Page 1
33
Alternative Dispute
Resolution in India (ADR)
Learning Outcomes
Students will be able to:
• Analyze and compar e the adversarial and inquisitorial systems of justice dispensation
• Explain the meaning and scope of ADR
• Evaluate the benefits of ADR
• Identify and e xplain the various types of ADR- Arbitration, Mediation, Conciliation, Lok Adalat
and T ribunals
• Evaluate and e xplain the role of various Ombudsman - CVC, Lokpal and Lokayukta, Banking
Ombudsman and Insurance Ombudsman
I. Adversarial and Inquisitorial Systems
Ever y legal system in this world can be broadly classified into two models: Adversarial and Inquisitorial.
Both the systems aim at dispensing justice, but they differ in their techniques of adjudication and
justice deliver y mechanisms. Ther efor e, this classification becomes impor tant.
L et us understand the meaning of each of the systems and the main differ ences between them.
In an adversarial system
• The par ties in a legal proceeding develop their own theor y of the case and gather evidence to
suppor t their claims.
• The par ties ar e assisted by their lawyers who take a proactive role in delivering justice to the
litigants.
• The lawyers gather evidence and even par ticipate in cross-e xamination and scrutiny of evidence
pr esented by the other disputing par ty .
• The role of the judge/ decision maker is rather passive as the judge decides the claims based
solely on the evidence and arguments pr esented by the par ties and their lawyers.
In an inquisitorial system
• The judge/ decision maker takes a centr e-stage in dispensing justice.
• The role of the judge/ decision maker is active as he/ she deter mines the facts and issues in
dispute.
UNIT
2
Page 2
33
Alternative Dispute
Resolution in India (ADR)
Learning Outcomes
Students will be able to:
• Analyze and compar e the adversarial and inquisitorial systems of justice dispensation
• Explain the meaning and scope of ADR
• Evaluate the benefits of ADR
• Identify and e xplain the various types of ADR- Arbitration, Mediation, Conciliation, Lok Adalat
and T ribunals
• Evaluate and e xplain the role of various Ombudsman - CVC, Lokpal and Lokayukta, Banking
Ombudsman and Insurance Ombudsman
I. Adversarial and Inquisitorial Systems
Ever y legal system in this world can be broadly classified into two models: Adversarial and Inquisitorial.
Both the systems aim at dispensing justice, but they differ in their techniques of adjudication and
justice deliver y mechanisms. Ther efor e, this classification becomes impor tant.
L et us understand the meaning of each of the systems and the main differ ences between them.
In an adversarial system
• The par ties in a legal proceeding develop their own theor y of the case and gather evidence to
suppor t their claims.
• The par ties ar e assisted by their lawyers who take a proactive role in delivering justice to the
litigants.
• The lawyers gather evidence and even par ticipate in cross-e xamination and scrutiny of evidence
pr esented by the other disputing par ty .
• The role of the judge/ decision maker is rather passive as the judge decides the claims based
solely on the evidence and arguments pr esented by the par ties and their lawyers.
In an inquisitorial system
• The judge/ decision maker takes a centr e-stage in dispensing justice.
• The role of the judge/ decision maker is active as he/ she deter mines the facts and issues in
dispute.
UNIT
2
34
• The judge/ decision maker also decides the mann er in which the evidence must be pr esented
befor e the cour t. F or e xample, the judge may decide for pr esentation of a specific for m of
evidence, i.e. oral (witness statement) or documentar y (cor r espondence between the par ties
through letters/emails) or a combination of both.
• The judge then evalu ates the evidence pr esented befor e him/her and decides upon the legal
claims. Ther efor e, this model of adjudication is also known as the inter ventionist/investigative
model.
• F ur ther mor e, in such a system, less r eliance is place d on cross-e xamination and other techniques
often used by lawyers to evaluate evidence of their opposing counsel.
