ADR and its role in dispute resolution in India

Poonam

Army Law College, Pune

This Article is written by Poonam, a First Year Law Student of Army Law College,Pune

Abstract[1]

The discussion in this research paper revolves around the "ADR and its role in dispute resolution in India".Alternative dispute resolution (ADR) mechanism as the name suggests is a mechanism for extricating the disputes without referring the matter to the court. This research paper also enumerates the importance and advantages of Alternative dispute resolution (ADR), and various modes of ADR and tabulates how to select an appropriate ADR process. It even negotiates about what all Laws deals with ADR and the significant provision related to ADR. Moreover, it would tabulate and render the pronouncement regarding an appropriate stage for reference to the ADR process, Consent of parties for referring the matter to the ADR process, various case laws, comparison of mediation, conciliation, and Lok Adalat. Additionally, this research would also prescribe the scenarios when the court considers that the case is suitable for reference to ADR.

Keyword

Alternative dispute resolution (ADR), Negotiation, Arbitration, Mediation, Conciliation, Introduction[2]

Being a human being with having multitudinous outlook it is Impracticable not to expect disputes, abrogation, and rebatement in any society. These conflicts are amenable to cognizing the predominance of serenity. One of the very chief considerable constituents owing to which peace is maintained in society is people's faith in the justice delivery system. The dominant contention people use ADR is to emaciate the outlay of litigation viz. courts and solicitors fees and ceaseless hearings. There are four prime features of Alternative.[3] Dispute Resolution i.e. Negotiation, Arbitration, Mediation, Conciliation, extricating dissonance by modus other than litigations, such as arbitration and mediation. Feasible mileage of using ADR processes may be cheaper and faster dissonance extrication than the settlement via ordinary judicial proceedings; maintaining secrecy; considering the party's preferability etc. The workload of the Indian Judiciary increased by leaps and bounds and has now reached a stage of unmanageable magnitude, which has led to a large backlog of cases. Therefore, to tackle such situations the emergence and prevailing arena of ADR has proven beneficial and streamlined.

What do you mean by ADR?

• Alternative[4] Dispute Resolution (ADR) cites to aught modus of extricating dissonance with the Court Room.

• Alternative Dispute Resolution (ADR) cites to diversity of processes that aid parties to extricate dissonance without a trial.

• Definition of ADR

The process by which conflict between the parties extricates or fetches the dissonance to the cordial outcome without aught obstruction of court or judicial institution and aught proceedings is to be deemed as Alternative Dispute Resolution (ADR).

• ADR proposes to extricate all forms of subject matter regarding civil, commercial, industrial, family, etc. Comprehensively, ADR allocates the deed to an Impartial third party who vindicates the parties to dissertate, Intimate the distinctions, and extricate the dispute.

Roles and Importance[5] of Alternative Dispute Resolution (ADR) in India

(a) Suchwise to demean with the predicament of lis pendens of unresolved disputes or cases in the judicial institutions or courts of India, ADR dalliances an epochal preface by effectuating numerous multitudinous strategies and techniques.

(b) Alternative Dispute Resolution (ADR) mechanism bestows scientifically precisely sublimed strategies, techniques, and methodologies to the Indian judiciary system which vindicates in alleviating the plummet on the courts.

(c) Alternative Dispute Resolution (ADR) endows a versatile modality of extricating the disputes or dissonance including arbitration, conciliation, mediation, negotiation, and Lok Adalat. Hereabout, negotiation refers to the process of Ideating the dissonance between the parties without any obstruction of the third party but this mode does not have aught legal cognizance in India.

(d) Alternative Dispute Resolution (ADR) can also be sighted in fundamental rights like Article 14 and Article 21 that conciliate with equality before the law, personal freedom, and the right to life systematically.

(e) The prime intention of Alternative Dispute Resolution (ADR) is to endow communal, commercial, and governmental rectitude and intercede integrity in the society inducted in the preamble of the Constitution of India.

(f) ADR also endeavours to effectuate fair rectitude and unfettered legal patronage provided under Article 39-A relating to the Directive Principle of State Policy (DPSP).

(g) Alternative Dispute Resolution (ADR) has reasserted pseudo-logical in the Evacuation of the backlog of the cases or in the alleviating the Plummet of dissonances in numerous levels of the judicial system.

(h) Lok Adalats alone have settled more than 50 lakh cases every year on average in the last three years.

(i) There embarks to be inanity of consciousness or information concerning the existence of all the modus of Alternative Dispute Resolution (ADR) mechanisms.

Advantages[6] of ADR

1. Less Time Consuming: In confrontation with the judicial institution i.e. courts, Alternative Dispute Resolution (ADR) is known for its faster and speedy dispute resolution mechanism. Most of people harness it such wise to cast aside needless latency.

2. Cost-effective method: In Juxtaposition with the court proceedings, the cost of the Alternative Dispute Resolution (ADR) trial is very low. Thus, it fends a lot of money by referring the disputed matter to the Alternative Dispute Resolution process.

3. In Juxtaposition to the court, the technicalities involved in the Alternative Dispute Resolution process are much lesser and easier as hereabout the dissonance is extricated through informal ways.

