Arbitration and conciliation law
Arbitration and conciliation law in Nepal provides alternative dispute resolution mechanisms for parties seeking to resolve their conflicts outside of traditional court proceedings. The Arbitration Act and the Conciliation Act are the key legislative instruments governing these processes. Arbitration involves referring a dispute to an impartial third party (arbitrator) who makes a binding decision based on evidence and arguments presented by both parties. It offers a faster and more cost-effective means of settling disputes, particularly in commercial matters. On the other hand, conciliation involves a neutral third party (conciliator) assisting the parties in reaching a mutually acceptable resolution through negotiation and facilitation. The laws provide guidelines for the appointment and qualifications of arbitrators and conciliators, the conduct of proceedings, and the enforcement of arbitral awards and conciliation settlements. The arbitration and conciliation process in Nepal seeks to promote efficiency, confidentiality, and party autonomy, making it an attractive option for dispute resolution in various sectors.