The adversarial system is generally adopted in common law countries. Major common law jurisdictions
include the UK, U.S, Australia and India. On the other hand, continental Europe which follows the
civil law system (i.e., those deriving from Roman law or the Napoleonic Code) has adopted the
inquisitorial system.
Having under stood the basic framework of functionin g of the two models of legal systems, let us
analyse their advantages and disadvantages.
II. Advantages and Disadvantages of Adversarial and
Inquisitorial System
The main advantages of an adversarial system include:
i. The use of cross-e xamination can be an effective way to test the cr edibility of witnesses pr esented;
ii. The par ties may be mor e willing to accept the r esults when they ar e given effective control over
the process.
The disadvantages of an adversarial system are the following:
i. The cost of the justice system falls upon the par ties. This cr eates an in -built discrimination
amongst the litigants. P ar ties with better r esour ces ar e able to access justice by hiring competent
lawyers and pr esenting sophisticated evidence which may not be immediately available for
par ties that lack these r esour ces. Accessibility and affordability to justice ar e impor tant challenges
for the adversarial system of dispute r esolution.
ii. The role of lawyers and the procedural for malities, e. g. cross e xamination may prolong the trial
and lead to delays in several matters.
iii. Judges play a less active role; a judge is not duty bound to ascer tain the truth but only to
evaluate the matter based on the evidence pr esented befor e him/her .
P eter Murphy in his book, P ractical Guide to Evidence r ecounts an instructive e xample. A
frustrated judge in an English (adversarial) cour t finally asked a bar rister after witnesses had
produced conflicting accoun ts, ‘ Am I never to hear the truth? ’No , my lord, mer ely the evi -
dence‘, r eplied counsel.
Page 3
33
Alternative Dispute
Resolution in India (ADR)
Learning Outcomes
Students will be able to:
• Analyze and compar e the adversarial and inquisitorial systems of justice dispensation
• Explain the meaning and scope of ADR
• Evaluate the benefits of ADR
• Identify and e xplain the various types of ADR- Arbitration, Mediation, Conciliation, Lok Adalat
and T ribunals
• Evaluate and e xplain the role of various Ombudsman - CVC, Lokpal and Lokayukta, Banking
Ombudsman and Insurance Ombudsman
I. Adversarial and Inquisitorial Systems
Ever y legal system in this world can be broadly classified into two models: Adversarial and Inquisitorial.
Both the systems aim at dispensing justice, but they differ in their techniques of adjudication and
justice deliver y mechanisms. Ther efor e, this classification becomes impor tant.
L et us understand the meaning of each of the systems and the main differ ences between them.
In an adversarial system
• The par ties in a legal proceeding develop their own theor y of the case and gather evidence to
suppor t their claims.
• The par ties ar e assisted by their lawyers who take a proactive role in delivering justice to the
litigants.
• The lawyers gather evidence and even par ticipate in cross-e xamination and scrutiny of evidence
pr esented by the other disputing par ty .
• The role of the judge/ decision maker is rather passive as the judge decides the claims based
solely on the evidence and arguments pr esented by the par ties and their lawyers.
In an inquisitorial system
• The judge/ decision maker takes a centr e-stage in dispensing justice.
• The role of the judge/ decision maker is active as he/ she deter mines the facts and issues in
dispute.
UNIT
2
34
• The judge/ decision maker also decides the mann er in which the evidence must be pr esented
befor e the cour t. F or e xample, the judge may decide for pr esentation of a specific for m of
evidence, i.e. oral (witness statement) or documentar y (cor r espondence between the par ties
through letters/emails) or a combination of both.
• The judge then evalu ates the evidence pr esented befor e him/her and decides upon the legal
claims. Ther efor e, this model of adjudication is also known as the inter ventionist/investigative
model.
• F ur ther mor e, in such a system, less r eliance is place d on cross-e xamination and other techniques
often used by lawyers to evaluate evidence of their opposing counsel.
