Law Students Federation

LL.B. Notes
5th Semester

My Fair Garden, Flat # 103, Beside Ohris, Petrol Bunk, Hyderabad.

Abdul Kareem, 7799224814
 Alternative Dispute Resolution System

Q1. Explain various authorities specified in ADR machinery & its advantages &
disadvantages.

Ans. ADR machinery means to file civil matters before authorities other than court. ADR
machinery is very popular in many countries such USA, AK, SWEDEN, CANADA,
JAPAN. India have also adopted it & pass the legislation called as Arbitration &
conciliation Act 1996. According to “ROBSON” ADR machinery disposed civil matter
more speedy, more cheaply & more efficiently.

Following are the authorities under ADR machinery.

1. Arbitration:- Arbitrator is mediator &not a judge, there is panel of arbitration & parties
who want to refer dispute can appoint one (or) more arbitrators, they make hearing of
both sides & gives the decision in writing called as “AWARD” & award is signed by
arbitrator, if there are more arbitrator then they give award collectively (or) by majority
opinion. Any party can make appeal against award in civil court having jurisdiction.
2. Conciliation:- Conciliation officer is also mediator, parties can appoint one (or) more
conciliation officer by mutual consent, conciliation officer should have experience of
particular trade (or) business, he makes hearing of both sides & proposal for settlement
of dispute, if party agrees to proposal them they execute a document & it is signed by
both sides parties & conciliation officer, if one (or) both sides disagree to proposal then
conciliation is failure & there is no settlement.
3. Lok adalath:- There is separate Act called as legal services authorities Act 1987. Under
these Act there is provision to constitute lok adalath in every court generally on holiday.
In lok adalath there is one judge & two senior advocates, parties can refers dispute to lok
adalath. Lok adalath make hearing in brief & give proposal to settle the dispute, if parties
agree to proposal then they execute document signed by lok adalath members called as
settlement deed & it has legal validity. If one (or) both parties refuse proposal then there
is no settlement.
4. Tribunals:- Tribunals are retired persona, appointed for fixed term, which is generally
3years (or) 5years, tribunals in Quasi judicial authority, he deals with particular type of
cases such as, tax tribunal, insurance tribunal, service. Appeal from tribunal is allowed to
high court.
5. Family counseling centres:- There are family counseling centre in city, they charge
fee & do counseling between husband & wife having dispute, they try to settlement
dispute between family members.
6. Gram panchayath:- In villages five member are elected by voting people called as
gram panchayath, one person is chairperson called as sarpanch, people of the village
can refer dispute to gram panchayath, they can refer dispute to gram panchayth, they
make hearing & settlement the dispute if parties agree for it.

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 Alternative Dispute Resolution System

Advantages of ADR machinery:-

1. There is no court fee & dispute is settlement cheaply.
2. There is no need to follow procedural law.
3. There is no delay to settle dispute.
4. There is no need of advocate & parties can represent the matter.
5. There is consent of parties & there is no force.

Disadvantage of ADR machinery:-

1. Many authorities are not legal expert & they commit error.
2. There is scope for partiality of member.
3. There is less importance because it is not expensive.
4. In many matters parties may not agree & it is waste of time.

Even though there are some disadvantages these machinery is playing important
role in modern period.

Short Question:

Q1. Unilateral Bilateral & Triadic settlement of dispute.

Ans. In unilateral settlement there are representative of both side parties, when there is
dispute then these parties come across the table & make negotiation, when they agree
to points of dispute then they prepares settlement deed & both sides parties signed it.

In bilateral settlement there are both side parties & one conciliation officer (or) one
arbitrator they make hearing & settle the dispute.

In triadic settlement there are both side parties & 3 (or) 5 conciliation officers (or)
arbitrators, they settle dispute by majority.

Q2. Arbitration agreement.

Ans. In industry, company, factory parties can make arbitration agreement names of
arbitrators are mentioned (or) decided afterwards when there is dispute, if there is
arbitration agreement then directly dispute cannot be filed in the court it is mandatory on
parties to refer dispute to arbitrator when award is declared by arbitrators then any party
can challenge it in the court. Therefore when there is arbitration agreement then parties
are prevented to file case in court directly.

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 Alternative Dispute Resolution System

Q2. Explain provision of negotiations, conciliation, arbitration & distinguish between it.

