ADR CRUCIAL FOR INDIA’S COURTS

NEWS: India’s judicial system is overburdened— with over 4.57 crore pending cases (as per the National Judicial Data Grid, NJDG, 2025). Therefore, Alternative Dispute Resolution (ADR) has become a critical tool to reduce pendency and ensure accessible, affordable, and speedy justice.

ADR (Alternative Dispute Resolution)

ADR refers to mechanisms for resolving disputes outside traditional courts, in a more informal, efficient, and cooperative manner.

Types of ADR Mechanisms

• Arbitration: The dispute is submitted to an arbitral tribunal which makes a decision (an “award”) on the dispute that is mostly binding on the parties.
• Conciliation: A non-binding procedure in which an impartial third party, the conciliator, assists the parties to a dispute in reaching a mutually satisfactory agreed settlement of the dispute.
• Mediation: In mediation, an impartial person called a “mediator” helps the parties try to reach a mutually acceptable resolution of the dispute.
• Negotiation: A non-binding procedure in which discussions between the parties are initiated without the intervention of any third party with the object of arriving at a negotiated settlement to the dispute

Constitutional & Legal Basis of ADR

• Article 39A: Ensures equal justice and free legal aid — the foundation of ADR.
• Article 51(c): Promotes international peace and cooperation — supports global ADR principles.
• Section 89, Code of Civil Procedure (1908): Empowers courts to refer disputes to arbitration, mediation, conciliation, or Lok Adalat.
• Arbitration & Conciliation Act, 1996: Provides statutory framework for arbitration and conciliation (amended in 2021).
• Legal Services Authorities Act, 1987: Governs Lok Adalats and ensures access to justice for all.
• Mediation Act, 2023: Institutionalizes mediation, including pre-litigation mediation for civil and commercial disputes

Key Features and Time Frame

• ADR time limit: Arbitration Act (2021) fixes a maximum of 180 days (6 months) for resolution.
• Exit option: In mediation, if a party is dissatisfied, it can exit after two sessions and approach courts.
• Pre-litigation Mediation: Mandatory for certain civil/commercial disputes before filing a suit — helps prevent pendency.
• Indian Arbitration Council: A statutory body to regulate arbitration standards and promote institutional arbitration.

Advantages of ADRs

• The resolution of disputes takes place usually in private – helping maintain confidentiality.
• It is more viable, economic, and efficient.
• Procedural flexibility saves valuable time and money and absence of stress of a conventional trial.
• This often results in creative solutions, sustainable outcomes, greater satisfaction, and improved relationships

Challenge

• Enforcement of arbitral awards: Delays due to court intervention.
• Uneven access across States: Rural areas lack mediation centres.
• Overlapping laws: Need for uniform implementation of Mediation Act, 2023.

Way Forward

• Institutionalise ADR under Mediation Act, 2023.
• Mandatory pre-litigation mediation for civil and commercial cases.
• Digitisation of ADR platforms (expand e-Lok Adalat and ODR — Online Dispute Resolution).
• Capacity building: Train mediators, arbitrators, legal aid volunteers.
• Public awareness campaigns at panchayat and municipal levels.
• Regular monitoring through NJDG and NALSA reports.