SHYAMBAZAR LAW COLLEGE

2018 – 2023

PRACTICAL TRAINING - III

NAME OF THE STUDENT : DEBAYAN ROY CHOWDHURY

SEMESTER : 10 TH SEMESTER
UNIVERSITY REGISTRATION NO. : L09-1111-0039-18
UNIVERSITY ROLL NO. : L09/LLB/181895
CLASS ROLL NO : 50
NAME OF THE EXAM : 5 YEARS BA.LLB / SEMESTER
SUBJECT : PRACTICAL TRAINING-III
 PRACTICAL TRAINING – III.

CONTENTS.

SL.NO CONTENTS PAGE NO.

.

1. COVER PAGE 1

2. INDEX 2

3. ACKNOWLEDGEMENT 3

4. EFFICACY OF ADR IN RESOLVING DISPUTES IN 4-6

INDIA. WHAT IS THE ROLE OF JUDICIARY IN

UPHOLDING THE ADR PROCESS AS AN
AMICABLE SETTLEMENT OF DISPUTES.

5. ANALYSE THE POSITION OF INTERNATIONAL 6-9

COMMERCIAL ARBITRATION (ICA) IN INDIA.

EVALUATE THE PRACTICABILITY OF ICA IN
INDIAN COURTS JURISDICTION.

6. DRAFT OF ARBITRATION AGREEMENT UPON 9-11

DISPUTE ARISES FROM INTERNATIONAL TRADE.

7. IMPLICATION OF ODR IN INDIAN AND 12-15

INTERNATIONAL PERSPECTIVE. WHAT ARE THE
CHALLENGES BEHIND NON-APPLICABILITY OF ODR
IN INDIA.
8. DIFFERENCE BETWEEN : 1. ARBITRATION & 16-18
CONCILIATION 2. MEDIATION & NEGOTIATION

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ACKNOWLEDGEMENT

Working on this project or training, PRACTICAL TRAINING- III, was a source

of immense knowledge to me. I would like to express my sincere gratitude to all
the Professors in my college for their guidance and valuable support
throughout the course of this project or training work. I acknowledge with a
deep sense of gratitude in the most humble manner while the encouragement
and inspiration received from the faculty members and classmates. I would
also like to thank my parents for their love and support.

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Topic A

1. Discuss the efficacy of ADR in resolving disputes in India. What is the role of
judiciary in upholding the ADR process as an amicable settlement of disputes?

Answer:

The process by which disputes between the parties are settled or brought
to an amicable result without the intervention of Judicial Institution and
without any trail is known as Alternative Dispute Resolution (ADR).
ADR offers to resolve all type of matters including civil, commercial,
industrial and family etc., where people are not being able to start any type
of negotiation and reach the settlement.
Generally, ADR uses neutral third party who helps the parties to
communicate, discuss the differences and resolve the dispute.
It is a method which enables individuals and group to maintain co-operation,
social order and provides opportunity to reduce hostility.

Alternative Dispute Resolution (ADR) Mechanisms:

 ADR is a mechanism of dispute resolution that is non adversarial, i.e.

working together co-operatively to reach the best resolution for everyone.
 ADR can be instrumental in reducing the burden of litigation on courts,
while delivering a well-rounded and satisfying experience for the parties
involved.
 It provides the opportunity to “expand the pie” through creative, collaborative
bargaining, and fulfill the interests driving their demands.

Types of ADR:

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 The dispute is submitted to an arbitral tribunal which makes a decision (an
“award”) on the dispute that is mostly binding on the parties.
 It is less formal than a trial, and the rules of evidence are often relaxed.
 Generally, there is no right to appeal an arbitrator’s decision.
 Except for some interim measures, there is very little scope for judicial
intervention in the arbitration process.