Ans. Negotiation means participation in discussion to settle the dispute, negotiation is also
called as collective bargaining, if negotiation is successful then there is possibility of
settlement of dispute the term negotiation includes following points.

1. There are representatives of both sides appointed for purpose of negotiation.

2. Opportunity to be given to all the representative to participate in negotiation & express
their opinion.
3. Negotiation may be done voluntarily (or) in pressure of mediators.
4. Negotiation to be done on points of dispute (or) points of agenda.
5. Negotiation can be done orally as well as submission of written document.
6. Negotiation can be done in one meeting (or) more no of meetings.
7. In negotiation party should not be adamant otherwise there may not be settlement.
Conciliation:- Conciliation in very popular among business community when there is
dispute then relevant parties appoint one (or) more conciliation officer. If one person is
appointed then he is called as Sole conciliator. If more conciliation officers are appointed
then they are generally 3 (or) 5 so that there opinion should not divide equally
conciliation officers make hearing of both sides they also examine relevant documents &
parties after completion of hearing they give proposal they document in prepare & both
side parties sign it & after that conciliation officers also sign the document it is called as
settlement deed no appeal is allowed against settlement deed because both sides
parties have sign it voluntarily & by consent.

Arbitration:- Under arbitration & conciliation act 1996 parties can refer dispute for
arbitration, there is panel of arbitrators in the institution of arbitrator. Parties can appoint
arbitrators from the panel & also fix their remuneration. If one arbitrator is appointed then
he is called as sole arbitrator, if more arbitrators are appointed then they are generally 3
(or) 5 arbitrators, they fix the date & place of arbitration proceeding by consent of parties,
arbitrator makes hearing of both sides & examine witnesses & documents produce by
them, after completion of hearing they give the decision collectively (or) by majority
opinion called as Award, & award is signed by all the arbitrators, award is binding on
parties if award is not complied then petition can be file in court for enforcement of award
& award can be challenged in court on reasonable grounds & court can decide validity of
the award.

Distinguish between conciliation & arbitration.

Conciliation
It is generally done among
businessman.
There is no prior agreement of
conciliation.
Conciliation may do settlement.
Conciliation is recommendatory.
Settlement deed cannot be challenge.
Arbitration
It is generally done when there is
dispute in Industry, factory, company.
There can be prior agreement of
arbitration.
Arbitration declare award.
Arbitration is mandatory.
Award can be challenge,

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 Alternative Dispute Resolution System

Q3. Explain the provisions of appointment of arbitrator & their powers & grounds of
terminations of arbitrators.

Ans. Under arbitration & conciliation act 1996 there are provisions relating to appointment of
arbitrator, powers of arbitrator & grounds of termination of the arbitrator.

Appointment of arbitrator:-

1. If one arbitrator is appointed then it is done by mutual consent of both side parties.
2. If three arbitrators are appointed then one party appoint one arbitrator, other party
appoint one more arbitrator & appointed arbitrator appoint one arbitrator.
3. If 5arbitrators are appointed then each parties appoint 2arbitrators & appointed arbitrator
take one more arbitrator.
4. If parties may not agree then petition can be filed in the court & court may appoint
arbitrator.

Powers of arbitrator:- Following are the rights (or) powers of arbitrator.

1. There is right of arbitrator to fix the remuneration which parties have to pay them.
2. They have right to fix date, time & place of arbitration proceeding in conciliation with
parties.
3. There is right to direct parties to file relevant document.
4. Right to take expert opinion if it is necessary & parties have to pay the coast.
5. There is right take opinion of the parties & mention in award.
6. Right to examine parties & witnesses.
7. Right to postpone the date of hearing on reasonable grounds.
8. Right to spend money for typing, steno, Xerox & parties have to pay it.
9. If any remains absent without intimation then arbitrator have right to direct party to pay
coast to other party.
10. Arbitrators have right to give separate opinion but award is declared by majority opinion.

Termination of arbitrator: Following are the grounds of termination of arbitrator.

1. When arbitrator is incompetent person.
2. When he fails to attend 3meetings in continuity.
3. When arbitrator is relative of any party & he cannot be impartial.
4. If it comes to notice that he has taken bribe to show favor to any party.
5. When he discontinuous himself because of some personal reason.

These is detail about appointment, powers, grounds of termination of arbitrator.

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 Alternative Dispute Resolution System

Q4. Define an “Award” & its contents & various grounds to challenge award & its
enforcement.

