Introduc�on

It is impossible to eliminate contradic�ons, conflicts and disputes in any society, and the human
society develops in contradic�ons. It is these contradic�ons and conflicts which tell us the
importance of peace. Peace is, therefore, a sine qua non for development and one of the most
important facts which help maintain peace in any society is people?s faith in the jus�ce delivery
system. Trust of the people in the system that they will get jus�ce, if and when required, keeps the
system peaceful, smooth and comfortable. There are many stake-holders of jus�ce delivery system.
The most important is the consumer of jus�ce who is a li�gant. The seekers of jus�ce come to the
courts with pain and anguish in their hearts because they have faced legal problems and suffered
physically and psychologically. They have a trust in the courts and believe that they would get jus�ce
from the courts, so they do not take the law into their own hands. The truth is that an effec�ve
judicial system requires not only that just results be reached but they be reached swi�ly. However,
the reality is that it takes a very long �me to get jus�ce through the established court system. In spite
of the con�nuous efforts, some�mes the li�ga�on con�nues for the life �me of the li�gant and
some�mes it carries on even to the next genera�on. In this state of uncertainty and unending long
process, the disputant or li�gant may exhaust his resources besides physical and mental sufferings.
Thus, there is a chain reac�on of li�ga�on process, and, at �mes, civil cases may even give rise to
criminal cases.

In our country the jus�ce delivery system through courts has given rise to certain grave problems like
inordinate delays, huge pendency of cases and expensive li�ga�on. Thus, it has become very difficult
for the poor and marginalized people to have access to jus�ce. In these circumstances, it becomes
significantly necessary for all the stakeholders of the judicial system to find out some mechanism
where such grey areas can be effec�vely and adequately taken care of. Alterna�ve Dispute
Resolu�on (ADR) contains the effec�ve mechanism to provide speedy and cost-effec�ve jus�ce, it
also has the poten�al to trim the huge arrears of cases to size. Parliament brought about a legisla�on
and introduced sec�on 89 and Rules 1-A, 1-B and 1-C to Order X in the Code of Civil Procedure, 1908,
so as to make effec�ve use of ADR process.

Cons�tu�onal Provisions
Ar�cle 39-A of the Cons�tu�on of India provides that the State shall secure that the opera�on of the
legal system promotes jus�ce, on the basis of equal opportunity and shall in par�cular, provide free
legal aid, by suitable legisla�ons or schemes or in any other way, to ensure that opportuni�es for
securing jus�ce are not denied to any ci�zen by reason of economic or other disabili�es. Ar�cle 14
also makes it obligatory for the State to ensure equality before law and a legal system which
promotes jus�ce on the basis of equal opportunity to all.
Historical Background
The history of ADR can be traced to our historical path. The concept of Lok Adalats (People’s Court) is
an innova�ve contribu�on of India to the World Jurisprudence. India has a long tradi�on and history
of ADR process like Media�on and Lok Adalat being prac�ced in the society at the grass root level,
these are called Panchayats. The ancient concept of setlement of dispute through Arbitra�on,
Concilia�on, Media�on or Nego�a�on known as the verdict or decision of ‘Nyaya- Panchayat’ is
conceptualized and ins�tu�onalized in the philosophy of Lok Adalat. Concept of media�on has been
prac�ced with great frequency in the last quarter of the 20th Century. A�er the emergence of 21st
Century this prac�ce has been developed with more frequency in the Western countries. Its roots
can be traced in USA, notably at the Pound Conference in 1976. It was followed by two legisla�ons –
The Civil Jus�ce Reforms Act, 1990 and The Administra�ve Dispute Resolu�on Act, 1996.
Provisions Rela�ng to ADR

Sec�on 89, CPC and other provisions – Prior to the existence of S. 89, CPC there were various
provisions that gave the power to the Courts to refer disputes to media�on. Such provisions are in
the Industrial Disputes Act, 1947, Sec�on 23(2) of the Hindu Marriage Act, 1955 and Sec�on 9 of the
Family Courts Act, 1984. We can also find and infer such provisions in Sec�on 80, Order XXIII, Rule 3,
Order XXVII, Rule 5-B, Order XXXII-A & Order XXXVI of the Code of Civil Procedure, 1908.

Principles and relevant provisions in Arbitra�on and Concilia�on act 1996 (including recent
amendments)
The law on arbitra�on in India was substan�ally contained in three enactments, namely, the
Arbitra�on Act, 1940, the Arbitra�on (Protocol and Conven�on) Act, 1937 and the Foreign Awards
(Recogni�on and Enforcement) Act, 1961. It was widely felt that the 1940 Act, which contains the
general law of arbitra�on, has become outdated. The Law Commission of India, several
representa�ve bodies of trade and industry and experts in the field of arbitra�on have proposed
amendments to this Act to make it more responsive to contemporary requirements. It is also
recognised that our economic reforms may not become fully effec�ve if the law dealing with
setlement of both domes�c and interna�onal commercial disputes remains out of tune with such
reforms. Like arbitra�on, concilia�on was also ge�ng increasing worldwide recogni�on as an
instrument for setlement of disputes. There is, however, no general law on the subject in India. The
United Na�ons Commission of Interna�onal Trade Law (UNCITRAL) adopted in 1985 the Model Law
on Interna�onal Commercial Arbitra�on. The General Assembly of the United Na�ons has
recommended that all countries give due considera�on to the said Model Law, in view of the
desirability of uniformity of the law of arbitral procedures and the specific needs of interna�onal
commercial arbitra�on prac�ce. The UNCITRAL also adopted in 1980 a set of Concilia�on Rules. The
General Assembly of the United Na�ons has recommended the use of these Rules in cases where the
disputes arise in the context of interna�onal commercial rela�ons and the par�es seek amicable
setlement of their disputes by recourse to concilia�on. An important feature of the said UNCITRAL
Model Law and Rules is that they have harmonised concepts on arbitra�on and concilia�on of
different legal systems of the world and thus contain provisions which are designed for universal
applica�on.
The Arbitra�on and Concilia�on Act, 1996 has brought about qualita�ve changes in the law of
Arbitra�on. The Act contemplates minimal role of Court during the conduct of arbitral proceedings
�ll the making of the award. It is intended that Court will not interfere in the arbitral proceedings �ll
the arbitral award is made. It proposes to amend and consolidate the laws of Arbitra�on in India. It
has also harmonised the legal principles of Common Law and Civil Law by providing Concilia�on as a
mode of setlement of disputes. The Act of 1996 is based on Model Law which intends to bring about
global uniformity in the Arbitra�on Laws. The Model Law is close to the Rules of the Interna�onal
Chambers of Commerce (ICC).

The Act has four parts. First part deals with the Domes�c as well as Interna�onal Commercial
Arbitra�on taking place in India The second part is in respect of Foreign Awards falling within the
ambit of New York and Geneva Conven�ons rela�ng to their recogni�on and enforcement. The third
part covers hitherto unknown branch of Law of Concilia�on. It was foreign to Common Law
Jurisprudence but is well entrenched in the Civil law following na�ons and has been interna�onally
accepted form of Alterna�ve Dispute Resolu�on System. The fourth part contains supplementary
proceedings.
The Act has the following salient features :
(1) The introduc�on of Principle of waiver.

(2) Involvement of Chief Jus�ce in the process of appointment of

Arbitrator.
(3) Presiding Arbitrator replaces the Umpire.

(4) Arbitral Tribunal is empowered to decide the ques�on of jurisdic�on.

(5) Separa�on of arbitra�on clause from contract.
(6) The arbitral tribunal deciding challenge against its own competence.
(7) Role of Civil Court removed during the conduct of arbitral proceeding. The arbitral proceeding
cannot be challenged during its conduct.
(8) It is mandatory for Arbitral Tribunal to make speaking award.

(9) Arbitral Tribunal empowered to correct and interpret the award. The
Act has limited the powers of Court and enhanced those of Arbitrators.

(10) Limited grounds for se�ng aside of award. Error apparent on the face
of award no more a ground for se�ng aside of arbitral award.
(11) Introduc�on of setlement during the arbitral proceedings.

(12) The requirement of filing the award done away with and the same is
given status of decree.