Importance of ADR In India:-

 To deal with the situation of pendency of cases in courts of India, ADR plays
a significant role in India by its diverse techniques.
 Alternative Dispute Resolution mechanism provides scientifically developed
techniques to Indian judiciary which helps in reducing the burden on the
courts.
 ADR provides various modes of settlement including, arbitration,
conciliation, mediation, negotiation and lokAdalat. Here, negotiation means
self-counseling between the parties to resolve their dispute but it doesn’t
have any statutory recognition in India.
 ADR is also founded on such fundamental rights, article 14 and 21 which
deals with equality before law and right to life and personal liberty
respectively.
 ADR’s motive is to provide social-economic and political justice and maintain
integrity in the society enshrined in the preamble.
 ADR also strive to achieve equal justice and free legal aid provided under
Article 39-A relating to Directive Principle of State Policy (DPSP).
 ADR has proven successful in clearing the backlog of cases in various levels
of the judiciary –
 Lok Adalats alone have disposed more than 50 lakh cases every year on
average in the last three years.

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 But there seems to be a lack of awareness about the availability of these
mechanisms.
The National and State Legal Services Authorities should disseminate more
information regarding these, so they become the first option explored by
potential litigants.

Alternative dispute resolution mechanism in the Indian judiciary system:

Dispute resolution is one of the Indian judiciary’s major functions and is

essential to a stable society. The Government of India operates through various
organs and the judiciary is directly responsible for the administration of
justice.The judiciary in India is the real point of the provision of justice.
Resolving conflicts is one of the key factors for society’s peaceful existence.
Arbitration, the ADR style, is accepted as an instrument of dispute settlement
by the Indian judiciary. Originally, arbitration was regulated by the Indian
Arbitration Act, 1940.

The judicial process In India is not only expensive for an ordinary person but
also it takes years and years to deliver justice. To address the much-criticized
delay in the delivery of justice, the implementation of Alternative Dispute
Resolution (ADR) mechanisms such as LokAdalats, arbitration, mediation, and
conciliation were considered and followed with praiseworthy results afterward.

The judiciary has figured prominently In developing and transforming India

into an arbitration-friendly country, and the day is not far away when India will
be a significant contender in hosting international arbitrations. When a party
challenges an arbitration ruling, the Supreme Court of India and different High
Courts have taken a hands-off attitude.

In recent years, Indian courts have repeatedly embraced an arbitration-friendly

attitude. There have been numerous cases where courts have sustained
arbitration agreements despite small flaws, thereby recognising the parties’
decision to have their problems resolved through arbitration.

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Whenever litigants have attempted to circumvent the Arbitration Act’s
requirements, the courts have typically refused to interfere with the awards
made under the Act. Anti-arbitration injunctions have also been granted with
caution by the courts.

The High Court has ruled that if a party has recourse under the Arbitration
Act, it cannot obtain an anti-arbitration order from the court by ignoring the
Act’s provisions. In that particular ruling, one of the arbitrators was chosen in
conjunction with another party and without implementing the consented
process, prompting the party to seek an injunction from the Court prohibiting
the arbitral tribunal from proceeding with the arbitration.

Conclusion:

ADR and the judiciary should work in tandem as they both are reliant on
one another; the Courts must urge the parties to resolve their conflicts
constructively using ADR processes. It is strongly recommended that in a
country like India, where the ADR process is rapidly expanding with more
cases being filed, the judiciary should commence arbitration advocacy under
the Arbitration Act, allowing it to resolve more litigation and conflict cases in
India.

Topic B

2. Analyse the position of International Commercial Arbitration (ICA) in India.

Evaluate the Practicability of ICA in Indian Courts jurisdiction.

