Methods of Alternative Dispute Resolution (ADR) in India

Introduction

Methods of Alternative Dispute Resolution (ADR) – Indian Court’s are grappling with massive backlog of cases resulting in prolonged delays/timelines for Dispute Resolution. To address this challenge, Alternate Dispute Resolution (ADR) mechanisms have been promoted as effective, time saving and cost efficient alternatives to traditional litigation. Alternate Dispute Resolution (ADR) aims to resolve dispute through a common mechanism, without strict and rigid rules and procedures while also maintaining relations between the parties.

Indian law recognises several ADR methods, primarily under section 89 of Civil Procedural Code (CPC), 1908 and through specific statutes such as Arbitration and Conciliation Act, 1996.

Arbitration

Arbitration is the most formal and most widely used method of Dispute resolution mechanism. This process includes resolution of disputes by a neutral third party, known as Arbitrator, whose decision is known as Arbitral award and is binding upon the parties.

Legal Framework

• Arbitration and Conciliation Act
• UNCITRAL Model Law (Adopted Principles)

Key Features

• Proceedings are private and confidential
• Parties agree voluntarily through an agreement or an arbitration clause.
• The Arbitral award is enforceable like a decree of civil court.
• Limited Judicial Intervention

Arbitration form of ADR is used commonly in Commercial cases and International trade disputes.

Conciliation

Conciliation is usually a non adjudicatory process where a conciliator facilitates parties to reach an amicable settlement. Conciliation is a non binding process and unlike an arbitrator, conciliator does not impose its decision.

Legal Framework

PART 3 – Section 61 to Section 81 of Arbitration and Conciliation Act, 1996.

Key Features

• Less Formal and Flexible Process
• Mutual Cooperation and consent is the main Emphasis
• Proceedings are confidential and private

Conciliation form of ADR is used commonly in commercial, family and workplace dispute, where maintaining relations is important.

Mediation

Mediation is a form of ADR where dispute is resolved between two or more parties which is facilitated by a third party known as Mediator. The mediator does not decide the dispute but guides the process.

Legal Recognition

• Section 89, CPC, 1908
• Court Annexed and Private Medication
• Mediation Act, 2023

Negotiation

Negotiation is the simplest and most informal form of Alternative Dispute Resolution (ADR) where parties communicate or negotiate between themselves and no third party is involved.

Key Features

• No fixed procedure
• complete party autonomy
• Fast and inexpensive
• Non binding unless formalised through agreement

Negotiation is often the first step in dispute resolution and is common in business disputes and commercial transactions.

Lok Adalat

Lok Adalat is statutory Alternative dispute mechanasim whose aim is to provide speedy and free justice, especially to the economically weaker section.

Legal Framework

Legal Services Authorities Act, 1987

Conclusion

ADR plays a massive role in dispute resolution process and strengthening access to justice in India. By decreasing burden on courts and promoting amicable dispute resolution ADR ensures economical, quicker and efficient justice system. With legislative support and judicial encouragement ADR has emerged as an indispensable part on the Indian Justice System. Hence, Methods of Alternative Dispute Resolution are the going to be the preferred mode of dispute resolution in India.

ALSO READ: What is Bailable Warrant & How to Cancel It?