The adversarial system is generally adopted in common law countries. Major common law jurisdictions
include the UK, U.S, Australia and India. On the other hand, continental Europe which follows the
civil law system (i.e., those deriving from Roman law or the Napoleonic Code) has adopted the
inquisitorial system.
Having under stood the basic framework of functionin g of the two models of legal systems, let us
analyse their advantages and disadvantages.
II. Advantages and Disadvantages of Adversarial and
Inquisitorial System
The main advantages of an adversarial system include:
i. The use of cross-e xamination can be an effective way to test the cr edibility of witnesses pr esented;
ii. The par ties may be mor e willing to accept the r esults when they ar e given effective control over
the process.
The disadvantages of an adversarial system are the following:
i. The cost of the justice system falls upon the par ties. This cr eates an in -built discrimination
amongst the litigants. P ar ties with better r esour ces ar e able to access justice by hiring competent
lawyers and pr esenting sophisticated evidence which may not be immediately available for
par ties that lack these r esour ces. Accessibility and affordability to justice ar e impor tant challenges
for the adversarial system of dispute r esolution.
ii. The role of lawyers and the procedural for malities, e. g. cross e xamination may prolong the trial
and lead to delays in several matters.
iii. Judges play a less active role; a judge is not duty bound to ascer tain the truth but only to
evaluate the matter based on the evidence pr esented befor e him/her .
P eter Murphy in his book, P ractical Guide to Evidence r ecounts an instructive e xample. A
frustrated judge in an English (adversarial) cour t finally asked a bar rister after witnesses had
produced conflicting accoun ts, ‘ Am I never to hear the truth? ’No , my lord, mer ely the evi -
dence‘, r eplied counsel.
35
The main advantages of an inquisitorial system include:
i. The system offers procedural efficiency as the active role of judges pr events delays and prolonged
trials.
ii. The system pr eser ves equality between the par ties as even the stronger par ty with mor e
r esour ces and e xper t lawyers may not be able to influence the judges.
The disadvantages of this model include:
i. In an inquisitorial system, since the judge steps into the shoes of an investigator he/ she can no
longer r emain neutral to evaluate the case with an open mind.
ii. Ther e may be a lack of an incentive structur e for judges to involve themselves in proper fact
finding.
Activity
Evaluate the featur es of the Indian legal system- Is it adversarial or inquisitorial? T ake four case
studies and see if the model would/should change with the change in natur e of the case such as civil,
criminal. public inter est litigation etc.
III. Introduction to Alternative Dispute Resolution
Meaning and Scope:
Alter native Dispute Resolution (ADR) is an attempt to devise a machiner y which should be capable of
providing an alter native to the conventional methods of r esolving disputes in the cour t system. ADR
r efers to the use of non -adversarial techniques of adjudication of legal disputes.
The histor y of ADR in India pr e-dates the moder n adver sarial model of Indian judiciar y . The moder n
Indian judiciar y was introdu ced with the advent of the British colonial era, as the English cour ts and
the English legal system influenced the practice of Indian cour ts, advocates and judges. Cour ts in
India wer e established to have in place a unifor m lega l system on the lines of the English Cour ts.
However , even befor e the advent of such for malistic models of cour ts and judiciar y , the Indian legal
system was characterised by several native ADR techniques.
The V edic age in India, witnessed the flourishing of specialised tribunals such as
• Kula (for disputes of family , community , tribe, castes, races)
• Shr eni (for inter nal disputes in business, corporation of ar tisans) and
• Puga (for association of traders/commer ce branches).
In these institutions, inter est-based negotiations domi nated with a neutral third par ty seeking to
identify the underlying needs and concer ns of the par ties in dispute. Similarly ,
‘P eople’s cour ts’ or ’P anchayat’ continued to be at the centr e of dispute r esolution in villages.
