Alternative Dispute Resolution (ADR)

What is ADR?

ADR is an abbreviation that stands for Alternative Dispute Resolution. ADR refers to all those methods of resolving a dispute, which are alternatives for litigation in the Courts. ADR processes are decision-making processes to resolve disputes that do not involve litigation or violence. ADR includes a variety of processes through which litigants or potential litigants may resolve their disputes. Unlike the courts, which use adversarial processes, ADR focuses on effective communication and negotiation.

ADR includes Arbitration, Mediation, Conciliation, Negotiation, Expert Determination, Early Neutral Evaluation by a third person, Mini-Trial, Dispute Resolution Board and Lok Adalat etc. The approach of judges, lawyers and parties throughout the world is changing towards adoption of ADR instead of Court-litigation. Arbitral institutions provide ADR services for quicker, less costly and consensual resolution of civil disputes outside the crowded Court system. ADR provides creative options to the parties to resolve the disputes that are not available in traditional dispute resolution forums. ADR promotes communication between the parties. ADR enables the parties to work together to solve the real concerns underlying the conflict by focusing on the parties' real interest instead of their positions and claims.

When ADR is useful and recommended?

ADR can be used as an alternative to time consuming adversarial process of court-litigation. ADR is an alternative for those parties who are willing to communicate with each other and make genuine attempt to resolve the dispute with the help of a neutral party. Many disputes like consumer complaints, family disputes, construction disputes, business disputes can be effectively resolved by ADR. It can be used in almost every dispute, which can be filed in a court as a civil suit

What is the difference between ADR and civil suit in a court?

When a civil suit is filed in a court of law, a formal process occurs, which is operated by Advocates and managed by the court. The parties virtually lose all control over the result of their dispute when a court makes the decision. Litigation is a costly affair and it takes a lot of time to get a final decision of the court. Litigation harms relationships and causes emotional stress. Participation in a civil suit is unpleasant and cumbersome. On the other hand, ADR is a problem solving process, which promotes creative solution to the parties, which emphasizes communication between the parties. In ADR, parties work together to solve the dispute.

What is an 'ADR Neutral'?

An 'ADR Neutral' is an unbiased, impartial and third party not connected with the dispute, which includes an Arbitrator, Mediator, Conciliator, Facilitator, Evaluator or any other person who helps the parties to settle their conflicts by ADR.

What are the features of ADR?

ADR processes are consensual and voluntary processes, which are chosen by the parties to the dispute. These processes are expeditious because ADR avoids those components of traditional litigation that prolong and delay resolution of dispute. ADR process is flexible which is handled and resolved through an ADR agreement. The parties choose a particular ADR process, outline the specific steps of the process, and establish time limits. It is a non-judicial process in which decision is made by the parties themselves. In ADR, the parties control the process and the outcome.

What are the advantages of ADR?

ADR proceedings are flexible. They can be conducted in any manner to which the parties agree. It may be as casual as a discussion around a conference table or structured as a private Court trial. Also unlike the Courts, the parties have the freedom to choose the applicable law, a neutral third party to act as Arbitrator/Conciliator in their dispute, on such days and places convenient to them and also fix the fees payable to the third party. ADR is a private process and it offers confidentiality, which is generally not available in Court proceedings. While a Court procedure results in a win or lose situation for the disputants, in an ADR process such as Mediation or Conciliation, it is a win-win situation for the parties because the solution to the dispute emerges with the consent of the parties. ADR proceedings save considerable time and money. ADR has distinct advantages because it involves increased respect and trust between the parties, more creative and satisfying solutions, greater compliance with the settlement, reduced cost and emotional energy and faster resolution of dispute. It improves communication and relationships between the parties. 

Ensuring through speedy trial the alternative dispute resolution and case-flow management the High Courts should adopt model ADR rules and case-flow management rules or frame rules, so that a step forward is taken to provide to litigating public a fair, speedy and inexpensible justice (Salem Advocates' Bar Association v. Union of India, AIR 2005 SC 3353).