Professional Documents
Culture Documents
Mediation
Negotiation
Conciliation
Arbitration
Form of ADR
Arbitration:
The process of arbitration can start only if there exists a valid Arbitration
Agreement between the parties prior to the emergence of the dispute. As per
Section 7, such an agreement must be in writing. The contract, regarding which the
dispute exists, must either contain an arbitration clause or must refer to a separate
document signed by the parties containing the arbitration agreement. The existence
of an arbitration agreement can also be inferred by written correspondence such as
letters, telex, or telegrams which provide a record of the agreement. An exchange
of statement of claim and defence in which existence of an arbitration agreement is
alleged by one party and not denied by other is also considered as valid written
arbitration agreement.
Any party to the dispute can start the process of appointing arbitrator and if the
other party does not cooperate, the party can approach the office of Chief Justice
for appointment of an arbitrator. There are only two grounds upon which a party
can challenge the appointment of an arbitrator – reasonable doubt in the
impartiality of the arbitrator and the lack of proper qualification of the arbitrator as
required by the arbitration agreement. A sole arbitrator or panels of arbitrators so
appointed constitute the Arbitration Tribunal.
Except for some interim measures, there is very little scope for judicial
intervention in the arbitration process. The arbitration tribunal has jurisdiction over
its own jurisdiction. Thus, if a party wants to challenge the jurisdiction of the
arbitration tribunal, it can do so only before the tribunal itself. If the tribunal rejects
the request, there is little the party can do accept to approach a court after the
tribunal makes an award. Section 34 provides certain grounds upon which a party
can appeal to the principal civil court of original jurisdiction for setting aside the
award.
Once the period for filing an appeal for setting aside an award is over, or if such an
appeal is rejected, the award is binding on the parties and is considered as a decree
of the court.
Conciliation
Conciliation is a less formal form of arbitration. This process does not require an
existence of any prior agreement. Any party can request the other party to appoint
a conciliator. One conciliator is preferred but two or three are also allowed. In case
of multiple conciliators, all must act jointly. If a party rejects an offer to conciliate,
there can be no conciliation.
Parties may submit statements to the conciliator describing the general nature of
the dispute and the points at issue. Each party sends a copy of the statement to the
other. The conciliator may request further details, may ask to meet the parties, or
communicate with the parties orally or in writing. Parties may even submit
suggestions for the settlement of the dispute to the conciliator.
When it appears to the conciliator that elements of settlement exist, he may draw
up the terms of settlement and send it to the parties for their acceptance. If both the
parties sign the settlement document, it shall be final and binding on both.
Mediation
Negotiation
Lok Adalat:
It roughly means "People's court". India has had a long history of resolving
disputes through the mediation of village elders. The system of Lok Adalats is an
improvement on that and is based on Gandhian principles. This is a non-adversarial
system, where by mock courts (called Lok Adalats) are held by the State Authority,
District Auth[2]ority, Supreme Court Legal Services Committee, High Court Legal
Services Committee, or Taluk Legal Services Committee, periodically for
exercising such jurisdiction as they thinks fit. These are usually presided by retired
judge, social activists, or members of legal profession. It does not have jurisdiction
on matters related to non-compoundable offences.
There is no court fee and no rigid procedural requirement (i.e. no need to follow
process given by Civil Procedure Code or Evidence Act), which makes the process
very fast. Parties can directly interact with the judge, which is not possible in
regular courts.
Cases that are pending in regular courts can be transferred to a Lok Adalat if both
the parties agree. A case can also be transferred to a Lok Adalat if one party
applies to the court and the court sees some chance of settlement after giving an
opportunity of being heard to the other party.
All proceedings of a Lok Adalat are deemed to be judicial proceedings and every
Lok Adalat is deemed to be a Civil Court.
Lok Adalat (people’s courts), established by the government, settles dispute
through conciliation and compromise. The First Lok Adalat was held in Chennai in
1986. Lok Adalat accepts the cases which could be settled by conciliation and
compromise and pending in the regular courts within their jurisdiction.
The Lok Adalat is presided over by a sitting or retired judicial officer as the
chairman, with two other members, usually a lawyer and a social worker. There is
no court fee. If the case is already filed in the regular court, the fee paid will be
refunded if the dispute is settled at the Lok Adalat. The procedural laws and the
Evidence Act are not strictly followed while assessing the merits of the claim by
the Lok Adalat.
Main condition of the Lok Adalat is that both parties in dispute should agree for
settlement. The decision of the Lok Adalat is binding on the parties to the dispute
and its order is capable of execution through legal process. No appeal lies against
the order of the Lok Adalat.
Lok Adalat is very effective in settlement of money claims. Disputes like partition
suits, damages and matrimonial cases can also be easily settled before Lok Adalat
as the scope for compromise through an approach of give and take is high in these
cases.