Page 4
33
Alternative Dispute
Resolution in India (ADR)
Learning Outcomes
Students will be able to:
• Analyze and compar e the adversarial and inquisitorial systems of justice dispensation
• Explain the meaning and scope of ADR
• Evaluate the benefits of ADR
• Identify and e xplain the various types of ADR- Arbitration, Mediation, Conciliation, Lok Adalat
and T ribunals
• Evaluate and e xplain the role of various Ombudsman - CVC, Lokpal and Lokayukta, Banking
Ombudsman and Insurance Ombudsman
I. Adversarial and Inquisitorial Systems
Ever y legal system in this world can be broadly classified into two models: Adversarial and Inquisitorial.
Both the systems aim at dispensing justice, but they differ in their techniques of adjudication and
justice deliver y mechanisms. Ther efor e, this classification becomes impor tant.
L et us understand the meaning of each of the systems and the main differ ences between them.
In an adversarial system
• The par ties in a legal proceeding develop their own theor y of the case and gather evidence to
suppor t their claims.
• The par ties ar e assisted by their lawyers who take a proactive role in delivering justice to the
litigants.
• The lawyers gather evidence and even par ticipate in cross-e xamination and scrutiny of evidence
pr esented by the other disputing par ty .
• The role of the judge/ decision maker is rather passive as the judge decides the claims based
solely on the evidence and arguments pr esented by the par ties and their lawyers.
In an inquisitorial system
• The judge/ decision maker takes a centr e-stage in dispensing justice.
• The role of the judge/ decision maker is active as he/ she deter mines the facts and issues in
dispute.
UNIT
2
34
• The judge/ decision maker also decides the mann er in which the evidence must be pr esented
befor e the cour t. F or e xample, the judge may decide for pr esentation of a specific for m of
evidence, i.e. oral (witness statement) or documentar y (cor r espondence between the par ties
through letters/emails) or a combination of both.
• The judge then evalu ates the evidence pr esented befor e him/her and decides upon the legal
claims. Ther efor e, this model of adjudication is also known as the inter ventionist/investigative
model.
• F ur ther mor e, in such a system, less r eliance is place d on cross-e xamination and other techniques
often used by lawyers to evaluate evidence of their opposing counsel.
The adversarial system is generally adopted in common law countries. Major common law jurisdictions
include the UK, U.S, Australia and India. On the other hand, continental Europe which follows the
civil law system (i.e., those deriving from Roman law or the Napoleonic Code) has adopted the
inquisitorial system.
Having under stood the basic framework of functionin g of the two models of legal systems, let us
analyse their advantages and disadvantages.
II. Advantages and Disadvantages of Adversarial and
Inquisitorial System
The main advantages of an adversarial system include:
i. The use of cross-e xamination can be an effective way to test the cr edibility of witnesses pr esented;
ii. The par ties may be mor e willing to accept the r esults when they ar e given effective control over
the process.
The disadvantages of an adversarial system are the following:
i. The cost of the justice system falls upon the par ties. This cr eates an in -built discrimination
amongst the litigants. P ar ties with better r esour ces ar e able to access justice by hiring competent
lawyers and pr esenting sophisticated evidence which may not be immediately available for
par ties that lack these r esour ces. Accessibility and affordability to justice ar e impor tant challenges
for the adversarial system of dispute r esolution.
ii. The role of lawyers and the procedural for malities, e. g. cross e xamination may prolong the trial
and lead to delays in several matters.
iii. Judges play a less active role; a judge is not duty bound to ascer tain the truth but only to
evaluate the matter based on the evidence pr esented befor e him/her .
P eter Murphy in his book, P ractical Guide to Evidence r ecounts an instructive e xample. A
frustrated judge in an English (adversarial) cour t finally asked a bar rister after witnesses had
produced conflicting accoun ts, ‘ Am I never to hear the truth? ’No , my lord, mer ely the evi -
dence‘, r eplied counsel.