Answer:

International Commercial Arbitration in India:

There is a provision in the Indian statute for the resolution of disputes by

the help of international commercial arbitration mechanism. In this way the

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Indian and foreign entities can resolve disputes “with the framework of Indian
arbitration laws, the proceedings of which are to be governed under section 11
of arbitration and conciliation act 1996, with the help of arbitration Institutes
and the courts have the discretion to appoint the arbitrators.
According to Indian statutes section 2 (1)(f) of the arbitration act defines
International commercial arbitration (ICA) as “A legal relationship between a
foreign national or an associate whose central management is in foreign hands,
thus arbitration with an Indian seat involving foreign party can be regarded as
ICA (international commercial arbitration), which is a subject to part 1 of the
act.”
Drafting of International Arbitration agreements :-
There is a close connection between the business lawyers and the law firms,
who work with clients in order to draft and review the international arbitration
agreements. During the drafting of such agreements some provisions are must
to be included like “but not limited to, definition of arbitration clause, scope of
disputes submitted to arbitration, stating an arbitral institute and its rules, the
seat of arbitration, venue of arbitration, method of appointment of arbitrator,
number and qualifications of the arbitrators, language of arbitration, applicable
law and jurisdiction.” With the changing times there is an increase in the
demand of international arbitration. It is also helpful in providing security to
the parties if they want to deal in international arbitrations.
International Commercial Arbitration – An Indian Perspective:

The Indian Arbitration and Conciliation Act 1996 introduced solution to the
Indian judicial system model on the UNCITRAL Model Law of Arbitration.
The 1996 Act empowers parties to resolve disputes without the courts, the
preferred mode of dispute resolution in most commercial transactions in global.
The 1996 Act to minimize the judicial process in arbitration the Courts can
grant interim reliefs under section 9 for the protection of parties who are
awaiting arbitration allows such parties to choose applicable laws, the arbitral

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procedure, the venue, the language etc, domesticarbitration; international
commercial arbitration; enforcement of foreign award and conciliation based on
the UNCITRAL Conciliation Rules of 1980. The act is divided into three parts:

 Part I relates to arbitration and applies where the seat of arbitration is India;
 Part II relates to the enforcement of certain foreign awards; and
 Part III deals with conciliation.
 Part IV relationship between arbitration and commercial growth.
 Part V recommendations for improving arbitration practice in India.

Part I include several provisions that allow for interference by Indian courts in
the arbitration process, such as:

 Passing interim orders before, during or after the start of arbitration

(Section 9);
 The appointment of arbitrators (Section 11);
 Terminating the mandate of arbitrators (Section 14(2));
 Court assistance in taking evidence (Section 27);
 Setting aside an arbitral award (Section 34); and
 Reference of a dispute to arbitration in insolvency proceedings (Section
41).

The courts in India first considered the applicability of Part I of the act to
arbitration taking place outside India in Bhatia International v Bulk
Trading. The Supreme Court held that Part I would apply to all
arbitrations and to all proceedings relating thereto, where such
arbitration is held in India. For international commercial arbitration, it
was held that Part I would still apply unless the parties by agreement,
whether express or implied, had excluded all or any of the provisions
included therein.

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Court’s reference for arbitration:
As per section 8 of “The Arbitration and Conciliation Act, 1996”, if
the party before the judicial authority, applies for referring the case to
arbitration by submitting an application along with the original copy of
the arbitration agreement on the date of submitting its first statement
itself, then the judicial authority is bound to accept such application and
refer the parties to arbitration. If these requirements are complied with
then such judicial authority would not give any negative judgment, i.e., it
cannot deny the parties to refer to arbitration in spite of any judgment,
decree or order of the Supreme Court or any Court, unless the court feels
that prima facie there is no arbitration agreement. However, if the party
fails to submit the original arbitration agreement or a duly certified copy
thereof, then such application can be dismissed.If the original arbitration
agreement or the certified copy is not available with the party or is
retained by the other party, then in such a situation the party applying
will submit the application along with the copy of the agreement and
shall file a petition, praying to the court to order the other party to
submit the original arbitration agreement or its duly certified copy, to the
court. If the application that has been submitted under sub-section (1) is
pending before the judicial authority, the parties may commence or
continue the arbitration and an arbitral award can also be made. Interim
relief is available to the parties under section 9 and section 17 of The
Arbitration and Conciliation Act, 1996. Under section 9, interim relief is
granted to the parties by the court and under section 17, interim relief is
granted by the arbitral tribunal. The objective of this provision is to
provide security to the party seeking relief until the final decision is
given.