On November 4, 2020, the Indian Government introduced the Arbitra�on and Concilia�on
(Amendment) Ordinance. On March 11, 2021, the ordinance was repealed and replaced by the
Arbitra�on Concilia�on Act (Amendment) of 2021
The 2021 Amendment in the Arbitra�on and Concilia�on Act 1996 is the third amendment to the
principal Act in the last six years. This reassures that the Indian legislature is upda�ng ADR
mechanisms to meet interna�onal standards.[8] The significant changes brought by this amendment
Act are:

1. The amendment allows an automa�c stay on enforcement of any arbitral awards if the
courts find any clear evidence that the award is influenced by fraud or corrup�on. This
change has been incorporated under Sec�on 36 of this Act using Sec�on 2 of the principal
Act.
2. Secondly, it omited the Eighth Schedule from the principal Act, which specified the
arbitrator’s qualifica�ons, experience, and norms to be followed.
2. Different kinds of ADR systems-Tribunals-Ombudsman- Arbitra�on- Concilia�on-Nego�a�on and
Media�on
The word “Alterna�ve Dispute Resolu�on” includes various nego�a�on mechanisms including, Lok
Adalats, Arbitra�on, Concilia�on, and Media�on in its fold.
Arbitra�on

• The dispute is submited to an arbitral tribunal which makes a decision (an "award") on the
dispute that is mostly binding on the par�es.
• It is less formal than a trial, and the rules of evidence are o�en relaxed.
• Generally, there is no right to appeal an arbitrator's decision.
• Except for some interim measures, there is very litle scope for judicial interven�on in the
arbitra�on process.
Concilia�on

• A non-binding procedure in which an impar�al third party, the conciliator, assists the
par�es to a dispute in reaching a mutually sa�sfactory agreed setlement of the dispute.
• Concilia�on is a less formal form of arbitra�on.
• The par�es are free to accept or reject the recommenda�ons of the conciliator.
• However, if both par�es accept the setlement document drawn by the conciliator, it shall
be final and binding on both.
Media�on

• In media�on, an impar�al person called a "Mediator" helps the par�es try to reach a
mutually acceptable resolu�on of the dispute.
• The mediator does not decide the dispute but helps the par�es communicate so they can
try to setle the dispute themselves.
• Media�on leaves control of the outcome with the par�es.

Nego�a�on

• A non-binding procedure in which discussions between the par�es are ini�ated without
the interven�on of any third party with the object of arriving at a nego�ated setlement to
the dispute.
• It is the most common method of Alterna�ve Dispute Resolu�on.
• Nego�a�on occurs in business, non-profit organiza�ons, government branches, legal
proceedings, among na�ons and in personal situa�ons such as marriage, divorce,
paren�ng, and everyday life.
Lok Adalat

• An interes�ng feature of the Indian legal system is the existence of voluntary agencies
called Lok Adalats (Peoples' Courts).
• The Legal Services Authori�es Act was passed in 1987 to encourage out-of-court
setlements, and
• the new Arbitra�on and Concilia�on Act was enacted in 1996.
• Lok Adalat or "People's Court" comprises an informal se�ng which facilitates
nego�a�ons in the presence of a judicial officer wherein cases are dispensed without
undue emphasis on legal technicali�es.
• The order of the Lok-Adalat is final and shall be deemed to be a decree of a civil court and
shall be binding on the par�es to the dispute.
 • The order of the Lok-Adalat is not appealable in a court of law

Nego�a�on Theory and Prac�ce

Nego�a�on theories may be prescrip�ve, descrip�ve, or norma�ve in nature. Addi�onally, theorists
and prac��oners from various disciplines have developed and u�lized a variety of approaches or
levels of analysis to improve their understanding of aspects of nego�a�ons. The resul�ng theories
are diverse, and frequently highlight features that reflect salient concerns from the perspec�ve of
the disciplines from which they came. The formal defini�ons of nego�a�on reflect the variety
characteris�c of the func�onal, conceptual, and disciplinary origins of the theories developed to
explain it.

While formal defini�ons of nego�a�on vary, theorists do accept certain basic tenets. Foremost
among them is the assump�on that par�es who nego�ate agree in at least one fundamental respect;
they share a belief that their respec�ve purposes will be beter served by entering into nego�a�on
with the other party.

There are five different levels of analysis, or core nego�a�on approaches. These are the structural,
the strategic, the processual (which we call “concession-exchange”), the behavioral and the
integra�ve approaches.

Structural approach

Structural approaches to nego�a�ons consider nego�ated outcomes to be a func�on of the

characteris�cs or structural features that define each nego�a�on. These characteris�cs may include
features such as the number of par�es and issues involved in the nego�a�on and the composi�on
(whether each side is monolithic or comprises many groups) or rela�ve power of the compe�ng
par�es.

Strategic approach
Strategic approaches to nego�a�on have roots in mathema�cs, decision theory and ra�onal choice
theory, and benefit from major contribu�ons from the area of economics, biology, and conflict
analysis. Whereas the structural approach focuses on the role of means (such as power) in
nego�a�ons, the emphasis in strategic models of nego�a�on is on the role of ends (goals) in
determining outcomes.
Behavioral approach
Behavioral approaches emphasize the role nego�ators’ personali�es or individual characteris�cs play
in determining the course and outcome of nego�ated agreements. Behavioral theories may explain
nego�a�ons as interac�ons between personality ‘types’ that o�en take the form of dichotomies.
Concession exchange (Processual) approach

Though concession exchange theories share features of both the structural approach (power) and
the strategic approach (outcomes), they describe a different kind of mechanism that centers on
learning. From the perspec�ve nego�a�ons consist of a series of concessions. The concessions mark
stages in nego�a�ons. They are used by par�es to both signal their own inten�ons and to encourage
movement in their opponent’s posi�on.

Integra�ve approach
Integra�ve approaches, in sharp contrast to distribu�ve approaches, frame nego�a�ons as
interac�ons with win-win poten�al. Integra�ve approaches emphasize problem solving, coopera�on,
joint decision- making and mutual gains, integra�ve strategies call for par�cipants to work jointly to
create win-win solu�ons.

Concilia�on-Concilia�on under the Arbitra�on and Concilia�on act 1996, Concilia�on under the
Industrial Disputes Act, Concilia�on under the Family Courts Act, Concilia�on in consumer disputes
Concilia�on under the Arbitra�on and Concilia�on act 1996

Sec�on 61 of the Arbitra�on and Concilia�on Act of 1996 provides for the Applica�on and Scope of
Concilia�on. Concilia�on extends, in the first place, to disputes, whether contractual or not. But the
disputes must arise out of the legal rela�onship. But Part III of the Act does not apply to such
disputes as cannot be submited to concilia�on by the virtue of any law for the �me being in force.

Sec�on 62 provides for the commencement of proceedings for concilia�on. For setling the dispute
through the process of concilia�on all what is required is a proposal in wri�ng and its acceptance
thereof. When a proposal is made by one party the other party has the op�on of the acceptance of
proposal or its rejec�on.
Sec�on 63 fixes the number of conciliators. There shall be one conciliator. But the par�es may by
their agreement provide for two or three conciliators. Where the number of conciliator is more than
one, they should as general rule act jointly.
Sec�on 64 deals with the appointment of the conciliators. When the invita�on to the concilia�on is
accepted by the other party, the par�es have to agree on the composi�on of the concilia�on
tribunal. In the absence of any agreement to the contrary, there shall be only one conciliator.
Principles of Procedure

1) Independence and impar�ality [Sec�on 67(1)]- The conciliator should be independent and
impar�al. He should assist the par�es in an independent and impar�al manner while he is
atemp�ng to reach an amicable setlement of their dispute.
2) Fairness and jus�ce [Sec�on 67(2)]- The conciliator should be guided by the principles of fairness
and jus�ce.
3) Confiden�ality [Sec�on 70]- The conciliator and the par�es are duly bound to keep confiden�al all
maters rela�ng to concilia�on proceedings.
4) Disclosure of the informa�on [Sec�on 70]- When the conciliator receives a informa�on about any
fact rela�ng to the dispute from a party , he should disclose the substance of that informa�on to the
other party.
5) Co-opera�on of the par�es with Conciliator [S. 71]- The par�es should in good faith cooperate
with the conciliator.

