UNIT 1

Meaning
 ADR is a wonderful measure to help reduce the litigation burden from courts.

 Alternate dispute Resolution (ADR) can be termed as substitute of the traditional methods of
dispute resolution such as litigation. It is a movement for evolving positive approach and
attitude towards dispute resolution. Thus ADR means and include:

 ADR is a process for settlement of disputes without litigation by various methods such as
arbitration, mediation , negotitation, conciliation, etc

1. It is an alternate to long established litigation method.

2. It includes mechanisms and strategies for resolving disputes apart from
typical practice of litigation.
3. It is a non-judicial process.
4. It is not an alternate to traditional method in restrictive sense.

The Supreme Court of India in Salem Bar Association vs. Union of India ((2005) 6 SCC 344), has
requested prepare model rules for Alternative Dispute Resolution and also draft rules of mediation
under section 89(2)(d) of Code of Civil Procedure, 1908.

Nature
• A.D.R. provides for amicable settlement of disputes.
• Speedy disposal of the disputes
• ADR is a recognized method and has been incorporated in various statutes. For instance, Section 23
of the Hindu Marriage Act, 1955.
• International Commercial Disputes
• Resolution of all forms of dispute
• Evade(Ignore) scope of future litigation
• Inexpensive method for disposal

GENESIS/ DEVELOPMENT OF A.D.R

 Alternate Dispute Resolution originated in the United States of America

 In the early village systems, the dispute was settled by the elders and senior-most members of
the village community.
  The early treaty of the arbitration was Bhradarnayaka Upanishad which consisted of various
classes arbitral bodies prevalent in the Vedic period.

 Alternate dispute resolution gained immense importance during the Mughal regime when the
Muslim laws were incorporated in Indian culture. The laws of Muslimstitled as Hedaya which
contained provisions relating to arbitration

 On the advent of the Britishers in India the alternate dispute resolution diminished.

 But the formal legal system was time-consuming and expensive. So people again started
adopting the A.D.R. methods and it again picked up the pace.

 The British Government promulgated the Bengal Resolution Act, 1722 which had the
provision of referring the dispute to an arbitrator. Later on, the Code of Civil Procedure was
promulgated by the British Government which also had provisions regarding A.D.R.

 Post-Independence when a formal judicial system was established it was observed that the
pendency of cases is increasing day by day and then the present judicial system is incapable
of handling the immense workload.

 Justice Malimath Committee (1989) undertook a comprehensive review of the working of the
court system and made observations on the delay in deciding of the case and made
recommendations for reducing litigation and making justice steadily available to the people.
The committee underlined the concepts of mediation, arbitration, conciliation, and
establishment of Lok Adalats

 On 04.12.1997, the Chief Ministers of States and Chief Justices of the High court decided to
adopt alternate dispute resolution as a means for the settlement of certain disputes as the
system was less expensive and less time-consuming

Which Disputes Can be Resolved with ADR?

ADR processes can possibly be implemented for resolving disputes including:
Neighbour Disputes: includes problems with Homeowners' Associations and frequent violation of
noise ordinance.
Family Disputes: includes divorce actions, child custody, etc.
Housing Disputes: includes issues related to housing discrimination and non-maintenance of a
liveable house.
Workplace Disputes: includes workplace issues like workplace harassment, employee disputes, and
hour and wage disputes.
Personal Injury: includes road accident cases and medical malpractice claims.
Business Disputes: includes business debt and contract disputes
Environmental Disputes: includes air pollution and hazardous waste dumping. Consumer Contract
Disputes: includes a warranty and product liability.
 Different Kinds of Alternative Dispute Resolution

Mediation:
This kind of ADR makes use of an unbiased third party known as a mediator. The mediator does not
have the right to decide any outcome of a dispute or compel the disputing entities to agree upon the
same. The mediator working with the disputing entities tries to reach a mutual solution, which is
usually non- binding. The mediation can be mandated by the courts if necessary, but the entire
procedure remains voluntary, offering the disputing entities the chance to deny the agreement.
Mediation is totally confidential and the entities can control the process. The disputing entities can
even go for litigation after mediation if they do not agree to the agreement.

