ILE JOURNAL OF ALTERNATIVE DISPUTE RESOLUTION LAW REVIEW Published by

VOLUME I AND ISSUE I OF 2023 Institute of Legal Education

APIS – 3920 – 0046 | ISBN - 978-81-964391-3-2 https://iledu.in

ADR IN INDIA AND RELEVANT SECTIONS

AUTHOR – DEV KUMAR SHARMA, STUDENT AT INDIA INTERNATIONAL UNIVERSITY OF LEGAL EDUCATION
AND RESEARCH, GOA

Best Citation - DEV KUMAR SHARMA, ADR IN INDIA AND RELEVANT SECTIONS, ILE JOURNAL OF
ALTERNATIVE DISPUTE RESOLUTION LAW REVIEW (ILE JADRLR), 1 (1) of 2023, Pg. 15-19, APIS – 3920 – 0046 |
ISBN - 978-81-964391-3-2.

Abstract

In this article I would be discussing the significance and effectiveness of ADR in India. It will provide a
brief knowledge about different ADR such as arbitration, mediation, conciliation and lok adalats
together with pertinent provisions of law regulating these procedures. The benefits of ADR are
examined in the article, including its ability to speed up dispute settlement, promotes party autonomy,
and lights the load on traditional courts. It also demonstrates the wide range acceptance of it and its
success in Indian cases by solving many cases which used to take many years as it would not get
hearings for many months. It will also discuss certain challenges that are faced by this system such
as lack of awareness and enforcement issues and cultural barriers. In his speech, former Hon. Chief
Justice of India said that the idea of alternative dispute resolution (ADR) through Lok Adalats, Gramme
Nyayalayas, mediation, and arbitration centres has the potential to change India's judicial system by
giving millions of people a place to air their grievances. In order to make India's ADR framework a pillar
of its judicial system, the paper finishes by exploring potential future developments and reforms.

Keywords – Alternate dispute resolution (ADR), mediation, Lok adalat, arbitration, conciliation

Introduction- The traditional judicial system types of ADR, along with their underlying
frequently struggles to resolve conflicts quickly principles, procedures, and primary benefits. It
and affordably in the complicated and fast- will examine the legal system that oversees
paced world of today. In order to resolve alternative dispute resolution in India, stressing
disputes outside of the typical courtroom pertinent laws and their influence on the ADR
context, Alternative Dispute Resolution (ADR) industry. The article will also discuss the
procedures have become increasingly popular. advantages of ADR, including its potential to
ADR includes a number of procedures, including hasten resolution, uphold secrecy, maintain
arbitration, mediation, conciliation, and Lok relationships, and cut expenses related to
Adalats (People's Courts), which provide parties protracted litigation.
more power over the resolution of their conflict
I. Arbitration-
and a cooperative approach. Litigation is a
A. Definition -Arbitration is defined under
result of human beings' second instinct, which is
section 2 of arbitration and conciliation act of
evolution. Due to flaws in earlier institutions, war
1996 where it says Any arbitration, whether or
and arbitrary rulings gave way to litigation.
whether it is not administered by a permanent
Because litigation has limitations as well, people
arbitral institution, is referred to as arbitration.”
have searched for more effective ways to settle
The submission for determination of disputed
disagreements, leading to the development of
matter to private unofficial persons selected in
the alternative dispute resolution (hereafter
manner provided by law or agreement.” As
referred to as "ADR") system. The article will start
given in the case of Stockwell v. Equitable Fire &
by giving a thorough explanation of the many
Marine Ins. Co.

