ALTERNATIVE DISPUTE RESOLUTION

Unit- I

CONCEPT OF ADR

Topic: 2
Definition, Nature and Genesis of ADR

Sreedurga T.N
Assistant Professor
DME Law School
• Alternative dispute resolution
(ADR) refers to the different ways
people can resolve disputes
without a trial. Common ADR
processes include mediation,
arbitration, and neutral evaluation.
These processes are generally
confidential, less formal, and less
stressful than traditional court
proceedings.
• The Alternative Dispute
Resolution(ADR) mechanisms are
largely out of court settlements
aimed at settling disputes in an
amicable manner, which are free
from strict procedural formalities
and are cost effective
ADR – Origin – Ramayan/Mahabharat
Vedic Period

The early treaty of the

Vedic period when arbitration arbitration was Bhradarnayaka
and mediation were the main Upanishad which consisted of
forms of dispute resolution. various classes arbitral bodies
prevalent in the Vedic period.
• In ancient India when
there was Kulas, people
used to live in joint
families with their clans
and when there was caste
system prevalent in the
society. The disputes
among the kulas were
resolved by the head of
the of the family, clan or
Kula. Likewise, when there
was common trade,
corporations
or Shrenis among the
people, they used to
appoint person to resolve
the disputes within the
Shrenis.
Mughal - ADR
• Since the Alternate dispute resolution
gained immense importance during the
Mughal regime when the Muslim laws were
incorporated in Indian culture.
• Muslim Law Commentary-Hedaya which
contained provisions relating to
arbitration.
• According to Hedaya, an arbitrator also
known as Hakam was to possess qualities
of a Kazi– judge, and his decision was
considered to be binding on parties
subject to the legality and validity of the
award
Origin of ADR

• Ancient India: 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
Origin of ADR

• When can panchayat decision be

appealed?
• Misconduct –partiality, corruption
• Bengal Regulation of 1781
British times -ADR

• Bengal Regulation of 1781- when

can panchayat decision be
impeached?
• Regulation of 1787 empowered
the Courts to refer certain suits to
arbitration, but no provision was
made in the Regulation for cases
wherein difference of opinion
among the arbitrator arose.
British times -ADR

• The Bengal Regulation of 1793

(XVI of 1793) Regulation XV of
1795 extended the Regulation XVI
of 1793 to Benaras.
• The Regulation XXI of 1803
• Madras Regulation IV of 1816 and
V of 1816 empowered the
Panchayats to settle disputes by
them
• In Bombay Regulations IV and VII
of 1827
 • Civil Procedure Code, 1859
• The law relating arbitration in Chapter VI of the
Code (Sections- 312 to 327).
• Not applicable to the Supreme Court or to the
Presidency Small Cause Courts or to non- Regulation
Provinces.
Other laws – • This Act was repealed by Act X of 1877 which
British- ADR consolidation the law of Civil Procedure which was
further replaced by Act XIV of 1882.
• This Code of Civil Procedure also was replaced by
the Code of Civil Procedure, 1908 (V of 1908), the
present Code.
• The Second Schedule of the Code comprised the
law regarding arbitration
 • The Arbitration Act, 1877
• Indian Arbitration Act, 1899, which was based
on the English Arbitration Act, 1899
• Arbitration (Protocol and Convention) Act, 1937:
This act was implemented with the object to
Arbitration give effect to the Geneva Protocol on
Arbitration Clauses, 1923, and Geneva
Laws in Convention on the Exchange of Foreign Arbitral
India Award, 1927.
• Arbitration Act, 1940: The act dealt with only
domestic arbitration. As per the provisions of
the act, the intervention of the court was
required throughout the proceeding of
arbitration
 • After the coming up of the UNCITRAL model, the
Government of India created a new Arbitration and
Conciliation Act, 1996 which involved provisions
for the international commercial arbitration.
• Justice Malimath Committee (1989) :The
Arbitration committee underlined the concepts of mediation,
arbitration, conciliation, and establishment of Lok
Laws in Adalats.
India • On 04.12.1997, the Chief Ministers of States and
Chief Justices of the High court decided to adopt
alternate dispute resolution as a means for the
settlement of certain disputes as the system was
less expensive and less time-consuming.
Nature of ADR

Cost effective Saves times’ Guided by law

Mutual
No procedural
consent of 4 types
delays
parties