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Topic C

ARBITRATION AGREEMENT ON INTERNATIONAL DISPUTES.

This Arbitration Agreement is made this 9th day of May, 2023 [Two Thousand
Twenty Three] between Ambuja Mills, having its registered office at 34, Park
Street, Police Station: Park Street, Kolkata- 700016, India and Yo Hun Textiles,
having its registered office at “Yo Hun Palace, 1316, Middle Street, Singapore –
13457 hereinafter shall be referred to as THE PARTIES.

1. The PARTIES have agreed on the settlement of any dispute arising out of or
in connection with this Agreement shall be subjected through the TOBB
Arbitration Council in accordance with the TOBB Arbitration Rules.

2. The Parties, by reading the Rules, shall declare that they have accepted to
comply with its terms, obligations and consequences beforehand.

3. The Parties have decided to have the Arbitration conducted at Bangkok.

4. The Parties have agreed that the Laws of India shall be applicable Law to
this Arbitration.

5. The Parties undertake to pay half of the Arbitration Expenses that shall be
notified subsequent to filing the suit before the TOBB Arbitration Council as an
advance payment. Each party also undertakes to pay their respective share of
the total expenses determined within the Arbitral Award approved by the
Council.

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It is understood that in case the Defendant does not pay half of the advance
payment, then the Claimant shall be obliged to pay the total advance payment
amount.

6. It is determined by the Parties that disputes shall be settled by one (1) [Sole]
Arbitrator.

OPTIONAL TERMS

7. a) The Parties have agreed on the appointment of a Sole Arbitrator by the

TOBB Arbitration Council.

7. b) The Parties have nominated, as the sole arbitrator, Smt. Samarpita Roy
Chowdhury, Senior Advocate/Member of Indian Council of Arbitration, residing
at the 28, Sarat Bose Road, Kolkata- 700020.

However, in the case where the Sole Arbitrator is not approved by the
TOBB Arbitration Council, then the parties accept that the Arbitrator shall be
appointed by the Council.

7. c) The Parties accept to nominate the Sole Arbitrator by themselves within

30 days from the notification of the Arbitration request to the defendant and
the appointment of the Sole Arbitrator by the Council if the Parties cannot
agree on the nomination of the Sole Arbitrator or in the case where the
nomination of the Sole Arbitrator by the Parties is not approved by the Council.

8. The Parties accept to sign the Terms of Reference to be drawn up in the

presence of the Arbitrator upon the invitation of the Arbitrator (or the
Chairman of the Arbitral Tribunal), that the Arbitration procedures shall still
continue without interruption and be effectual even if they abstain from signing
it and the abstention of either one or both parties from signing the Terms of
Reference shall not affect the validity of the Arbitral Award.

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9. The Parties undertake to pay the Arbitration expenses in accordance with

the TOBB Arbitration Rules in the case of the reconciliation of the parties or
the Claimant waiving his claim after the dispute is submitted to the TOBB
Arbitration.

10. We hereby undertake to accept and to comply with the provisions of this
Arbitration agreement comprising 9 articles as above.

On behalf of On behalf of

____________ ______________

____________ ______________

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Topic D

4. Discuss the implication of Online Dispute Resolution (ODR) in Indian and

International Perspective. What are the challenges behind non-applicability of
ODR in India?

Answer:

ODR is a mechanism to resolve disputes between parties harmoniously

outside of court with the help of technology. It includes the use of various
mediation, negotiation, conciliation, and dispute resolution tools including
arbitration.It lets any individual or organisation resolve their disputes from
anywhere at a fraction of the time and cost as compared to the traditional
recourse of litigation. ODR has developed alongside e-commerce since it
seemed natural that a dispute originating in cyberspace be resolved completely
online. Today, the use cases for ODR have broadened, and its application is
present across industries.