35
The main advantages of an inquisitorial system include:
i. The system offers procedural efficiency as the active role of judges pr events delays and prolonged
trials.
ii. The system pr eser ves equality between the par ties as even the stronger par ty with mor e
r esour ces and e xper t lawyers may not be able to influence the judges.
The disadvantages of this model include:
i. In an inquisitorial system, since the judge steps into the shoes of an investigator he/ she can no
longer r emain neutral to evaluate the case with an open mind.
ii. Ther e may be a lack of an incentive structur e for judges to involve themselves in proper fact
finding.
Activity
Evaluate the featur es of the Indian legal system- Is it adversarial or inquisitorial? T ake four case
studies and see if the model would/should change with the change in natur e of the case such as civil,
criminal. public inter est litigation etc.
III. Introduction to Alternative Dispute Resolution
Meaning and Scope:
Alter native Dispute Resolution (ADR) is an attempt to devise a machiner y which should be capable of
providing an alter native to the conventional methods of r esolving disputes in the cour t system. ADR
r efers to the use of non -adversarial techniques of adjudication of legal disputes.
The histor y of ADR in India pr e-dates the moder n adver sarial model of Indian judiciar y . The moder n
Indian judiciar y was introdu ced with the advent of the British colonial era, as the English cour ts and
the English legal system influenced the practice of Indian cour ts, advocates and judges. Cour ts in
India wer e established to have in place a unifor m lega l system on the lines of the English Cour ts.
However , even befor e the advent of such for malistic models of cour ts and judiciar y , the Indian legal
system was characterised by several native ADR techniques.
The V edic age in India, witnessed the flourishing of specialised tribunals such as
• Kula (for disputes of family , community , tribe, castes, races)
• Shr eni (for inter nal disputes in business, corporation of ar tisans) and
• Puga (for association of traders/commer ce branches).
In these institutions, inter est-based negotiations domi nated with a neutral third par ty seeking to
identify the underlying needs and concer ns of the par ties in dispute. Similarly ,
‘P eople’s cour ts’ or ’P anchayat’ continued to be at the centr e of dispute r esolution in villages.
36
Did you know?
The ancient position of ADR outside India was akin to the submission of disputes to the decision of
private persons - r ecognised under the Roman L aw by the name of Compromysm (compromise).
Arbitration was a mode of settling controversies much favour ed in the civil law of the continent.
The Gr eeks attached par ticular impor tance to arbitration. The attitude of English law towards
arbitration fluctuated from stiff opposition to moderate welcome. The Common L aw Cour ts looked
jealously at agr eements to submit disputes to e xtra-judicial deter mination.
Source: Russell on Arbitration, 22ndEdn, 2003, p. 362, para 8-O02
Alter native Dispute Resoluti on (ADR) which at one point of time was consider ed a voluntar y action
on the par t of the par ties has now obtained statutor y r ecognition with the enactment of Arbitration
and Conciliation Act, 1996 and The L egal Ser vices Authority Act, 1987. The incorporation of ADR
mechanisms under Section 89 of Code of Civil P rocedur e,1908 is one mor e radical step taken by
legislatur e for promoting ADR in India.
Section 89 CPC - Settlement of disputes outside the Court
(1) Wher e it appears to the Cour t that ther e e xist elem ents of a settlement which may be acceptable
to the par ties, the Cour t shall for mulate the ter ms of settlement and give them to the par ties for
their obser vations and after r eceiving the obser vations of the par ties, the Cour t may r efor mulate
the ter ms of a possible settlement and r efer the same for: --
(a) arbitration;
(b) conciliation;
(c) judicial settlement including settlement through Lok Adalat: or
(d) mediation.
The purpose of this section is to enable the Cour ts to legally r efer the matters to ADR to dispose of the
cases e xpediently and to r educe the backlog.
In the moder n era, several new and sophisticated for ms of ADR techniques have developed. The
differ ent for ms of ADR models/techniques ar e discussed in the subsequent par ts of the chapter .
