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Evolution of Adr

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Q. Discuss the concept of ADR. How this concept evolved in India.

Explain

Ans. Alternative Dispute Resolution:The process by which disputes between the parties are
settled or brought to an amicable result without the intervention of Judicial Institution and
without any trail is known as Alternative Dispute Resolution (ADR).

 ADR offers to resolve all type of matters including civil, commercial, industrial and
family etc., where people are not being able to start any type of negotiation and reach the
settlement.
 Generally, ADR uses neutral third party who helps the parties to communicate, discuss
the differences and resolve the dispute.
 It is a method which enables individuals and group to maintain co-operation, social order
and provides opportunity to reduce hostility.

ADR is an alternative to litigation; and, involves mediation, arbitration, conciliation, negotiation,


settlement by judiciary and any other process of resolving dispute which does not involve court;
and is governed by certain rules. The result (or settlement) of the proceedings shall be
enforceable in law. With the passage of time, ADR is becoming a popular method of resolving
disputes between the parties, particularly, in commercial disputes. These methods allow the
parties to make choices with regard to law or rules which will be applicable to these proceedings.
All the methods in most of the proceedings use a third party as an adjudicator or mediator (as per
the method chosen by the parties) chosen by the parties with their consent. This provides
satisfaction to the parties with regards to the process and adjudicator because these processes
make people feel empowered and in control of the proceedings. After all, people desire certainty
the most in life.
The Evolution and Development of ADR in India

Dispute resolution outside court is not new. Village level institutions played the leading role,
where disputes were resolved by elders, comprising council of village (popularly called
panchayats) informal way of mediation. ADR is not a new experience for the people of this
country also. It has been prevalent in India since time immemorial. Legal history indicates that
down the ages man has been experimenting with procedure for making it easy, cheap and
convenient to obtain justice. Village level institution where disputes are resolved by elders,
comprising council of village (popularly called panchayats). The system was that of monarchy in
Ancient India. In earlier times, disputes were peacefully decided by intervention of kulas, srenis,
parishads before the king came to adjudicate. Gramin head of Grama. Visyapati political head of
many villages. Puga or a board of person who belonged to different sects and tribe but lived in
same locality. Panchayats were different systems of arbitration. Subordinate to the regular courts
of law. Mitakshara, it can say that Kula court consisted of a group of relations near or distant. It
is important to note that in ancient India when dispute arises in family it was settled by elders. If
they failed to bring about any compromise the sreni or the guild courts used to intervene.
Disputes between several guilds were settled by means of arbitration.
Though arbitration prevailed in India, in the form of panchayats (which have been now given
recognition in the Constitution of India)[1] before the Britishers came in and established their
authority. In 1923, the League of Nations gathered and agreed to the Geneva Convention. The
Geneva Convention also contained clauses for arbitration. [2] The first arbitration dedicated
provision in the Civil Procedure Code, 1908 which had Section 89 providing for arbitration but
the same was repealed by Section 49 and Schedule III to the Arbitration Act, 1940. [3] Prior to
enactment of the Arbitration Act, 1940, the Britishers enacted Arbitration (Protocol and
Convention) Act, 1937 wherein the Preamble of the Act stated that India was signatory as a State
to the Protocol on arbitration as established by League of Nations. [4] The League of Nations
intended to bring the world closer through trade which made it realise the importance of
arbitration. As a result, the Protocol on Arbitration Clauses, 1923 came into existence. There
were several lacunae in the Protocol, hence, a need for amendment was felt. The League of
Nations came up with another Convention for Enforcement of Foreign Arbitral  Awards which
was lacking in the 1923 Convention.[5] This Convention of 1927 is also known as the Geneva
Convention of 1927. This Convention formed the basis for other enactment i.e. the Arbitration
(Protocol and Convention) Act, 1937. Section 3 of the Arbitration (Protocol and Convention)
Act, 1937 refers to the existence of the Arbitration Act, 1899.[6] The Arbitration Act, 1940 came
into picture repealing all the previous laws governing arbitration. The Arbitration (Protocol and
Convention), 1937 failed to achieve its objective. Then after several years of work, in 1958, the
world came up with a convention i.e the New York Convention, which is still running its course
till date. Then, the Arbitration Act, 1940 was repealed and replaced by the Arbitration Act, 1960.
The New York Convention inspired another legislation in the Foreign Awards (Recognition and
Enforcement) Act, 1961 which was lacking in the Arbitration Act, 1960.

In 1981, in Guru Nanak Foundation  v. Rattan Singh[7], Desai, J. observed with regards to the
1961 Act that the arbitration system has become ineffective. The point was that even in cases if
the arbitrator passed an arbitral award, the parties used the provisions of the Act to challenge the
award. This observation presented the 1961 Act as an additional layer which party may choose or
not, prior to the litigation process. The lacunae in the provisions of the 1961 Act, made it
redundant and people ended up approaching the courts for litigation. Arbitration as a process was
meant to be cost effective and time efficient, but the 1961 Act failed miserably to achieve this
objective. This Act would be further repealed and replaced by the Arbitration and Conciliation
Act, 1996. In 1985, United Nations Commission on International Trade Law (UNCITRAL)
presented a comprehensive model for arbitration. The present Arbitration and Conciliation Act,
1996 is based on that UNCITRAL model. The Arbitration and Conciliation Act, 1996 has been
subjected to two more amendments in 2015 and 2019.

Need of ADR in India:


The system of dispensing justice in India has come under great stress for several reasons mainly
because of the huge pendency of cases in courts. In India, the number of cases filed in the courts
has shown a tremendous increase in recent years resulting in pendency and delays underlining
the need for alternative dispute resolution methods. It is in this context that a Resolution was
adopted by the Chief Ministers and the Chief Justices of States in a conference held in New
Delhi on 4th December 1993 under the chairmanship of the then Prime Minister and presided
over by the Chief Justice of India.
It said: "The Chief Ministers and Chief Justices were of the opinion that Courts were not in a
position to bear the entire burden of justice system and that a number of disputes lent themselves
to resolution by alternative modes such as arbitration, mediation and negotiation. They
emphasized the desirability of disputants taking advantage of alternative dispute resolution
which provided procedural flexibility, saved valuable time and money and avoided the stress of a
conventional trial".

In a developing country like India with major economic reforms under way within the
framework of the rule of law, strategies for swifter resolution of disputes for lessening the burden
on [1]the courts and to provide means for expeditious resolution of disputes, there is no better
option but to strive to develop alternative modes of dispute resolution (ADR) by establishing
facilities for providing settlement of disputes through arbitration, conciliation, mediation and
negotiation.

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