CHAPTER – I
ALTERNATIVE DISPUTE
RESOLUTION (ADR)
1. Introduction
Alternative Dispute Resolution (ADR) is a system of resolving
disputes without going to traditional courts. In India, courts are
already overburdened with lakhs of pending cases. Due to this,
justice gets delayed, and as rightly said, “Justice delayed is
justice denied.”
To overcome this problem, ADR mechanisms were introduced.
ADR provides faster, cheaper and amicable settlement of
disputes. It helps parties to resolve conflicts peacefully without
lengthy court procedures.
The legal framework of ADR in India is mainly governed by
the Arbitration and Conciliation Act, 1996. Additionally,
Article 39A of the Constitution of India promotes equal justice
and free legal aid.
ADR plays an important role in reducing the burden of courts
and promoting harmony in society.
2. Meaning & Definition
Alternative Dispute Resolution means methods of settling
disputes outside the traditional judicial system.
Black’s Law Dictionary defines ADR as:
“Any method of resolving disputes other than litigation.”
In simple words, ADR refers to processes like:
• Arbitration
• Conciliation
• Mediation
• Lok Adalat
• Negotiation
ADR is based on the principle of mutual consent and
cooperation between parties.
3. Types of ADR
The main types of ADR in India are:
(A) Arbitration
Arbitration is a process where parties appoint a neutral third
person called an Arbitrator. The decision given by the
arbitrator is called an Award and it is binding on the parties.
It is governed by the Arbitration and Conciliation Act, 1996.
There are two types:
1. Domestic Arbitration
2. International Commercial Arbitration
Important Case:
Bharat Aluminium Co. v. Kaiser Aluminium Technical
Services Inc. – Supreme Court clarified provisions relating to
international arbitration.
(B) Conciliation
Conciliation is a non-binding process where a conciliator helps
parties reach a settlement. The conciliator suggests solutions
but does not impose a decision.
If settlement is reached, it becomes binding.
(C) Mediation
Mediation is a voluntary process where a neutral mediator
helps parties communicate and settle disputes amicably.
Mediator does not give decision but facilitates negotiation.
(D) Lok Adalat
Lok Adalat means “People’s Court.” It provides speedy justice
and mainly deals with compromise cases.
It is organized under the Legal Services Authorities Act, 1987.
Award of Lok Adalat is final and binding.
(E) Negotiation
Negotiation is the simplest form of ADR where parties directly
communicate to settle disputes without third party
intervention.
4. Advantages of ADR
ADR has several advantages over traditional litigation:
1. Speedy Justice – Cases are resolved faster.
2. Cost Effective – Less expensive than court proceedings.
3. Confidential – Proceedings are private.
4. Flexible Procedure – No strict procedural laws.
5. Less Technical – Simple and informal process.
6. Preserves Relationship – Especially useful in family and
business disputes.
7. Party Autonomy – Parties choose their own decision
maker.
Conclusion
ADR is an effective mechanism for dispute resolution in
modern India. It reduces court burden and promotes peaceful
settlement of disputes. With growing commercial transactions
and increasing litigation, ADR has become an essential part of
the legal system.
It ensures access to justice and fulfills the constitutional
mandate of equal justice.