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AMITY UNIVERSITY
LUCKNOW CAMPUS

Amity Law School

TOPIC: Suitability Of ADR Methods For Specific Types Of Disputes

Submitted to: Ms.Priyanka Shrivastava Submitted by: TanyaSingh

Assistant Professor Enrollment no. :A8156121015
LLB- 3yrs
Semester-1
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INDEX

 ACKNOWLEDGEMENT. 3

 INTRODUCTION 4

 TYPES OF ADR METHODS 5- 6

 APPLICATION Of ADR METHODS IN DIFFERENT 7-13

DISPUTES

 CONCLUSION 14
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ACKNOWLEDGEMENT

I would like to express my gratitude to Asst. Prof. Priyanka Shrivastava ma’am who gave
me the opportunity to do this project. I am highly indebted to Amity Law School for their
guidance and constant supervision as well as providing information regarding the project
and their support in helping me complete the project
[Tanya Singh]
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1 .Introduction

Alternative Dispute Resolution (ADR) provides a confidential and alternative method of

tackling legal disputes which avoids going to court. The most common types of ADR are
mediation, conciliation, arbitration and adjudication.

The Indian government has introduced procedures such as fast track courts to resolve pending
cases, however the problem remains unsolved. According to the current state of the Indian
judiciary, if a person approaches a court, he or she cannot expect a rapid trial. Even the fast
track court system failed to perform. According to NCRB data from 2018, 78 percent of the
approximately 28,000 trials conducted in Fast Track Courts across the country in that year
took more than a year to complete, putting trial courts at the bottom of the rung in terms of
time taken among all Indian courts.

In these cases, the procedures of Alternate Dispute Resolution come to the rescue.

Alternative Dispute Resolutions are advantageous to disputing parties because they provide a
peaceful process for resolving conflicts in a way that not only saves them time but also saves
them money. In most ADR procedures, a third unbiased and independent party oversees the
settlement process and ensures that the parties in a dispute communicate effectively with one
another.

According to Section 89 of the Code of Civil Procedure, courts must use the Alternative
Dispute Resolution system to resolve civil litigation problems. The Code of Civil Procedure
includes modes of Alternative Dispute Resolution such as arbitration, mediation, conciliation,
and Lok Adalat.
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2. Types of ADR Methods

1. Mediation

Mediation is a process in which the parties to a legal dispute agree to work together to find a
solution by signing a written contract and choosing a mediator. The mediator is a neutral third
party who assists the parties in a disagreement in reaching some common ground. It should
be noted that a mediator is only a person who supports the process of finding solutions; the
ability to resolve the conflict rests solely with the parties. The parties can hire alternative
dispute resolution lawyers to represent them in front of the mediator and explain their legal
and professional positions.

2. Arbitration

Arbitration is a process in which a dispute is presented to one or more arbitrators, who render
a binding ruling on the disputants. Arbitration can only take place if both parties have
consented to it in the first place, and by including an arbitration clause in a contract, they
have opted to use a private dispute resolution process rather than go to court. Arbitration is
one of the most common means of alternative conflict resolution because of the advantages of
tight confidentiality, reduced costs, better process flexibility, ease of settlement, forum
possibilities, a plethora of solution options, and so on. Arbitration is governed and
administered by a set of rules.
The law involving Arbitration gives the parties a choice to enter into commercial transactions
acknowledging the fact that in case a dispute arises in the future, the parties will rely on this
quick, simple, convenient, and cost-effective procedure and thus saving the parties from the
tedious and complex court proceedings.

3. Conciliation

Conciliation is a process in which a conciliator is appointed to resolve a dispute resulting

from a legal relationship between parties without the involvement of the court. The
conciliator plays an important role in this process because he or she tries to find a middle
ground by convincing the parties to achieve a settlement, which is usually an amicable
resolution to the parties' dispute. The conciliator also assists in this process by providing
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solutions to the parties' conflict. The Indian Arbitration and Conciliation Act 1996 governs
and administers the conciliation procedure.

