Research note on ADR in Rural India

Facts
Alternate dispute resolution is a process for settling disputes without interference of litigation, such as arbitration, mediation, or negotiation.
These processes are usually less costly and more expeditious. They are helpful in disputes instead which result in litigation, including high-
profile labour disputes, divorce actions, and personal injury claims.

Why people choose ADR proceedings because, unlike adversarial litigation, ADR processes are indeed interactive and constructive and it
allows the parties to consider the views of each other. The benefit of ADR is that the parties may come up with innovative solutions that a
court may not be allowed to do it.

As we all know that villages have a governing body that is Panchayat Raj. If there is any problem Sarpanch of the village who is the head,
solves the dispute. The general tendency of the common man of urban India has been to look for court machinery as the chosen alternative
for settling conflicts, save for the panchayat system known to villagers. Previous limited frameworks related to particular trading activities
or a settlement included approaches such as consultation and conciliation. However, things changed a little for the better with the passage of
the Arbitration and Conciliation Act, 1996. In villages people lack of knowledge on their laws. They are even lack of dispute resolution
laws. They only follow the word of Sarpanch who is the head of the village. So what are the alternatives and the steps to be taken by the
people in rural areas to get complete total justice in the dispute resolution?

Summary of the Problem

As we all know that people in rural India are not aware of their rights when compared to people in urban India. It is also inability of people
from rural India to justice for the courts in urban towns and cities. So the mediation is an advantage for people in rural India to resolve
disputes when they are aware of their rights. Primarily a conflict causes internal tension. This is an addition of problem to the poor people in
rural areas. This affect the basic livelihood of the poor.

In rural areas Mediator plays an important role in the dispute resolution. Like the attorney, he is not a passive observer. He is just a
moderator who helps in starting the dialogue between the parties. If a conflict arises, then the mediator settles the issue and resolves in a
perfect manner. He makes points said by both the parties and comes to a conclusion. He enlarges those points and make a statement. The
mediator doesn’t force one of the parties to participate in the mediation. He leaves it to the choice of the parties. He must educate and
evaluate the rights and consequences to the both parties as they were not aware of their rights. The mediator should not change his mind
during the dispute resolution. He should stick to the rules and regulations as said before.

The loss of legitimacy in the mediator is one of the popular disappointments of the contestants. Generally the poor have a fear that the other
party may not accept the invitation sent by them. So they believe mediators on this issue. The mediators help the poor by bringing the other
party to the dispute resolution.

But due to illiteracy and unawareness people in rural areas are not getting justice and their problems were not solved. After many acts
passed in the houses, more efficient laws came and poor people were getting justice when compared to olden days. Though the Panchayat
system did not lose its relevance in dispute settlement a small part of it still remains. In the 21st century, such steps were taken by Indian
legislators to introduce mediated arbitration and conciliation as conflict settlement approaches.

At the same time, considering the benefits of the panchayat system in dispute settlement, the government is also promoting its position in
this respect by taking various steps in this direction. These measures include the establishment, with the aid of the police as well as other
executive and judicial officials, of small committees at the village unit and district level to settle such conflicts. These committees tend to be
particularly effective at village level in the resolution of disputes. So its government’s responsibility to ensure that Panchayat should allot a
fair mediator. The mediator should be well trained and they should conduct mediation proceedings to the desired effect.

The Problem of Law involved

Mainly 2 issues are raised in the present context

1. Compared to litigation, Alternate dispute resolution process takes less time. Does this make perfect justice to both public and
commercial parties?

As we know litigation and court proceedings take more time than expected compared to alternate dispute resolution. In the
business environment, the Arbitration and Conciliation ( Amendment) Act, 2015 has given a ray of hope to make arbitration the
alternative option for dispute settlement. The particular change to be discussed is the adoption of subsection 29A(1), which
provides for the time-limited disposal and dissemination of the award. Under the amended statute, the parties can consent to
follow a fast-track process with no oral hearing on the basis of written pleadings, documentation and representations made by the
parties.
In addition to the pleadings, the Arbitral Tribunal can ask for more details or explanation from the parties.
 The provision laid down, with exceptional exceptions, is that if the Arbitral Tribunal fails to publish the award within 12 months,
as provided for in the Act, the mandate of the Arbitrator shall be terminated in order to expedite the trial and to retain leverage on
the arbitrator and the parties.
Section 29A(1) of the Act or a further six-month extended duration pursuant to Section 29A(3).
In an attempt to ensure swift adjudication in India of commercial and business-related conflicts, The Commercial Judiciary,
Commercial Division and Industrial Judicial Division of High Courts Act , 2015 (Act) was passed in 2015 by the legislature.
An Ordinance enacted on the foreign parity required for these civil court was assisted by an in-depth analysis carried out by the
supreme court of India of the Commercial Courts of the United Kingdom, United States of America, Singapore, France, etc.
The adoption of the Commercial Courts Act has once again made the courts the chosen venue for the settlement of complex
conflicts. Section 16 of the Act provides for an alteration to the CPC rules in their relation to each industrial conflict claim
beginning at just 380,000. It prescribes deadlines and protocols in order to settle disputes more quickly and to discourage parties
from causing / creating unwarranted delays in the adjudication phase.

2. Whether the alternate dispute resolution applicable for smaller groups or is it also applicable for large entities?

To explain this we need to consider 2019 amendment to the Indian arbitration Act, Section 11(3A) of the Act is adopted by the
2019 Amendment, in which the Supreme Court of India and the High Courts have the right to appoint arbitration process.
Graded under Section 43-I (also adopted by the 2019 Amendment) by the Arbitration Council of India ("ACI"). The underlying
principle is that in situations where parties do not find an agreement, the courts would nominate rated arbitral institutions to
conduct the role instead of the court appointing arbitrator(s) (per Sections 11(4)-(6) of the Act, as amended by the 2019
amendment.
The category element has already been debated and criticised. It is, however, the grading factor that I plan to discuss in some
depth.
The 2019 Amendment incorporates Part 1A of the Act, which is entitled 'The Arbitration Council of India' (Sections 43A to
43M) and empowers the Central Government through a government gazette notice to constitute the ACI (Section 43B).
The ACI shall consist of I a former Supreme Court or High Court judge appointed by the Central Government as its Chairperson
in consultation with the Chief Justice of India, (ii) an eminent arbitration lawyer appointed as a member of the Central
Government,
(iii) a distinguished professor with learning and education expertise in the field of arbitration, designated by the Central
Government as Chairperson in consultation with the Chairperson, (iv) Secretary of the Central Government in the Department of
Legal Affairs, Ministry of Law and Justice, and (v) Secretary of the Central Government in the Department of Expenditure, (vi)
one member of a registered practitioner of commerce and industry, appointed as a part-time member on a rotational basis by the
central government, and (vii) Chief Executive Officer-Member-Secretary, ex officio (Section 43C(1)(a)-(f)).
The ACI shall be tasked, inter alia, with the designation of arbitral bodies on the basis of requirements pertaining to the facilities,
efficiency and quality of arbitrators, quality and accordance with the time limits for the disposition of domestic or international
commercial arbitrations (Section 43I).

References/Links

 https://www.academia.edu
 http://arbitrationblog.kluwerarbitration.com
 http://heinonline.org.elibrarydsnlu.remotexs.in