ADR resolve dispute outside court, i.e. Alternative Dispute Resolution, brought under " ARBITRATION & CONCILIATION ACT 1996".

How to solve disputes outside the Court?

Introduction  –

To solve disputes outside the Court through Alternative Dispute Resolution, was brought under ” ARBITRATION & CONCILIATION ACT 1996″. Alternative Dispute Resolution (ADR) This is a law and system has been made, which earlier used to work in the village Panchayat. In India, resolving disputes outside the court has gained significant traction as an alternative means of achieving justice and alleviating the burden on the traditional legal system. Mediation, negotiation, and arbitration have emerged as popular mechanisms for dispute resolution, offering parties a more collaborative and cost-effective way to address conflicts.

This shift towards alternative dispute resolution (ADR) reflects a growing recognition of the need for timely and efficient resolution methods that empower individuals and businesses to navigate legal challenges without the prolonged and often adversarial nature of court proceedings.

One of the primary advantages of opting for dispute resolution outside the court is the flexibility it affords to the parties involved. ADR methods allow for customized solutions tailored to the specific needs and interests of the disputing parties, fostering a more cooperative atmosphere compared to the formal and rigid court process. Moreover, these mechanisms often provide a confidential environment, encouraging open communication and facilitating a more amicable resolution. As a result, the parties can preserve relationships, maintain business partnerships, or sustain familial bonds without the strain typically associated with court battles.

Furthermore, the Indian legal landscape has actively promoted ADR through statutory provisions and judicial encouragement. The enactment of the Arbitration and Conciliation Act, coupled with the establishment of dedicated mediation centers, reflects the government’s commitment to facilitating efficient dispute resolution outside the court. This legal framework not only upholds the principles of fairness and impartiality but also encourages parties to explore alternative avenues before resorting to litigation. By embracing ADR, India aims to enhance access to justice, reduce backlog in the courts, and foster a culture of dispute resolution that is both pragmatic and sustainable in the long run.

What is Alternative Dispute Resolution? / What is ADR ? ,

ADR stands for Alternative Dispute Resolution / Alternative Dispute Resolution, which was brought under this law ” THE ARBITRATION AND CONCILIATION ACT 1996″, first this law was made in British India in 1940 which was further kept on continue. After 1990, India made changes in its economic policy, under the guideline of the organization “UNCITRAL”, a law was made keeping in mind the international law, under which arbitration was strengthened so that civil cases could be settled out of court.

The important reason for this was the problem of many pending cases on the Indian judiciary. It was becoming difficult for the judiciary to pay more attention to civil matters, so promoting ADR was a good decision, but due to lack of awareness about it in the society, its effect is not much.

People go to court means money and time have to be given, so many people do not get justice, so the faith of law and order should be maintained and people can also get justice, so this system has been made.


  • judicial settlement
  • Public Court

Difference between Arbitration & Counseling –

The Arbitrator is appointed who acts like a arbitrator and in case of any dispute, settles the matter by adjudicating it i.e. by awarding. Arbitration can enforce its judgment. He is given powers under the law. The arbitrator is not there to settle, he is there to do justice.

The same conciliator, it is only an expert appointed to make a settlement between the two parties, who helps in conciliation, does not have any power in his hand, only as a legal expert, there is a person or a group of people conciliating both the parties. Is.

The conciliator acts as a guide so that it helps in ending the dispute. The conciliator only has to give advice, whether to accept it or not is up to both the parties.

What is the difference between Mediation and Counseling  –

Mediation is a third party that both the parties to the contract bring it between them to settle their dispute. The Regulatory Authority of Mediation This Civil Procedure Code is this law. Mediation This process is enforced by law.

Conciliator It is an expert person or group of persons appointed under the ADR to settle the disputed matter, who tries to settle the dispute according to the agreement. THE ARBITRATION AND CONCILIATION ACT 1996 The authority of this procedure is under this law. This is bound by the decree of the court in the conciliation.

What is negotiation-

When both the parties want to save their time and money and want to settle the dispute of both the parties according to the agreement, but there is no agreement between the two, then expert negotiator is appointed to settle it so that whatever the problem is in the dispute, it is discussed. Let it be solved

In this, if any problem may arise in future, then it is resolved by making an agreement. There is no winner or loser in Negotiation, rather both the parties take two steps back so that both the parties are not harmed and the matter is settled by agreeing on one of the decisions.

Judicial settlement –

This provision under section 89 of the Civil Procedure Code should be settled out of court before going to the court so that the time of the court is also given to important matters and both the parties can get justice, so this system of alternative dispute resolution is considered important. Which is only for settling civil matters, mainly economic matters are more in it.

Lok Adalat  –

The Legal Services Authorities Act, 1987 has encouraged this judicial process within this law so that disputed matters should be settled peacefully. So that the time of the court is also saved and the expenditure and time of both the parties are saved and mental trouble is also avoided, for this, the government, central, state and local level legal authorities organize camps for this, through which such cases are settled.


  • The specialty of this law was that if international companies were operating in India or operating their company in India from outside, then all the provisions under this law were kept in it.
  • The arbitrator was given the power to award in dispute under the law, which was not earlier in the old law.
  • Arbitration can be appointed by two parties by making provision in their agreement or by contracting separately.
  • If you have made provision for arbitration in the contract or agreement, then you cannot directly go to the court.
  • The arbitrator can be appointed by both the parties themselves or can be hired by any arbitration body.
  • By making arbitration provision, both the parties can save time and cost and both the parties can settle the dispute by agreement.
  • How many arbitrators should be there, both the parties can decide together on how important and extended their economic interests.
  • Whatever award is given in the conciliation, both the parties will have to accept it under the contract.
  • If there is any problem in the arbitration, then either of the parties can go to the court and cancel the arbitration provision.
  • In this arbitration, any party or company, apart from the legal profession, can keep experts in their field in the arbitration team so that there will be no problem in resolving the dispute in future.

Conclusion –

In this way we have seen that legal disputes should be settled out of court under the Alternative Dispute Resolution process. For this, international agreements have been made, under which, if the parties of two countries are involved, in that case UNCITRAL, an institution formed under this United Nations and disputes is settled under international agreements.

There are many disputed cases under our country in which the company has a payment issue, order issue, many such cases constantly come while doing business to the company. Therefore, repeatedly going to the court is not in the interest of the development of the company. Therefore, this process is beneficial for all companies, but many small companies are not aware of it. That’s why this was the reason for writing this article, you can also deal with other personal disputed civil ie economic matters with this system.

The traditional process of the court is very expensive and time-consuming, so ADR should be used by all when financial or civil disputes arise. With this, the company can focus its full attention on the business of its company and only while doing any economic transaction, keep the provision of arbitration in the contract or agreement, so that if any dispute occurs in the future between both the parties, then it can be settled out of court at less cost. And get it done in less time.

Changes in the ADR law have encouraged foreign companies in India to invest in India because their first biggest problem is that there is a delay in getting justice in India. Therefore, this is an important initiative of the judiciary and the Government of India.

Even such a common man is afraid of the name of the court because if he goes to the court in any case, then the cost of the court is much more than his status, so most of the cases are not registered and remain without justice, hence the government and the judiciary. This initiative is commendable.


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