Mediation in India – Historical Analysis
In India, the law and practice of private and transactional commercial disputes
without court intervention can be dated back to ancient times. Arbitration or
mediation as an alternative to dispute resolution by municipal courts has been
prevalent in India from Vedic times.
Every process of ADR mechanism has its own basic principles on which it’s work
and giving positive outcomes. Like as other process mediation has its own
fundamental principles which are helpful in settling disputes between the parties on
their mutual consensus. Parties choose mediation process over litigation may be
because of these principles which have given effective way to the process.
Mediation usually has seen in the family matters or any neighboring issues which
could be resolve by mediation process rather than go to court for justice.
In generally there are 5 basic principles usually seen in the mediation process and
it should be followed strictly by the mediator as well as the parties for an effective
outcome. Five basic principles of mediation process are as follows:-
People will cooperate more fully if they know they are free to leave at any point.
This engages their own free will and sense of purpose and enables them to drive
the process towards agreement rather than to be led to an understanding by a third
party. If they drive the process they are more committed to the outcome.
Within the mediation itself the mediator must not divulge any confidences that are
shared with them unless given permission to do so. Unless someone shares a
criminal intent or act that involves harm to self or other.
The mediator must act impartially and neutrally. He/she should observe all
principles of mediation and consider only matters of procedure. He/she should not
comment, value judgments, nor give advice or suggesting solutions. Impartiality of
a mediator should ensure that the parties accept him/her as a person who is
sincerely dedicated to resolving the dispute and who favors both sides in the
dispute, seeking solutions that would satisfy both sides in the dispute. The
mediator must keep in mind that his/her behavior, attitude, and sometimes the
techniques of mediation can bring a sense of sympathy towards one side. When
that happens, then the mediation went the wrong way. The mediator cannot
perform the function if there are circumstances that indicate doubts about his
impartiality and objectivity.
A mediator can interrupt mediation if he/she feels that parties turn away from the
solution or that are even more opposed than they were at the start of mediation.
The basic principle in the process of mediation is that the mediation procedure
should not harm the parties in any way, but to contribute to the resolution of their
dispute.
Given that mediation is only a supplement to the court proceedings, it must not
prevent a party from exercising the right of access to court and use of judicial
protection.
It is important that people reserve the right to invoke other measures. If the
mediation were seen as an enforced procedure or one that removes an individual’s
rights it would constrict the creativity and increases the potential for resistance.
The use of the term “mediation” is well known in International Law. It is the
technical term in International Law which signifies the interposition by a neutral
and friendly state between two States at war or on the eve of war with each other,
of its good offices to restore or to preserve peace. The term is sometimes as a
synonym for intervention, but mediation differs from it in being purely a friendly
act.
Mediation at one level of perception is a means of avoiding the pitfalls of
litigation. The problems which arise in the resolution of disputes through litigation
are well known.
(i) delay
(ii) expense
(iii) rigidity of procedures and
(iv) a reduction in the participatory role of parties
In the path of resolving these pitfalls of litigation, mediation is the most frequently
adopted ADR procedure.
The process of mediation may have to pass through several stages such as :-
opening statement
opening statement to the parties
summarizing and agenda setting.
exploration of issues.
private sessions or caucuses
joint negotiation session
agreement
Practitioners in this field adopt their own perfected styles. They differ in their basic
steps. A lot depends upon the nature of the dispute. The more complicated a
matter, the more private meetings would be necessary to pave the ground for a
joint meeting.
The mediator is a neutral. The neutrality of the mediator is akin to the neutrality of
a Judge but the role of the mediator is completely different from that of a Judge.
The mediator does not either deliver judgment or dictate to the parties the terms of
the agreement.
Implementation strategies
For an effective implementation, there is always a need of strategies and policies.
Mediation process is frequently used by the public but there is lack of
implementation. More mediation centres have to be set up by High courts and
particular sect of cases should be giving to the mediation by courts.
(ii) Advocacy;
Negotiate is derived from the Latin negōtiārī, which means “to carry on business,”
and the term carries the same meaning. The definition that is recognized in today’s
society is “discussion aimed at reaching an agreement”.
In the case of Harsh Gopal Khandelwal v. Aarti Khandelwal the court advised
both parties to engage in discussion if it was certain that there would be no conflict
between them. It was stated that the parties were free to continue in line with the
law if the negotiations produced no results.
HISTORY OF NEGOTIATION
Since the beginning of human evolution in the civilized world, negotiation has
proven to be a great tactic to deal with problems in every aspect of life. The
evolution of the human brain has included an increase in the usage of negotiation
processes, which has led to an expansion in the size of the brain itself.
Although they are sometimes mistaken for one another, the processes of
negotiation and mediation are each distinct in their own right. This is due to the
fact that mediation employs bargaining techniques, often with the assistance of a
third party known as a negotiator or mediator. The term “negotiator” also refers to
trained mediators.
