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Mediation-Arbitration is a mode of dispute resolution in which mediation and arbitration are combined in the med-arb method of alternative conflict settlement. It is a two-stage dispute resolution method in which the dispute is initially tried through mediation, and if mediation fails, the matter is then referred to arbitration.

When the mediation fails, the mediator is automatically converted into an arbitrator and initiates the arbitration proceedings. On the one hand, where the mediation proceedings are not binding upon the parties unless they both agree to it, the arbitration proceedings are binding upon the parties and cannot be discarded at the instance of one party if they had consented to it in the past.

It is a unique mode of dispute resolution as it allows the parties to refer to two ADR methods. Mediation allows the parties to present their case and understand the opposite party’s statements. Once mediation is concluded, there is no need to start arbitration afresh but convert the mediation into arbitration. This saves time and expense for parties and also the adjudicator is already familiar with the issues of the case and can speedily dispose of the matter by making an award.