Arbitration:
This kind of ADR is somewhat like a non-formal trial and makes use of an unbiased third party. A
decision is issued by the chosen third party after it hears each side. According to what the disputing
entities have agreed upon, this decision is non-binding or binding. If binding, this decision is
considered to be final and can be legally enforced. Irrespective of the arbiter is a practicing facilitator,
the process of arbitration is not considered formal since many evidence rules do not apply here.

Negotiation:
This kind of ADR does not involve any unbiased third party for assisting the disputing entities to
come to a negotiation. The entities work together and reach a compromise. During negotiations, the
disputing entities can get their lawyers to represent them.
Negotiations involve two or more parties who come together to reach some end goal through
compromise or resolution that is agreeable to all those involved. One party will put its position
forward, while the other will either accept the conditions presented or counter with its own position.
Negotiation is a dialogue between two or more people or parties to reach a desired outcome regarding
one or more issues of conflict. It is an interaction between entities who aspire to agree on matters of
mutual interest The agreement can be beneficial for all or some of the parties involved. Negotiators
should establish their own needs and wants while also seeking to understand the wants and needs of
others involved to increase their chances of closing deals, avoiding conflicts, forming relationships
with other parties, or maximizing mutual gains.
The goal of negotiation is to resolve points of difference, gain an advantage for an individual or
collective, or craft outcomes to satisfy various interests. Distributive negotiations, or compromises,
are conducted by putting forward a position and making concessions to achieve an agreement. The
degree to which the negotiating parties trust each other to implement the negotiated solution is a
major factor in determining the success of a negotiation.

KEY FEATURES
• Negotiation is a strategic discussion that resolves an issue in a way that both parties find acceptable.
• Compromise is normally the basis of negotiation.
• Negotiations can take place between buyers and sellers, an employer and prospective employee, or
governments of two or more countries.
• Negotiating is used to reduce debts, lower the sale price of a house, improve the conditions of a
contract, or get a better deal on a car
When negotiating, be sure to justify your position, put yourself in the other party's shoes, keep your
emotions in check, and know when to walk away

Conciliation
Conciliation can be called as another form of arbitration but it is comparatively less formal in nature.
It is different because 'clause' for conciliation to be invoked by either of the parties is not a mandate of
this ADR, but since a conciliator does a similar job to an arbitrator, the proceedings work on similar
lines. Also, it is actually not possible for the parties to have a conciliation agreement before the
dispute. It is stated in Section 62 of The Arbitration and Conciliation Act, 1996 that,
If a party wishes to initiate conciliation, it shall send to the other party a written invitation to offer the
same, along with a brief introduction of the subject of the dispute.
The proceedings shall commence only when the other party accepts the same
If the other party wishes to reject the invitation, there will be no question of conciliation proceedings.

LOK ADALATS

Concept of Lok Adalat

The word Lok Adalat, if freely translated means a "people's court". However, Lok Adalat is not a
court of law (as existing anywhere in India) in it's truest and accepted norm and connotation, "Lok
Adalat" is defined "as a forum where voluntary effort aimed at bringing about settlement of disputes
between the parties is made through conciliatory and pervasive efforts". "Resolving dis- putes through
Lok Adalat not only minimises litigation expenditure, it saves valuable time of the parties and their
witnesses and also facilitates inexpensive and prompt remedy appropriately to the satisfaction of both
the parties. Lok Adalats are organised by the State Legal Aid and Advisory Boards or District Legal
Aid Committees."
The days to conduct Lok Adalats are fixed a month in advance on Saturdays or Sundays only or
holidays and given wide publicity. The students and social workers who participate get letters of
appreciation and commutation charges. Senior Judicial Officers inaugurate Lok Adalats before three
members of the bar, local officers and general public. "Conciliators" is the name given by Statute to
members of Lok Adalat who are drawn from retired judicial officers, social workers and advocates. A
compromise deed is drawn up, after settlement and signatures of parties are obtained. Then, a decree
is passed. In cases of motor vehicle accidents, compensation is ensured on the spot.

