Alternative Dispute Resolution (ADR) has emerged as a significant component of India’s legal

landscape, providing an alternative to traditional litigation for resolving disputes. It includes

dispute resolution processes and techniques that act as a means for disagreeing parties to come to
an agreement short of litigation. It is a collective term for the ways that parties can settle
disputes, with (or without) the help of a third party.
Alternative Dispute Resolution is of two historic types. First, methods for resolving disputes
outside of the official judicial mechanisms. Second, informal methods attached to or pendant to
official judicial mechanisms.
There are in addition free-standing and or independent methods, such as mediation programs and
ombuds offices within organizations. The methods are similar, whether or not they are pendant,
and generally use similar tool or skill sets, which are basically sub-sets of the skills of
negotiation.
Alternative dispute resolution in India is not new and it was in existence even under the previous
Arbitration Act, 1940. The Arbitration and Conciliation Act, 1996 has been enacted to
accommodate the harmonisation mandates of UNCITRAL Model.
To streamline the Indian legal system the traditional civil law known as Code of Civil Procedure,
(CPC) 1908 has also been amended and section 89 has been introduced. Section 89 (1) of CPC
provides an option for the settlement of disputes outside the court. It provides that where it
appears to the court that there exist elements, which may be acceptable to the parties, the court
may formulate the terms of a possible settlement and refer the same for arbitration, conciliation,
mediation or judicial settlement.
Due to extremely slow judicial process, there has been a big thrust on Alternate Dispute
Resolution mechanisms in India. While Arbitration and Conciliation Act, 1996 is a fairly
standard western approach towards ADR, the Lok Adalat system constituted under National
Legal Services Authority Act, 1987 is a uniquely Indian approach.
Alternative Dispute Resolution (ADR) is a technique to resolve disputes and disagreements
between the parties by arriving at an amenable settlement through negotiations and discussions.
It is an attempt to establish an alternative mechanism other than the traditional methods of
dispute resolutions. The ADR mechanism offers to facilitate the resolution of matters of business
issues and the others where it has not been possible to initiate any process of negotiation or
arrive at a mutually agreeable solution.
In India, ADR is established on the basis of Article 14 (Equality before law) and Article 21
(Right to life and personal liberty) under the Constitution of India. The Directive Principles of
State Policy (DPSP) of Equal justice and free legal aid as engraved in Article 39-A of the Indian
Constitution can also be achieved by the ADR.
Modes Of ADR
ARBITRATION
In arbitration, the parties to a dispute submit it to one or more individuals known as arbitrators,
to whom they expect to be bound by their decision, in order to resolve the conflict outside of the
judicial system.
It is a process for resolving conflicts where a neutral third party reviews the evidence and makes
a decision that is binding on both parties. There are few avenues for review or appeal of
arbitration rulings. Arbitration is distinct from mediation and civil court processes.
Arbitration may be mandatory or discretionary. It is obvious that a jointly signed agreement or
law requiring arbitration of all pending or future disputes between the parties is the only source
of mandatory arbitration. In India, the provisions of the Arbitration and Conciliation Act, 1996
shall be applicable if the dispute is referred to arbitration.
MEDIATION AND NEGOTIATION
Mediation is a widely used method of resolving disputes globally, characterized by its non-
binding and informal nature. It involves a neutral third party who employs specific
communication and negotiation techniques to assist parties in reaching a mutually agreeable
resolution.
Mediation is a voluntary, party-centered, and structured negotiation process where the parties
retain control. The mediator’s role is limited to facilitating the negotiation and does not involve
making decisions or imposing settlements. In mediation, a skilled neutral mediator meets with
both sides, allowing each party to present their perspective on the issue and potential solutions.
Negotiation in India follows universal principles but is influenced by cultural factors. It involves
communication and discussion to reach mutually satisfactory agreements. Indian negotiators
prioritize relationship preservation and harmony. Techniques include active listening, persuasive
arguments, finding common ground, and seeking win-win outcomes.
Non-verbal cues and indirect communication play a role. Legal frameworks and alternative
dispute resolution methods like mediation are often used. Negotiation in India combines cultural
sensitivities, interpersonal skills, and strategic decision-making to achieve mutually beneficial
outcomes in various contexts.
CONCILIATION
Conciliation is a consensual alternative dispute resolution process where a neutral conciliator
helps parties resolve their issues through negotiation and reaching a mutually acceptable
settlement.
It focuses on reducing conflicts, identifying problems, and considering the parties’ interests. The
resulting settlement holds legal validity and is applicable in any court. Conciliation is often used
in trade disputes to maintain commercial relationships.
LOK ADALATS
One of the ADR processes is Lok Adalat, a forum for the amicable resolution of legal issues and
cases that are pending in court or in the preliminary stages of litigation. The Legal Services
Authorities Act, 1987 conferred legal status for Lok Adalats. According to the aforementioned
Act, the award (judgment) given by the Lok Adalats is deemed to be a decree of a civil court, is
final and enforceable against all parties, and no legal recourse against such an award exists.
CONCLUSION
Owing to the development of alternative dispute resolution techniques, people now have a new
way to resolve their disputes. Widespread public support for the quick resolution of disputes in
Lok Adalat has given ADR a new momentum that will surely result in fewer cases going to court.
ADR processes are crucial for facilitating access to justice. We need to urge the ADR movement
to advance more quickly. In addition to providing quick justice at a minimal cost, this will
greatly alleviate the pressure on the courts. They will successfully accomplish the goal of giving
the disputants social justice if they are completely put into practice.