Luminex Technologies Private Ltd ('Luminex'), a Bengaluru-based software company, entered into a five-year service contract with Helios Infrastructure Ltd ('Helios'), a Noida-based construction firm, for the supply of cu
CS Professional · Arbitration, Mediation and Conciliation · PYQS · December 2025
Luminex Technologies Private Ltd ('Luminex'), a Bengaluru-based software company, entered into a five-year service contract with Helios Infrastructure Ltd ('Helios'), a Noida-based construction firm, for the supply of customized project management software. Within two years, disputes arose when Helios alleged that the software failed to integrate with its existing systems, causing delays and financial losses. Luminex denied liability, asserting that Helios had repeatedly altered specifications, leading to additional costs and project overruns. Being a listed company, Helios lodged a formal complaint with the stock exchange. Before escalation, both parties were advised to attempt e-mediation through the newly established Online Dispute Resolution (ODR) portal. Recognizing the advantages, both parties consented to proceed with this process and a mediator was appointed. At the outset, the mediator directed the parties to execute a mediation agreement, setting out the framework of the process. Luminex readily agreed, but Helios expressed hesitation, fearing that signing such an agreement might prejudice its rights in any subsequent arbitration or litigation. Further differences arose over the mode of mediation. Luminex preferred ad-hoc mediation, citing flexibility and lower costs, while Helios insisted on institutional mediation under a SEBI-accredited centre, emphasizing structured procedures and enforceability. With no consensus reached, the parties were left to balance efficiency, cost and legal certainty before proceeding. Based on the above facts, answer the following questions: Outline the distinction between ad-hoc mediation and institutional mediation.
Answer & Explanation:
Ad-hoc mediation and institutional mediation are two different types of mediation that differ in several ways. Here are the key differences between ad-hoc mediation and institutional mediation: Definition: Ad-hoc mediation refers to mediation that is arranged on an as-needed basis and is not part of a formalized dispute resolution process. Institutional mediation, on the other hand, is mediation that is provided by a formal organization or institution termed as mediation service provider. Structure: Ad-hoc mediation is typically more flexible and informal than institutional mediation. The mediator may be selected by the parties or appointed by a court or other authority, and the mediation may take place in a variety of settings, such as a mediator's office, a conference room, or even online. Institutional mediation, on the other hand, typically follows a set of established procedures and protocols, and may be conducted in a specific location or online platform. Expertise: Ad-hoc mediators may or may not have specific expertise or training in mediation, depending on how they are selected. Institutional mediators, on the other hand, are typically trained and certified in mediation, and may have specific expertise in certain types of disputes or industries. Cost: Ad-hoc mediation may be less expensive than institutional mediation, as the parties may only pay for the mediator's services and any associated costs, such as room rental or travel expenses. Institutional mediation may involve additional costs, such as administrative fees, overhead costs, and other expenses associated with the formal organization providing the mediation services. However, the cost of institutional mediation may be offset by the infrastructure, technical expertise and human resource assistance provided by such institutions. Availability: Ad-hoc mediation may be more readily available than institutional mediation, as the parties can arrange for mediation as needed. Institutional mediation, on the other hand, may have limited availability depending on the resources and schedule of the mediation service provider. In Ad-hoc mediation you can directly liaison with the mediator regarding availability. In institutional mediation, it will be routed through mediation service provider.
Topics: Mediation
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