Procedure of concilia�on
1) Commencement of the concilia�on proceedings [Sec�on 62]- The concilia�on proceeding are
ini�ated by one party sending a writen invita�on to the other party to conciliate. The invita�on
should iden�fy the subject of the dispute. Concilia�on proceedings are commenced when the other
party accepts the invita�on to conciliate in wri�ng.
2) Submission of Statement to Conciliator [Sec�on 65] – The conciliator may request each party to
submit to him a brief writen statement. The statement should describe the general nature of the
dispute and the points at issue. Each party should send a copy of such statement to the other party.

3) Conduct of Concilia�on Proceedings[Sec�on 69(1),67(3)]- The conciliator may invite the par�es to
meet him. He may communicate with the par�es orally or in wri�ng. He may meet or communicate
with the par�es together or separately.
4) Administra�ve assistance - Sec�on 68 facilitates administra�ve assistance by a suitable ins�tu�on
or the person for the conduct of concilia�on proceedings.
Concilia�on under the Industrial Disputes Act
Sec�on 4 of Industrial Disputes Act, 1947 authorizes the appropriate government to engage such
number of persons as may be deemed necessary by no�fica�on in the Official Gazete as concilia�on
officers, for discharging the responsibility of media�ng in and promo�ng the setlement of industrial
disputes.
Sec�on 12 of Industrial Disputes Act, 1947 provides du�es of concilia�on officers.

The Concilia�on proceedings are concluded in the following manner:

Where concilia�on ended in setlement – the date on which setlement is signed by the par�es to
the disputes or
Where concilia�on ended in failure, the date on which the appropriate Govt receives the failure
report of a concilia�on officer. or
When a reference is made to a Labour Court/Industrial Tribunal during the pendency of
concilia�on proceedings.

In the case of non-setlement or failure of concilia�on, copies of failure report under Sec�on 12 (A)
of Industrial Disputes Act 1947 are required to be sent to the par�es to the dispute.

Concilia�on under the Family Courts Act

The Concilia�on method in alterna�ve dispute resolu�on will be very useful for resolving family
disputes. India has the Family Courts Act, 1984 through which we can resolve our Family Disputes
properly and sa�sfactorily using Concilia�on. Family courts try to resolve the dispute through
concilia�on and setlement. The Family Courts Act contains VI chapters deals in 23 sec�ons. Sec�on 9
contains the duty of the family court to make efforts for setlement.
1) In every suit or proceeding effort shall be made by the family court in the first instance, Where it is
possible to do to assist and persuade par�es to arrive at a setlement, with the nature and
circumstances of the case In rela�on to the subject mater of a suit or proceeding and for this
purpose a family court may be subject For any rule made by the High Court, such procedure must be
followed as it may see fit.
2)In family court, if any suit or proceeding at any stage appears then if there is a reasonable
possibility of a setlement between the par�es, the court may adjourn the proceedings for such a
period.

Enforcement of foreign awards.

Under the Arbitra�on and Concilia�on (Amendment) Act, 2015. There are two avenues available for
the enforcement of foreign awards in India, viz., the New York Conven�on and the Geneva
Conven�on, as the case may be.
Enforcement under the New York Conven�on

Sec�ons 44 to 52 of the Arbitra�on and Concilia�on (Amendment) Act, 2015 deals with foreign
awards passed under the New York Conven�on.
Sec�on 47 provides that the party applying for the enforcement of a foreign award shall, at the �me
of the applica�on, produce before the court (a) original award or a duly authen�cated copy thereof;
(b) original arbitra�on agreement or a duly cer�fied copy thereof; and (c) any evidence required to
establish that the award is a foreign award. As per the new Act, the applica�on for enforcement of a
foreign award will now only lie to High Court.
Once an applica�on for enforcement of a foreign award is made, the other party has the opportunity
to file an objec�on against enforcement on the grounds recognized under Sec�on 48 of the Act.
The Amendment Act has restricted the ambit of viola�on of public policy for interna�onal
commercial arbitra�on to only include those awards that are: (i) affected by fraud or corrup�on, (ii)
in contraven�on with the fundamental policy of Indian law, or (iii) conflict with the no�ons of
morality or jus�ce.

Enforcement under the Geneva Conven�on

Sec�ons 53-60 of the Arbitra�on and Concilia�on (Amendment) Act, 2015 contains provisions
rela�ng to foreign awards passed under the Geneva Conven�on.
Sec�on 56 provides that the party applying for the enforcement of a foreign award shall, at the �me
of the applica�on, produce before the court (a) original award or a duly authen�cated copy thereof;
(b) evidence proving that the award has become final and (c) evidence to prove that the award has
been made in pursuance of a submission to arbitra�on.
The condi�ons for enforcement of foreign awards under the Geneva Conven�on are provided under
Sec�on 57 of the Arbitra�on and Concilia�on Act, 1996. These are as follows:

a) the award has been made in pursuance of a submission to arbitra�on which is valid under
the law applicable thereto;
b) the subject-mater of the award is capable of setlement by arbitra�on under the law of
India;
c) the award has been made by the arbitral tribunal provided for in the submission to
arbitra�on or cons�tuted in the manner agreed upon by the par�es and in conformity with
the law governing the arbitra�on procedure;
 d) the award has become final in the country in which it has been made, in the sense that it
will not be considered as such if it is open to opposi�on or appeal or if it is proved that any
proceedings for the purpose of contes�ng the validity of the award are pending;
e) the enforcement of the award is not contrary to the public policy or the law of India.

The Amendment Act has restricted the ambit of viola�on of public policy for interna�onal
commercial arbitra�on to only include those awards that are: (i) affected by fraud or corrup�on, (ii)
in contraven�on with the fundamental policy of Indian law, or (iii) conflict with the no�ons of
morality or jus�ce.
Sec�on 58 provides that where the Court is sa�sfied that the foreign award is enforceable , the
award shall be deemed to be a decree of the Court.

6. Awards-Making of Arbitral awards-form and content of Awards

According to the defini�on given under Sec�on 2(c) it’s clear that the Arbitra�on and Concilia�on
Act, 1996 Act doesn’t provide a concrete defini�on of Arbitral awards. It solely affirms that arbitral
awards include interim awards too. However, the ul�mate call given by the arbitral tribunal [as per
Sec�on 2(d)] is the arbitral award.

Applicable Requirements for Enforcing Arbitral Awards In India

1. Sec�on 31 of the Arbitra�on and Concilia�on Act 1996 (the Arbitra�on Act) provides,'inter
alia, that an arbitral award shall be made in wri�ng and be signed by the members of the
arbitral tribunal.
2. Sec�on 33 of the Arbitra�on Act provides that a party, with no�ce to the other party, may
within 30 days of receipt of the arbitral award (unless another �me limit has been agreed by
the par�es) request the arbitral tribunal to correct any computa�on errors, any clerical or
typographical errors, or any other errors of a similar nature occurring in the award.

Form and contents of arbitral award—

An arbitral award shall be made in wri�ng and shall be signed by the members of the arbitral
tribunal.
For the purposes of sub-sec�on (1), in arbitral proceedings with more than one arbitrator, the
signatures of the majority of all the members of the arbitral tribunal shall be sufficient so long as the
reason for any omited signature is stated.

The arbitral award shall state the reasons upon which it is based, unless—

the par�es have agreed that no reasons are to be given, or

the award is an arbitral award on agreed terms under sec�on 30.

 The arbitral award shall state its date and the place of arbitra�on as determined in accordance
with sec�on 20 and the award shall be deemed to have been made at that place.

A�er the arbitral award is made, a signed copy shall be delivered to each party.

The arbitral tribunal may, at any �me during the arbitral proceedings, make an interim arbitral
award on any mater with respect to which it may make a final arbitral award.

Unless otherwise agreed by the par�es, where and in so far as an arbitral award is for the
payment of money, the arbitral tribunal may include in the sum for which the award is made interest,
at such rate as it deems reasonable, on the whole or any part of the money, for the whole or any part
of the period between the date on which the cause of ac�on arose and the date on which the award
is made.

A sum directed to be paid by an arbitral award shall, unless the award otherwise directs, carry
interest at the rate of eighteen per centum per annum from the date of the award to the date of
payment.