4. During the Alternative Dispute Resolution trials parties are free to reveal themselves and put forth their stand-point without any fear of court of law. Parties can disclose the facts without evincing it to any court.

5. Efficient Modus: Alternative Dispute Resolution caters a selfsame dais for the parties to discuss their disputes and revert their relationship back.

6. It intercepts further undue disputes or dissonance and tramples on the parties to hold appropriate propinquity between each other.

7. It scrutinizes and assures the bonzer virtue of the parties.

Laws and significant provisions[7] Which deals with ADR

The statute or enactment that elucidates the Alternative Dispute Resolution is as follows:-

(i) Arbitration and Conciliation Act, 1996

(ii) The Legal Services Authority Act, 1987

Apart from the aforesaid enactments, Section 89 of the Civil Procedure Code, 1908 bestows that if any dispute or case is probable of being extricated outside the court, then the court shall fabricate the appurtenant terms of the probable resolution and entrust the same for Arbitration, Conciliation, Mediation or Lok Adalat, as the court may deem fit in this matter.

Various Modes[8] of ADR

Arbitration

In this mode of Alternative Dispute Resolution (ADR), a neutral and Unbiased Arbitrator in the arbitral tribunal adduces the verdict intrinsically and unofficially which is considered an Award.

· Conciliation

In this mode of Alternative Dispute Resolution (ADR) which is comparatively unregulated, wherein an impartial or unbiased observer i.e. Conciliator vindicates the parties in dispute to reciprocally extricate the matter. If and only if the parties accept the terms of extrication disposed by the conciliator about the matter then and only then it becomes a binding outcome. Notwithstanding, the parties are free to set aside the suggestions/recommendations of the conciliator.

· Mediation

In this mode of Alternative Dispute Resolution (ADR), a mediator who is an impartial intermediary to the dispute vindicates the parties to effectuate a reciprocally agreeable verdict. An intermediary is solely liable for making the conversation convenient without obstructing the same. He scrutinizes the smooth and congenial reciprocation.

· Negotiation

This mode of Alternative Dispute Resolution (ADR) has no legal cognizance in India and additionally, it is self-counselling between both parties without any mediator and without recognizing the decision as binding.

Lok Adalat

This mode of Alternative Dispute Resolution (ADR) is also known as "People's Court". This modus is not Stringent in terms of legal technicalities and the impugnment takes place in the confrontation of a judicial officer and aught verdict disposed by the Lok Adalat is eventual and binding.

Cases "unsuitable[9]" for ADR Processes (Excluded category of cases)

1. Cases arising under order 1 Rule 8 CPC such as representative disputes.

2. Dispute about Election to government Offices (excluding dissonance between two groups regarding management of Societies, Clubs, Association, etc.)

3. Cases which are appendant to the disputes flaming out of the grant of authority by the Court after visitation, for example, suits for grant of probate or letter of administration.

4. Cases that are appendant to the disputes flaming out of cogitative and conspicuous accusations of fraud, manipulation of documents, forgery, impersonation, coercion, etc.

5. Cases that are appendant to the disputes flaming out of the protection of courts, for example, claims against minors, mentally challenged cases, and cases for declaration of title against the Government.

6. Cases that are appendant with the prosecution for criminal offenses,

Cases "suitable[10]" for ADR Processes

Apart from the abdicated category of cases (as prescribed aforesaid), radical variant cases or dissonance of civil matters in particular, the following are the disputes that are normally deemed to be suitable for A.D.R. processes:

(i) All cases relating to trade, commerce, and contracts (including all money cases)

• dissonances flaming out of contracts (containing radical money claims);

• dissonances appendant to specific performance;

• dissonances flame out between buyer and seller;

• dissonances between bankers and consumers;

• dissonances flame out between developers/builders and customers;

• dissonances flame out between landlords and tenants

• dissonances flame out between licensors and licensees;

• dissonances flame out between insurer and insured;

(ii) All the cases which are appendant to the disputes flaming out from the sardonic propinquity, accompanying disputes affiliating to matrimonial causes, maintenance, child's custody; cases connected to the partition/division among family members/coparceners/co-owners; and cases connected to the partnership among partners.

(iii) All the cases which are appendant to the disputes flaming out owing to a necessity for resumption of the foregoing propinquity rather than of the disputes, including dissonances between vicinal (relating to elementary rights, encroachments, nuisance, etc.); dissonances between employers and employees; dissonances among councillors of societies/associations/apartment owners' associations;

(iv) All the cases which are appendant to the disputes flaming out owing to tortious liability, containing claims for quid pro quo in motor accidents/other accidents.

(v) All the consumer disputes, where a trader /supplier/manufacturer/service provider is prone to preserve his organization/occupational goodwill and reliability or product prominence.

The Supreme Court has anteriorly inspected that the aforesaid catalogs of "suitable" and"unsuitable" bifurcation of disputes are illustrative and not exhaustive.

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https://lexlife.in/2021/02/18/alternative-dispute-resolution-its-need-and-importance/ , accessed 22 October 2024

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(2020), papers.ssrn.com , https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3626625 , accessed 22 October 2024.

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