Project Report

on
ADR and its Progress in Today's World

Submitted as a partial fulfillment of the requirements for B.A.LLB HONS 5 Year

Integrated course

SESSION:2022-2023

Submitted by: Submitted to:

Jatin Gautam Dr. Gunjan Sharma

Roll No.- 39 Faculty-Alternate Dispute Resolution

Semester – VIII Section - A

UNIVERSITY FIVE YEAR LAW COLLEGE

UNIVERSITY OF RAJASTHAN,
JAIPUR

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 DECLARATION

I, Jatin Gautam, hereby declare that this project report titled “ADR and its Progress in
today's world” is based on the original research work carried out by me under the guidance and
supervision of Dr. Gunjan Sharma.
The interpretations put forth are based on my reading and understanding of the original texts.
The books, articles and website etc. which have been relied upon by me have been duly
acknowledged at the respective places in the text.

For the present project which I am submitting to the university, no degree or diploma has been
conferred on me before, either in this or in any other university.

Date: 23.05.2023 Jatin Gautam

Roll no.- 39

Semester – VIII Section - A

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 ACKNOWLEDGEMENT

I would like to express my gratitude to those who generously took initiative and helped in the
successful completion of this project. I thank to them for their inspiration and guidance towards
preparation of this report. I thank my esteemed teacher and supervisor, respected Director Dr.
Akhil Kumar, UFYLC, Dept. of law, University of Rajasthan. I am highly indebted and my
profound gratitude to Dr. Gunjan Sharma, Faculty, University Five-year law college,
University of Rajasthan, Jaipur, who enabled me to make a project and provided me their
stimulus of writing this. I am grateful to my parents, for their valuable advice, continuous
support and guidance through various useful discussions at different times during the tenure of
making this project and their co-operation led to great learning experience to me.

Jatin Gautam

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 CERTIFICATE

Dr. Gunjan Sharma Date: 23.05.2023

Faculty

University Five Year Law College

This is to certify that Jatin Gautam of Semester VIII section A of University Five Year Law
College, University of Rajasthan has carried out a study on “ADR and its progress in today's
world” under my supervision and guidance. It is an investigation report of a minor project. The
student has completed research work in my stipulated time and according to the norms
prescribed for the purpose.

Supervisor

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Contents
DECLARATION .......................................................................................................2

ACKNOWLEDGEMENT .........................................................................................3

CERTIFICATE ..........................................................................................................4

CHAPTER 1 ..............................................................................................................7

CHAPTER 2 ..............................................................................................................8

CHAPTER 3 ........................................................... Error! Bookmark not defined.

CONCLUSION.......................................................................................................13

BIBLIOGRAPHY...................................................................................................14

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Abstract

The process of a new ADR in the country originated from the USA to meet the necessity and
requirement of the people. It was a step taken to find alternatives for the traditional system which
proved to be costly and time consuming, unpredictable, rigid, damaging the relations, and limited
scope. People relied on an alternative to find solutions for the conflicts arouse. One of the main
drawbacks of the Indian legal system is the lack of delivery of legal remedies to the people in
need, it has also failed to deliver social justice to the aggrieved party. The pending case in the
country is much more than the cases solved. The reason may include increasing the number of
offenses and the time to solve the cases from the part of the judiciary also increases. Alternative
Dispute Resolution can help to solve disputes which are less important when compared to the
serious offenses so that the courts have sufficient time to analyze the case and pass judgment for
delivering justice effectively and efficiently and provide an appropriate decision.

Objectives

In this study, it is purposed to examine progress of ADR and its progress in today's world.

Research Question

Examine ADR and its progress in today's world.

Research Methodology

The researcher has adopted doctrinal method research. The researcher has made extensive use of
the available resources at the library of University Five Year Law College, University of
Rajasthan and also internet resources.

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 CHAPTER 1
INTRODUCTION

With the recent development in the legal system, most of the disputes are resolved which is more
convenient than any formal trial. Most of the disputes relating to energy, financial services,
aviation are settled through the Alternative Dispute Resolution mechanism. There is much
special dispute which goes to special forums/tribunals which are more administrative than court.
ADR is known for its legal reform movement in the USA for the better administration of justice.
With respect to the development made in the ADR through amendments in the Arbitration Act of
different countries. ADR is not only a better mechanism for settlement of the dispute, but also it
offers better efficiency, flexibility, empowerment of parties, and justice. Today, there are more
than 200 countries in the world to have negotiation treaties and prefer the International platform
for the resolution of disputes arise at any point in time. Arbitration offers a platform for the
resolution of border and boundary and cross border commercial dispute between two countries
through negotiation and mediation mechanism. Therefore, most of the legal advisors and
intellectuals are involving in ADR, as it is the most integrated form of resolving disputes of the
parties.

