Alternative Dispute Resolution

The process by which disputes between the parties are settled or brought to an amicable result
without the intervention of Judicial Institution and without any trail is known as Alternative
Dispute Resolution (ADR).

 ADR offers to resolve all type of matters including civil, commercial, industrial and
family etc., where people are not being able to start any type of negotiation and reach the
settlement.
 Generally, ADR uses neutral third party who helps the parties to communicate, discuss
the differences and resolve the dispute.
 It is a method which enables individuals and group to maintain co-operation, social order
and provides opportunity to reduce hostility.

Important Provisions Related To ADR

 Section 89 of the Civil Procedure Code, 1908 provides that opportunity to the people, if it
appears to court there exist elements of settlement outside the court then court formulate
the terms of the possible settlement and refer the same for: Arbitration, Conciliation,
Mediation or Lok Adalat.
 The Acts which deals with Alternative Dispute Resolution are
i. Arbitration and Conciliation Act, 1996 and,
ii.The Legal Services Authority Act, 1987

Advantages of ADR:
 It is more flexible. As it involves only the parties with an interest in the matter and their
representatives therefore the parties are free to discuss the issue as according to their
needs and purposes.
 Increased settlement. As it is based on the parties mutual agreement, they may decide
on their own on which settlement can fulfil their needs in which settlement value could
be as what they wish for as in contrast with the court decision.
 Improved satisfaction with outcome or manner in which the dispute is resolved
among disputants. The approach that is taking place are interest-based approach where
it focus on win-win approach where both parties can have the most benefit from the
matter.
 Reduced time in dispute. The parties have full control in setting the time to solve the
dispute and do not have to wait for a long queue as compared to the court systems.
 Reduced cost and stress in relating to the dispute resolution. Since everything is dealt
between the dispute parties themselves, the can manage all the cost and related matter in
shorter time and therefore reduce any unnecessary legal cost and also the stress of trial.
 Increase compliance with agreed solutions. As the terms only involve the parties in
dispute, both parties can lay down their wishes which can be discussed in more informal
way and therefore the chances of satisfaction result is higher.
  It can be kept confidential. It is up to the parties whether they can make it private or
public over their dispute therefore they can opt for confidentiality to be in place.

Disadvantages of ADR:
 No guarantee of resolution (except in arbitration). As it is only an alternative to
resolve issue outside court, it may not be able to reach to any solution and both parties
can retrieve at any point of time from any of the ADR process.
 Decisions of arbitration generally are final (lack of ability to appeal). As compared to
the court systems, there is no way of hearing appeals from any party. All decision is
based on what is agreed.
 The parties have no choice since the contract stated that it would be the only way for
dispute resolution. Once the decision is made that is the only solution that could be
accepted.
 Beware of limitation period while the dispute in ADR process. There is some
datelines that need to be complied that the settlement need to be done within the certain
period of time.
 There is no binding precedent. Any decision made is not having any precedential value.
 The rules of evidence are not applicable. As it is based on negotiation and not as in
normal court litigation, any evidence may not be any used as it has to fulfil both dispute
parties’ terms and conditions.