4. Negotiation
Negotiation is a procedure in which the people concerned can self-advise to resolve their
disagreements without the assistance of a third party. Negotiation is a non-binding procedure
in which the parties voluntarily engage in proper communication in order to arrive at a
solution that is in both parties' best interests. The parties have complete control over the
mediation process and its conclusion.

The negotiation process is not governed by any Indian legislation and does not follow any set
norms, but it does follow a pattern.

5. Lok Adalat
It is a known fact that in Indian villages, the elders played an important part in resolving
disputes through their mediation system. The Lok Adalat system is an advancement of that
system and it is greatly influenced by the Gandhian principles. In this non-adversarial system,
Lok Adalats are held periodically by appropriate government bodies having the authority to
set such mock courts. Lok Adalats are presided by legal profession members, social activists,
or by retired judges and do not possess any jurisdiction on matters related to non-
compoundable offenses. The Legal Services Authorities Act, 1987 empowers the Lok adalats
in India.

Lok Adalats don’t require any court fees and do not have any strict procedures to be followed
which makes this process all the way faster. Cases that are pending in regular courts can be
transferred to Lok Adalats after taking the mutual consent of the parties. The proceedings that
take place in Lok Adalats are deemed to be judicial proceedings and Lok Adalats are deemed
to be Civil Court.
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3. Applicability of ADR methods (except Arbitration and

Conciliation)in different types of disputes

 Family and Matrimonial Disputes

Family conflicts usually arise when members of the family have opposing viewpoints or
opinions that clash. Family members frequently misinterpret each other and jump to the
wrong assumptions as a result of their emotions. Disagreements and family feuds might arise
as a result of such conflicts.

Mediation is the most popular technique of resolving family conflicts, and it is facilitated by a
neutral third party. Instead of going to the family court, most families are urged to go to
mediation.

The following are the most common causes of family strife:

Separation and Divorce

Inheritance
ElderCare
Partnerships and family businesses
Conflicts among the extended family
Children's care and discipline are a source of contention for divorced parents.
A mediator in a family argument is supposed to continuously close the gaps in the settlement
agreement.
Keeping in mind that once issues connected to emotional and social elements are addressed,
it becomes much simpler to resolve disputes and achieve an acceptable solution that meets
the needs of all parties to the dispute. As a result, the parties to the conflict feel more at ease
and confidence in their ability to deal successfully with monetary and legal issues.

In a study, Justice Manju Goel outlined tactics for the mediator to use when addressing
family disagreements. They are as follows:

Inquiry into the facts; identification of the true source of the conflict;
Examining the options for reconciliation or divorce;
bringing the disputants to an agreement on a solution; and
Incorporation of the solution into legal formats.

The legal elements subjecting to the resolution of family disputes through mediation is given
under:
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Section 5 of the Family Courts Act, 1984 states the provision that the State Government after
consulting the High Court provides for the association of Social Welfare Organisation to hold
the family court proceeding to arrive at a settlement.
Section 6 of the Family Courts Act, 1984 states the provision for the appointment of
counsellors, officers, and other employees who are needed to facilitate and aid the family
courts arriving at settlements in family disputes.

Section 9 of the Family Courts Act, 1984, Section 89, and Order XXXII-A of the Civil
Procedure Code, 1908 makes it obligatory for the courts to make sure that a fair chance is
given to a negotiated settlement before the procedure of adjudication begins.

Also, Section 23 of the Hindu Marriage Act, 1955 focuses on seeking reconciliation by the
judges.

 Commercial and Financial Disputes

A commercial dispute usually emerges as a result of a specific deal or transaction between

two or more businesses. Most commercial agreements include sections allowing for
alternative dispute resolution processes or recourse to the courts for redress of grievances.

The following are the most common commercial disputes:

Contractual conflicts, such as breach of contract and failure to deliver.

