ALTERNATIVE DISPUTE

RESOLUTION IN INDIA
Presented By : Vedant Agrawal
VIII Sem B.B.A.LL.B. (Hons.)
Introduction
• Arbitration is a method of settlement of disputes as an alternative
to the normal judicial method. It is one of the methods of
alternative dispute resolution (ADR). Of all the forms of ADR like
conciliation, mediation, negotiations, etc has become the dominant
form of ADR.
• ADR can be defined as a collective description of process or
mechanisms that parties can use to resolve disputes rather than
bringing a claim through the formal court structure.
• The law relating to arbitration is contained in the Arbitration and
Conciliation Act, 1996. It came into force on the 25th of January,
1996. It provides for domestic arbitration, international commercial
arbitration and also enforcement of foreign arbitral awards. It also
contains the new feature on conciliation.
Purpose of ADR
The purpose of ADR is to resolve the conflict in a more cost
effective and expedited manner, while fostering long term
relationships. ADR is in fact a less adverse means, of settling
disputes that may not involve courts. ADR involves finding other
ways (apart from regular litigation) which act as a substitute for
litigation and resolve civil disputes, ADR procedure are widely
recommended to reduce the number of cases and provide
cheaper and less adverse form of justice, which is a lesser formal
and complicated system. Off late even Judges have started
recommending ADR to avoid court cases
Evolution of ADR
• It was since the ancient India; law of arbitration was very popular and were highly
accessible. While dealing with such cases on arbitration, the awards were known
as decisions of Panchayats, commonly known as Panchats. The decisions of
Panchayats were of binding nature in law in force in those times. The head of a
family, the chief of a community or selected inhabitants of a village or town
might act as Panchayat.
• Thereafter, the Civil Procedure Code, 1859; the Indian Contract Act, 1872 and the
Specific Relief Act, 1877 mandated that no contract to refer the present or
further differences to arbitration could specifically enforce. A party refusing to
reform his part of the contract was debarred from bringing a suit on the same
subject-matter. The Arbitration Act, 1877 came as a complete code in itself.
• The Arbitration Act, 1940 was holding the field for nearly half a century but with
the phenomenal growth of commerce and industry the effect of globalization
required substantial changes. The Alternative Dispute Redressal mechanism was
increasingly attracting serious notice and that led to the enactment of Arbitration
and Conciliation Act, 1996.
Constitutional Background of
ADR
The Constitutional mandate rescue operation began with Justice V.R
Krishna Iyer and Justice P.N. Bhagawati’s Committees’ report; weaker
section thus became enabled to approach law courts, right from Munsiff
Courts to the Supreme Court. Committee for the Implementation of
Legal Aid Services (CILAS) also came on to the scene and initiated
methods of solving civil disputes in non-legal for a and non-formal fora.
Based on this, States adopted (through State Legal Aid and Advice
Boards) Lok Adalats and Legal Aid Camps, Family Courts, Village Courts,
Mediation Centres, Commercial arbitration, Women Centres, Consumer
Protection Forums, etc which are but various facets of effective
Alternative Dispute Resolution systems. The soul of good Government is
justice to people. Our Constitution, therefore, highlights triple aspects of
Economic Justice, Political Justice and Social Justice. This requires the
creation of an ultra-modern disseminating infrastructure and man-
power; sympathetic and planned; need for new judicare technology and
models; and remedy-oriented jurisprudence.
Legislative Recognition of ADR
Alternative Dispute Redressal or Alternative Dispute Resolution
has been an integral part of our historical past. The concept of
Lok Adalat (Peoples’ Court) is an innovative Indian contribution to
the world of Jurisprudence. The institution of Lok Adalat in India,
as the very name suggests means, Peoples’ Court. ‘Lok’ stands
for ‘people’ and the vernacular meaning of the term ‘Adalat’ is
the Court. India has long tradition and history of such methods
being practiced in the society at grass root level. These are
called panchayat, and in legal terminology these are called
arbitration.
Type Of ADR
• Arbitration : Arbitration is a procedure for the resolution of disputes on a
private basis through the appointment of an arbitrator, an independent,
neutral third person who person who hears and considers the merits of the
dispute and renders a final and binding decision called an award.
• Conciliation: Conciliation is a private, informal process in which a neutral
third person helps disputing parties reach an agreement.
• Mediation: It is an informal process in which a neutral third party without the
power to decide or usually to impose a solution helps the parties resolve a
dispute or plan a transaction.
• Negociation: Negotiation in principle is any form of communication between
two or more people for the purpose of arriving at a mutually agreeable
situation.
• Lok Adalat: Equal Justice for all is a cardinal principle on which the entire
system of administration of justice is based. It is deep rooted in the body
and spirit of common law as well as civil law jurisprudence.
Problem Faced During
Implementation
• Attitudes
• Lawyer and Client Interests
• Impediments to settlement

1. Poor communication

2. The need to express emotions

3. Different views of facts.

4. Different views of legal outcome if settlement is not reached.

• Ignorance
• Corruption