When it comes to board room brawls or in the case of two competitors being in tussle over any issue regarding their respective companies, it can be observed that tempers are usually flared and the corporate entities do not mind the arbitration way even though it may take several years to resolve the issue.
In addition to the above, there is the inevitable drain of time as well as financial resources that may get used in the full course of action, what with either of the court appealing the decision as they feel justice was not delivered.
Although mediation is not a solution that is not even considered by the corporate head honchos, it can be seen and can prove to be a much better way in resolving the disputes. In addition, since the procedure is not time consuming, even the costs involved can be substantially less. This spares the company of getting into the financial blushing as a part of the long drawn litigation.
In this day and age of fierce competition with rivals, the cost of a prolonged litigation eats into not just the financial but also the mental aspect of any corporate dispute. In such a scenario, when mediation is resorted to first, rather than a last resort it not only maintains cordial relationship but also prevents the inevitable cash drain from the coffers of the feuding entities.
In today’s scenario mediation can prove to be the most effective way to resolve any dispute involving two companies that may have entered the phase of no return or beyond. This is because of the fact that all disputes are resolved not by someone who has vested interest in the goings on of either parties.
With a view to ensure fairness in the process of overseeing the government of India has laid down specific criteria for the appointment of such mediators.