Disputes between shareholders, directors, and other business entities with a higher position.
Negligence on the job and in business.
Contractual, building, and regulatory difficulties are all common sources of construction
disputes.
Disputes in partnerships
Countersuits, defamation, and non-disclosure agreement breaches are all examples of
reputation management.
Disputes over patents and intellectual property.
Conciliation or arbitration are the most common methods for resolving commercial disputes.
Choosing a process to resolve the dispute is largely determined by the parties' cultural and
legal traditions.

Mediation usually provides an instant and effective dispute resolution setup which is time-
saving when compared to the normal court proceedings resolving the same dispute between
parties. Business individuals usually agree to mediation as it provides for a faster resolution
and disposal of the commercial disputes between and also, for the same reason it encourages
foreign investors to rely on the Indian legal system to provide them with a simple, cost-
effective, and fast dispute resolution mechanism.

 Industrial And labour disputes

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Industrial disputes develop when there are disagreements between employers and employees,
or between employers and workers, or amongst workers themselves. Industrial disputes can
be caused by two sorts of factors:

Economic: disagreements over pay, bonuses, and allowances, among other things.
Non-economic: arguments over worker mistreatment, worker discipline, worker
victimisation, political factors, and so on.
There are several forms of industrial disputes:

Strikes\sLockouts
Picketing\sGherao (to surround)
The state takes a keen interest in industrial relations and intervenes because it has a
responsibility to protect the interests of the industrial sector while also preserving the
country's economic growth rate. The Industrial Dispute Act was enacted by the Indian
government in 1947 under which the mechanisms for prevention and settlement of industrial
disputes were provided. Conciliation is one of the mechanisms suggested by the State to
resolve industrial disputes.

Section 4 of the Industrial Disputes Act of 1947 authorises the government to appoint
appropriate persons as conciliation officers in whatever number deemed necessary by
publication in the Official Gazette for the purpose of resolving industrial disputes.

 Use of Alternative Dispute Resolution (ADR) in Labour Disputes in

USA:
For individual employees in the U.S., employment contract disputes have traditionally been
taken to the courts to be resolved. In recent years, however, the courts in USA, have allowed
employees to accede to employer demands to contractually substitute a private labour
arbitration forum for the judicial forum on both contractual and statutory claims

In 2009, the U.S. Supreme Court allowed unions, under a collective contract, like those under
an individual labour contract, to agree to substitute a private labour arbitration forum for the
court forum, foreclosing the usual administrative review and resulting in court deference to
the arbitration decision

Wittenberg mentioned that more and more disputants, courts, public agencies and legislatures
in the USA are embracing the use of ADR in employment disputes.

Slate indicated that the American Arbitration Association is dedicated to the promotion of
specifically the mediation process for dispute settlement. Mediation is seen as a fast, cheap
and effective way to resolve disputes. The settlement rate achieved through mediation was as
high as 85% in the USA.
 Use of Alternative Dispute Resolution (ADR) in Labour Disputes in UN:
Since 2009, internal resolution of UN labour disputes has taken place through the UN
Internal Justice System, which is managed by the UN Office ofAdministration ofJustice.
In this system, UN employees who have a dispute are encouraged to use ADR
methodologies, rather than litigation, to resolve their work-disputes, which is facilitated by
the UN Ombudsman and Mediation Services.

Need of Alternative Dispute Resolution (ADR):

• The legal procedures are very much complex
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• Many labours in India are economically weak and cannot afford to traditional judicial
machinery which has became costly because of huge amount of fees charged by the lawyers.
• Delays in disposal of cases and dispensing justice, procedural
wrangles, multiplicity of appeals, revisions, and reviews are some factors that make litigants
frustrated. Especially in disputes like strikes and lock-outs, the amount of economic interest
is very high and delay in justice leads to higher economic damage.

