alternative dispute resolution

ADR covers processes that resolve disputes without a full court trial. The main forms are arbitration (a private tribunal gives a binding award), conciliation and mediation (a neutral helps the parties reach their own settlement), negotiation, and Lok Adalat (settlement with the force of a civil decree).

Section 89 CPC requires the court, where elements of settlement appear, to refer the dispute to one of these methods. The Mediation Act, 2023 now gives a statutory framework for mediation, and commercial suits generally require pre-institution mediation under the Commercial Courts Act. ADR is quicker and cheaper, keeps relationships intact and is confidential; it is unsuitable for disputes involving crimes, public rights or fraud.

Example

Since the partners wanted to keep the business running, the court referred their dispute to alternative dispute resolution through mediation under s.89 CPC.

In Indian law

• Section 89, Code of Civil Procedure, 1908 (settlement of disputes outside the court)
• Mediation Act, 2023; Arbitration and Conciliation Act, 1996
• Legal Services Authorities Act, 1987 (Lok Adalats)

See also

arbitration · mediation · conciliation · lok adalat

Read more in the study notes

• Methods of dispute resolution: adversarial, inquisitorial and ADR (Alternative Dispute Resolution Systems)
• Need for ADR, international commitments and suitability of disputes (Alternative Dispute Resolution Systems)
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