7. Media�on-Media�on principles and Prac�ce

Media�on is a process of consensual dispute resolu�on undertaken by par�es to a dispute. This
process is essen�ally a dialogue between ins�tu�ng par�es, in the presence of a neutral third party
called the mediator, with the aim of reaching a mutually agreeable and beneficial setlement of the
dispute. Such setlement arrived at, is a binding contract upon the par�es.
Core Principles of Media�on
Voluntariness of Par�es: Media�on process being voluntary is indica�ve of the willingness of the
par�es to collaborate and come up crea�ve and mutually beneficial solu�ons.
Mediator, a neutral third party: It is the role of the mediator, to facilitate a dialogue between the
willing par�es are required to maintain confiden�ality.

Party Autonomy: Par�es hold the final decision-making authority to their own disputes. There is no
pressure upon par�es to come up with a solu�on within a fixed �me frame, or to come up with any
solu�on at all.

Approach to Media�on in India

The first media�on training session was conducted in Ahmedabad in the year 2000 by the Ins�tute
for the Study and Development of Legal Systems. The Media�on and Concilia�on Project Commitee
was cons�tuted by the then Chief Jus�ce of India Hon'ble Jus�ce R C Laho� in the year 2005. The
project gave effect to Sec�on 89 of the Civil Procedure Code 1908. Many High Courts in India along
with State legal services authority is taking the ini�a�ve to establish Alterna�ve Dispute Resolu�on
Centres. One such instance can be seen with the se�ng up of the Kerala State Media�on and
Concilia�on Centre (KSMCC) in the districts of Kerala.
Various cases in the Supreme Court and High Courts have been referred for media�on. The
Consumer Protec�on Act 2019, Industrial Disputes Act 1947 and The Family courts Act 1984 has
provisions for media�on. The Commercial Courts, Commercial Division and Commercial Appellate
Division of High Courts (Amendment) Act 2018 act provides for pre-ins�tu�onal media�on. It is
mandatory for the par�es to complete the media�on process within three months from the date of
applica�on of the suit.

8. Access to Jus�ce- principles and prac�ce

Access to Jus�ce makes different sense to different people. In today’s world,” Access to jus�ce”
means having recourse to an affordable, quick, sa�sfactory setlement of disputes from a credible
forum. Access to Jus�ce is the basic human right that emerges from the Cons�tu�on and legal
statutes of a country. The Cons�tu�on Bench of the Supreme Court has held that access to Jus�ce is
a Fundamental Right guaranteed to ci�zens by Ar�cle 14 and Ar�cle 21 of the Cons�tu�on of India.

Essence of Access to Jus�ce

According to cons�tu�on Bench the following are the four main facets that cons�tute the essence of
access to jus�ce.
i. The need for adjudicatory mechanism: One of the most fundamental requirements for
providing to the ci�zens access to jus�ce is to set-up an adjudicatory mechanism whether
described as a Court, Tribunal, Commission or Authority or called by any other name
whatsoever, where a ci�zen can agitate his grievance and seek adjudica�on.
ii. The mechanism must be conveniently accessible in terms of distance: The
forum/mechanism so provided must, having regard to the hierarchy of courts/tribunals, be
reasonably accessible in terms of distance for access to jus�ce since so much depends upon
the ability of the li�gant to place his/her grievance effec�vely before the
court/tribunal/court/competent authority to grant such a relief.
iii. The process of adjudica�on must be speedy: “Access to jus�ce” as a cons�tu�onal value will
be a mere illusion if jus�ce is not speedy. Jus�ce delayed, it is famously said, is jus�ce
denied. If the process of administra�on of jus�ce is so �me consuming, laborious, indolent
and frustra�ng for those who seek jus�ce that it dissuades or deters them from even
considering resort to that process as an op�on.
iv. The process of adjudica�on must be affordable to the disputants: Access to jus�ce will
again be no more than an illusion if the adjudicatory mechanism provided is so expensive as
to deter a disputant from taking resort to the same. Ar�cle 39-A of the Cons�tu�on
promotes a laudable objec�ve of providing legal aid to needy li�gants and obliges the State
to make access to jus�ce affordable for the less fortunate sec�ons of the society.
Barriers in Access to Jus�ce

The different cons�tu�onal scheme has not seen the light of the day in prac�cal working. The
colonial hang-over is s�ll haun�ng our legal system insomuch so that we are s�ll following the
adversarial model of li�ga�on. Following this alien model has led to a lot of problems. Some of them
are enumerated.

• Cost barriers in the court system

 • Illiteracy
• Misconcep�on about the reliability and credibility of courts being unbiased and impar�al.
• High cost of legal advice and representa�on.
• Corrup�on in judiciary
• Long �me taking procedure.
• Unawareness
• Diminishing quality of legal educa�on

9. Equal jus�ce for all- Cons�tu�onal Provisions- Legal Aid Clinic and Para Legal
Volunteering ac�vi�es.

Ar�cle 39A which was given in Direc�ve Principles of State Policy of the Cons�tu�on of
India provides that the State shall secure that the opera�on of legal system promotes
jus�ce, on the basis of equal opportunity, and shall in par�cular, provide free legal aid, by
suitable legisla�on or schemes or in any other way, to ensure that opportuni�es for
securing jus�ce are not denied to any ci�zen by reason of economic or other disability.
Ar�cles 14 and 22(1) also make it obligatory for the State to ensure equality before law
and a legal system which promotes jus�ce based on equal opportunity to all.

Legal aid strives to ensure that cons�tu�onal pledge is fulfilled in its leter and spirit and
equal jus�ce is made available to the poor, downtrodden and weaker sec�ons of the
society. An effort was made in 1987 when Legal Service Authority Act was passed by the
legislature. As per this Act there is a provision of Legal Aid Commitee at Na�onal, State
and District level. The commitees are working in the field of providing jus�ce to all

Originally started to be a method of prac�cal teaching, legal aid clinics over the course of �me have
evolved to be an ethical free service to serve the poor and backward class. Legal aid clinics are law
school-based programs intended to make legal services and reliefs easily accessible to the poor and
backward people. The work of these clinics is not only restricted to providing free legal services, but
also extends to educa�ng people about legal rights, promo�ng legal services, spreading legal and
social awareness, etc. Students typically provide legal assistance to the clients, dra� legal documents,
do research on the mater in hand, some�mes also give oral argumenta�ons in the courts. However,
in India, the direct representa�on of clients by law students is restricted to the PIL cases only. In
India, legal aid clinics work under the aegis of the Na�onal Legal Services Authority which adopted a
scheme in 2010 called the Na�onal Legal Services Authority (Legal Aid Clinics) Scheme, 2010, to
provide legal services and assistance to the poor, marginalised and weaker sec�ons of the society as
categorised in Sec�on 12 the Legal Services Authori�es Act 1987 (Central Act).

Importance in India-
Ensure access to jus�ce-

Impart prac�cal knowledge to law students-

Help educate the people of their rights-
 10. Increasing importance and focus on ADR system in India

The system of dispensing jus�ce in India has come under great stress for several reasons mainly
because of the huge pendency of cases in courts. In India, the number of cases filed in the courts has
shown a tremendous increase in recent years resul�ng in pendency and delays underlining the need
for alterna�ve dispute resolu�on methods. There is no beter op�on but to strive to develop
alterna�ve modes of dispute resolu�on (ADR) by establishing facili�es for providing setlement of
disputes through arbitra�on, concilia�on, media�on and nego�a�on.

In India ADR is a mechanism which puts forward the cons�tu�onally enshrined principle of social,
economic, and poli�cal jus�ce. ADR is also embedded under Ar�cle 14 and Ar�cle 21 where it
explains equality and right to life and liberty. Indian judicial interpreta�ons roam around the validity
of court jurisdic�on and appointment of arbitrators and validity of award passed by such ADR
procedures. Sec�on 89 of CPC states that, courts should provide a fair opportunity for par�es to
decide the setlement a�er observing the circumstances, and a�er all those observa�ons a term of
setlement must be framed by such court.
The covid-19 pandemic has a sweeping effect on how ADR func�ons in India at present. ADR has
been poten�ally transformed into ODR (Online dispute resolu�on). ODR though a branch of ADR has
emerged as the most preferred mode of dispute resolu�on outside courts. Tradi�onally,
communica�on both verbal and non-verbal in dispute resolu�on has existed without technology and
required the physical presence of par�es in a pre-iden�fied, designated physical space. However, the
developments in ICT and increased access to the internet has brought into ques�on this assump�on
that effec�ve communica�on and thereby dispute resolu�on, necessarily requires physical
congrega�on.

