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Growth of Alternate Dispute Resolution in the Current Legal System

Abstract

In recent decades, there has been a substantial change in the legal environment, a more cooperative and effective method of conflict resolution is gradually replacing the old image of legal disputes being resolved in courtrooms. The usage and adoption of Alternative Dispute Resolution (ADR) techniques within the judicial system is what is causing this transition. ADR includes a variety of methods that offer substitutes for the conventional adversarial litigation process, such as mediation, arbitration, and negotiation. The expanding use of alternative dispute resolution (ADR) techniques in the judicial system is investigated in this article, along with the benefits, drawbacks, and consequences of their incorporation into the conventional adversarial model. The article highlights how ADR may improve access to justice, relieve court backlogs, and support fast, cost-effective conflict resolution while also addressing issues with due process, accountability, and inclusion.

Introduction

The idea of alternative dispute resolution (ADR) is not new. Its origins can be found in prehistoric societies where elders or community leaders served as mediators and facilitators in settling disputes. The adversarial paradigm of conflict resolution has historically been used by the legal system, which serves as the cornerstone of societal justice and order. ADR has developed into an organised and methodical method of resolving disputes throughout time. However, the emergence of ADR techniques has been prompted by the increasing caseload, soaring litigation costs, and awareness of the limits of this approach. ADR procedures are intended to promote collaboration, communication, and understanding between parties to a dispute in contemporary legal contexts. This article explores how ADR has transformed the judicial system, exploring its many forms, the circumstances that led to its development, and its consequences for justice.

ADR and its Various Forms

The word “ADR” is used to refer to the numerous ways that legal disputes are settled. Almost all contentious issues that cannot be resolved by a compromise between the parties in accordance with the statute can be resolved through the application of alternative dispute-resolution approaches. The Code of Civil Procedure’s Section 89 permits the settlement of disputes outside of court. It is based on recommendations made by the Malimath Committee and the Law Commission of India. According to the Law Commission of India, the court can request any party to a suit or proceeding to appear in person in order to reach a settlement amicably. The term “Alternative Dispute Resolution” encompasses a variety of dispute resolution procedures, including Lok Adalats, Arbitration, Conciliation, and Mediation. The various strategies can aid parties in quickly and effectively resolving disputes on their terms. 

In arbitration, a kind of ADR, the parties to a dispute submit it to one or more individuals known as arbitrators, to whom they expect to be bound by their decision, in order to resolve the conflict outside of the judicial system, it is a process for resolving conflicts where a neutral third party reviews the evidence and makes a decision that is binding on both parties. In India, regulations of the Arbitration and Conciliation Act, 1996 shall be applicable if the dispute is referred to arbitration.

A neutral third party assists parties in using predetermined communication and negotiation tactics to reach a friendly resolution to their conflicts during mediation, which is a straightforward, voluntary, party-centred, and organised negotiation process. The parties themselves are in charge of the mediation procedure. The mediator’s duty is limited to the function of a facilitator, helping the parties negotiate a resolution to their dispute. Through mediation, a dispute can be resolved quickly, cheaply, and amicably while respecting the confidentiality of the parties and their relationship.

In conciliation, parties to a disagreement employ a conciliator to assist them in resolving their differences on an individual basis. They achieve this by minimising conflicts, enhancing coordination, pinpointing issues, providing technical support, debating potential fixes, and resulting in a negotiated compromise. It differs slightly from arbitration in this way. It is a voluntary process whereby the parties are allowed to come to an understanding and attempt to settle their dispute through conciliation. The terms “conciliation” and “mediation” are equivalent in Indian use. Conciliation is a cooperative process whereby the conciliator, a skilled and impartial third party, supports conversations between both sides and helps them identify their needs and preferences to come to a mutually agreeable resolution.

Legal settlement is another alternative method of dispute resolution mentioned in Section 89 of the Code of Civil Procedure. Of course, no clear guidelines for such settlements have been established to date. However, Section 89 of the Code defines the phrase “Judicial Settlement,” when there is a judicial settlement, it is stipulated that the terms of the Legal Services Authority Act, 1987, shall prevail. This indicates that the Judge in question is attempting to resolve the conflict between the parties amicably.

Lok Adalats, or people’s tribunals, were established by the authorities to resolve conflicts via negotiation and compromise. Built around the settlement or agreement reached through official negotiations, it is a kind of court and a dispute settlement organisation created by the citizens themselves for social justice. Adalats also acknowledge matters that are ongoing in nearby ordinary courts. Pending civil disputes may also appeal to the Lok Adalat under Section 89 of the Code of Civil Procedure. The Legal Services Authorities Act of 1987’s provisions would be followed when the case is referred to the Lok Adalat.  Section 19 of the Legal Services Authorities Act of 1987 regulates the holding of Lok Adalat.

What makes ADR more appealing than litigation?

One of the main factors influencing the adoption of ADR is its speed and efficiency. Traditional litigation may be a drawn-out and expensive procedure that causes overcrowding in courts and lengthy delays. Many people and businesses may find the costs of litigation, such as attorney fees and court costs, to be prohibitive. ADR can drastically cut these expenditures, making it an economical option for parties in conflict. This is mostly because the procedure is moving more quickly and there are lower legal fees and court costs. At a fraction of the cost of typical litigation, parties can settle disputes.

