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ADR full form is Alternative Dispute Resolution. It refers to the different ways through which people can resolve disputes without a trial. In this blog post, we shall discuss different types of ADR methods and the validity of ADR settlements.
ADR full form in law is Alternative Dispute Resolution. The "alternative dispute resolution" term originated from Frank Sander's paper "Varieties of Dispute Processing”. The term is used to describe methods for resolving a dispute between people without having to go to court. The ADR methods are aimed at resolving disputes in an amicable manner, helping people avoid strict procedural formalities associated with litigation and are cost effective.
While ADR is primarily meant to resolve disputes outside the courtroom, it is now increasingly being used within the court system as well. Courts often refer cases to ADR mechanisms as a practical way to reduce the growing backlog of litigation. These mechanisms ensure quicker and more affordable justice and encourage mutually acceptable settlements rather than prolonged adversarial battles that are associated with court.
There are three different types of ADR. They are as follows :-
Arbitration
Conciliation
Mediation
Now, let’s discuss each one of them in detail.
Arbitration is a form of ADR governed by the Arbitration and Conciliation Act, 1996. In this, the parties agree to have their dispute decided by a third party, i.e., one or more impartial arbitrators, at a specialized arbitration centre. The arbitrator then delivers a legally enforceable decision (the arbitral award). Unlike mediation where the parties retain control over the outcome, arbitration involves a final and binding judgment made by the arbitrator. Arbitration is commonly used in employment contracts, consumer agreements, construction contracts, international trade matters and commercial conflicts. It often provides a neutral forum for dispute resolution.
It is especially popular in contracts involving parties who belong to different legal jurisdictions. By putting an arbitration clause within the main contract or having a separate arbitration agreement, many businesses avoid lengthy and expensive court proceedings.
Conciliation is another form of ADR. Like arbitration, it is governed by the Arbitration and Conciliation Act, 1996. Basically in conciliation, a neutral third party (conciliator) helps the opposing parties to resolve their dispute by promoting communication, exploring interests and actively proposing non-binding solutions.
The intention here is to reach a mutually agreeable, amicable settlement. Conciliation is opposed to mediation where the third party (mediator) is a mere facilitator, who stays neutral and focuses on parties finding their own way. A conciliator plays a more active role than a mediator as they not only facilitate discussions but also offer expert advice. They actively propose possible settlement solutions to help the parties resolve their dispute.
As opposed to arbitration wherein the arbitrator renders a legally enforceable verdict, the conciliation aims to assist parties in coming to a common ground, i.e., mutually agreeable agreement, on their own. In communal disagreements, family disputes, workplace issues and consumer disputes, conciliation is often used.
Mediation is a form of ADR governed by the Mediation Act, 2023. In mediation, a neutral third party (mediator) helps the opposing parties to reach a voluntary and mutually agreeable settlement on their own. This ADR method focuses on the autonomy of the parties.
A mediator essentially serves as a facilitator who helps to steer the conversation and ensure the entire process remains productive as well as focused on resolution. It is in contrast to negotiation wherein the parties communicate with each other on a direct basis. It is often a preferred solution for family law disagreements, business disputes and workplace conflicts.
Yes, the ADR mechanisms are legally recognized and fully accepted by courts. An arbitral award made by an arbitrator nearly has the same legal effect as a court judgment. It is treated as a decree. It is final, binding and enforceable. Similarly, settlement agreements arrived at via conciliation or mediation method are deemed to be decrees of the court and are binding on the involved parties.
ADR Centres facilitate settlements through various dispute resolution methods, always keeping the best interests of the parties in mind. Where a settlement is reached in a matter that is already pending before a court, it can be enforced as a decree by filing a compromise petition.
Therefore, parties who are willing to resolve their disputes efficiently and wish to avoid the lengthy procedures and delays associated with traditional litigation may effectively resort to ADR through a specialized ADR Centre.
ADR stands for Alternative Dispute Resolution, an umbrella term used to refer to different methods for resolving disputes between parties outside the courtroom. The three major types of ADR are Arbitration, Conciliation and Mediation. Many times they are combined in practice to suit the specific needs of a dispute. By opting for ADR, the parties can avoid strict procedural formalities, time and costs linked with litigation.
Q1. What is ADR full form in law?
A. ADR full form in law is Alternative Dispute Resolution.
Q2. Is an arbitral award legally binding?
A. Yes, an arbitral award is legally binding, just like a court decree is.
Q3. What are the different types of ADR?
A. The different ADR types are arbitration, conciliation and mediation.
Q4. Which Act governs mediation in India?
A. The Mediation Act, 2023, governs mediation in India.
Q5. Which Act governs arbitration and conciliation in India?
A. The Arbitration and Conciliation Act, 1996, governs arbitration and conciliation in India.
Disclaimer :- This blog post is purely meant for informational purposes and does not constitute legal advice. While reasonable efforts have been made to ensure accuracy, no guarantee is given regarding the completeness/correctness of the information. Readers should consult a qualified legal professional for advice specific to their situation.
Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.
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