Abstract
Alternative Dispute Resolution (ADR) has emerged as a vital tool to address the
challenges of case pendency and delayed justice in India. It encompasses
mechanisms such as arbitration, mediation, conciliation, negotiation, and Lok
Adalats, offering speedy, affordable, and confidential dispute resolution.
Supported by the Arbitration and Conciliation Act, 1996, Section 89 of the
Code of Civil Procedure, 1908, and the Legal Services Authorities Act, 1987,
ADR has been encouraged by both legislation and judicial pronouncements.
Despite its advantages, issues like lack of awareness, uneven enforcement, and
limited outreach remain. This article highlights the framework, benefits, and
challenges of ADR while emphasizing its role as a complementary mechanism
to the traditional justice system.
Introduction
The Indian judicial system is overburdened with more than 5 crore pending
cases across various courts. Justice delayed often amounts to justice denied. In
this context, Alternative Dispute Resolution (ADR) has emerged as a practical
solution to resolve disputes outside the traditional courtroom, ensuring
speedy, cost-effective, and amicable justice.
What is ADR?
ADR refers to a set of dispute resolution processes that allow parties to settle
conflicts without formal litigation. It includes:
1. Arbitration – A quasi-judicial process where disputes are decided by an
arbitrator and the award is binding.
2. Conciliation – A flexible process where a neutral third party assists parties in
reaching a mutually acceptable settlement.
3. Mediation – A voluntary process where a mediator facilitates dialogue
between parties to help them arrive at their own solution.
4. Negotiation – Direct discussions between parties to reach an agreement
without third-party involvement.
5. Lok Adalat – A statutory forum under the Legal Services Authorities Act,
1987, providing settlement in a speedy and informal manner.
Legal Framework of ADR in India
Arbitration and Conciliation Act, 1996 (amended in 2015, 2019, and 2021)
governs arbitration, conciliation, and enforcement of arbitral awards.
Code of Civil Procedure, 1908 (Section 89) empowers courts to refer disputes
to ADR mechanisms.
Legal Services Authorities Act, 1987 provides the statutory basis for Lok
Adalats.
Judicial pronouncements (e.g., Afcons Infrastructure Ltd. v. Cherian Varkey
Construction Co., 2010) have strongly encouraged ADR
Advantages of ADR
- Speedy Resolution – Matters can be resolved in weeks or months instead of
years. - Cost-Effective – Cheaper than prolonged litigation.
- Confidentiality – Proceedings remain private.
- Flexibility – Procedures are informal and less rigid.
- Preservation of Relationships – Especially useful in family and commercial
disputes. - Reduced Burden on Courts – Helps in easing case penden
Challenges of ADR in India
Lack of Awareness among litigants.
Quality of Arbitrators and Mediators – Need for trained professionals.
Enforceability Issues – Delays in execution of arbitral awards.
Resistance to Change – Traditional preference for courts.
Access Issues – Limited use of ADR in rural and semi-urban areas.
The Way Forward
Greater emphasis on institutional arbitration and mediation centers.
Mandatory pre-litigation mediation for commercial and family disputes.
Capacity building and training of mediators, conciliators, and arbitrators.
Use of technology and Online Dispute Resolution (ODR) to make ADR more
accessible.
Conclusion
ADR is not just an alternative but a necessary complement to the formal justice
system. By promoting ADR, India can move closer to achieving the
constitutional promise of “access to justice for all”. With proper legal reforms,
awareness, and institutional support, ADR has the potential to transform the
Indian dispute resolution landscape.
References
Arbitration and conciliation Act, 1996
Code of Civil Procedure, 1908
Avtar Singh, law of Arbitration and Conciliation (LexisNexis, latest edition)
Law Commission of India, 246th Report on Amendments to the Arbitration and
conciliation Act, 1996 (2014).
UNCITRAL Model Law on International Commercia Arbitration, 1985 (amended
in 2006).
NITI Aayog, Designing the future of Dispute Resolution: The ODR Policy Pan for
India (2020).
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