It is also a well-known fact that the Indian judiciary is overburdened with cases. To deal with this problem Alternative Dispute Resolution (ADR) can be a helpful mechanism. Alternative dispute resolution involves finding other ways of resolving civil disputes. The use of ADR was a key recommendation of the Woolf Report to reduce the number of cases, to provide cheaper and less adversarial forms of justice, as well as a less formal and complicated system. Judges can recommend ADR to avoid judicial cases. ADR is increasingly being used and gaining widespread acceptance as a tool to settle disputes outside the court. The increasing caseload of traditional courts explains the rising popularity of ADR along with the fewer expenses as compared to litigation. Alternative Dispute Resolution is the Arbitration and Conciliation Act, 1996 deals with the working of ADRs. ADR is founded on fundamental rights of equality and the right to life given in the articles article 14 and 21 respectively.
The most common forms of ADR are-
Negotiation – Negotiation is the type of ADR where no third party who is entitled to impose the resolution and the participation is voluntary. This is a non binding procedure aimed at arriving to a settlement without interference from a third party. This is the most common method.
Arbitration – In arbitration, a third party exists in the form of a private judge who is entitled to impose a resolution. Participation here is voluntary. The parties may appeal outcomes of arbitration to the courts. Any party to a contract with an arbitration clause can invoke it through an agent or himself, to refer the dispute to arbitration. According to Section 8 of Arbitration and Conciliation Act, 1996 if a person moves to a civil court, disrespecting the agreement of arbitration, the other party has the liberty to apply the court to refer the matter for arbitration as per the agreement, but before the submission of the first statement.
Mediation- In mediation, a mediator is entitled to facilitate the resolution but cannot impose it. Mediator’s duty is confined to facilitate both the parties to reach settlement. Mediator cannot impose his opinion and can make no decision about what a fair settlement should be.
What is negotiation? The negotiation system creates a structure to encourage and facilitate direct negotiation between parties to a dispute, without intervention in the third party. In negotiation, participation is voluntary, without any intervention of a third party facilitating the resolution or imposing it.
Essential conditions for negotiation-
Both the parties should consent to it voluntarily.
It should be done in such a way that it depends on both parties on each other.
The willingness to settle the dispute must be present.
The case should be negotiable.
In certain cases, there are deadlines for negotiations.
Advantages of negotiation
It is the most flexible kind of dispute resolution. The parties are free to negotiate according to their needs with their own willingness. It prevents the inequalities in the negotiation process.
There is no guarantee as to the resolution of the dispute, but there exists a greater possibility of a successful outcome. The chances of reaching an agreement are enhanced as the focus is more on the mutual needs and interests.
The process is voluntary and if a person does not wish to take part he is free to do so.
Involving a third party isn’t needed unless the matter is highly sensitive.
Only the parties involved in negotiation process are bound to the agreement unlike other instruments of negotiation.
The relationship between the parties can be enhanced after an agreement is formed.
Opting other instruments of negotiation can be expensive and delaying.
Disadvantages of negotiation-
In spite of a successful outcome, one of the parties may be at a disadvantage. The value of an agreement is diminished when the parties are not equally helped.
If any kind of uncertainties arise , affecting participation in the process is not possible.
The absence of a party may cause difficulty in reaching to a agreement, a solution cannot be found alone.
One party may take an advantage of another, due to the absence of a third party.
If any party wants to terminate the negotiation process at any time, he cannot be compelled to continue. This may cause wastage of time and money invested.
When the ideologies and beliefs of both the parties do not match, no successful agreement can be made.
The process of negotiation does not guarantee trust or faithfulness.