ADR

Alternative Dispute Resolution (ADR) : Provides methods to resolve disputes outside of traditional court litigation, including arbitration, mediation, and conciliation, offering quicker, less costly, and more flexible solutions. 

What is ADR :

• Definition : ADR refers to various methods used to resolve disputes without resorting to court proceedings. 

• Purpose : ADR aims to provide parties with alternatives to formal litigation, offering faster, more cost-effective, and less adversarial dispute resolution. 

Here are the main types of ADR :

1. Mediation :
   • A neutral third party (the mediator) facilitates communication between the parties involved to help them reach a mutually agreeable solution.
   • The mediator doesn’t make decisions but helps guide the discussion to resolve the issue.
   • Mediation is usually voluntary, confidential, and non-binding unless both parties agree to the terms of the resolution.
2. Arbitration :
   • A neutral third party (the arbitrator) acts like a judge and makes a binding decision after hearing both sides.
   • Arbitration can be more formal than mediation but still typically less so than a court trial.
   • It’s often faster and more private than litigation, and the decision is final in most cases, with limited opportunities for appeal.
3. Negotiation :
   • The parties directly involved in the dispute try to reach a settlement or agreement on their own, possibly with the assistance of lawyers or other representatives.
   • This is usually informal and can happen at any stage of a dispute.
   • The outcome is non-binding unless a formal agreement is reached.
4. Conciliation :
   • Similar to mediation, but the conciliator may take a more active role in suggesting terms for the settlement.
   • Conciliation is common in international disputes or labor disputes.
5. Online Dispute Resolution (ODR) :
   • A newer form of ADR where disputes are resolved through online platforms, often using techniques like negotiation, mediation, or arbitration via the internet.
   • ODR can be convenient for cross-border disputes or where parties cannot meet in person.

Benefits of ADR :

• Cost-effective : ADR is typically much cheaper than going to court due to fewer formal procedures.
• Faster: ADR methods are usually quicker than a court case, which can take months or even years.
• Confidentiality : Many ADR processes are private, so the details of the dispute remain confidential, unlike public court trials.
• Flexibility : ADR allows for creative and customized solutions that may not be possible in a court setting.
• Control : The parties usually have more control over the process and outcome.

Disadvantages of ADR :

• Limited Discovery : In some cases, there may be less opportunity to gather evidence than in a court trial.
• Lack of Precedent : ADR decisions do not set legal precedents, meaning they don’t create binding rules for future cases.
• Enforceability : While arbitration decisions are usually binding, mediation or negotiation results may require further legal steps to be enforceable.

REFERENCE JUDGEMENTS :

---

2) GIRIRAJ GARG vs. COAL INDIA, (2019) 5 SCC 192

Summary of the JudgmentThe Supreme Court overturned the Jharkhand High Court’s decision, which had dismissed Garg’s application for the appointment of an independent arbitrator on the grounds that individual sale orders did not explicitly incorporate the arbitration clause from the 2007 Scheme.

The Supreme Court established that an arbitration agreement can exist independently and need not necessarily be in the form of a clause within a contract

---

3) M.M.T.C. Ltd. v. Sterlite Industries Ltd., (1996) 6 SCC 716

The Supreme Court held that an arbitration agreement cannot be invalidated on the grounds that it specifies an even number of arbitrators.

---

GF