Scope of Alternative Dispute Resolution
📘 Scope of Alternative Dispute Resolution (ADR)
🔹 1. What is ADR?
Alternative Dispute Resolution (ADR) refers to methods of resolving disputes without going to court. It includes mechanisms that are faster, more flexible, and cost-effective than traditional litigation.
👉 ADR methods include:
Arbitration
Mediation
Conciliation
Negotiation
Lok Adalats (in India)
🔹 2. Legal Basis in India
Section 89 of the Code of Civil Procedure (CPC), 1908 gives statutory recognition to ADR in civil cases.
Arbitration and Conciliation Act, 1996 governs arbitration, conciliation, and enforcement of arbitral awards.
Legal Services Authorities Act, 1987 empowers Lok Adalats.
🔹 3. Scope of ADR in India
✅ A) Civil Disputes
Property disputes
Contractual disputes
Family disputes (divorce, maintenance, custody)
Consumer disputes
Employment matters
✅ B) Commercial Disputes
Arbitration is widely used in business and international contracts.
Specialized institutions like the International Centre for Alternative Dispute Resolution (ICADR) and NCLT/NCLAT support commercial ADR.
✅ C) Family Law
Mediation and conciliation are encouraged in matrimonial cases for mutual settlements.
Courts often refer parties to mediation before proceeding with litigation.
✅ D) Labour and Industrial Disputes
Conciliation officers and labour courts encourage resolution outside the adversarial system.
✅ E) Criminal Law (Limited)
Compoundable offences (like hurt, defamation) can be settled through mediation or Lok Adalats, subject to the court’s approval.
🔹 4. Advantages of ADR
| Advantage | Explanation |
|---|---|
| Speed | Faster than courts |
| Cost-effective | Cheaper than lengthy litigation |
| Confidential | Private process, unlike public court records |
| Flexibility | Parties have control over the process |
| Preserves relationships | Especially useful in family or commercial disputes |
🔹 5. Important Case Law
🧑⚖️ Salem Advocate Bar Association v. Union of India (2003)
Supreme Court upheld Section 89 CPC, making it clear that courts must explore ADR options before proceeding with trial.
Encouraged judicial training and infrastructure for mediation and conciliation.
🧑⚖️ Afcons Infrastructure Ltd. v. Cherian Varkey Construction (2010)
Supreme Court clarified which cases are fit for ADR.
Held that commercial, civil, and family matters are suitable for ADR.
Fraud or serious allegations are not fit for mediation or arbitration.
🧑⚖️ B.S. Krishnamurthy v. B.S. Nagaraj (2010)
Supreme Court emphasized mediation in family law disputes, especially in matrimonial matters.
Courts must first attempt reconciliation and mediation before granting divorce.
🔹 6. Role of Judiciary in Expanding ADR
Courts actively refer cases to ADR centres.
Many High Courts have mediation centres.
The Commercial Courts Act, 2015 mandates pre-institution mediation for commercial suits.
🔹 7. Conclusion
ADR is a powerful alternative to traditional courts in India.
Its scope covers civil, commercial, family, and some criminal cases.
Courts are increasingly encouraging ADR to reduce backlog and improve access to justice.
🔍 Quick Recap
| ADR Method | Common Use Cases | Statutory Backing |
|---|---|---|
| Arbitration | Commercial disputes, contracts | Arbitration and Conciliation Act, 1996 |
| Mediation | Family, civil, consumer cases | Section 89 CPC |
| Conciliation | Labour, industrial disputes | Arbitration and Conciliation Act, 1996 |
| Lok Adalat | Small disputes, traffic, cheques | Legal |
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