 Advantages of Alternative Dispute Resolution (ADR) in Labour

Disputes:

o Less formal
Process of ADR is not technical and complex as it is in traditional court system. For example,
depositions, document requests, interrogatories, request for admissions and the like are so
often abused in the litigation process that parties, by mutual agreement, can control discovery
either in the arbitration clause in the pre-dispute contract or by agreement after arbitration has
commenced.
Parties have freedom to choose the manner of proceedings, time and place for resolution of
disputes. Parties are also free to choose the rules and procedure to be applied for resolution of
disputes. It gives flexibility to the process of ADR, which raises its importance in labour
disputes. Parties to the labour disputes can settle their dispute at their workplace itself and
need not go in court, thereby saving time and money. Traditional litigation is not flexible and
necessarily has been described as a "one size fits all" model
o Faster
As the parties have been given the freedom to determine the procedure, time and place for
settlement of the dispute, it saves a lot of time compared to traditional courts, wherein years
of time is consumed for settlement of disputes. In ADR disputes can be settled even within a
week.
o Cost saving
Labour disputes may affect the process of manufacturing. This results in huge economic
loses. The court fees and mounting charges of lawyers, adds to the cost factor. This can be
avoided through application of ADR. Dispute can be settled in times other than work hours.
o Win-win situation
In ADR, unlike court system, parties discuss and co-operate each other with the help of third
neutral party. There is no winner and loser. It therefore maintains the good relationship
between the parties, which is the key to run efficiently any business, industry or factory.
o Neutral, expert determination
In ADR, the dispute is determined by the person who is neutral and does not have any interest
in subject matter of the dispute? The person who is expert in labour dispute resolution may be
appointed for labour disputes.
o . Privacy and prestige maintained
When a labour dispute goes in court, it becomes public and hampers the reputation of
industry in public. In ADR the process of dispute resolution is within four walls and only in
presence of parties and expert. It therefore maintains the privacy and preserves the reputation
of industry.
o Higher success rates
As per the estimates of the local court in Australia , the success rate in ADR cases is 85%,
which is higher than courts.
o Party autonomy
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ADR is completely based on the concept of party autonomy. It puts parties in control by
giving them an opportunity to tell their side of the story and have say in final decision

 Consumer disputes
Alternative dispute resolution (ADR) implies privately addressing any issues out of the
court with the help of an unprejudiced dispute resolution body. Settling consumer disputes
this is simpler, quicker and more affordable than going to court.

The consumer protection Act, 1986 was sanctioned with a goal of giving better affirmation of
the interests of buyers and for the smart and straightforward settlement of clients' inquiry.
The Act gives convincing, prudent, direct and fast redressal of customers grievances. The Act
gives convincing, prudent, direct and fast redressal of clients' complaints, which the basic
courts are not prepared to give. This Act is another instance of ADR for the convincing
contemplation of consumers' debate.

Several reports suggest that consumer Forum have become like civil courts which is as
opposed to their point. The ADR have contributed to explain this crisis. But , the Consumer
Fora were made for ensuring justice to customers which ADR modes can't be completely
trusted with.

ADR can help enterprise to maintain good relationships with consumers and gain a positive
reputation in the market. It also promotes competition. But the main advantage of the
efficient use of ADR in consumer matters is increased satisfaction of the users that get
another option to protect their rights- a process that is fair and appropriate and uses of
simpler, cheaper and faster dispute resolution methods.

ADR MECHANISM IN CONSUMER DISPUTE RESOLUTION:

The chief steps towards taking resort to alternative dispute resolution mechanism in India
can be followed back as right on time with respect to the Bengal Regulation Act, 1772 which
gave that in all instances of addressed records, parties are to are to present the same to
mediators whose choices are respected as ultimate decision and ought to be last and left
unchallenged. The Regulation Act, 1781 further conceived that judges should recommend the
parties to present an inquiry to generally agreed individual and no reward of a go between
could be set aside except if there were two witnesses that authority had submitted gross
blunder or was inclined towards a party. A recommendation shockingly was made to the
Second Law Commission by Sir Charleswood to suit a uniform law as for discretion. The
Code of Civil Procedure was then settled as requirements be in 1859. Indian Contract Act,
1872 also sees attentiveness understanding as an exceptional case to Section 28, which
envisions that any understanding in limitation of cure through legitimate techniques is void.
Afterward, the Arbitration Act, 1899 was in likewise sanctioned to apply to the Presidency
towns to encourage settlement of inquiries out of court. The Arbitration Act, 1940 repealed
and supplanted the past Act of 1899. Exactly when India transformed into a state signatory to
the convention on assertion under the Geneva Convention and remembering the ultimate
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objective to offer effect on the equivalent, the Arbitration (Protocol and Convention) Act was
passed. Later, India likewise turned into a signatory to the New York Convention and to give
impact Foreign Awards (Recognition and Enforcement) Act, 1961 was passed. After
liberalisation of Indian economy in the 1990's Arbitration and Conciliation Act, 1996 was
requested which supplanted the past Act of 1940 and accomplished radical changes in the law
of assertion and familiar thoughts like Conciliation with an assurance of the convenient
settlement of issues/problems/debates of primarily business