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 CHAPTER 2
INDIA
The Arbitration Law of India underwent three amendments in the years 1940, 1935, which
recognized protocol and convention, and in the year 1961, it included foreign award. Recently,
the bill has been passed in legislation to amend laws relating to domestic, international, and
commercial arbitration. The aim to do so encouraging foreign trade and make New Delhi the
headquarters of International Arbitration. To uphold the arbitration procedure and add more
strength, there has been a High-level committee set up by the central government which was
introduced the Arbitration and Conciliation (Amendment) Bill in the year 2019. The main
objective was to deal with the dispute’s speedy resolution with minimum cost expenditure and
less of court interference.

The Arbitration in the Conciliation Act was introduced after the amendment in 1996. It stated
powers to Supreme Court and High court to designate the Arbitral institution. It also gave powers
to CJI of the High Court to appoint the arbitral panel and review the conduct of arbitrators.

The parties got privileges to choose arbitrators through the application to institution directed by
the Supreme Court. In the cases of International Commercial Arbitration, the arbitrators’
appointment shall be made on the application. It sets the parties free to decide the procedure of
arbitration. In the case of the absence of agreement, both the parties would possess the power to
appoint one arbitrator. Then both the arbitrators can nominate the third arbitrator who would be
the presiding arbitrator.

Section 17 of the Arbitration and Conciliation Act 2019 states about non-allowance of Interim
order after the arbitral award has been passed. The amendment also states about parties to present
their statement for claim and defense within six months after the notice is received from
arbitrators.

Section 23(4) of the Act states that the dispute relating to international commercial matters must
be made within 12 months from the date of completion of the arbitral tribunal. The legislation
has also introduced the power of appeal in the new amendment. Moreover, there was the addition
of Section 42A and 42B, which deals with the matter concerning the procedure’s confidentiality

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except for the award. In contrast, Part 1A is included in the Act to establish the Arbitration
Council of India. Lastly, section 26 has been repelled under the new amendment.

In BCCI vs. Kochi Cricket (2018) and Hindustan Construction vs. UOI (2019), the Supreme
Court Judgement had observed the 2015 amendment and 2019 amendment.

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 CHAPTER 3
IN FOREIGN COUNTRIES
AUSTRALIA

With the recent development in the International Arbitration Act 1974, which has increased the
effectiveness in the conduct of the arbitration law in Australia. The change in the Australian
Arbitration laws mainly focuses on international trade and commerce. Most of the amendments
are inspired by the amendments made in the year 2006 to the UNCITRAL Model. These
developments are made to restrict foreign arbitral awards. Arbitral courts of Australia has the
power to make interlocutory orders. The threshold test has been removed under the recent
changes in the Arbitration Act of Australia. The new enactments also provide optional provisions
to the parties to accept or exclude the jurisdiction made by the Federal Court of Australia. Under
the UNCITRAL Model Law, the tribunals have the power to make interim orders that may be
necessary for the subject matter of the institution. However, Article 17B of the UNCITRAL
Model law has not been included in the recent amendments to the Act. The parties to the
arbitration can also challenge the identity of the arbitrators on the grounds of biasness to a
particular subject matter. The recent amendment also provides a regime of confidentiality which
enables the parties to seek the permission with respect to the disclosure of such information.
Moreover, with the recent amendment, there has been an increase with the establishment of the
arbitration list in the Federal Court of Australia, Supreme Court of Victoria and New South
Wales, which facilitates the expertise in the arbitration matters.

CHINA

The new developments in ADR from the past few years have bought immense relief to the
parties. Earlier they tend to visit court and even after spending considerable time and effort, most
of them end up losing because of the time-consuming proceedings. This disadvantage by civil
dispute resolution gave rise to other mechanisms. The new developments under the Chinese
ADR mechanism aim at self, social and public -relief by improving the quality of mass media
and gave the best effects to it. The court is encouraging people for pre-litigation mediation and
will consult the same inn lawsuits. The major development can be seen in the era of 2006 during
the development of the Shanghai Pudong Area People’s court. Here, it was mandated to consider
mediation for the pre-trail stage during the civil and criminal cases. Later on, it was observed that
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16% of such cases got solved through it between 2015-18. The next development was regarding
mediation which majorly focuses on personal rights. Earlier, the parties had to give up on their
own interest and compromise in traditional mediation but now the focus was upon individually
focused society. Earlier, the focus was on the betterment of the group and not on the right of the
individual which constructed in providing relief. One cause for such was also no professional
training of mediators which resulted in poor mediation committees. They were not funded and
poorly paid which made this into a part-time job. The change bought more resources to train and
educate them. Now, the professional mediation committees have expanded in the many other
sectors including insurance, securities and intellectual properties. The third change was
collaborating the non -judicial organizations with courts which led the settlement confirmed by
the court. The courts have also been seeking for advice for mediation organizations and
assistance. Now comes the fourth change which talks about the amendments, enactment and
legalization of “People’s Mediation Law.” The law includes the selection and qualification of
mediation and mediators. Whereas the fifth change is about including the usage of modern
technology and online dispute resolutions methods which got established in 2007 by the
Supreme Court. Surprisingly, over a year more than 12,000 organizations got connected to this
platform. Parties can easily apply for mediation and choose their mediator over it through video.
The parties need to sign in with their cell phone or computer. There was also an establishment of
the first Internet court which specifically deals with online dispute cases.