ODR inIndia – Benefits and Challenges:

The use of ODR in India is at a nascent stage and is starting to gain

prominence day by day. A joint reading and interpretation of various provisions
and rules of the Code of Civil Procedure, 1908, Arbitration and Conciliation
Act, 1996 (“ACA 1996”), Information Technology Act, 2000 (“ITA 2000”), and
Indian Evidence Act, 1872 (“IEA 1872”) provides for resolution of disputes via
ADR and the applicability of the same in an online environment. However, none
of the laws/statutes provides a clear recognition of ODR.To surmount the
aforementioned challenges faced by the Indian judicial system and scale-up
ADR in India, an infusion of technology in dispute resolution is inevitable. The

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usage of ODR as a means for resolving disputes has a number of benefits,
especially in the context of the Indian scenario. Here are a few mentions:

 Overcomes jurisdictional issues

 Eliminates geographical barriers
 Automation of administrative procedures
 Improves the efficiency and productivity of dispute resolution
professionals
 An eco-friendly process as the paper-based trail is minimised
 Encourages an environment that is liberative and not litigative
 Delivers a quick, economical, and effective solution to disputes.

The implementation of ODR in India, however, is facing the following

challenges due to which it has not been able to reach its full potential:

 Lack of awareness amongst the masses

 Stagnant/no technology system to support ODR
 Insufficient legislative and judicial recognition of ODR

Use cases of ODR in India:

 Online Consumer Mediation Centre (“OCMC”): Started as a pilot project

by the Ministry of Consumer Affairs, Government of India, this platform
specifically deals with the resolution of e-commerce consumer disputes.
OCMC aims to provide state-of-the-art infrastructure for resolving
consumer disputes through in-person and online mediation. The
aggrieved consumer must register on the platform and provide details of
the dispute along with the resolution sought from the e-commerce
company. The parties can conduct online negotiations or opt for
mediation, in which case OCMC appoints a mediator and conducts the
proceedings online.

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 RTI Online: The Department of Personnel & Training, Government of
India, has built a portal for filing Right to Information applications and
first appeals online with respect to ministries, departments, and other
public authorities of the central government. It also features a payment
gateway for the payment of fees. The updates regarding the
application/first appeal are communicated via email and SMS and the
orders are uploaded on the portal itself. The Central Information
Commission provides for the filing of second appeals online through its
portal. It issues notices of hearings and facilitates the uploading of
pleadings through its portal. The hearings and proceedings are
conducted via video conferencing using the network of the National
Informatics Centre (“NIC”).
 MahaRERA Conciliation and Dispute Resolution Forum: With a view to
facilitating amicable conciliation of disputes between promoters and
allottees, the Maharashtra Real Estate Regulatory Authority
(“MahaRERA”) set up the MahaRERA Conciliation and Dispute
Resolution Forum. An aggrieved allottee can lodge a formal complaint
online against the builder via the MahaRERA Complaints Portal, add
details, state the reasons for conciliation, submit relevant documents,
and make the payment to submit the complaint.
 Open Network for Digital Commerce (“ONDC”): ONDC is a government-
backed e-commerce interoperability programme, the pilot of which has
been launched in a few cities. A new-age system, ONDC is developing a
dispute redressal framework which will act as a premise for an ODR
platform, that will be used to resolve disputes between the relevant
stakeholders within the Network.
 Unified Payment Interface (“UPI”): The National Payments Corporation of
India (“NPCI”) issued a circular on April 11, 2022, stating that all the UPI
participants must implement ODR systems to resolve disputes and
grievances of failed transactions. This instruction applied to all

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participants such as banks and mobile applications. Interestingly, the
Reserve Bank of India (“RBI”) also issued a circular in August 2020 and
mandated all authorised Payment System Operators (“PSOs”) to
implement ODR systems by January 2021.
 Many regulators and government bodies have also started embracing
ODR for quick and easy redressal of disputes. SEBI has the SEBI
Complaints Redress System (SCORES), IRDA has the Integrated
Grievance Management System (IGMS), RBI has its Complaint
Management System (CMS), and the Department of Administrative
Reforms & Public Grievances has the Centralized Public Grievance
Redress and Monitoring System (CPGRAMS), to quote a few examples.

