ADR and its types

The essentials

Alternative Dispute Resolution (ADR) means methods of settling disputes without going through a full court trial. ADR is usually quicker, cheaper, private and less hostile than litigation, and it helps reduce court backlog. In civil cases, courts can refer suitable disputes to ADR under Section 89 of the Code of Civil Procedure, 1908. Parliament also enacted the Mediation Act, 2023 to promote mediation.

Key points

• Negotiation: parties talk directly to reach a settlement; no third party is involved.
• Mediation: a neutral mediator helps parties communicate and find their own solution; the mediator does not impose a decision.
• Conciliation: a conciliator plays a more active role and may propose terms of settlement.
• Arbitration: parties submit the dispute to an arbitrator whose decision (the award) is binding.
• Lok Adalat: a "people's court" that settles disputes by compromise under the Legal Services Authorities Act, 1987.
• Advantages: speed, low cost, confidentiality, flexibility, preservation of relationships, party control.
• Limitations: not suitable for serious crimes or matters needing public precedent; weaker parties may feel pressured; limited appeal.

Exam tips

• Arrange methods by degree of third-party control: negotiation (none) → mediation → conciliation → arbitration (binding decision).
• Remember that ADR complements courts rather than replacing them.

Common mistakes

• Saying a mediator gives a binding decision – that is an arbitrator.
• Assuming every dispute can go to ADR; serious criminal offences cannot be compromised this way.