ADR is a desirable choice for parties looking for a speedier resolution because it provides a more efficient and streamlined means to settle disputes. ADR procedures move more quickly than legal proceedings. ADR can result in resolution in a matter of weeks or days, whereas traditional court proceedings can drag around for months or years. When it comes to resolving issues in a timely manner, both in business and in personal life, expediency might be key.

ADR techniques provide parties more power to direct the settlement procedure. ADR enables flexible, tailored solutions that would not be feasible in a formal judicial context. The parties can design agreements that specifically address their requirements and interests. Results that are more pleasant and long-lasting may result from this flexibility. ADR enables parties to take an active role in developing solutions that match their unique requirements and interests, as opposed to traditional litigation, when conclusions are imposed by a judge. 

Legal disputes can be confrontational and emotionally exhausting. For the parties involved, ADR techniques that emphasise cooperation and communication are typically less emotionally taxing. Unlike court proceedings, ADR frequently offers a level of privacy that is impossible to ensure. Parties who value confidentiality, especially in delicate situations, will find this appealing. ADR encourages dialogue and cooperation between the parties to a dispute. Contrary to litigation, which is adversarial in nature, alternative dispute resolution processes encourage parties to cooperate to reach amicable resolutions. As a result, ADR can support maintaining and occasionally even enhancing relationships between people or corporations.

Moreover, by rerouting cases away from the already overburdened court structure, ADR helps lessen court congestion, improving the effectiveness of the legal system for all participants. By assuring that court resources are accessible for situations that call for judicial involvement, serves the interests of parties to disputes as well as the larger community.

ADR becoming an essential part of the legal system

Courts provide ADR programmes that encourage or require parties to try arbitration or mediation before going to court. These programmes, which are annexed to the court, are intended to move cases away from clogged courts and towards effective dispute resolution procedures.

Businesses are increasingly including ADR terms in contracts in commercial contexts. These terms state that any disagreements arising out of the contract shall be settled through ADR procedures instead of going to court. These clauses frequently specify the type of ADR to be employed as well as the criteria for choosing arbitrators or mediators.

To facilitate negotiations, mediations, or arbitrations, parties to conflicts choose to work with private ADR practitioners and providers. These commercial service providers give a flexible and individualised approach to conflict resolution outside of the traditional court system.

Another Side of ADR

ADR might look like a complication-free alternative, however, every coin has two sides, there is a chance that ADR will be used excessively, which could jeopardise the public’s right to engage in a formal justice system. You must approach the table for the majority of paths anticipating having your claim compromised. Unfortunately, a lot of corporate leaders want to gamble on 100% success, which is probably not what will happen with ADR. Alternative conflict resolution could prove to be a viable option if that’s what all parties want. People with legitimate claims can be discouraged from pursuing legal remedies if ADR becomes the standard alternative for resolving disputes. When parties have unequal negotiating power, the voluntary aspect of ADR raises concerns regarding due process and accountability. Concerns exist that weak parties might be forced into signing unfavourable agreements.

According to some detractors, ADR judgements may be less foreseeable and consistent than those made by the court due to their informal nature. In conventional litigation, a standardised approach to dispute settlement is ensured by strict adherence to legal procedures and norms of evidence. Furthermore, it is still difficult to guarantee that ADR techniques are available to everyone, particularly underprivileged and marginalised groups. Some people and communities might not be aware of ADR or might not have the means to take full part.

Overall Implication

The expansion of ADR techniques has significant ramifications for their search for justice. One way that ADR improves access to justice is by offering a speedier, more cost-effective, and frequently less emotionally taxing way to settle disputes. This is especially advantageous for people and companies looking to enforce their rights without having to spend time and money on traditional litigation.

ADR, on the other hand, prompts questions about fairness, openness, and inclusivity. It is crucial to prevent those who have more resources or negotiating strength from unfairly benefiting from ADR. Access to justice must remain a core value, and alternative dispute resolution (ADR) must enhance rather than displace the formal legal system.

Conclusion

ADR practices are increasingly being used in the judicial system, which indicates a fundamental shift in the way society views conflict resolution. Efficiency, cost savings, and enhanced communication between disputing parties are just a few of the many benefits that ADR offers. However, it also raises issues with fairness and inclusivity.

To keep the legal system open, equitable, and functional for everyone, it is essential to strike the correct balance between conventional litigation and ADR. To maximise ADR’s contribution to societal justice as it develops and gains acceptability, it will be crucial to keep an eye on and address these issues. In the end, the incorporation of ADR into the legal system has the potential to provide a more effective, open, and fair system of dispute resolution, which would be advantageous to people, companies, and society at large.

Author’s Bio 

Aarushi Singh is a law student at Jindal Global Law School, OP Jindal Global University and is a columnist with Nickeled and Dimed. 

Image Source: https://timesofindia.indiatimes.com/readersblog/justjournaled/adr-a-viable-alternative-for-expeditious-dispensation-of-justice-48783/

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