Introduction
Alternative dispute resolution encompasses a wide range of practices designed to resolve disputes cost-effectively and expeditiously. As the name suggests, ADR is an alternative to the traditional dispute resolution process through the courts. It consists of practices and techniques for out-of-court dispute resolution.
It actively involves the parties themselves in dispute resolution and results in the amicable settlement of disputes. These practices have evolved to resolve disputes in a way that has as little negative impact on the relationship between the parties as possible. The primary ADR methods include negotiation, mediation, conciliation, and arbitration. Another alternative ADR process that exists in India is Lok Adalat, which incorporates many methods such as negotiation, mediation, and conciliation.
Types of ADR Techniques
- Arbitration
- It is a process for the settlement of disputes fairly and equitably through a person or persons or an institutional body without recourse to litigation by the disputing parties according to an agreement. It could be statutory, institutional, contractual, or ad hoc. Arbitration is a procedure where conflicts between parties are resolved by a neutral third party selected by the parties. It is similar to a settlement reached in court, except there are fewer formalities and the parties select the arbitrator. It is available with a well-established, less time-consuming procedure and helps settle a variety of conflicts, including those involving international commerce. At present, arbitration is the only legally binding and enforceable alternative to ordinary court proceedings.
Conciliation
Mediation involves the amicable settlement of disputes between the parties with the help of a mediator. The mediator’s job is to get the parties together so they may work out an amicable settlement of their differences. A mediator would try to persuade the parties to lower their demands to come to a compromise. As a result, the mediator acts as a facilitator to help the disputing parties come to an understanding. Instead of a third person deciding the fate of the parties to the disagreement, mediation emphasises the parties’ responsibilities for making decisions that influence their lives.