Alternate Dispute Resolution, Meaning, Types, Role and UPSC Notes Pdf

Alternate Dispute Resolution: A collection of procedures known as Alternative Dispute Resolution (ADR) is intended to settle conflicts outside of the conventional judicial system. It gives several strategies for getting things done between the parties without going to court. Alternate Dispute Resolution processes have become more popular in India because they allow for quicker, more economical, and less combative conflict resolution.

Alternate Dispute Resolution

Panchayats, a system of local dispute settlement, have their earliest roots in ADR in India. ADR has been formally acknowledged in the modern era by legislative requirements. A variety of techniques are included in alternative dispute resolution (ADR), which aims to settle disputes outside of the official courtroom.

Types of Alternate Dispute Resolution

Conciliation

• In conciliation, a disinterested third party helps disputing parties come to an amicable agreement. This non-binding procedure promotes cooperation and negotiation and gives the parties discretion over the final result.

Mediation

• In mediation, a neutral third party helps parties find a solution that they can both agree on. It places a focus on cooperative and long-lasting solutions, with mediators fostering discussion and brainstorming to reach an understanding.

Negotiation

• Direct discussions between parties in conflict are the basis of negotiation. Negotiation is a crucial informal ADR technique where people engage in self-counseling for dispute resolution, even though it is not formally recognized in India.

Role of Lok Adalat in Alternate Dispute Resolution

Lok Adalats, also known as People’s Courts, is an essential part of India’s ADR system. Through informal processes, these forums promote peaceful resolutions. Lok Adalats, which operates under the Legal Services Authority Act of 1987, has successfully resolved many cases, relieving the judicial system’s workload and fostering quick justice.

Important Provisions for Alternate Dispute Resolution in India

The Civil Procedure Code, 1908, Section 89, gives judges the authority to send disputes for ADR procedures before going to court. This clause emphasizes how important it is for courts to encourage parties to consider other forms of conflict settlement, such as arbitration, conciliation, mediation, and Lok Adalats. The legal underpinning for arbitration is the Arbitration and Conciliation Act, of 1996, which emphasizes the importance of ADR.

Importance of Alternate Dispute Resolution

ADR is essential in solving the problems brought on by the backlog of cases in Indian courts. It is consistent with the Constitution’s core rights, guiding values, and ambitions. The ideas of social-economic fairness, equal justice, and the encouragement of morality in society are all embodied in ADR processes. The availability of ADR methods enables litigants to quickly and successfully settle disagreements.

• Speed: ADR procedures frequently move more quickly than regular legal proceedings. They enable quicker conflict resolution between the parties, clearing the backlog of cases in overworked courts.
• Cost-Effectiveness: ADR is frequently more affordable than going to court. ADR typically takes fewer formal procedures and less time from legal professionals than litigation, which typically involves significant attorney fees, court charges, and related expenses.
• Relationship Preservation: ADR can assist in preserving or mending relationships between parties in commercial, familial, or community issues. ADR techniques encourage open communication and teamwork, which can be crucial when continual interactions are required, in contrast to combative court battles.
• Confidentiality: ADR discussions are frequently private. Due to the absence of the threat of their words being used against them in subsequent legal procedures, this can encourage parties to be more forthright and upfront about their problems.
• Customization: Using ADR, parties can modify the dispute resolution procedure to suit their particular requirements and situation. This adaptability may result in more inventive solutions that better serve the interests of the parties.
• Expertise: Arbitration, a popular ADR technique, frequently enables parties to choose arbitrators with knowledge in the pertinent area. This makes sure that conflicts are decided by people who are familiar with the nuances of the situation.
• Less Formality: Compared to courtroom procedures, ADR methods are typically less formal. For those who are unfamiliar with legal issues, in particular, this can make the process less scary and more approachable.
• Lessened Stress: Courtroom conflicts can be emotionally taxing and distressing. The parties involved may experience less emotional stress thanks to ADR’s more cooperative environment.
• Ease of Enforcement: Due to different international conventions, agreements established through ADR, especially arbitration, are frequently easier to enforce than court judgments, both locally and internationally.

Arbitration and Conciliation (Amendment) Act, 2019

The 1996 Arbitration and Conciliation Act is intended to be modified by this act.

Arbitration Council of India (ACI)

The act calls for the creation of an independent organization called the ACI that would support alternative conflict resolution techniques like arbitration, mediation, and conciliation.

• The ACI’s duties include establishing guidelines for arbitrator accreditation, upholding uniform professional standards, and keeping a database of arbitral awards.
• The ACI’s membership would consist of a Chairperson who might be a Supreme Court judge, a High Court judge, the Chief Justice of a High Court, or an expert in arbitration.

Appointment of Arbitrators

The Supreme Court and specified High Courts would appoint arbitrators rather than the parties themselves. Appointments for domestic arbitration would be made by the institution selected by the relevant High Court, and for international commercial arbitration, by the institution chosen by the Supreme Court.

Relaxation of Time Limits

The Bill eliminates the 12-month window for international commercial arbitration awards. Tribunals must attempt to conclude cases involving international arbitration within a year.

Completion of Written Submissions

Starting with the appointment of arbitrators, the legislation establishes a six-month deadline for concluding the written claim and defense in arbitration proceedings.

Confidentiality of processes

The Bill places a strong emphasis on the confidentiality of arbitration processes, except in situations in which disclosing the arbitral ruling is required for its implementation or enforcement.

Conclusion

Alternative Dispute Resolution has changed how disputes are resolved in India. Traditional litigation can be quickly and inexpensively avoided by using alternative dispute resolution (ADR), which uses a variety of techniques such as negotiation, conciliation, mediation, and the crucial role of Lok Adalats. ADR encourages harmony, social justice, and efficient dispute resolution by placing a strong emphasis on cooperation and voluntary solutions. The most recent changes, such as the ADR Amendment Act and the Mediation Bill 2021, demonstrate India’s dedication to creating a strong ADR framework that meets its citizens’ changing requirements.

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