 Accident Claims
ADR has emerged in India in the middle of nineties as response to inordinate delay in
disposal of cases resulting in docket explosion. The privatisation and structural adjustment
policies have forced the Indian legal system to rethink and find out ways and means to
explore quick, inexpensive ways to resolve cases without every case needing to go through a
full court process. The most commonly known methods of ADR are negotiation, mediation,
conciliation and arbitration. These methods have been very widely used not just in big,
complicated commercial cases but in a number of other non-commercial, everyday from of
disputes. ADR methods are the non-litigative dispute resolution strategies for resolving
dispute outside the usual court process.

When a conflict becomes a dispute it enters in to the courts rooms for adjudication. Some
disputes may be resolved by adjudication. Some disputes may be resolved by negotiation
without any need for third party assistance. In some cases, assistance of third party could
facilitate expedite resolution.

Negotiation is the most commonly used method of resolving conflicts. It is a voluntary non-
binding process in which parties control the outcome as well as the procedures. It's a less
complicated, inexpensive and speedy method of dispute resolution. Most of us negotiate in
every day form of life without realising it.

 Property Disputes

Property disputes usually emerge as a result of claims from legal family members, co-owners,
neighbours, landlords, and tenants, among others. In India, property conflicts are fairly
common. The following are some examples of common property conflicts in India:

o Disputes over the property's title.

o Disputes involving the property's title.
o Disputes involving property transactions between builders and buyers.
o Disputes over inherited properties
o Disputes in which buyers are unable to move into their new residential property until
the builder or developer obtains an occupancy permit from the appropriate authorities.
o Disputes involving the tenant's misuse of leased or rented property.

Usually, in property disputes, the parties involved are hesitant to go ahead with court
proceedings because it is well known that litigation is a cumbersome process and the results
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are always unknown. It is to be noted that property disputes are common in India because
feuds like poor land maintenance, unclear land titles, and other types of issues have arisen
because of ignorance and this mostly results in disputes and also property disputes take a long
time to get resolved. To avoid such difficulties parties usually go for negotiation as it helps
them by bringing a way of settlement and it also is a time-saving procedure where both
parties along with time, save a lot of money.

Negotiation can be seen in most of the arbitration clauses. These clauses mention that if any
disputes arise out of their agreement, the parties shall try to resolve the dispute in a friendly
manner within a month and if the parties are unable to resolve, the same shall be resolved by
the procedure of arbitration. These clauses ensure that even the trivial issues arising out of an
agreement are resolved without being dragged into court proceedings.
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4. Conclusion
The current pandemic situation in India has only exacerbated the problem of outstanding
cases. The courts are overburdened with paperwork, and individuals are having difficulty
getting to them due to travel restrictions and fears of contracting the coronavirus. It is past
time to encourage the use of ADR processes, and the government may improve the country's
ADR situation by training workers, establishing proper guidelines, incorporating legal
assistance, and so on. Also, ADR mechanisms can be combined with digital platforms, and
doing ADR online can be beneficial because it encourages asynchronous contact between the
parties throughout the process, making it simpler to achieve an amicable resolution.
It is upon all the stakeholders to take a holistic approach for accomplishing the appropriate
changes required in the process of alternate dispute resolution mechanisms and establish a
peaceful, quick, and cost-effective resolution technique.