IV. Problems faced by Courts
The law cour ts ar e confronted with following problems, such as:
1. The lack of number of cour ts and judges which cr eates an inadequacy within the justice deliver y
system;
2. The incr easing litigatio n in India due to incr easing population, comple xity of laws and obsolete
continuation of some pr e-e xisting legal statutes;
3. The incr easing cost of litigation in prosecuting or defending a case, incr easing cour t fees,
lawyer ’s fees and incidental e xpenses;
4. Delay in disposal of cases r esulting in huge pendency in all the cour ts.
Page 5
33
Alternative Dispute
Resolution in India (ADR)
Learning Outcomes
Students will be able to:
• Analyze and compar e the adversarial and inquisitorial systems of justice dispensation
• Explain the meaning and scope of ADR
• Evaluate the benefits of ADR
• Identify and e xplain the various types of ADR- Arbitration, Mediation, Conciliation, Lok Adalat
and T ribunals
• Evaluate and e xplain the role of various Ombudsman - CVC, Lokpal and Lokayukta, Banking
Ombudsman and Insurance Ombudsman
I. Adversarial and Inquisitorial Systems
Ever y legal system in this world can be broadly classified into two models: Adversarial and Inquisitorial.
Both the systems aim at dispensing justice, but they differ in their techniques of adjudication and
justice deliver y mechanisms. Ther efor e, this classification becomes impor tant.
L et us understand the meaning of each of the systems and the main differ ences between them.
In an adversarial system
• The par ties in a legal proceeding develop their own theor y of the case and gather evidence to
suppor t their claims.
• The par ties ar e assisted by their lawyers who take a proactive role in delivering justice to the
litigants.
• The lawyers gather evidence and even par ticipate in cross-e xamination and scrutiny of evidence
pr esented by the other disputing par ty .
• The role of the judge/ decision maker is rather passive as the judge decides the claims based
solely on the evidence and arguments pr esented by the par ties and their lawyers.
In an inquisitorial system
• The judge/ decision maker takes a centr e-stage in dispensing justice.
• The role of the judge/ decision maker is active as he/ she deter mines the facts and issues in
dispute.
UNIT
2
34
• The judge/ decision maker also decides the mann er in which the evidence must be pr esented
befor e the cour t. F or e xample, the judge may decide for pr esentation of a specific for m of
evidence, i.e. oral (witness statement) or documentar y (cor r espondence between the par ties
through letters/emails) or a combination of both.
• The judge then evalu ates the evidence pr esented befor e him/her and decides upon the legal
claims. Ther efor e, this model of adjudication is also known as the inter ventionist/investigative
model.
• F ur ther mor e, in such a system, less r eliance is place d on cross-e xamination and other techniques
often used by lawyers to evaluate evidence of their opposing counsel.
The adversarial system is generally adopted in common law countries. Major common law jurisdictions
include the UK, U.S, Australia and India. On the other hand, continental Europe which follows the
civil law system (i.e., those deriving from Roman law or the Napoleonic Code) has adopted the
inquisitorial system.
Having under stood the basic framework of functionin g of the two models of legal systems, let us
analyse their advantages and disadvantages.
II. Advantages and Disadvantages of Adversarial and
Inquisitorial System
The main advantages of an adversarial system include:
i. The use of cross-e xamination can be an effective way to test the cr edibility of witnesses pr esented;
ii. The par ties may be mor e willing to accept the r esults when they ar e given effective control over
the process.
The disadvantages of an adversarial system are the following:
i. The cost of the justice system falls upon the par ties. This cr eates an in -built discrimination
amongst the litigants. P ar ties with better r esour ces ar e able to access justice by hiring competent
lawyers and pr esenting sophisticated evidence which may not be immediately available for
par ties that lack these r esour ces. Accessibility and affordability to justice ar e impor tant challenges
for the adversarial system of dispute r esolution.
ii. The role of lawyers and the procedural for malities, e. g. cross e xamination may prolong the trial
and lead to delays in several matters.
iii. Judges play a less active role; a judge is not duty bound to ascer tain the truth but only to
evaluate the matter based on the evidence pr esented befor e him/her .