Ans. After conciliation proceeding there can be settlement of dispute if parties agrees for it
after arbitration proceeding decision given by arbitrators is called as AWARD & award is
in writing & it is signed by all the arbitrators, if there are more arbitrators then award is
declared by majority opinion of arbitrators.

Contents of Award:-

1. There is details about parties such as name, father name, age, occupation, address.
2. There is name of arbitrator who has given award.
3. There is details about brief facts of the dispute between parties given in one paragraph.
4. There is details about representation of facts done by one party mention in one
paragraph.
5. There is details about all facts represented by other party mention in one paragraph.
6. When first party produced witnesses then statement of the witness are mention in one
paragraph.
7. Statement made by witness of other party covered in one more paragraph.
8. There is details about documents produced by both side parties & its relevancy &
admissibility in the matter of dispute.
9. If there is expert opinion relating to hand writing, signature then it is also mentioned in a
paragraph.
10. There is details about observations, findings of the arbitrators & lastly there is conclusion
(or) decision of the arbitrator.
11. There is details about remuneration claimed by arbitrators.
12. There are signature of all the arbitrators.

There are two copies of award which are given to both side parties.

Kinds of Awards:- There are two kinds of awards.

1. Interim Award:- Interim award is temporary award, it is given in the beginning of

hearing.

Ex:- “A” refers dispute to arbitrator about his claim of 5lakh rupees against “B” other
party admitted that he has to pay only 3lakh rupees in interim award arbitrator may direct
the party to pay 3lakh rupees because he has admitted it.

2. Final Award:- In final award there is complete hearing of both side parties in these
award arbitrators have to decide weither claims is of complete 5lakh rupees (or) less
amount & it is with interest (or) without interest.

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 Alternative Dispute Resolution System

Grounds to challenge Award:- Settlement cannot be challenged because parties

have signed it by consent award can be challenged by any party on reasonable grounds
in the court having jurisdiction. Following are the grounds on which award can be
challenged.
1. when arbitrator is not impartial & he has done partiality.
2. If arbitrator fails to give reasonable opportunity to any party to represent the case.
3. When award has been declared without examining documents produced by parties.
4. When arbitrator have declared award in wide (or) wide able contract.
5. When award is exceeding the amount claimed by the party.
6. When award has been given in the transaction between incompetent parties.

When award is challenged then court has power to confirm, alter, set aside the
award, court can convert award in to decree & enforce it.

These is details about contents of award, grounds to challenge it & enforcement

of award.

Short Questions.

Q5. Foreign award.

Ans. There are provisions relating to foreign award in arbitration & conciliation act 1996. It
includes following points.

1. One party (or) company is from India & other party is from some other country.
2. They have to agree to refer dispute to arbitration.
3. One arbitrator can be appointed by mutual consent.
4. If there are 3 (or) 5 arbitrators then both appoint equally & appointed arbitrator take one
more.
5. They have to decide law of the country to conduct arbitration & country where it should
be conducted.
6. It is in English language.
7. Foreign award is enforceable through respective court of the country.

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 Alternative Dispute Resolution System

Q5. Explain provisions constitution & functions of administrative, tribunals & its advantages &
disadvantages.

Ans. Tribunal are Quasi judicial authorities by 42nd amendment article 323A & 323B have
been added in constitution to established state tribunal & central tribunal. Tribunal have
all the powers of court but exactly it is not court, retired persons are appointed as
tribunal on consolidated payment for 3years (or) 5years, according to ROBSON tribunal
decide cases more speedily more cheaply & more efficiently.

Kinds of tribunals:-

1. State service tribunal:- These tribunal decide service matters of state government
employees when there is dispute, appeal from these dispute to high court.
2. Industrial tribunal:- These tribunal service matter of labor working in industries &
factories.
3. Central administrative tribunal:- These tribunal is generally retired judge of supreme
court (or) high court, he deals with dispute of central government employees such as
railways, post, nationalize banks, LIC, Airlines.
4. Insurance tribunal:- When there is dispute between policy holder & insurance
company then these dispute is settle by tribunal, appeal from these tribunal is allow to
high court.
5. Railway tribunal:- These tribunal is appointed for a short period, when there is train
accident then it decide cases of compensation.
6. Intellectual property tribunal:- These tribunal deals with cases of violation of trade
mark, copy right & patent right which come under intellectual property.
7. Income tax appellate tribunal:- When there is dispute between Assesse & income tax
department then these tribunal is decide it & after that appeal is allow to high court.
8. Sell tax appellate tribunal:- These tribunal is retired superior officer of sell tax
department when there is dispute between assesse & sell tax department then these
tribunal is decide it.
9. Land grabbing tribunal:- These tribunal decide land grabbing cases between land
grabber & high court, appeal from these tribunal is also allow to high court.

