CCA ASSIGNMENT 2

Q1) What are the different modes of alternative dispute resolutions in India?

A) Various Alternative Dispute Resolution mechanisms can be classified as:

1. Arbitration
2. Conciliation
3. Mediation
4. Judicial Settlements inclusive of Lok Adalats
5. Negotiations

Arbitration

Under this form of Alternative Dispute Resolution mechanism, both the parties involved in the
dispute choose the person to hear and determine their dispute through a consensus. The
objective of arbitration is to arrive at a fair resolution through an unbiased tribunal speedily and
in a cost-effective manner.

Conciliation

Under the process of conciliation, the intention is to facilitate the settlement between the
parties. The parties, however, are not obliged or are not bound by the conciliation, in a sense
that negotiations can be carried out until the parties arrive at a mutually pleasing settlement.
The process is handled by an impartial individual termed as the conciliator. He is an active
participant in the process of conciliation and is involved in discussing the issues, negotiating and
bringing about an amicable settlement.

Mediation

A mediator is involved in assisting the parties in dispute to reach an agreement. The parties in
dispute themselves set the conditions of the settlement to be reached. The third party does not
impose any decisions on the parties but merely acts as a facilitator involved in improving the
dialogue between the parties.

Lok Adalats

The establishment of Lok Adalat system of dispute settlement system was brought about with
the Legal Services Authorities Act 1987 for expediting the system of dispute settlement. In Lok
Adalats, disputes in the pre-litigation stage could be settled amicably.
Negotiations

It is the most common method of alternative dispute resolution. A non-binding procedure in

which discussions between the parties are initiated without the intervention of any third party
with the object of arriving at a negotiated settlement to the dispute. Negotiation occurs in
business, NGOs, government branches, legal proceedings, among nations and in personal
situations such as marriage, divorce, parenting, and everyday life.

Alternative Dispute Resolution in India

 Lok Adalat or “people’s court” comprises an informal setting that facilitates negotiations
in the presence of a judicial officer wherein cases are dispensed without undue
emphasis on legal technicalities. The order of the Lok-Adalat is final and binding on the
parties and is not appealable in a court of law.
 Procedure for plea-bargaining was included in the Code of Criminal Procedure in 2005.

Q2) State under which section which law and amendment are applicable for following case
study Also mention the mode of ADR.
A)
 In the first case of Cheran Properties Ltd vs Kasturi & sons Ltd & others section 35 of the
Act made the award binding on the appellant. Also the court progressively noted that
the execution of arbitral award through the NCLT by seeking the remedy under section
111 of the Companies Act, 1956 was appropriate in the case.
 In the second case of Uttarakhand Purv Sainik Nigam Ltd Vs Northern Coal Fields Ltd.
The issue which has emerged for thought is whether the High Court was legitimized in
dismissing the application recorded under Section 11 for reference to the assertion, on
the ground that it was banished by an impediment. Considering the revisions to the Act
in 2015, which embedded condition (6A) to area 11 of the Act, the Supreme Court held
that the extent of assessment of an application documented under segment 11 of the
Act is currently bound distinctly to the presence of an assertion understanding, and
that’s it. It was additionally held that all other primer or limit issues are left to be chosen
by the authority under area 16 of the Act.
 In the case of Kokan Railways Corp LTD. Vs Mehul Constructions Company A three-judge
bench of the Supreme Court ruled that the Chief Justice’s order appointing arbitrators in
domestic arbitrations and the Chief Justice of India’s order in international commercial
arbitrations shall be considered to have been made in his administrative capacity, and
the aggrieved party could challenge the decision under Section 16 of the Arbitration Act,
for challenging the jurisdiction of the tribunal.
 In the Case of Goel Construction Co. Pvt. Ltd. v. ICAI O.M.P. (T) (Comm.) The Court found
that the Arbitrator was under the impression that he was not required to reveal the
other applicable aspects of the Act’s Sixth Schedule. Furthermore, the Court determined
 that compliance with the major requirements of the said Schedule is insufficient and
ordered the Arbitrator to provide full disclosure in accordance with the Act’s Sixth
Schedule.
 In the case of Mahanagar Telephone Nigam Limited Vs. Canara Bank & Ors Invoking the
theory of “Group Companies,” the Supreme Court allowed a non-signatory to an
arbitration agreement to engage in the proceedings. A non-signatory may be bound by
an arbitration agreement if the parent or holding firm, or a member of the group of
companies, is a signatory to the arbitration agreement and the non-signatory party on
the group has been involved in the negotiation or performance of the commercial
contract or has made comments indicating its intention to be bound by the contract,
according to the Supreme Court. The related contracts will bind and support the non-
signatory as well. The Supreme Court found ample historical precedent, in this case, to
conclude that the parties agreed to bind the non-signatory party to the arbitration
proceedings.

Q3) Company AMAR and Company USHA

A) There are two basic types of arbitration agreement are:
(a)Arbitration clause - a clause contained within a principal contract. The parties undertake to
submit disputes in relation to or in connection with the principal contract that may arise in
future to arbitration.
(b)Submission agreement - an agreement to refer disputes that already exist to arbitration.
Such an agreement is entered into after the disputes have arisen.
In the first case, the agreement already carries the term that all disputes shall be arbitrated in
Mumbai at the time of entering into the joint venture agreement. This would be an arbitration
clause as it is contained in the principal contract (JVA) and no disputes have arisen yet. It
concerns future disputes that may arise.
In the second case, the principal contract (JVA) does not have any term relating to arbitration.
Disputes arose between the parties concerning the quality of supplied goods in 2017. To
resolve this dispute, the parties later entered into an agreement "That all disputes including
quality of goods supplied by Company USHA to Company Amar shall be submitted to
arbitration. The parties hereby agree to abide by the decision of the arbitrator. " Such an
agreement that is made after the disputes have arisen would be called a submission agreement