Lok Adalats are constituted at below levels-National, State, District and Taluk

Types of Lok Adalat:

At the State Authority Level -

The Member Secretary of the State Legal Services Authority organizing the Lok Adalat would
constitute benches of the Lok Adalat, each bench comprising of a sitting or retired judge of the High
Court or a sitting or retired judicial officer and any one or both of- a member from the legal
profession; a social worker engaged in the upliftment of the weaker sections and interested in the
implementation of legal services schemes or programmes.

At High Court Level -

The Secretary of the High Court Legal Services Committee would constitute benches of the Lok
Adalat, each bench comprising of a sitting or retired judge of the High Court and any one or both of- a
member from the legal profession; a social worker engaged in the upliftment of the weaker sections
and interested in the implementation of legal services schemes or programmes.

At District Level –
The Secretary of the District Legal Services Authority organizing the Lok Adalat would constitute
benches of the Lok Adalat, each bench comprising of a sitting or retired judicial officer and any one or
both of either a member from the legal profession; and/or a social worker engaged in the upliftment of
the weaker sections and interested in the implementation of legal services schemes or programmes or
a person engaged in para-legal activities of the area, preferably a woman.

At Taluk Level-
The Secretary of the Taluk Legal Services Committee organizing the Lok Adalat would constitute
benches of the Lok Adalat, each bench comprising of a sitting or retired judicial officer and any one or
both of either a member from the legal profession; and/or a social worker engaged in the upliftment of
the weaker sections and interested in the implementation of legal services schemes or programmes or
a person engaged in para-legal activities of the area, preferably a woman
Nature of Cases to be Referred to Lok Adalat
1. Any case pending before any court.
2. Any dispute which has not been brought before any court and is likely to be filed before the court.
Provided that any matter relating to an offence not compoundable under the law shall not be settled in
Lok Adalat.

Which Lok Adalat to be Approached

As per section 18(1) of the Act, a Lok Adalat shall have jurisdiction to determine and to arrive at a
compromise or settlement between the parties to a dispute in respect of -
(1) Any case pending before; or
(2) Any matter which is falling within the jurisdiction of, and is not brought before, any court for
which the Lok Adalat is organised.
Provided that the Lok Adalat shall have no jurisdiction in respect of matters relating to divorce or
matters relating to an offence not compoundable under any law

National Lok Adalat

National Level Lok Adalats are held for at regular intervals where on a single day Lok Adalats are
held throughout the country, in all the courts right from the Supreme Court till the Taluk Levels
wherein cases are disposed off in huge numbers. From February 2015, National Lok Adalats are being
held on a specific subject matter every month.

Permanent Lok Adalat

The other type of Lok Adalat is the Permanent Lok Adalat, organized under Section 22-B of The
Legal Services Authorities Act, 1987. Permanent Lok Adalats have been set up as permanent bodies
with a Chairman and two members for providing compulsory pre-litigative mechanism for
conciliation and settlement of cases relating to Public Utility Services like transport, postal, telegraph
etc. Here, even if the parties fail to reach to a settlement, the Permanent Lok Adalat gets jurisdiction to
decide the dispute, provided, the dispute does not relate to any offence. Further, the Award of the
Permanent Lok Adalat is final and binding on all the parties. The jurisdiction of the Permanent Lok
Adalats is upto Rs. Ten Lakhs. Here if the parties fail to reach to a settlement, the Permanent Lok
Adalat has the jurisdiction to decide the case. The award of the Permanent Lok Adalat is final and
binding upon the parties. The Lok Adalat may conduct the proceedings in such a manner as it
considers appropriate, taking into account the circumstances of the case, wishes of the parties like
requests to hear oral statements, speedy settlement of dispute etc.
Provides a mechanism for disposing of cases relating to public utility services, transport, postal and
telegraph. National Lok Adalat - Since 2015, these have been held every month on specific topics
across India. They are held on a single day disposing of a large number of pending cases.

