ADR (Alternative Dispute Resolution) in administrative disputes
✅ What is ADR in Administrative Disputes?
Alternative Dispute Resolution (ADR) refers to mechanisms for resolving disputes outside the traditional court system. In administrative disputes, ADR helps resolve conflicts between citizens and public authorities (government departments, regulators, administrative tribunals, etc.) through non-judicial means.
Examples of administrative disputes:
Disputes over licenses and permits
Taxation or customs decisions
Immigration decisions
Environmental regulations
Land use and zoning decisions
✅ Types of ADR Used in Administrative Law
Mediation – A neutral third party facilitates negotiation between the citizen and the administrative agency.
Conciliation – A conciliator suggests possible settlement terms.
Negotiation – Direct settlement between parties.
Arbitration – Binding decision by an arbitrator (less common in public law due to statutory authority concerns).
Ombudsman – Independent body investigates complaints against government agencies.
🔍 Detailed Case Law on ADR in Administrative Disputes
1. Afcons Infrastructure Ltd. v. Cherian Varkey Construction Co. (P) Ltd. (2010) 8 SCC 24
Facts:
A contractual dispute arose involving government infrastructure contracts.
The question was whether courts could refer disputes to ADR methods even when one party objected.
Held:
The Supreme Court held that all civil disputes, including certain administrative disputes, are amenable to ADR mechanisms, except a few like election matters or criminal prosecutions.
Relevance:
Established that courts can proactively refer disputes, including administrative ones, to ADR.
Administrative disputes involving contracts, tenders, licenses etc., can be settled via mediation or arbitration.
2. SBI v. Mula Sahakari Sakhar Karkhana Ltd., (2006) 6 SCC 293
Facts:
A cooperative sugar factory challenged actions taken by a public financial institution (SBI), governed by administrative guidelines.
Held:
The Supreme Court emphasized negotiation and mediation in resolving disputes between regulated entities and public bodies.
ADR was recommended before litigation, especially where financial arrangements and government policies are involved.
Relevance:
Recognized ADR as a pre-litigation step in disputes involving public financial institutions and government policies.
Showed that even statutory bodies could engage in ADR.
3. Lokniti Foundation v. Union of India (2018) 5 SCC 719
Facts:
A PIL was filed regarding the lack of transparency in government tenders.
Dispute centered on administrative procedure and public interest.
Held:
The court noted that mediation and public engagement mechanisms can often resolve such policy and administrative disputes without litigation.
Relevance:
Encouraged public engagement and mediation in resolving administrative disputes that affect public interest.
Emphasized collaborative governance and ADR mechanisms between government and citizens.
4. R.K. Jain v. Union of India, (1993) 4 SCC 119
Facts:
Concerned functioning and accountability of administrative tribunals like the Customs, Excise and Gold (Control) Appellate Tribunal (CEGAT).
Held:
The court emphasized reform in tribunal processes and indirectly suggested the adoption of less adversarial procedures such as conciliation and internal grievance redressal.
Relevance:
Set the stage for promoting tribunal reforms and less formal ADR mechanisms in administrative tribunals.
Encouraged citizen-friendly mechanisms in administrative dispute resolution.
5. Bar Council of India v. Union of India, (2012) 8 SCC 243
Facts:
Related to dispute over regulatory powers of legal education between BCI and UGC/MHRD (government bodies).
Held:
The Court encouraged the parties (both being administrative bodies) to resolve disputes amicably through consultation and negotiation.
Relevance:
ADR between public authorities (inter-agency disputes) was recognized as effective.
Prevents overburdening the courts and promotes cooperative federalism.
6. People’s Union for Civil Liberties (PUCL) v. Union of India (2005) 2 SCC 436
Facts:
A PIL regarding the implementation of food and employment schemes.
Citizens complained about administrative inaction and poor grievance mechanisms.
Held:
Supreme Court directed establishment of grievance redressal mechanisms, akin to ombudsman systems or internal conciliation mechanisms, in public welfare schemes.
Relevance:
Recognized systematic ADR-like grievance mechanisms within administrative processes.
Boosted non-litigation based resolution in welfare administration.
✅ Summary of Key Legal Principles
| Principle | Explanation |
|---|---|
| ADR is suitable for most administrative disputes | Unless expressly excluded by statute (e.g., criminal, election cases), ADR can be used |
| Courts can refer administrative disputes to ADR | Even without consent of parties in certain situations |
| Government departments should adopt ADR policies | For faster and more effective dispute resolution |
| Administrative Tribunals can use ADR tools | Internal conciliation, negotiation and mediation can be used before formal hearings |
| ADR strengthens citizen participation and trust | Particularly through ombudsman, public hearing, mediation in welfare policies |
✅ Institutional Mechanisms in India
Administrative Tribunals Act, 1985 – Encourages less formal procedures.
Consumer Protection Act, 2019 – Promotes mediation in consumer disputes with administrative authorities.
Legal Services Authorities Act, 1987 – Lok Adalats as ADR forums for administrative matters.
Lokpal and Lokayuktas Act, 2013 – Ombudsman system for corruption and maladministration.
✅ Conclusion
ADR in administrative disputes promotes efficiency, accessibility, and trust in governance. Courts have increasingly recognized and encouraged ADR, not just between private parties but also between citizens and the state, and even between government departments themselves. While statutory limitations may apply in some cases, the general trend is toward expanding the role of ADR in public administration to foster quicker, fairer, and less adversarial dispute resolution.
RELATED Blog
0 comments