The judiciary has been unequivocal in its support for ODR both in terms of judges vocally recognizing
its poten�al and in terms of the judicial decisions that have set the founda�on for future ODR
integra�on (such as the recogni�on of online arbitra�on or electronic records as evidence). The
Execu�ve, in the form of Government Departments and Ministries have also been leading the way.
For instance, the RBI released an ODR policy for digital payments, the MSME sector saw the
introduc�on of the SAMADHAAN portal and the Department of Legal Affairs is in the process of
colla�ng the details of ODR service providers across the country.

11. ADR as a Dispute Resolu�on Mechanism

The process by which disputes between the par�es are setled or brought to an amicable result
without the interven�on of Judicial Ins�tu�on and without any trail is known as Alterna�ve Dispute
Resolu�on (ADR.

• ADR offers to resolve all type of maters including civil, commercial, industrial and family etc.,
where people are not being able to start any type of nego�a�on and reach the setlement.
• Generally, ADR uses neutral third party who helps the par�es to communicate, discuss the
differences and resolve the dispute.
• It is a method which enables individuals and group to maintain co-opera�on, social order
and provides opportunity to reduce hos�lity.

Alterna�ve Dispute Resolu�on (ADR) Mechanisms

 ADR is a mechanism of dispute resolu�on that is non adversarial, i.e. working together co-
opera�vely to reach the best resolu�on for everyone.
ADR can be instrumental in reducing the burden of li�ga�on on courts, while delivering a well-
rounded and sa�sfying experience for the par�es involved.
It provides the opportunity to "expand the pie" through crea�ve, collabora�ve bargaining, and
fulfill the interests driving their demands.
Arbitra�on, Concilia�on, Media�on, Nego�a�on, Lok Adalat are different types of Alternate Dispute
Resolu�on

Advantages of Alterna�ve Dispute Resolu�on

Less Time Consuming: people resolve their dispute in short period as compared to courts
Cost effec�ve method: it saves lot of money if one undergoes in li�ga�on process.
It is free from technicali�es of courts; here informal ways are applied in resolving dispute.
People are free to express themselves without any fear of court of law. They can reveal the true
facts without disclosing it to any court.

Efficient way: there are always chances of restoring rela�onship back as par�es discuss their issues
together on the same pla�orm.

It prevents further conflict and maintains good rela�onship between the par�es.
It preserves the best interest of the par�es.

12. Peace Making Objec�ves of ADR, Rule of Law Objec�ves of ADR, Developmental
Objec�ves of ADR , Ethics for mediators, arbitrators and other ADR prac��oners.

Peace Making Objec�ves of ADR

The peace-making objec�ves of Alterna�ve Dispute Resolu�on (ADR) are:

Improving communica�on: ADR promotes open communica�on between par�es in dispute.

Preserving rela�onships: Unlike li�ga�on, which can o�en result in a complete breakdown of
rela�onships, ADR aims to preserve rela�onships between the par�es involved.
Ensuring confiden�ality: ADR proceedings are usually confiden�al, which means that the par�es
can speak openly without fear that their words will be used against them in future proceedings.

Reducing costs: ADR is generally less costly than li�ga�on.

Providing crea�ve solu�ons: ADR allows par�es to be flexible and crea�ve in finding solu�ons to
their disputes.

Overall, the peace-making objec�ves of ADR are designed to help par�es to reach mutually
acceptable resolu�ons to their disputes without the acrimony and expense of protracted li�ga�on.
Rule of Law Objec�ves of ADR

The rule of law objectives of Alternative Dispute Resolution (ADR) are:

 1. Access to justice: ADR provides a means for disputing parties to achieve justice without
necessarily having to go through the courts.
2. Efficiency: ADR is generally more efficient than traditional litigation.
3. Neutrality and impartiality: The success of ADR often depends on the neutrality and
impartiality of the mediator or arbitrator.
4. Enforcing agreements: ADR is binding and enforceable by law. This means that once an
agreement is reached, it has the same force and effect as a court judgment.
5. Preserving legal principles: ADR upholds key legal principles such as contractual freedom
and the sanctity of property rights.

Overall, the rule of law objectives of ADR support and enhance the principles of justice,
fairness, and equity. By ensuring access to justice, efficiency, neutrality and impartiality,
enforceability, and adherence to legal principles, ADR helps to uphold the rule of law and
promote a just and fair society.

Developmental Objectives of ADR

The developmental objectives of Alternative Dispute Resolution (ADR) are:

1. Capacity-building: ADR provides an opportunity for individuals and organizations to develop

their capacity to resolve disputes effectively.
2. Local ownership: ADR promotes local ownership of dispute resolution processes.
3. Collaboration: ADR emphasizes collaboration and mutual benefit over adversarial
approaches to dispute resolution.
4. Inclusive participation: ADR promotes inclusive participation in dispute resolution processes
by providing opportunities for marginalized and vulnerable groups to have their voices
heard.
5. Conflict prevention: ADR can serve as a valuable tool for conflict prevention by identifying
and addressing disputes early, before they escalate into more serious conflicts.

Overall, the developmental objectives of ADR support sustainable development by

promoting capacity-building, local ownership, collaboration, inclusive participation, and
conflict prevention. These objectives help to build stronger and more resilient communities
that are better able to address disputes and conflicts in a constructive and peaceful manner.

Ethics for mediators, arbitrators and other ADR practitioners

Ethics are an essen�al aspect of Alterna�ve Dispute Resolu�on (ADR) prac�ce as it defines the
professional responsibility of mediators, arbitrators and other ADR prac��oners. The following are
some of the ethics that ADR prac��oners need to uphold:

Impar�ality and Fairness: It is cri�cal for ADR prac��oners to be impar�al and neutral to all
par�es involved in a dispute.

Confiden�ality: ADR prac��oners should maintain confiden�ality regarding the dispute and any
informa�on presented during the process.
Informed Consent: ADR prac��oners should obtain informed consent from all par�es before
ini�a�ng the dispute resolu�on process.

Competence: ADR prac��oners should have the required knowledge, exper�se, and competence
to provide dispute resolu�on services.
 Integrity: ADR prac��oners should conduct themselves with integrity and maintain high ethical
standards at all �mes.
Professionalism: ADR prac��oners should maintain professional conduct and ensure that their
ac�ons do not undermine the integrity of the ADR process.
Conflict of Interest: ADR prac��oners should avoid any conduct or behavior that may give rise to a
conflict of interest.
In conclusion, upholding ethical values is essen�al for a successful ADR prac�ce. ADR prac��oners
should maintain impar�ality, confiden�ality, informed consent, competence, integrity,
professionalism and ensure that there is no conflict of interest. These ethics ensure a fair, equitable
and consensual dispute resolu�on process.

Disputes which can/ cannot be referred to ADR

Alterna�ve Dispute Resolu�on (ADR) refers to any process that is used to resolve a dispute, other
than conven�onal li�ga�on in court. ADR methods include nego�a�on, media�on, arbitra�on, and
concilia�on. There are some disputes that can be referred to ADR, while others cannot. Below are
examples of disputes that can and cannot be referred to ADR.

Disputes that can be referred to ADR:

Contractual disputes: These are disputes that arise due to a breach of a contract, and they can be
referred to ADR methods such as arbitra�on, media�on or concilia�on.

Workplace disputes: This refers to disagreements that arise between employees and employers or
among employees. They can be resolved through ADR methods such as media�on or concilia�on.

Insurance disputes: Insurance-related disputes, such as claim disputes, can be resolved through
ADR methods such as arbitra�on or media�on, as long as the relevant clauses in the insurance policy
allow for it.

Landlord and tenant disputes: Disagreements between landlords and tenants about tenancy
agreements, property damage, or unpaid rent can be resolved through ADR methods such as
media�on or concilia�on.