Advantages of tribunals:-
1. Barden of cases on court are reduced because many cases are decided by tribunals.
2. There is less expenditure because tribunals are paid consolidated salary.
3. There is less court fee in court of tribunals.
4. They have experience & decide matters speedily.
5. Tribunals deals with particular type of cases & there is no waste of time.

Disadvantages of tribunals:
1. Many tribunals are not legal expert & they commit errors.
2. Some tribunals have no regular sitting & it cause inconvenience to parties.
3. Tribunals go by facts & violate procedure.
4. Many case go in appeal & burden of court not reduced.

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 Alternative Dispute Resolution System

5. Tribunals are deciding cases cheaply & parties give less importance.

These is details about kinds of tribunals & its advantages & disadvantages.

Short Questions.

Q8. Lokpal & Lokayukta.

Ans. Lokpal is retired judge of Supreme Court appointed by president for the term of 5years.
Lokpal keep watch on Supreme Court judges, central ministers & top bureau crates,
relating to corruption, misuse of power & illegal activities. President is not covered under
power of lokpal he submit report to speaker of parliament. Report may be discuss in
parliament (or) meeting of central ministers on basis of report government can take
appropriate action.

Lok ayukta is appointed in every state by governor for the term of 5years, he generally
retired judge of High court, he keep watch on judge of state, state ministers & politicians
& top bureau crates except governor, on basis of his report government can take
appropriate action. Therefore lokpal & lokayukta are democratic watch dog.

Q9. Family court.

Ans. There is separate act called as Family court act 1984, family court is constituted in some
cities, it includes following points.

1. Preference is given female judge & prosecutor.

2. This court deals with particular type of cases such as Divorce, Restitution of conjugal
rights, custody of children, & cruelty against married women.
3. In divorce petition there is counseling of petitioner & respondent.
4. If counseling is effective then they can withdraw divorce petition.

Therefore family court is also includes in ADR machinery because there is

counseling.

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 Alternative Dispute Resolution System

Q6. What is conciliation & appointment of conciliation officer & procedure of conciliation
proceeding.

Ans. In arbitration & conciliation act 1996 there is details about arbitration as well as
conciliation to settle the dispute. Conciliation is popular among business people, in
partnership deed a clause is added that in case of dispute it shall be referred for
conciliation. If such clause is included in partnership deed then they have to refer dispute
to conciliation officer & directly cannot go to court. If conciliation is failure to settle
dispute then it can be file in the court.

Appointment of conciliation:-

1. If they want to appoint one conciliation officer then mutual consent of both parties is
necessary such officer is called as SOLE CONSILIATOR.
2. If they appoint 3conciliation officer then each party appoint 1concilition officer &
appointed officer take one more.
3. If they want to appoint 5conciliation officer then each party appoint 2conciliation officer &
appointed officer take one more officer.

Conciliation officer should be impartial & having experience in particular type of

business. Conciliation officer settle the dispute in conciliation with parties.

Conciliation proceeding:-

1. When there are more no of conciliation officer then one of them is chairperson to
conduct conciliation proceeding.
2. Conciliation officer direct the parties to file relevant documents & examine it.
3. Witnesses can be produced by both sides parties & they are examined & cross
examined.
4. Conciliation officer can accept the proposal given by both sides parties.
5. They have right to make adjournment whenever it necessary.
6. After completion of hearing conciliation officer give proposal for settlement of dispute.
7. If both side parties agree proposal then they execute settlement deed & it is signed by
both side parties & conciliation officers, settlement deed contents following points.
 There is a detail of both parties.
 There is a detail of conciliation officers.
 Brief facts relating to dispute.
 Adminicbility of relevant documents.
 Statements of witnesses.
 Observations, findings & conclusion (or) decision of dispute.
 No appeal is allow against settlement because it is signed volunatrly by parties.
 When one (or) both side may not agree to proposal then they prepare the report about
steps taken & reasons of failure of conciliation proceeding & it is given to parties.
These are the details relating to appointment of conciliation officer & settlement
of dispute.

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