P eter Murphy in his book, P ractical Guide to Evidence r ecounts an instructive e xample. A
frustrated judge in an English (adversarial) cour t finally asked a bar rister after witnesses had
produced conflicting accoun ts, ‘ Am I never to hear the truth? ’No , my lord, mer ely the evi -
dence‘, r eplied counsel.
35
The main advantages of an inquisitorial system include:
i. The system offers procedural efficiency as the active role of judges pr events delays and prolonged
trials.
ii. The system pr eser ves equality between the par ties as even the stronger par ty with mor e
r esour ces and e xper t lawyers may not be able to influence the judges.
The disadvantages of this model include:
i. In an inquisitorial system, since the judge steps into the shoes of an investigator he/ she can no
longer r emain neutral to evaluate the case with an open mind.
ii. Ther e may be a lack of an incentive structur e for judges to involve themselves in proper fact
finding.
Activity
Evaluate the featur es of the Indian legal system- Is it adversarial or inquisitorial? T ake four case
studies and see if the model would/should change with the change in natur e of the case such as civil,
criminal. public inter est litigation etc.
III. Introduction to Alternative Dispute Resolution
Meaning and Scope:
Alter native Dispute Resolution (ADR) is an attempt to devise a machiner y which should be capable of
providing an alter native to the conventional methods of r esolving disputes in the cour t system. ADR
r efers to the use of non -adversarial techniques of adjudication of legal disputes.
The histor y of ADR in India pr e-dates the moder n adver sarial model of Indian judiciar y . The moder n
Indian judiciar y was introdu ced with the advent of the British colonial era, as the English cour ts and
the English legal system influenced the practice of Indian cour ts, advocates and judges. Cour ts in
India wer e established to have in place a unifor m lega l system on the lines of the English Cour ts.
However , even befor e the advent of such for malistic models of cour ts and judiciar y , the Indian legal
system was characterised by several native ADR techniques.
The V edic age in India, witnessed the flourishing of specialised tribunals such as
• Kula (for disputes of family , community , tribe, castes, races)
• Shr eni (for inter nal disputes in business, corporation of ar tisans) and
• Puga (for association of traders/commer ce branches).
In these institutions, inter est-based negotiations domi nated with a neutral third par ty seeking to
identify the underlying needs and concer ns of the par ties in dispute. Similarly ,
‘P eople’s cour ts’ or ’P anchayat’ continued to be at the centr e of dispute r esolution in villages.
36
Did you know?
The ancient position of ADR outside India was akin to the submission of disputes to the decision of
private persons - r ecognised under the Roman L aw by the name of Compromysm (compromise).
Arbitration was a mode of settling controversies much favour ed in the civil law of the continent.
The Gr eeks attached par ticular impor tance to arbitration. The attitude of English law towards
arbitration fluctuated from stiff opposition to moderate welcome. The Common L aw Cour ts looked
jealously at agr eements to submit disputes to e xtra-judicial deter mination.
Source: Russell on Arbitration, 22ndEdn, 2003, p. 362, para 8-O02
Alter native Dispute Resoluti on (ADR) which at one point of time was consider ed a voluntar y action
on the par t of the par ties has now obtained statutor y r ecognition with the enactment of Arbitration
and Conciliation Act, 1996 and The L egal Ser vices Authority Act, 1987. The incorporation of ADR
mechanisms under Section 89 of Code of Civil P rocedur e,1908 is one mor e radical step taken by
legislatur e for promoting ADR in India.