In contemporary times, negotiation has its presence in the Indian legal system but
it has not been given legalization. There is no formal legal framework, or
legislative recognition, for negotiation. Although the Enron case could be the most
well-known negotiating case study in India. Energy tycoon Enron, located in the
US, was in negotiations with the Indian government about expanding to
Maharashtra. It is regarded as an important case study.
CHARACTERISTICS OF NEGOTIATION
Informal
Voluntary
Multilateral/Bilateral
Flexible
TYPES OF NEGOTIATION
A skilled negotiator will know how to use all of the skills listed below to his
advantage. Although in order for these skills to be efficient they are needed to be
practiced regularly.
ADVANTAGES OF NEGOTIATION
Since only those parties with an interest in the subject and their
representatives, if any, are involved in a negotiation, it is perhaps the most
flexible method of resolving disputes. The parties are allowed to set the
terms of the discussions as they see fit. This allows for increased willingness
by both parties to sit down to talk civilly and reach a consensus.
Negotiation will provide the parties with the chance to create an agreement
that reflects their interests, supposing that they are bargaining in good faith.
Negotiation is less costly than litigation and also requires less time to settle
disputes.
DISADVANTAGES OF NEGOTIATION
Since negotiation is a voluntary process nobody can stop one party from
leaving. No party can be compelled to continue negotiating.
CONCLUSION
According to an NDTV report, there are 59, 87,477 cases pending in high courts
across the country, and total pending cases amounting to 4,92,67,373 or over 4.92
crore, as per the information available on National Judicial Data Grid (NJDG) on
February 1, 2023. This is a concerning number, our judicial system is
overburdened. This is why it becomes important to employ other dispute resolution
methods such as negotiation to settle matters. Every human being negotiates at
some point in his or her life, on some matter or another, some more effectively
than others. And I can say with certainty that negotiation has played a significant
role in the advancement of humanity because there would not have been enough
peace without it, for individuals to be able to do things. Negotiation has produced
the best results of any conflict management strategy. This is due to the fact that it is
the most practical and adaptable method for resolving conflicts and interpersonal
differences. In this day and age, we should educate more people about the
effectiveness of negotiation in resolving legal issues as people still hesitate before
turning to negotiation as they fear they have to compromise. This has to be
rectified which can only be done with awareness programs
Characteristics Of Negotiation Process:
Voluntary:
Bilateral/ Multilateral:
The process of negotiation can involve two or more parties. The parties can range
from two individuals seeking to agree on sale of house to negotiation involving
diplomate from dozens of States.
Non-Adjudicative:
Negotiation is an informal process which only involve the parties. The outcome is
amicable reached by the parties together without any records to a third party
through mutual understanding.
Informal:
The scope of negotiation is dependent upon the choice of parties where determine
not only the topic which will be the subject matter of negotiation but also if they
will adopt a positional based bargaining approach or interest-based approach.
Each negotiation has its own unique characteristics. Therefore, there is no such
uniform and exclusive method of negotiation and bargaining session.
1. Preparation
2. Discussion
3. Clarification of goals
4. Negotiate towards a Win-Win outcome
5. Agreement
6. Implementation of course of action
Some of the important factors should be ensured before moving on. They are:
This stage involves ensuring the important facts of the dispute and its situation in
order to clarify the position of both the parties. Before any negotiation takes place,
a decision shall be taken as to when and where the meeting for negotiation shall
happen and as to who will attend the discussion and negotiation sessions. During
this time setting of a limited timescale can help prevent this agreement continuing.
Discussions
Once it has been established that negotiation is the appropriate course of action the
further arrangement shall be made in that course with the other party included. The
arrangement must include:
ensuring that all the interested parties are identified and have been consulted
choosing a location Which is feasible to both the parties.
During this stage the parties of other side put forth their case as they see it and try
to understand the vice-versa situation. Clarification as to misunderstandings and
disagreements shall be spoken and heard. An equal opportunity shall be granted to
both the side.
Clarification Of Goals
From the second stage of discussion whatever goes interest and viewpoints of the
parties of this agreement needs to be clarified. To clarification it becomes easy and
possible to identify and establish a common ground post settlement. Clarification is
one of the crucial parts of negotiation process is without a doubt the
misunderstanding and disagreements are likely to continue which main result to
cause problems and barrier in reaching a beneficial outcome.
This can lead to harmonizing and Reconcile the bearing and competing interest of
the parties.
It is not always possible to reach to a Win-Win situation but it shall be the ultimate
goal. this stage focuses on which can be termed as Win-Win outcome wherein both
the parties may have the satisfaction that they have gained something positive
through the process and both the parties may feel that their point has been
considered.
Agreement
A proper agreement can be achieved only when both the parties understand each
other�s point of view and interest are considered simultaneously. Every member
involved in the negotiation process it is essential to keep an open mind so that an
acceptable solution can be reached full stop such agreement needs to be clearly
communicated so that no for the dispute can occur.