Arbitration refers to an alternative mode of dispute resolution. While almost all disputes between parties are adjudicated by the courts of law but under arbitration, it is the Arbitrator or Umpire who finally adjudicates a dispute between two parties.

Putting it simply the decision of the arbitrator is not open to appeal and the grounds on which a person can approach the courts are extremely restricted. This does expedie the dispute resolution process. Parties to an agreement can decide beforehand that in the case of a dispute they can take recourse to arbitration. Arbitration in India is largely confined to business, and corporate entities or involving contractual matters. However it is an extremely important means of settling disputes which is gaining currency considering that delays and protracted litigation are the bane of the system.