Consumer disputes: These disputes arise between consumers and service providers or product
manufacturers. They can be resolved through ADR methods such as media�on, concilia�on, or
arbitra�on.
Disputes that cannot be referred to ADR:

Criminal cases: Criminal cases are not suitable for ADR methods due to their severity and the fact
that they involve viola�ons of the law. These cases are handled through criminal jus�ce systems,
which are more formal.

Family maters: In many jurisdic�ons, family law maters such as divorce, child custody or adop�on
cannot be referred to ADR methods. There are specific family courts and laws that regulate the
handling of such disputes.

Maters of public policy: Disputes related to public policy issues, such as environmental protec�on,
civil rights, or cons�tu�onal law are typically heard in courts, and ADR methods are not suitable.

Personal injury claims: Claimants who have sustained injuries or losses due to accidents, medical
malprac�ce, or negligence cannot have their disputes resolved through ADR methods. Such cases are
typically dealt with through the legal system.

In conclusion, there are various disputes that can be referred to ADR methods, while others cannot.
In general, disputes involving contractual issues, workplace disputes, insurance claims, landlord-
tenant disputes, and consumer disputes have the poten�al to be resolved through ADR. However,
criminal cases, family law maters, disputes related to public policy issues, and personal injury claims
cannot be resolved through ADR.

Grounds for the challenge of ADR proceedings

Although ADR proceedings are meant to be fair and impar�al, there are instances where par�es may
challenge the proceedings. Below are some of the grounds for the challenge of ADR proceedings:
Lack of impar�ality: One of the primary reasons for the challenge of ADR proceedings is the lack of
impar�ality of the mediator or arbitrator. ADR proceedings need to be conducted by impar�al and
unbiased individuals. If one party feels that the mediator or arbitrator is not impar�al, they may
challenge the proceedings.

Procedural irregulari�es: The par�es have agreed to follow specific procedures when dealing with
ADR proceedings. Any devia�on from these procedures may result in one or both par�es challenging
the proceedings. For instance, if one party is not given an opportunity to present their case, the
proceedings may be challenged.

Jurisdic�onal issues: ADR proceedings need to be conducted in the right jurisdic�on. The
jurisdic�on may be determined by the law governing the dispute or the par�es' agreement. If the
jurisdic�on is not correct, one party may challenge the proceedings.
 Lack of authority: A mediator or arbitrator may lack the necessary authority to make a decision on
a par�cular dispute. In such cases, the par�es may challenge the proceedings.
Failure to disclose informa�on: The mediator or arbitrator has an obliga�on to disclose any
informa�on that may affect their impar�ality. Failure to disclose such informa�on may lead to one
party challenging the proceedings.

Fraud or corrup�on: ADR proceedings may be challenged if there is evidence of fraud or

corrup�on. Fraud or corrup�on may occur if one of the par�es has tampered with the evidence or
unduly influenced the mediator or arbitrator.

15. Principles and relevant provisions in Legal Service Authori�es Act 1987

The Legal Services Authori�es Act, 1987, was enacted by the Central Government of India pursuant
to Ar�cle 39-A of the Cons�tu�on of India and the recommenda�ons of its commitees. Act provides
for the establishment of legal services authori�es to provide free and competent legal services to the
weaker sec�ons of society.
Some of the principles and relevant provisions of the Act are as follows:

Establishment of Legal Services Authori�es: The Act provides for the establishment of legal
services authori�es at the na�onal (Sec�on 4) , state (Sec�on 6), and district levels to provide legal
aid to the weaker sec�ons of society.

Defini�on of Legal Services (Sec�on 2c): Legal services under the Act includes the rendering of any
service in the conduct of any case or other legal proceeding before any court, tribunal, or other
authority.

Free Legal Services: The Act provides for free legal services to the eligible persons, who are unable
to afford the services of a lawyer for the conduct of any case or legal proceeding.

Eligibility Criteria: The Act lays down the criteria for determining the eligibility of a person for free
legal services. This includes persons who belong to the economically weaker sec�ons of society,
women, children, persons with disabili�es, and vic�ms of trafficking and exploita�on.

Lok Adalats: Sec�on 19 of the Act provides for the establishment of Lok Adalats, which are
alterna�ve dispute resolu�on mechanisms to provide speedy and amicable resolu�on of disputes.

Legal Aid Clinics: The Act provides for the establishment of legal aid clinics to provide legal aid and
assistance to the people living in rural and remote areas.
 Funding of Legal Services Authori�es: The Act provides for the funding of legal services authori�es
by the central and state governments, as well as by grants and dona�ons from other sources.

Duty of State Governments: The Act imposes a duty on state governments to promote legal
literacy and awareness among the people and to organize legal aid camps and lok adalats.

Penalty for non-compliance: The Act provides for penal�es for non-compliance with its provisions,
including imprisonment and fines.

The Legal Services Authori�es Act, 1987 aims to ensure that the weaker sec�ons of society have
access to legal services and jus�ce, and to promote legal awareness and literacy among the people.

16. Lok Adalat and Permanent Lok Adalat

Lok Adalat and Permanent Lok Adalat are two alterna�ve dispute resolu�on mechanisms established
under the Legal Services Authori�es Act, 1987 in India.

Lok Adalat:
Lok Adalat is a Statutory Organiza�on under the Legal Services Authori�es Act, 1987 (Sec�on 19),
and was created as an alterna�ve dispute resolu�on mechanism used in India to resolve
disputes/grievances outside courts. It is a non-adversarial system where disputes are setled
amicably, with the help of concilia�on and compromise. Lok Adalats come under Na�onal Legal
Services Authority and the respec�ve State Legal Services Authority. Lok Adalats are held at the
na�onal, state, and district levels, and are presided over by a re�red judge or a si�ng judicial officer,
along with two other members. The Lok Adalat can setle disputes rela�ng to civil, criminal
(compoundable), and revenue maters. The decision of the Lok Adalat is final and binding on the
par�es, and no appeal is allowed against it.
Types of Lok Adalat:
Permanent Lok Adalat
Na�onal Lok Adalat
Mega Lok Adalat

Mobile Lok Adalats

Permanent Lok Adalat:

A Permanent Lok Adalat is a forum for the setlement of disputes related to public u�lity services. It
is a permanent body that is set up by the state government, and it has jurisdic�on over disputes
rela�ng to public u�lity services such as transport, postal and telegraph, insurance, and banking. The
Permanent Lok Adalat consists of a chairman, who is a re�red judge of the High Court, along with
two other members. The decision of the Permanent Lok Adalat is also final and binding on the
par�es, and no appeal is allowed against it.
Difference between Lok Adalat and Permanent Lok Adalat
1. Permanent Lok-Adalat is permanent in nature. But Lok-Adalat is temporary in nature.
2. Any Party to a dispute may make an applica�on to the Permanent Lok-Adalat for setlement
of the dispute before the dispute is brought before any Court. But in Lok-Adalat, there is no
such Condi�on like Permanent Adalat.
Permanent Lok Adalat proposed to work on all working day of courts. But Lok Adalat held on
saturdays and Sunday.
Permanent Lok Adalat have jurisdic�on over pre-li�ga�on maters only But Lok Adalat have
jurisdic�on over pending and pre-li�ga�on maters.

Both Lok Adalat and Permanent Lok Adalat are based on the principles of concilia�on, compromise,
and mutual setlement. They provide a quick and cost-effec�ve way of setling disputes without
going through the formal court system, thereby reducing the burden on the courts. Addi�onally, they
also help in reducing the backlog of cases in the courts, by setling disputes at an early stage.

17. Gram Nyayalayas

The Law Commission of India, in its 114 th Report, had suggested establishment of Gram
Nyayalayas for providing affordable and quick access to jus�ce to the ci�zens at their doorsteps.
The Gram Nyayalayas Bill was passed by the Parliament on 22nd December 2008 and the Gram
Nyayalayas Act came into force with effect from 02nd October 2009.

Gram Nyayalayas are a type of village court established in India under the Gram Nyayalayas Act,
2008. The purpose of these courts is to provide easy access to jus�ce for people living in rural and
remote areas who do not have access to the formal jus�ce system.

The Gram Nyayalayas are designed to be low-cost, informal, and more accessible to the common
people. These courts are presided over by a trained judge who is a local resident, and the
proceedings are conducted in the local language. The jurisdic�on of these courts is limited to civil
and criminal cases, including disputes related to land, water, and agriculture.