ODR around the world:

The success of private ODR platforms led to the government of various

countries adopting the mechanism in their judicial system. The city of New
York was one of the first to adopt an ODR system to clear its backlog and
expedite the settlement of personal injury claims. The adoption of ODR in New
York was a success as it resulted in reducing settlement time by 85%, as well
as an impressive 66% settlement rate within 30 days of the submission of the
dispute.

Consumidor, the Brazilian ODR platform for consumer disputes, also seems to
be thriving, having resolved over 2 million consumer disputes in the last five
years.

Other notable examples of court-annexed ODR include the Civil Resolution

Tribunal in British Columbia, Canada; Money Claim Online in the United
Kingdom; and the New Mexico Courts Online Dispute Resolution Centre in the
USA.

The following are a few detailed case studies of ODR being used globally:
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1. Civil Resolution Tribunal: The British Columbia Civil Resolution Tribunal
(“CRT”) is Canada’s first online tribunal which deals with the resolution
of motor vehicle injury (up to CAD 50,000), small claims (up to CAD
5,000) and strata property (condominium) and societies and cooperative
association disputes. The CRT has been a part of British Columbia’s
public justice system since 2016 and has a unique 3-stage dispute
resolution mechanism.

Once the application made by the claimant has been accepted, the disputing
parties can negotiate via the secure and confidential platform. If the parties
reach an impasse in the first stage, a case manager will be assigned who will
assist in reaching an agreement.These agreements can be turned into orders
and can be enforced as a court order. If parties don’t reach an agreement in the
first two phases, an independent CRT member will make a decision about the
dispute. A CRT decision can be enforced like a court order. Out of 14,482
disputes registered until December 2019, CRT closed 12,912 out of them.

These closed disputes include withdrawn claims, disputes resolved by

agreement, cases where the CRT refused to issue a Dispute Notice, disputes
resolved by default or tribunal member decision, and other reasons for closure.

2. Electronic Business Related Arbitration and Mediation (“eBRAM”):

eBRAM (cofounded and supported by the Hong Kong Bar Association,
Law Society of Hong Kong, Asian Academy of International Law Ltd., and
Logistics and Supply Chain MultiTech R&D Centre Ltd.) is building an
ODR platform to support business-to-business transactions in the APEC
Region. It aims at providing a user-friendly and secure platform to
negotiate contracts and resolve disputes in a fair, cost-effective, speedy,
and secure manner through mediation, negotiation, and arbitration. It is
using emerging technologies, including blockchain, artificial intelligence,
soft robotics, and cloud, in facilitating its services. The platform was

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launched in early 2022 and received an allotment of USD 19.1 million for
its first six years.

3. Community Justice and Tribunal Systems (“CJTS”): The State Courts in

Singapore have introduced CJTS, an electronic case filing and
management system, which allows parties involved in small claims
disputes to file claims and access court e-services from the comfort of
their homes and offices. The system also has an e-negotiation feature,
which allows the parties to negotiate and reacha settlement on the
disputed claims without having to go to the courts.

Topic E

5. Differentiate between:-

1. Arbitration & Conciliation.

2. Mediation & Negotiation.

Answers:

1. Arbitration & Conciliation.

The primary difference between arbitration and conciliation is that arbitration

is the process by which parties select an independent person, who renders a

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decision regarding the case. Conversely, conciliation attempts to make parties
come to an agreement, about the problem at hand.