Legal Framework Legal Services Authorities Act, 1987

1987, the Legal ServicesAuthorities Act was enacted by the Parliament which came into force on 9th
November, 1995 to establish a nationwide uniform network for providing free and competent legal
services to the weaker sections of the society on the basis of equal opportunity.
The Legal Services Authorities Act, 1987, is aimed to provide free and competent Legal Services to
the weaker sections of the society to ensure that opportunities for securing justice are not denied to
any citizen by reason of economic or other disabilities and to organize Lok Adalats to secure Justice
for all.
NALSA along with other Legal Services Institutions conducts Lok Adalats. Lok Adalat is one of the
alternative dispute redressal mechanisms, it is a forum where disputes cases pending in the court of
law or at pre-litigation stage are settled compromised amicably. Lok Adalats have been given statutory
status under the Legal Services Authorities Act, 1987. Under the said Act, the award (decision) made
by the Lok Adalats is deemed to be a decree of a civil court and is final and binding on all parties and
no appeal against such an award lies before any court of law. If the parties are not satisfied with the
award of the Lok Adalat though there is no provision for an appeal against such an award, but they are
free to initiate litigation by approaching the court of appropriate jurisdiction by filing a case by
following the required procedure, in exercise of their right to litigate.
There is no court fee payable when a matter is filed in a Lok Adalat. If a matter pending in the court of
law is referred to the Lok Adalat and is settled subsequently, the court fee originally paid in the court
on the complaints/petition is also refunded back to the parties. The persons deciding the cases in the
Lok Adalats are called the Members of the Lok Adalats, they have the role of statutory conciliators
only and do not have any judicial role; therefore they can only persuade the parties to come to a
conclusion for settling the dispute outside the court in the Lok Adalat and shall not pressurize or
coerce any of the parties to compromise or settle cases or matters either directly or indirectly. The Lok
Adalat shall not decide the matter so referred at its own instance, instead the same would be decided
on the basis of the compromise or settlement between the parties. The members shall assist the parties
in an independent and impartial manner in their attempt to reach amicable settlement of their dispute.

What is NALSA?
o The NALSA was founded in 1995 under the Legal Services Authorities Act of 1987 to
monitor and review the effectiveness of legal aid programs and to develop rules and
principles for providing legal services under the Act.
o It also distributes funding and grants to state legal services authorities and non-profit
organisations to help them execute legal aid systems and initiatives.

Constitutional Provisions:
o Article 39A of the Constitution of India provides that State shall secure that the
operation of the legal system promotes justice on a basis of equal opportunity, and
shall in particular, provide free legal aid, by suitable legislation or schemes or in any other
way, to ensure that opportunities for securing justice are not denied to any citizen by reason
of economic or other disability.
o Articles 14 and 22(1) also make it obligatory for the State to ensure equality before law
and a legal system which promotes justice on a basis of equal opportunity to all.
Objectives of Legal Services Authorities:
o Provide free legal aid and advice.

o Spread legal awareness.

o Organise lok adalats.

o Promote settlements of disputes through Alternative Dispute Resolution

(ADR) Mechanisms. Various kinds of ADR mechanisms are Arbitration, Conciliation,
Judicial settlement including settlement through Lok Adalat, or Mediation.
o Provide compensation to victims of crime.

What are Legal Services Institutions at Various Levels?

 National Level: NALSA was constituted under the Legal Services Authorities Act, 1987. The
Chief Justice of India is the Patron-in-Chief.
 State Level: State Legal Services Authority. It is headed by the Chief Justice of the State
High Court who is its Patron-in-Chief.
 District Level: District Legal Services Authority. The District Judge of the District is its ex-
officio Chairman.
 Taluka/Sub-Division Level: Taluka/ Sub-Divisional Legal Services Committee. It is headed
by a senior Civil Judge.
 High Court: High Court Legal Services Committee
 Supreme Court: Supreme Court Legal Services Committee

Who is Eligible for Getting Free Legal Services?

 Women and children
 Members of SC/ST
 Industrial workmen
 Victims of mass disaster, violence, flood, drought, earthquake, industrial disaster.
 Disabled persons
 Persons in custody
 Those persons who have annual income of less than the amount prescribed by the respective
State Government, if the case is before any court other than the Supreme Court, and less than
Rs. 5 Lakhs, if the case is before the Supreme Court.
 Victims of Trafficking in Human beings or begar.