Indian Law on Alternative Dispute Resolution

The concept of Alternative Dispute Resolution (ADR) introduced to the legal field, a new mechanism of conflict resolution that has no legal proceedings. The ADR system was introduced under the Indian laws, to address the underlying issues in dispute resolution, in a speedy and cost-effective manner. Further, this opportunity provides for reducing hostility and restoring peace among the parties. It also incorporates a sense of justice in each individual. These proceedings take place in a highly economic and efficient manner.

Based on the official data of 2006, more than 2, 53, 80,757 cases are pending in courts. With only 15000 judicial officials to address these cases, the Indian judiciary faces the problem of under-staffing and cases that are piling up on a daily basis. In this scenario, ADR has emerged as a boon.

Indian Law: Procedures for The Alternative Dispute Resolution

Indian law supports the ADR system and divides the ADR procedures broadly as adjudicatory and non adjudicatory. The adjudicatory procedures involve arbitration whereas the non-adjudicatory procedures involve negotiation, mediation and conciliation. Here is an overview of ADR procedures, such as:

Negotiation

Negotiation is a non-binding procedure, which does not include a third party. Both parties initiate discussions, with an aim to arrive at a settlement.

Conciliation/Mediation

It is a non-binding procedure, involving an impartial third party. The conciliator/mediator assists the conflicting parties, to reach a mutually agreed settlement. However, there is a slight difference between mediation and conciliation. In mediation, the neutral third party plays a more intervening role and actively puts forward his own suggestions for the settlement.

Arbitration

Arbitration is a binding process. The dispute is presented before an arbitral tribunal. The tribunal in turn makes a decision or award pertaining to the settlement of the dispute.

‘Renting’ a Judge

The conflicting parties jointly approach a retired judge and pay his fee. They present their cases before him, in informal proceedings. The referee judge then gives his decision, which is implemented in a court of law.