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Arbitration, Conciliation & ADR
Arbitration, Conciliation & Alternative Dispute Resolution (ADR) – Explanation (LL.B. CCSU Notes)
1. What is Alternative Dispute Resolution (ADR)?
Alternative Dispute Resolution (ADR) refers to various methods used to resolve disputes outside the traditional court system. It is designed to save time, reduce costs, and encourage amicable settlements. ADR methods are especially useful in reducing the burden on courts and ensuring speedy justice.
The main types of ADR include:
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Arbitration – A binding process where a neutral third party (arbitrator) makes a decision after hearing both sides. The decision (award) is final and enforceable by law. It is commonly used in commercial and contractual disputes.
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Conciliation – A voluntary process where a conciliator helps disputing parties reach a settlement but does not impose a decision. It is more flexible than arbitration and is often used in employment and consumer disputes.
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Mediation – A process where a mediator facilitates discussion between parties to help them arrive at a mutually acceptable agreement. It is widely used in family law cases, business disputes, and labor conflicts.
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Lok Adalat – A forum in India for resolving disputes through compromise, often used for small-scale civil and criminal cases. It is an informal setting where the decision is binding if both parties agree.
ADR in Indian Legal Framework (CCSU LL.B. Notes)
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The Arbitration and Conciliation Act, 1996 governs arbitration, conciliation, and mediation in India.
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Legal Services Authorities Act, 1987 provides the framework for Lok Adalats.
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ADR is encouraged under Article 39A of the Indian Constitution, which ensures access to justice for all.
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The Code of Civil Procedure (CPC), 1908 under Section 89 promotes ADR methods in civil disputes.
These methods are widely used in commercial disputes, family matters, labor conflicts, and other legal areas, promoting quicker and more cost-effective dispute resolution.