One of the key features of Gram Nyayalayas is that they are empowered to use alterna�ve dispute
resolu�on methods such as media�on, concilia�on, and arbitra�on to resolve disputes. This is aimed
at reducing the burden on the formal jus�ce system and promo�ng a culture of peaceful resolu�on
of disputes. At the �me of dra�ing the proposal for Gram Nyayalayas, it was envisaged that Gram
Nyayalayas would be set up in the country at the intermediate panchayat level.
Overall, the establishment of Gram Nyayalayas is seen as a posi�ve step towards providing access to
jus�ce for marginalized communi�es in rural areas of India.
18. Case laws- Five recent Supreme Court/ High Court judgments rela�ng to ADR

1. MUTHA CONSTRUCTION Vs. STRATEGIC BRAND SOLUTIONS (I) PVT. LTD. 2022

A Court ac�ng under Sec�on 34 of the Arbitra�on Act can remand the mater to the arbitrator
for fresh decision only if both the par�es consented to the same.
In Mutha Construc�on v. Strategic Brand Solu�ons (I) Pvt. Ltd., the Supreme Court discussed
about the circumstances in which a mater may be remited to an arbitrator for a fresh decision.
The Supreme Court opined that when an arbitral award is set aside under Sec�on 34 of the
Arbitra�on Act, the par�es to arbitra�on can agree for a fresh arbitra�on to be conducted by the
same arbitrator. In such cases the Court ac�ng in Sec�on 34 proceedings would be empowered
to remit the mater for a fresh reasoned award. Further, the Supreme Court also clarified that
when both par�es agree to remit the mater back to the same arbitrator for a reasoned award, it
is not open to either of them to contend that the mater may not be or ought not to have been
remanded to the same arbitrator.

2. TANTIA CONSTRUCTIONS Vs. UNION OF INDIA, 2022

There cannot be two arbitra�on proceedings concerning the same contract/ transac�on.

In Tan�a Construc�ons v. Union of India, the Supreme Court observed that it was of the firm
opinion that there cannot be two arbitra�on proceedings with respect to the same contract/
transac�on. In this case, it was not a contested posi�on that earlier, a dispute was referred to
arbitra�on, and the arbitrator passed an award on the claims that were made by the respec�ve
par�es. Therea�er, a fresh arbitra�on proceeding was sought to be ini�ated by one of the par�es,
and an applica�on under Sec�on 11 of the Arbitra�on Act was filed before the High Court of
Calcuta ("High Court") with respect to some addi�onal claim amounts. The High Court rejected
the Sec�on 11 applica�on and refused to refer the mater to arbitra�on. In this regard, the
Supreme Court held that it was in complete agreement with the view taken by the High Court.

3. ELLORA PAPER MILLS LTD. Vs. STATE OF MADHYA PRADESH (2022)

An arbitral tribunal cons�tuted before the 2015 amendment to the Arbitra�on and Concilia�on
Act 1996 will lose its mandate if it violates the neutrality clause under Sec�on 12(5) read with
the Seventh Schedule.
In Ellora Paper Mills Ltd. v. State of Madhya Pradesh, the Supreme Court discussed about the
impact of the introduc�on of Sec�on 12(5) and the Seventh Schedule, which were incorporated
in the Arbitra�on Act through the 2015 amendment. The Supreme Court relied on the decision in
Jaipur Zila Dugdh Utpadak Sahkari Sangh Limited and TRF Ltd. to observe that if the arbitrator falls
in any one of the categories specified in the Seventh Schedule, he becomes ineligible to act or
con�nue to act as an arbitrator. Further, the Supreme Court observed that where a person
becomes ineligible to be appointed as an arbitrator there is no ques�on of challenge to such
arbitrator as the arbitrator becomes ineligible to perform his func�ons under Sec�on 12(5) as a
mater of law (i.e., de jure). In such cases, the mandate of the arbitrator automa�cally terminates,
and another arbitrator shall then subs�tute him/her.
4. BBR (INDIA) PVT. LTD. Vs. S.P. SINGLA CONSTRUCTIONS (2022)
The appointment of a new arbitrator who holds the arbitra�on proceedings at a different
loca�on would not change the jurisdic�onal 'seat' already fixed by the earlier or first arbitrator.
In this case the Supreme Court observed that the seat of arbitra�on would not be changed merely
because a new arbitrator holds arbitra�on proceedings at a different place than the respec�ve
predecessor. It is highly desirable in commercial maters that there should be certainty as to the
Court that should exercise jurisdic�on. It was further observed that there are good reasons as to
why the subsequent hearings or proceedings at a different loca�on other than the place fixed by
the arbitrator as the seat of arbitra�on should not be regarded and treated as a change or
reloca�on of the jurisdic�onal seat. This would, in the Supreme Court's opinion, lead to
uncertainty and confusion resul�ng in avoidable esoteric and herme�c li�ga�on as to the
jurisdic�onal seat of arbitra�on. Thus, the seat once fixed by the arbitral tribunal under Sec�on
20(2), should remain sta�c and fixed, whereas the venue of arbitra�on can change and move from
the seat to a new loca�on.
5. INDIAN OIL CORPORATION LTD. Vs. M/S SHREE GANESH PETROLEUM RAJGURUNAGAR (2022)
An arbitral award would atract patently illegality if the arbitrator fails to act in terms of the
contract or ignores the specific terms of a contract.
The Supreme Court discussed about some instances in which the ground of patent illegality under
Sec�on 34 of the Arbitra�on Act would vi�ate the award. The Supreme Court, relying on its
decisions in PSA Sical Terminals Pvt. Ltd.[3] and SSangyong Engineering, observed that an arbitral
tribunal is a creature of the contract and, therefore, bound to act in terms of the contract under
which it is cons�tuted. When an arbitral tribunal fails to act in terms of the contract or ignores
the specific terms of a contract, the award rendered would be vi�ated by patent illegality.

As regards the scope and powers of a Court ac�ng under Sec�on 34, it was observed that a Court
did not sit in appeal over the award in proceedings ini�ated under Sec�on 34 of the Arbitra�on
Act. Further, the Courts typically would not interfere with a plausible interpreta�on of the
arbitra�on unless such interpreta�on is patently unreasonable and perverse.

19. Report of Lok Adalat Visit [Two days report]

First Case

The case following is based on a visit I made to the District Legal Services Authority, Kozhikode as
part of ADR prac�cal ac�vity.
Venue: Hall of District Legal Services Authority, Kozhikode

Judge (Mediator): Sreenarayanan Unni .P.T

Date: 17 /03/23
Atended & Observed Case: Baiju Kumar V. Abdul Kadir
Pe��oner: Baiju Kumar

Asha villa
Kozhikode
Respondent : Abdul Kadir
M N Manzil

Kozhikode ,
Facts:
Baiju Kumar the pe��oner has been using Abdul Kadir's (Respondent) two-commercial room
building for the past 12 years on rent, and he uses this for his two-wheeler repair shop. Abdul
Kadir now wants Baiju to vacate since his younger son wants to start a new business at the same
two commercial room building. Baiju Kumar does not want to leave the place since he has been
unable to find another building where he could con�nue his business and has filed a lawsuit . The
case was referred to media�on by the court.

Proceedings:
Both sides showed up in front of the mediator, who first explained the media�on procedure and
its advantages.

Then discussion of the mater/issue has begun, With the mediator's �mely advice, the par�es
con�nued to listen to one another. Separate one-on-one mee�ngs of the par�es with the
mediator also too place where the mediator explained how beneficial it would be for them to
reach an agreement.

Award:
The concern for Baiju kumar is that he was unable to locate a suitable shop for rent. Abdul Kadir,
the respondent then suggested that he will find Baiju Kumar a suitable shop. Baiju the pe��oner
conceded and agreed to leave the shop and agreed to pay the rent which was due since October
2022.

