Alternative Dispute Resolution



Constitution
Article 14, 21 and DPSP of Equal Justice and Free Legal Aid
Legislative measures
  • Arbitration and Conciliation Act, 1996 and the
  • Legal Services Authorities Act, 1987
  • Section 89 of CPC allows settlement of cases outside courts.
Benefits
  • Less expensive
  • Less time consuming
  • Parties are free to discuss their differences without any fear of disclosure before court
  • No winning or losing and their grievances also sorted out
  • Free from technologies
  • Justice Malimath Committee Report (1989-90)
    • underlined the need for alternative dispute resolution mechanism such as mediation, conciliation, arbitration, Lok Adalats etc. as a viable alternative to the conventional court litigation
Methods
  • Arbitration
  • Mediation
  • Negotiation
  • Conciliation
  • Collaborative laws
  • Example : Mahila Panchayts in Delhi (no legal machinery)
    • Justice
    • Empowerment
    • Attitude
    • Legal aid
    • Community support
Limitations
  • Civil cases
  • No guarantee of resolution
  • Are final 
  • Biasness
  • Availability
  • Appointment 
  • Expertise 
  • Lack of awareness 
  • Informal : more opportunity for the abuse of power
Lok Adalats
  • alternate dispute resolution mechanism.
  • is a forum where the disputes/cases pending in the court of law or at pre-litigation stage are settled/compromised amicably.
  • Based on the principle of Panch Parmeshwar of Gram sabha
  • Gandhi Also advocated it.
  • Proposed by Justice PN Bhagwati
  • under Legal service authorities Act 1987.
  • Retired judges, social activist, legal professionals etc can preside over
  • Can be held at the basic level eg. Taluka or at the highest level by SC legal service committee.
  • Take matters like civil, compoundable criminal etc.
  • It orders are final and binding and cannot be challenged in any courts
Arbitration and Conciliation(amendment) Act 2015
 Arbitration and conciliation Amendment Bill, 2019 Passed.
Need
  • Slow, expensive and ineffective
  • Ranked at 178/189 countries in term of enforcing contract (WB's EoDB)
Objective
  • Consolidate and amend domestic arbitration , international arbitration
  • Enforcement of foreign tribunal awards
  • Define the law
Case of China
  • China follows the policy of binding their partners to compulsorily undergo if any, arbitration with in China.
  • Main reason for this policy is their negotiable capacity which India does not enjoy
Pros
  • Economy
    • Quicker
    • Investor friendly
    • Cost effective
    • Ease of Doing business
    • Reducing intervention of courts
  • Society
    • DE burdening the Courts
  • Government
    • Revenue
    • Cost of litigation will be saved
    • India as a hub for international arbitration
  • Easy enforcement
Current
  • Past: The Arbitration and Conciliation Act 1996 provides statutory recognition to conciliation
  • Presently bodies like Indian council of Arbitration, International Centre for Alternate dispute Resolution etc are the leader in India
  • Generally international Arbitration hubs are chosen because of their neutral, quick services.
  • Allowed to go for international arbitration rather than first exhausting all
Salient Features
  • Time Bound disposal
    • Application of appointment of arbitrator within 60 days
    • Challenge petition must be dispensed in 1 year
    • Arbitrator tribunal shall make its award with in 12 months generally
  • Fast track the procedure
  • Grounds of Challenges
    • Narrowed down
  • Enforcement
  • Cost effective
    • Cap on fee of arbitrator
    • Unsuccessful party pay the cost
  • Arbitrator
    • No conflict of interest
Way Ahead
  • Participation
    • Of private
  • Strengthening institutes
    • Indian council of arbitration
    • International Centre for ADR
  • Skill manpower in arbitration
Commercial branch

Current
Commercial Court, commercial division and commercial appealate division of high courts Act 2015
  • court at district level, division at state level (in HC)
  • case of business above 1 crore
Benefits
  • ease of doing
  • promote entrepreneurship----job creation
  • shift burden of judiciary(speedy, pendency)
  • Efficient decision making (specific domain)
  • NPAs
Challenges
  • Infra
  • Man-power
  • Corruption(huge money involved)
  • skilled manpower
  • Enforceability issues




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