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 ILE JOURNAL OF ALTERNATIVE DISPUTE RESOLUTION LAW REVIEW Published by

VOLUME I AND ISSUE I OF 2023 Institute of Legal Education

APIS – 3920 – 0046 | ISBN - 978-81-964391-3-2 https://iledu.in

B. Valid agreement- A valid arbitration serve as a mediator or conciliator in such

agreement is given under section 7 of situation.
arbitration and conciliation act In this , 1. The court will select one or more
"arbitration agreement" refers to the parties' mediators or conciliators from the panel of
agreement to arbitrate all or specific issues that mediators or conciliators if the parties cannot
have arisen or may develop between them agree on the nomination of a mediator or
about a specific legal relationship, whether or conciliator.
not they are contractual in nature. An 2. Each group of parties shall designate a
arbitration agreement may take the form of a mediator or conciliator if the parties are unable
separate agreement or an arbitration clause in to agree on the name of a single mediator or
a contract. A written arbitration agreement is conciliator.
required. An arbitration agreement is in writing if 3. When the parties agree on a single
it is included in a document signed by the mediator or conciliator, he need not come from
parties, or if the parties have exchanged letters, the panel of mediators or conciliators and need
telegrams, telex messages, or other forms of not meet the qualifications, but he should not
communication in writing (including fall under any of the disqualifications.
electronically); 4. When there are more than two sets of
C. Place of arbitration- The location of the parties with disparate interests, each set shall
arbitration is up to the parties to decide. The designate a representative, who shall choose
arbitral tribunal may meet at any location it the solemediator or conciliator; in the absence
deems appropriate for discussion among its of agreement among the nominees in this
participants, for hearing witnesses, experts, or regard, the Court shall appoint a solemediator
the parties, or for examination of documents, or conciliator.
goods, or other property, unless the parties have C. Panel of mediator- For the purpose of
agreed otherwise. In the absence of any selecting mediators or conciliators in matters
agreement referred to in subsection, the place brought on its original side, the High Court shall
of arbitration will be chosen by the panel of create a panel of mediators or conciliators.
arbitrators having regard to the situations of the Within three months of these Rules going into
case, including the proximity of the parties. effect, this panel must be published on the High
II. Mediation – Court's notice board. The High Court Bar
A. Section 89- The provision under Section Association will be handed a copy of the panel
89 CPC aims to resolve conflicts between of mediators and conciliators.
parties, cut down on expenses, and lighten the 1. Within three months of the start of these
load on the courts. Its main purpose is to Rules, the District Judge in each District shall
combine judicial and extrajudicial dispute prepare a panel of mediator/conciliators for the
resolution processes and to place alternative purpose of appointing mediator/conciliators to
dispute processes at the core of the Indian legal mediate between parties in the litigation filed
system. Alternative Dispute Resolution has on the initial side. Following clearance from the
become a crucial component of the judicial High Court, this panel will be posted on notice
system to provide quicker and more efficient boards at various Courts.
justice due to the drawn-out nature of litigation, 2. Before empanelling the panel, the
the high costs borne by both parties for the individuals whose names are on it must provide
same issue, and the scarcity of adjudicators. their assent
B. Mediator rules - The mediator or 3. An Annexure including information about
conciliator who will mediate between the the qualifications of the mediators and
parties to a lawsuit may be chosen by conciliators, as well as their professional or
agreement of the parties. He will be chosen to technical expertise in various disciplines, must

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 ILE JOURNAL OF ALTERNATIVE DISPUTE RESOLUTION LAW REVIEW Published by