There was also a new treaty imposed on cross-border mediation which was signed by China.
This treaty encourages cross-border mediation.

RUSSIA

The Hong Kong International Arbitration Centre (HKIAC) has been granted a license for being
the authorized committee. The laws undergo major amendments on March 29, 2019. These
amendments focused majorly on the dispute arising out of the shareholder’s agreement of the
contracts by state companies. These began affecting arbitral and ad hoc arbitration. This
amendment also provides relaxation for compensation to those who incurred loss by the legal
entity or those who had claimed for invalidation from the same. These could only be referred to
as the ones licensed by the Russian government. Later, the Russian institution also announced
the grant of license to the sports arbitration in April 2019. Though there were some restrictions

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for licensed permanent arbitral institutions regarding ownership of shares which include disputes
concerning incorporation, reorganization, management, liquidation of a legal entity through
corporate management bodies, and disputes regarding the issue of securities. Furthermore, these
amendments consisted of two requirements I.e. The party, arbitration should be administered
under a permanent institution and should be seated in Russia. The parties were not needed to
include the entity itself and the arbitration procedure must be confidential. The amendments also
expanded the scope of disputes to be referred to in international arbitration institutions. The ones
which were arising out of the procurement of contract concluded by state-owned under Law 223-
FZ had gone under the restrictive approach adopted by Russian courts.

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 CONCLUSION
In light of the recent development in the Arbitration laws, it has provided a broad framework and
platform which will offer a mode of resolution of the dispute through alternative means with the
objective of the settlement of dispute of the parties in the most appropriate and effective manner.
It has its own implications and outcomes in both national and international character.

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 BIBLIOGRAPHY

1. Lawshelf.com. History of Alternative Dispute Resolution (Sept. 4,2020, 10:24 pm) [online]
Available at: <https://lawshelf.com/coursewarecontentview/history-of-alternative-dispute-
resolution/>.
2. Jamsadr.com. Recent Trends in Alternative Dispute Resolution. (Sept. 4,2020, 10:24 pm)
[online] Available at: <https://www.jamsadr.com/publications/2002/recent-trends-in-
alternative-dispute-resolution>
3. Mondaq.com. Recent Developments In India-Related International Arbitration –
International Law – India. (Sept. 4,2020, 10:24 pm) [online] Available at:
<https://www.mondaq.com/india/international-courts-tribunals/737816/recent-
developments-in-india-related-international-arbitration>.
4. TaxGuru. Recent Developments In The Arbitration Sector In India. (Sept. 4,2020, 10:24
pm) [online] Available at: <https://taxguru.in/corporate-law/developments-arbitration-
sector-india.html>.
5. Mediate.com. the Australian Experience Of Pre-Litigation ADR Requirements. (Sept.
4,2020, 10:24 pm) [online] Available at: https://www.mediate.com/articles/RooneyG3.cfm.
6. Nortonrosefulbright.com. 2020. Alternative Dispute Resolution ADR. (Sept. 4,2020, 10:24
pm) [online] Available at: <https://www.nortonrosefulbright.com/en-
cn/services/357d79cb/alternative-dispute-resolution-adr.
7. Lexology.com. A Glimpse into The Future Of Alternative Dispute Resolution In China |
Lexology. (Sept. 4,2020, 10:24 pm) [online] Available at:
<https://www.lexology.com/library/detail.aspx?g=50d68969-e072-4186-951e-
c890ecc7e598>.
8. Walker, T.,. Mediation | ADR in Russia | Weinstein International Foundation. [online]
Weinstein International Foundation. (Sept. 4,2020, 10:24 pm) Available at:
<https://weinsteininternational.org/russia/>.

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