Second Case
A Banking Cases Adalat was held by the District Legal Services Authority of Kozhikode in the
Kozhikode Government Law College Auditorium. I have got the opportunity to observe below
case.
Venue: Auditorium Govt. Law college Kozhikode

Judge(Arbitrator): Shyjal M.P

Date: 23 /03/23
Case: Kerala Gramin Bank v K. Sasi

Pe��oner: Kerala Gramin Bank (Represented by Regional Manager)

Karapparambu

Kozhikode
Respondent : K Sasi
Kozhikode ,
 Facts :
The respondent Sasi borrowed Rs. 30,000 from Kerala Gramin Bank in 2010 for his daughter's
educa�on purpose (TTC course), but up un�l this �me, he has made no payments against the
principal or interest.
With interest added, the total amount is Rs. 133,000 now, and the Bank started recovery
proceedings. Sasi a cancer pa�ent with no source of income, is unable to pay the amount. His
daughter is unemployed as well.
Proceedings:
The arbitrator began the arbitra�on process by detailing the procedures to both par�es. The
arbitrator aten�vely listened to both par�es. The arbitrator reached a setlement amount of
36,000 a�er extensive discussions with bank representa�ves. Respondent Sasi accepted the
amount but requested that it be paid in four installments, to which the bank agreed.

Award:
The par�es reached an agreement on the total amount to be paid, which is 40,000, which the
respondent can pay in four installments and finish by June 2023.

20. Role- play script [5 scripts]

Family Dispute: Repayment of money and Custody and Maintenance of child

Characters:

Suresh: Husband
Anita: Wife (Pe��oner)

Counsel for Pe��oner

Counsel for Respondent
Judicial Member: Good morning, everyone. We're here to discuss the issue of repayment of money
and custody and maintenance of Karthik. Suresh and Anita, please state your case.
Anita: Your Honor, Suresh owes me a 30 lakh in money and 25 sovereigns of gold . He borrowed it
from me for his business, but now he refuses to pay me back. I have been struggling financially
because of this, and I need the money to take care of Karthik.
Suresh: Your Honor, I did borrow the money from Anita, but I lost everything in my business. I don't
have the money to pay her back right now.

Counsel for Pe��oner: You are currently making a decent profit from your business.
Counsel for Respondent: Your Honor. As my client already men�oned the business is in loss
Judicial Member: Suresh, we must find a solu�on. How to pay off the debt you owe?

Suresh : I will pay the amount in instalments within a period of 10 months and 25 sovereigns of gold
before the end of 10th month.
Judicial Member : Hope Anita will Agree?
Counsel for Pe��oner : Yes
Judicial Member: Now, let's move on to custody and maintenance. Anita, what are your requests
regarding custody and maintenance?

Anita: Your Honor, I believe that I should have full custody of Karthik. Suresh has not been involved in
his life for a long �me, and I am the primary caregiver. As for maintenance, I request that Suresh pay
13,000 monthly for Karthik's expenses, including educa�on, healthcare, and daily needs.
Suresh: Your Honor, I would like joint custody of Karthik. I want to be a part of his life. As for
maintenance, I am willing to pay 10000 for his expenses.

Counsel for Pe��oner: That we cannot agree.

Judicial Member: Suresh, I appreciate your efforts to be a part of Karthik's life, but I believe that you
need to prove yourself as a responsible parent. Anita, you have been the primary caregiver, and I'm
sure that you will con�nue to provide a stable and nurturing environment for Karthik. Also, Anita is
not okay with 10,000 and ready to agree for 13,000 per month against Karthik’s expenses.
Counsel for Respondent: your honor, we agree with your sugges�on.

Judicial Member: Thank you for your coopera�on. Is Karthik Present?

Counsel for Pe��oner: No, He is atending classes.

Judicial Member: I see. Well, in that case, I'm going to order handover temporary custody of the child
named Karthik, Son of pe��oner and respondent, aged 8 years to the pe��oner. Suresh can visit the
child on weekends and holidays .

As for maintenance, I'm going to order Suresh to pay monthly maintenance amoun�ng to Rs.13000
to Karthik's expenses.
Suresh and Anita, I'm going to schedule a follow-up hearing in six months to re-evaluate the custody
arrangement and maintenance payments. Thank you all for your �me.

2. Case: Workers' dispute

Presiding Officer: Welcome to the Adalat. Today, we will be hearing a case regarding a workers'
dispute. Can the par�es involved please introduce themselves?

Party 1: My name is Shahbaz and I am the manager of the produc�on department at ABC
Manufacturing.

Party 2: My name is Sethu and I am a worker in the produc�on department.

Presiding Officer: Thank you. Sethu, can you explain the nature of the dispute?
Sethu: Yes, Your Honor. We have been facing a lot of issues with our working condi�ons and salaries.
We are reques�ng that the company take ac�on to address these issues.

Shahbaz: Your Honor, we are willing to listen to the workers' grievances and take appropriate ac�on
to address their concerns.

Presiding Officer: Thank you. Based on the evidence presented, it appears that there is a workers'
dispute. I will now ask both par�es to discuss and nego�ate a resolu�on to this issue.

(Both par�es discuss and nego�ate a resolu�on)

Presiding Officer: Thank you for coming to a resolu�on. Shahbaz and Sethu, please sign the
agreement that you have reached. This Adalat session is now concluded.

(End of role play)

3. Case: Parking dispute

Presiding Officer: Welcome to the Adalat. Today, we will be hearing a case regarding a parking
dispute. Can the par�es involved please introduce themselves?

Party 1: My name is Rasna and I am the owner of a flat in this building.

Party 2: My name is Rahul and I am the owner of a car that has been parked in front of Arjun's flat.

Presiding Officer: Thank you. Rasna, can you explain the nature of the dispute?

Rasna: Yes, Your Honor. Rahul has been parking his car in front of my flat, which is causing
inconvenience to me and my family.

Rahul: Your Honor, I understand Rasna's concern but I have been parking my car in that spot for years
and it is a convenient loca�on for me.
Presiding Officer: Thank you. Based on the evidence presented, it appears that there is a parking
dispute. I will now ask both par�es to discuss and nego�ate a resolu�on to this issue.

(Both par�es discuss and nego�ate a resolu�on)

Presiding Officer: Thank you for coming to a resolu�on. Rasna and Rahul, please sign the agreement
that you have reached. This Adalat session is now concluded.

(End of role play)

4. Case: Co-workers dispute

Presiding Officer: Welcome to the Adalat. Today, we will be hearing a case regarding a co-worker’s
dispute. Can the par�es involved please introduce themselves?

Party 1: My name is Rizvana and I work in the sales department at ABC Company.

Party 2: My name is Revathy and I also work in the sales department.

Presiding Officer: Thank you. Rizvana, can you explain the nature of the dispute?

Rizvana: Yes, Your Honor. Revathy and I have been having conflicts over the way we work and we are
unable to work together effec�vely.

Revathy: Your Honor, I believe that Rizvana has been undermining my work and has not been
coopera�ve in our joint projects.
Presiding officer: Rizvana, is there a way that you can give Revathy’s ideas a chance and consider
them more?
Rizvana: Yes, I can try to be more open-minded and give Revathys's ideas a chance.

Presiding officer: It seems like we've found a solu�on.

Presiding Officer: Thank you for coming to a resolu�on. Rizvana and Revathy, please sign the
agreement that you have reached. This Adalat session is now concluded.
(End of role play)

4. Case: Loan repayment dispute

Presiding Officer: Welcome to the Adalat. Today, we will be hearing a case regarding a loan
repayment dispute. Can the par�es involved please introduce themselves?

Party 1: My name is Manu , Banak Manger , the lender who gave the loan.

Party 2: My name is Malavika and I am the borrower who took the loan.

Presiding Officer: Thank you. Malavika, can you explain the nature of the dispute?

Malavika: Yes, Your Honor. I have been facing financial difficul�es and have been unable to make the
loan payments on �me. I am reques�ng a new repayment plan.

Manu: Your Honor, I understand Malavika's situa�on and am willing to work with her to come up
with a new repayment plan that is feasible for her.

Presiding Officer: Thank you. Based on the evidence presented, it appears that there is a loan
repayment dispute. I will now ask both par�es to discuss and nego�ate a new repayment plan that is
acceptable to both par�es.

(Both par�es discuss and nego�ate a new repayment plan)

Presiding Officer: Thank you for coming to an agreement. Manu and Malavika, please sign the new
loan repayment agreement. This Adalat session is now concluded.

(End of role play)