VOLUME I AND ISSUE I OF 2023 Institute of Legal Education

APIS – 3920 – 0046 | ISBN - 978-81-964391-3-2 https://iledu.in

be submitted with the panel of names of offence because such cases cant be settled in
mediators and conciliators. lok adalats
III. Lok adalat- One of the alternative C. Levels of lok adalat-
dispute resolution processes is Lok Adalat, a 1. At statutory level- A sitting or retired
forum for the amicable resolution of legal issues judge of the High Court, a sitting or retired
and cases that are pending in court or in the judicial officer, and either one or both of the
preliminary stages of litigation. The Legal following: a member of the legal profession; a
Services Authorities Act, 1987 conferred legal social worker interested in the implementation
status for Lok Adalats. According to the of legal services schemes or programmes.
aforementioned Act, the award (judgement) These benches would make up the Lok Adalat,
given by the Lok Adalats is deemed to be a which would be organised by the Member
decree of a civil court, is final and enforceable Secretary of the State Legal Services Authority.
against all parties, and no legal recourse 2. At high court level- The secretaries
against such an award exists. Despite the fact of the legal profession; a social worker fascinate
that there is no provision for an appeal against d in the aadministration of legal aid schemes or
such an award, if the parties are not happy with programmes.the High Court Legal Services
the Lok Adalat's decision, Committee would establish benches of the Lok
A. Fee and conciliators- Adalat, each bench consisting of a High Court
1. When a case is filed before a Lok Adalat, judge who is either currently serving on the
there is no fee for court due. The court money bench or has retired, as well as one or both of
initially paid in the court on the the following: a member
complaints/petition is also reimbursed to the 3. At district level - .The Secretary of the
parties if a case that is currently before the legal District Legal Services Authority, which is
system is referred to the Lok Adalat and organising the Lok Adalat, would set up benches
resolved later. of the Lok Adalat, each bench consisting of a
2. The individuals who decide cases in Lok sitting or retired judge, a member of the legal
Adalats are known as Members of the Lok profession, a social worker interested in
Adalats; they are only permitted to act as implementing legal services schemes or
statutory conciliators and do not have any programmes, or a person involved in paralegal
judicial authority; as a result, they are only able activities in the area, preferably a woman.
to persuade the parties to reach an agreement 4. At taluka level- A social worker involved
to resolve the dispute outside of court in the Lok in the uplift of the weaker sections who is
Adalat and are not permitted to press or interested in the implementation of legal
otherwise force any of the individuals to reach services schemes or programmes, or a person
an agreement or settle cases or matters. eiher engaged in paralegal activities in the area,
directly or indirectly. preferably a woma, would make up each bench
B. Cases which Lok adalat takes- of the Lok Adalat, which would be created by
1. Any case which is pending in any court the secretary of the Taluk Legal Services
of India can be taken in Lok adalats. Committee, which is organising the Lok Adalat.
2. Any issue which is not taken into any IV. Problems faced by ADR system
court A. The ADR system in India, while holding
3. Any case which can be likely taken into great potential, faces several challenges that
court in future this cases can also be taken into hinder its widespread adoption and
lok adalats effectiveness. Here are some key problems
But one thing had to be made sure is that the faced by the ADR system in India:
case should not be a non compoundable B. Lack of Awareness and Understanding:
One of the primary challenges is the limited

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 ILE JOURNAL OF ALTERNATIVE DISPUTE RESOLUTION LAW REVIEW Published by

VOLUME I AND ISSUE I OF 2023 Institute of Legal Education

APIS – 3920 – 0046 | ISBN - 978-81-964391-3-2 https://iledu.in

awareness and understanding of ADR I. Lack of Uniformity and Standardization:

