mediation by global standards like the UNCITRAL Model Law and the Singapore Convention on Mediation. Globally, entities such as the International Chamber of Commerce (ICC) and the World Intellectual Property Organisation (WIPO) are instrumental in 1 Department of Law, Calcutta University, India 2 Symbiosis Law School, Nagpur Volume 3 – Issue 1 Journal of Multi-Disciplinary Legal Research ISSN: 2582-9947 standardising mediation procedures, improving access through physical infrastructure and digital resources. Notable cases further illustrate the success of mediation in resolving intricate disputes. Moreover, cultural and societal factors influence mediation results nationally and internationally. Through this analysis, the paper underscores the increasing importance of mediation in effectively resolving commercial disputes and fostering a more integrated global business environment. Also, the paper investigates the transforming function of mediation and Online Dispute Resolution (ODR) as credible substitutes for convent