Alternative Dispute
Resolution
Alternative Dispute Resolution (ADR) is a term used to describe the various
ways in which legal disputes are resolved. The business world as well as
common people are discovering that it is impossible for many individuals to
file lawsuits and seek timely justice. In response to this question of delayed
justice, the ADR Mechanism was created.
Alternate dispute resolutions approaches are gradually being recognized at
both national and international level in the field of law and commercial
sectors.
Methods of Alternative Dispute Resolutions
Several countries have used this Alternative Dispute Resolution strategy for
successful dispute resolution. ADR is usually less formal, less expensive and
less time consuming than traditional trials. The different methods of ADR can
be summarized as under: –
Arbitration
Arbitration is a strategy for resolving conflicts outside of the court system in
which the parties to a disagreement refer it to one or more people, known as
arbitrators. It is a method in which a third person examines the evidence in
the case and renders a legally enforceable decision for both parties.
Arbitration is not the same as civil and mediation proceedings. It can be
optional or mandatory. In India, if the matter is referred to Arbitration then
the provisions of the Arbitration and Conciliation Act, 1996 will apply.
The main types of ADR are as under:
Voluntary Arbitration;
Compulsory Arbitration.
Conciliation
It is a form of alternative dispute resolution in which the parties to a dispute
hire a conciliator to help them resolve their issues individually. They do this
by reducing conflicts, strengthening coordination, identifying problems,
discussing possible solutions. It is a consensual process in which the parties
involved are free to reach an agreement and try to resolve their
disagreement through conciliation. The method is versatile, which helps the
parties to determine the time, duration and content of the conciliation
procedure.
Mediation
Today, mediation is a voluntary and informal method of dispute resolution
throughout the world. It is a simple, voluntary, party-centered and structured
negotiation process in which a neutral third party helps parties resolve their
disputes friendly through the use of communication and negotiation
techniques. Mediation is a process where the parties are themselves in
control of it. The mediator takes no decisions and does not enforce his
opinion on what should be a fair settlement. Both sides meet with an
experienced neutral mediator during the mediation process. The mediator
does not have the power to dictate his decision regarding the party.
Judicial settlement
Section 89 of the CPC also refers to judicial settlement as one of the
alternative modes of resolution of disputes. The term “Judicial Settlement” is
however specified in Section 89 of the Code. This means that the Judge
concerned, seeks to settle the dispute between the parties in a legal
settlement amicably. Such settlement shall be deemed to be an agreement
within the scope of the Legal Services Authority Act, 1987.