Section 89 CPC - Settlement of disputes outside the Court
(1) Wher e it appears to the Cour t that ther e e xist elem ents of a settlement which may be acceptable
to the par ties, the Cour t shall for mulate the ter ms of settlement and give them to the par ties for
their obser vations and after r eceiving the obser vations of the par ties, the Cour t may r efor mulate
the ter ms of a possible settlement and r efer the same for: --
(a) arbitration;
(b) conciliation;
(c) judicial settlement including settlement through Lok Adalat: or
(d) mediation.
The purpose of this section is to enable the Cour ts to legally r efer the matters to ADR to dispose of the
cases e xpediently and to r educe the backlog.
In the moder n era, several new and sophisticated for ms of ADR techniques have developed. The
differ ent for ms of ADR models/techniques ar e discussed in the subsequent par ts of the chapter .
IV. Problems faced by Courts
The law cour ts ar e confronted with following problems, such as:
1. The lack of number of cour ts and judges which cr eates an inadequacy within the justice deliver y
system;
2. The incr easing litigatio n in India due to incr easing population, comple xity of laws and obsolete
continuation of some pr e-e xisting legal statutes;
3. The incr easing cost of litigation in prosecuting or defending a case, incr easing cour t fees,
lawyer ’s fees and incidental e xpenses;
4. Delay in disposal of cases r esulting in huge pendency in all the cour ts.
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V. Benefits of ADR
The ADR techniques ar e a speedier , infor mal and cheaper mode of dispensing justice when compar ed
to the conventional judicial procedur e. F ollowing ar e the benefits of ADR:
• It is less time consuming as people r esolve their disputes e xpeditiously in a shor t period as
compar ed to cour ts.
• It is less costly than litigation.
• It is fr ee from technicalities of cour ts as infor mal ways ar e applied in r esolving disputes.
• It can be used at any time, even when a case is pending befor e a cour t of law , though r ecourse
to ADR as soon as the dispute arises may confer maximum advantages on the par ties.
• It provid es a mor e convenient forum to the par ties who can choose the time, place and procedur e
for conducting the pr efer r ed dispute r edr essal process.
• If the dispute is technical in natur e, par ties have an oppor tunity to select the e xper t who
possesses the r elevant legal and technical e xper tise.
• It is inter esting to note that ADR provides the fle xibility to even r efer disputes to non -lawyers.
F or e xample, several disputes of technical character e.g. disputes per taining to the r egulation of
the construction industr y ar e usually r efer r ed to enginee rs rather than lawyers. ADR is based on
mor e dir ect par ticipation by the disputants rather than being run by lawyers and Judges. This
type of involv ement is believed to incr ease people’s satisfaction with the outcome as well as
their compliance with the settlement r eached.
In the light of the appar ent need and benefits provided by ADR, it has emerged as a successful
alter native to cour t trials. F ur ther , the rise of the ADR movement in India indicates that it is contributing
tr emendously towards r eviving the litigant’s faith in justice deliver y mechanisms.
VI. Types of ADR
A. ARBITRATION
A.1 Introduction
The law r elating to arbitration is contained in the Arbitration and Conciliation Act, 1996. It
came into for ce on the 25th day of Januar y , 1996. But it goes much beyond the scope of
its pr edecessor , the Arbitration Act of 1940. It provides for domestic arbitration, inter national
commer cial arbitration and also enfor cement of for eign arbitral awards. It also contains the new
featur e on conciliation.Recently , the Arbitration and Conciliation Amendment Act, 2015 has
come into for ce to meet the r equir ements of alter native r esolutions.
The Arbitration and Conciliation Act of 1996 is the r elevant legislation that gover ns the
process of arbitration in India. The statute provides for an elaborate codified r ecognition of
the concept of arbitration, which has largely been influenced by significant movements of
judicial r efor ms and conflict management across the world. In this r egard, a special r efer ence
must be made to an inter national convention entitled, United Nations Commission on
Inter national T rade L aw (UNCITRAL) Model L aw on Inter national Commer cial Arbitration,
1985. After the bir th of this inter national tr eaty , the United Nations General Assembly ,
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