mechanisms among the general public. Many While ADR processes are governed by
individuals and businesses are not aware of the legislation, there can be inconsistencies in the
benefits and processes involved in ADR, leading application and interpretation of ADR rules and
to a reliance on traditional litigation as the procedures. The absence of a standardized
default option. framework across different ADR forums can
C. Cultural Barriers and Mindset: India's create confusion and uncertainty for parties
diverse cultural landscape poses challenges to involved in dispute resolution.
the acceptance and effectiveness of ADR. J. Addressing these challenges requires
Traditional attitudes and a preference for concerted efforts from stakeholders, including
adversarial litigation can make it difficult for awareness campaigns, capacity building
parties to embrace a cooperative and programs, specialized training for ADR
consensual approach to dispute resolution. practitioners, and the promotion of ADR as a
D. Limited Institutional Framework: While viable alternative to traditional litigation. By
legislation exists to govern ADR processes in overcoming these hurdles, the ADR system in
India, the institutional framework for ADR is not India can further evolve and contribute to the
as developed as the traditional court system. efficient and accessible resolution of disputes in
This can lead to inconsistent practices, a lack of the country.
standardized procedures, and varying levels of V. Conclusion –
expertise among ADR practitioners. The general public's ignorance and lack of
E. Enforcement Issues: Even when parties comprehension of ADR procedures continues to
reach an agreement through ADR, challenges be a major obstacle. To empower people and
may arise during the enforcement phase. In organisations to make wise decisions and
some cases, parties may disregard or delay accept alternative conflict resolution
implementing the agreed-upon terms, leading techniques, efforts must be taken to educate
to additional conflicts and frustration. people and organisations about the
F. Limited Use in Certain Areas of Law: ADR advantages and procedures of ADR.
mechanisms are more commonly employed in
commercial disputes, but their usage in other Another hurdle to the acceptability of ADR is
areas of law, such as family disputes or criminal culture and thinking. A cooperative and
cases, is relatively limited. Expanding the scope collaborative approach to conflict resolution
of ADR to encompass a broader range of legal must replace traditional attitudes and a
issues remains a challenge. predisposition for combative litigation.
G. Resistance from Legal Professionals: Campaigns to raise awareness, cultural
Some legal professionals may be resistant to sensitization, and the encouragement of a
the growth of ADR due to concerns about cooperative mentality in society can all help
potential loss of business or unfamiliarity with with this. To increase parties' trust in the ADR
ADR processes. This resistance can impede the system, enforcement difficulties must also be
integration of ADR into the legal profession and addressed. To prevent further disputes and
hinder its widespread adoption. annoyance, mechanisms for enforcing ADR
H. Resource Constraints: The availability of agreements and prompt execution of agreed-
skilled mediators, arbitrators, and conciliators upon provisions must be reinforced.
can be limited, particularly in certain
geographical areas or specialized fields of law. The development and acceptance of ADR in
This scarcity of qualified professionals can lead India will be aided by its expansion to include a
to delays and challenges in accessing ADR larger variety of legal concerns, such as family
services. conflicts and criminal cases. Stressing the

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 ILE JOURNAL OF ALTERNATIVE DISPUTE RESOLUTION LAW REVIEW Published by

VOLUME I AND ISSUE I OF 2023 Institute of Legal Education

APIS – 3920 – 0046 | ISBN - 978-81-964391-3-2 https://iledu.in

advantages of ADR in these areas can aid in

overcoming opposition and encourage its use
as a viable and effective dispute settlement
technique. As a possible substitute for
traditional litigation, India's ADR system provides
parties more control, effectiveness, and
accessibility in settling disputes. The full
potential of ADR in India will be unlocked by
overcoming the obstacles of awareness,
cultural hurdles, institutional development,
enforcement, and increasing its use in many
legal fields, allowing it to play a crucial role in
delivering effective and accessible justice for all.
VI. Reference –
The Handbook of Dispute Resolution" edited by
Michael L. Moffitt and Robert C. Bordone.
1. Comparative analysis of ADR methods
with focus on their pros and cons , IPleaders,
https://blog.ipleaders.in/comparative-analysis-
of-adr-methods-with-focus-on-their-pros-
and-cons/ (Last Accessed on 16h june, 2023 –
10.14 AM)
2. Alternative Dispute Resolution under Civil
Litigation, Ipleaders,
https://blog.ipleaders.in/alternative-dispute-
resolution-under-civil-litigation/#Meditation
(Last Accessed on 16h june, 2023 – 10.14 AM)
3. https://nalsa.gov.in/lok-adalat (Last
Accessed on 16 june, 2023 – 00:34 AM)
h

4. Evolution of ADR Mechanisms in India ,

Lalit Sharma*...
https://www.scconline.com/blog/post/2021/02/
07/evolution-of-adr-mechanisms-in-india/
5. THE ARBITRATION AND CONCILIATION ACT,
1996, (no 26 of1996)

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