13th September, 2002
Ministry of Law & Justice  


ALTERNATIVE DISPUTES RESOLUTION


Alternative Disputes Resolution (ADR) system has been evolved in India to decongest and avoid recourse to courts. The concept of ADR is an effort to design workable and fair alternative to our traditional judicial system. It is a fast track system of dispensing justice.

There are various ADR techniques, such as, arbitration, mediation, conciliation, mediation-arbitration, mini-trial and private judging.

ADR is not a substitute for traditional method of resolving disputes through litigation. In fact, it offers only alternative option to litigation. These techniques have been developed on scientific lines in the US, the UK, Canada, China, Japan, South Africa, Australia and Singapore. ADR has emerged as a significant movement in these countries and helped reduce cost and time taken for resolution of disputes. It has also provided a less formal and less complicated form to various types of disputes.

Another form of ADR that has evolved in India is Lok Adalats. So far, the system of Lok Adalats has been ad hoc and need based. Now, with the amendment effected in the Legal Services Authorities Act, 1987, this year, Permanent Lok Adalats are being set up all over the country to adjudicate cases relating to public utility services upto the value of Rs. 10 lakhs. All existing cases relating to public utility services like telephones, electricity, water supply, civic amenities, public transport, housing, insurance are proposed to be transferred from courts to the Permanent Lok Adalats being set up for the purpose.

The Government has also set up an International Centre for Alternative Disputes Resolution (ICADR) at Delhi since 1995 with its Chapters at Hyderabad and Bangalore to provide for various types of arbitration and logistic support to the system of ADR now evolving in the country.

The Arbitration Act, 1940 was repealed by the Arbitration and Conciliation Act, 1996, which is based on UNCITRAL model arbitration law and UNCITRAL Conciliation Rules. This has brought our arbitration and conciliation laws at par with the advanced and developed countries. In the new Act, "Conciliation" has also been given statutory recognition as a means of settlement of disputes.

 
[previous release] [next release]