Alternative Dispute Resolution in India

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Source: The post Alternative Dispute Resolution in India has been created, based on the article “Why is ADR crucial for India’s courts?” published in “The Hindu” on 6 October 2025. Alternative Dispute Resolution in India.

Alternative Dispute Resolution in India

UPSC Syllabus: GS-3- Separation of Powers between various organs Dispute Redressal Mechanisms and Institutions.

Context: India’s justice system faces major challenges of access, delay, and accountability, with over 4.57 crore pending cases across all courts, as per the India Justice Report 2025. In this context, Alternative Dispute Resolution (ADR) mechanisms—such as arbitration, conciliation, mediation, and Lok Adalats—have emerged as vital instruments to deliver timely, affordable, and participatory justice.

Alternative Dispute Resolution

  • Alternative Dispute Resolution (ADR) encompasses methods and processes used to resolve conflicts outside the formal court system.
  • It encourages a cooperative, non-adversarial approach in which the parties work together, often with the assistance of neutral facilitators, to reach a mutually acceptable solution.
  • Key mechanisms of ADR include various methods to resolve disputes outside courts, such as Arbitration, Mediation, Conciliation, Negotiation and Lok Adalats.

Constitutional and Legal Basis of ADR

  • Article 39A of the Constitution mandates equal access to justice for all citizens.
  • Section 89 of the Code of Civil Procedure, 1908 formally recognises ADR processes.
  • The Arbitration and Conciliation Act, 1996 and Arbitration Act, 2021 institutionalise arbitration and mediation.
  • The Legal Services Authorities Act, 1987 provides statutory backing for Lok Adalats.
    • The Act also sets a maximum period of 180 days for dispute resolution, promoting faster justice.
  • Additionally, pre-litigation mediation for civil and commercial disputes helps reduce court pendency while fostering social harmony and stronger interpersonal relationships through dialogue and mutual understanding.

Functioning of Lok Adalats

  • Legal Framework: Lok Adalats operate under the Legal Services Authorities Act, 1987, which draws inspiration from Article 39A of the Constitution ensuring equal access to justice.
  • Types of Lok Adalats: The system includes Permanent Lok Adalats (Section 22-B), National Lok Adalats, and e-Lok Adalats, all aimed at enhancing efficiency and accessibility in dispute resolution.
  • Origin: The first Lok Adalat in India was organised in Gujarat in 1999, marking the beginning of institutionalised people’s justice forums.
  • Nature of Decisions: Awards passed by Lok Adalats are final and binding, with no provision for appeal, as disputes are settled through mutual consent before formal litigation.
  • Safeguard Against Absoluteness: Although appeals are not allowed, a dissatisfied party may still file a regular suit in a court of law, ensuring fairness and preventing misuse of authority.
  • Need for Awareness: The effectiveness of Lok Adalats depends on greater public awareness and participation, which can strengthen access to speedy and affordable justice.

Importance of Strengthening ADR

  1. Reduces Case Pendency: ADR provides a faster mechanism, with a 180-day limit for resolution, easing pressure on overburdened courts.
  2. Ensures Affordable and Inclusive Justice: ADR offers a cost-effective and less formal system, ensuring justice for weaker sections of society.
  3. Promotes Social Harmony and Consensus: Rooted in the Panch Parmeshwar tradition, mediation encourages dialogue, empathy, and consensus-building.
  4. Improves Efficiency of Formal Courts: Diverting civil and compoundable criminal cases to ADR allows courts to focus on more serious matters.
  5. Addresses Regional Disparities: States like Uttar Pradesh, Bihar, and Andhra Pradesh with high pendency can particularly benefit from ADR adoption.

Way Forward

  1. Institutional Strengthening: Establish more mediation centres and permanent Lok Adalats at the district level for wider outreach.
  2. Digital and e-ADR Platforms: Promote e-Lok Adalats and online mediation systems to enhance accessibility and speed, especially post-pandemic.
  3. Legal and Administrative Reforms: Strengthen the Arbitration Council of India and standardise mediation procedures to ensure quality and accountability.
  4. Awareness and Capacity Building: Conduct legal literacy campaigns and train mediators, arbitrators, and community leaders to build public trust in ADR.
  5. Integration with Formal Judiciary: Encourage pre-litigation mediation in civil and commercial matters to prevent disputes from reaching courts.

Conclusion: ADR is not merely an alternative but a complementary pillar of justice delivery. By promoting speed, affordability, and inclusivity, it can help decongest courts, ensure social harmony, and uphold the constitutional promise of equal access to justice for all. Strengthening ADR is therefore essential for building a resilient, citizen-centric, and efficient judicial system in India.

Question: Why is strengthening Alternative Dispute Resolution (ADR) crucial for India’s justice system?

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