Arbitration is a powerful means of resolving disputes between the organisation

and its employees. It is a process in which an independent third party analyses
the bargaining situation, listens to both parties and collects necessary data
and make recommendations which are binding on the parties concerned.

The process wherein the representative of both employer and employees are
brought together in front of a third party so as to persuade them to arrive at a
decision by agreement between them. Any party can request the other, for
appointing the conciliation officer. The conciliation officer or conciliator can be
an individual or a group of people. There will be no conciliation if anyone of the
two parties rejects the offer to conciliate.

Differences Between Arbitration and Conciliation:

The difference between arbitration and conciliation can be drawn clearly on the
following grounds:

 Arbitration refers to a method of resolving industrial disputes, wherein

the management and the labour present their respective positions to the
neutral third party, who takes a decision and imposes it. Conciliation is a
method of resolving the dispute, wherein an independent person, who
meet the parties jointly and severally and helps them to arrive at
negotiated settlement or resolve their differences.
 The decision made bythe arbitrator is acceptable to the parties
concerned. On the hand, the conciliator does not have the right to
enforce his decision.
 Arbitration requires a prior agreement between parties known as
arbitration agreement, which must be in writing. As against this, the
process of conciliation doesn’t require any prior agreement.

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 Arbitration is available for the current and future disputes whereas the
conciliation can be adopted for existing disputes only.
 Arbitration is like a courtroom proceeding, wherein witnesses, evidence,
cross-examination, transcripts and legal counsel are used. On the
contrary, Conciliation is an informal way of resolving disputes between
the management and labour.

2. Mediation & Negotiation.

In many cases, parties under dispute look for an out-of-court settlement, by

using Alternative Dispute Resolution (ADR) methods which are not just quick,
but affordable too. One such method is mediation. It is an assisted negotiation
in which a mediator is appointed by the parties concerned so as to listen to
both the parties and assist them in finding a better solution. Negotiation is a
process in which parties with conflicting interest come together to discuss and
decide the outcome which can be adopted to manage and resolve the dispute.

Negotiation refers to a systematic process based on bipartite dialogue between

parties in conflict that seek to reach a mutual agreement, by finding a win-win
solution for both. Here, the term conflict does not mean quarrel, unrest, or
disruption, rather it implies disagreement between parties concerning their
interest and rights.

Mediation is an industrial dispute settlement system, which is non-binding in

nature. In this method, an independent and unbiased third party is called in
by the parties under dispute, to assist them in arriving at a solution that is
mutually agreeable to both.

Differences Between Negotiation and Mediation:

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 Negotiation is a method to resolve industrial disputes through self-
counselling and discussion between the party members or the
representatives of the parties, wherein a mutually acceptable agreement
is sought. On the contrary, mediation is a non-statutory measure of
dispute settlement, in which an independent third party is invited, to
facilitate discussion, and suggest alternative solutions, to bring
agreement.
 While negotiation does not involve the intervention of a neutral third
party, in a mediation process, the mediator is invited or consent is given
by both the parties to discuss the issue with the mediator, to bring about
a suitable alternative solution.
 When it comes to meetings, representatives of the parties to conflict meet
to put forward their interests, demands and talk about their rights. As
against, in mediation, the mediator meets the parties to conflict both
jointly and separately, to discuss the point of issue and suggest
solutions.
 In the case of negotiation, interests are represented either by the party
members themselves or by the representatives appointed by them.
Conversely, in the case of mediation, a mediator represents the interests
of the parties concerned.
 In negotiation, parties discuss and decide a possible outcome, which is
acceptable to both, whereas in mediation, the mediator proposes a
solution, to resolve the issues, but it is up to the parties, to adopt the
same or not.
 When it comes to outcome, in a negotiation, the outcome is based on the
relationship between the parties. In contrast, in mediation, the outcome
is controlled by the parties to the conflict.

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