Alternative dispute resolution

Alternative Dispute Resolution is the non- adversarial procedure for settling disputes without litigation.

Alternate Dispute Resolution (ADR) involves working together co-operatively to reach the best resolution for everyone.

ADR provides diverse choices to resolve disputes through creative, collaborative bargaining, and fulfil the interests.

ADR: Types

1. Arbitration: Arbitral tribunal which decides an “award” on the dispute that is mostly binding on the parties.
2. Conciliation: An impartial third party, called conciliator plays active role and assists the parties to reach a mutually satisfactory agreed settlement which is non-binding on parties.
3. Mediation: Mediator plays passive role, acts as communicator and helps the parties try to reach a mutually acceptable resolution of the dispute.
4. Negotiation: Discussions between both the parties with an open mind are initiated without the intervention of any third party to arrive a negotiated settlement.

ADR: Provisions

1. Constitutional provisions: [a] Art 39A Access to equal justice and free legal aid is an obligation on government to make various provisions available, to access justice; [b] Art 21 Right to life also includes right to access for justice.
2. Legal provisions: [a] The Legal Services Authority Act,1987; [b] Arbitration and Conciliation Act, 1996, [c] Gram Nyayalaya Act 2009; [d] Plea-bargaining is a pre-trial negotiation between the accused and prosecution where the accused agrees to plead guilty in exchange for certain concessions by the prosecution under Section 265-265 of CrPC.
3. Institutional provisions: Lok Adalat, Nyaya Panchayats, Conciliation and Arbitration centres.

ADR: Advantages

1. Less time consuming and cost effective method.
2. ADR is free from technicalities of courts as informal ways are applied in resolving dispute.
3. People are free to express themselves without any fear of court /law.
4. ADR preserves the best interest of parties prevents and maintains good relationship between parties.
5. Arbitrators are experts in the field of a particular dispute thus increasing the efficiency of the proceedings.

ADR: Disadvantages

1. All cases may not be a fit for ADR mechanism.
2. It can be used as a tactic to stall case.
3. Little or no check on power imbalances between parties.
4. Rights of parties may not be legally protected.
5. Non-binding agreements may cause weakness in the system.

ADR: Salient features of Arbitration and Conciliation Amendment Act, 2021

1. Amends the Arbitration and Conciliation Act, 1996; it deals with domestic and international arbitration and defines the law for conducting conciliation proceedings.
2. Automatic stay on awards: Arbitral award cannot be set aside merely because of an application made by party. A stay can be given by court in case of – the making of the award or if it is effected by fraud or corruption.
3. Qualifications of arbitrators: An advocate under the Advocates Act, 1961 and 10 years of experience; an officer of the Indian Legal Service.