Posted On: November 14, 2017

Why is it advisable to sort disputes via arbitration or out-of-court settlement?

The Indian judicial system is the highest honour in the country. Our constitution placed it so in the hierarchy that it stays above all jurisdiction and judgement. Although there are a few nits and pieces that one can pick against the Indian judicial system, and when it comes to disputes and litigation, more people prefer settling and sorting disputes out of court or via arbitration. Here’s why you should also take up this advice:

1. Avoid damaging relationships:Even the most petty cases can prove damaging to relationship. And not only corporate or business relationships, but even personal ones. Tarnishing reputations can form a major part of a court trials because once inside the court, everything counts. To avoid tarnishing close business and personal relationships, even most lawyers and consultants advice that all issues be settled without going to trial.

2. Eating up enormous amounts of money:Court trials are expensive, and that is a hard truth. It involves several fees and expenses. Plus once a case goes to trial, there is no telling how much time it is going to take. Unless both the parties are absolutely adamant that they want a trial, it is much better for all parties involved to settle litigations and disputes out-of-court.

3. Indirect costs of litigation: Lawyer fees and direct costs can easily get measured. But it is the indirect costs that put a dent. Cost of diverting key personnel, cost of destroying a profitable relationship with a business ally, are costs that can not be measured. From a professional standpoint, such costs might even be more important.

4. Adversary System: Apart from the high costs of litigation and court trials, the idea behind the adversary system plays a major hand when two parties go against each other in a court of law. Even though this ideal may not always be realised, the detriment of truth and resolving every conflict to the satisfaction of both parties is something that can not be achieved easily.

These were merely just a few reasons why lawyers and legal advisors deem it profitable and amiable to avoid in court settlements. And since the alternatives to traditional methods of litigation have been around for many years, arbitration and out-of-court settlement have proved to be most beneficial for most cases.

Knowledgentia Consultants has ample experiences in legal advises and helping both corporates, professionals and individuals in multiple legal matters. You can reach out to us for any kind of legal assistance via our contact us page, or walk in anytime for a consultation.

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