SYLLABUS

GS-2: Structure, organization and functioning of the Executive and the Judiciary.

Context: The Minister of Law and Justice emphasised the need for global cooperation to strengthen Alternative Dispute Resolution (ADR) mechanisms.

About the Alternative Dispute Resolution (ADR)

• ADR refers to mechanisms that settle disputes outside traditional courts. 

• It involves neutral facilitation or direct dialogue to reach mutual agreements efficiently and confidentially.

• Mechanisms of ADR:

• Mediation: A neutral mediator helps the disputing parties discuss the issues and reach a voluntary agreement, but the mediator does not make a binding decision. 
• Arbitration: Parties present their case to an arbitrator, who then makes a decision that is generally  binding and enforceable. 
• Negotiation: Parties engage in direct discussion to resolve their differences without the involvement of a neutral third party. 
• Conciliation: An informal, voluntary dispute resolution where a neutral conciliator helps parties communicate and may suggest non-binding solutions.
• Neutral Evaluation: A neutral third party provides an opinion on the likely outcome of the case if it were to go to court. 
• Judicial Settlement/ Lok Adalat: A mechanism in India for amicable settlement of disputes outside the formal court system. 

Constitutional and Legal basis of ADR 

• Constitutional Basis: 

• Article 14 and Article 21: ADR is rooted in Article 14 (equality before law) and Article 21 (right to life and personal liberty), ensuring fair and timely justice for all individuals.
• Article 39A: It directs the state to promote equal justice and free legal aid, enabling ADR as a means to guarantee justice for weaker section. 

• Legal Basis: 

• The Arbitration and Conciliation Act, 1996: primary statute regulating arbitration and conciliation, covering both domestic and international disputes.
• Civil Procedure Code, 1908: Section 89 empowers courts to refer cases for ADR, including arbitration, mediation, conciliation, or Lok Adalat.
• Legal Services Authorities Act, 1987: Establishes the framework for Lok Adalats and legal aid, including ADR mechanisms.
• Mediation Act, 2023: Provides a formal statutory framework for institutional mediation, detailing appointment, conduct, and enforceability of mediated settlements.

Significance of the ADR

• Addressing System Inefficiencies:

• Pendency of cases: According to the National Judicial Data Grid (NJDG), the total number of pending cases in India is 4,57,96,239; in the Supreme Court, 81,768, and in the High Courts, approximately 62.9 lakh.
• High Vacany Rate: The India Justice Report highlights that High Courts and district courts are facing vacancy rates of 33% and 21%, respectively. 
• Judicial Workload: Judges in Uttar Pradesh, Himachal Pradesh and Kerala have workloads exceeding 4,000 cases.

• Social and Procedural Advantages:

• Social Change Catalyst: Former Chief Justice of India, Justice D.Y. Chandrachud, describes mediation as a tool for social change, aligning social norms with constitutional values through dialogue and information exchange.
• Flexibility and Party Control: Parties have greater autonomy in ADR, including selecting decision-makers, choosing applicable laws, and controlling the process rules and procedures. 
• Amicable and Creative Solutions: ADR allow for creative and satisfactory outcomes tailored to the parties' specific needs, leading to more sustainable resolutions. 

Sources:
The Hindu
The Legal School
Live Law