RISE OF ALTERNATIVE DISPUTE RESOLUTION: EFFICIENCY VS. JUSTICE
Category: Arbitration
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ABSTRACT
The legal system in India has made a huge transformation in recent decades with the evolution of new forms of dispute resolution. One such form is Alternative Dispute Resolution (ADR). As the traditional courts continue to face a large backlog of cases, ADR has become an intrinsic alternative for efficient dispute resolution. This article attempts to analyze how the ADR system helps to address the challenges of ensuring efficiency in handling judicial backlog and the need for swift justice. The research also shows the role of technology, institutional practices, and professional development in shaping modern ADR practices in India.
KEYWORDS
Alternative dispute resolution, Arbitration and Conciliation Act of 1996, Mediation Act of 2023, Arbitration and Conciliation Amendment Bill 2024
INTRODUCTION
India’s judiciary faces an unprecedented challenge of managing over 4.9 crore pending cases across the courts in India. This huge caseload has paved the way for the introduction of Alternative Dispute Resolution as a path for ensuring the delivery of timely justice. The Arbitration and Conciliation Act of 1996 is the primary legislation that has governed the ADR system in India since the beginning. The law has also gone through various amendments in 2015, 2019, and 2021 and each amendment has tried to address the obstacles in the full-scale implementation of ADR in India. The 2015 amendment introduced brought important timelines for the completion of arbitration within twelve months of pleadings and a six-month extension through mutual consent between parties. The 2019 amendment established the Arbitration Council of India and the amendment in 2021 introduced the requirement of requisite qualifications and procedural rules for appointment of arbitrators.
SHIFT FROM AD HOC TO INSTITUTIONAL ARBITRATION
The recent years have also seen a shift from ad hoc arbitration to institutional arbitration and this has been made possible with the establishment of centres like the Mumbai Centre for International Arbitration and the New Delhi International Arbitration which also shows India’s commitment to the development of professional dispute resolution in India. These institutions have developed well-laid-down rules and procedures that show the incorporation of international standards in the Indian ADR system.
The Covid 19 pandemic fast-tracked the adoption of technology in ADR processes. This period saw the advent of virtual hearings and online dispute-resolution platforms. Many arbitration institutes now offer the digital infrastructure for making ADR more accessible and cost effective in India.
ROLE OF THE SUPREME COURT IN THE DEVELOPMENT OF ADR
The Supreme Court has played an important role in the development of ADR through its various decisions. In NALCO v Pressteel & Fabrications 2021, the court tried to limit the interference of judges in the arbitration cases. This decision helped to make arbitration more independent. The case of Amazon.com NV Investment Holdings LLC v. Future Retail Limited (2022) is an important case because the court recognized the emergency arbitration awards.
The other landmark case is the recognition of foreign arbitration decisions in Indian courts. The case of Vijay Karia v. Prysmian Cavi E Sistemi SRL (2020) is important because the Indian courts now strongly support foreign arbitration decisions. This shift from the earlier approach has also made India more attractive to foreign investors by providing reliable ways to resolve business disputes.
MEDIATION ACT OF 2023 AND ARBITRATION AND CONCILIATION AMENDMENT BILL 2024
The recent development in this area shows the introduction of the Mediation Act, of 2023 provides the procedural framework for regulating mediation in India which is one of the important methods of ADR. This act makes pre-litigation mediation mandatory for the parties regardless of any prior mediation agreement. It also makes mediation settlement agreements equivalent to arbitral awards under the Arbitration and Conciliation Act. The Act established the Mediation Council of India as the apex body to regulate and develop mediation in India with the key responsibilities of registering mediators and maintaining their standards, providing training and setting accreditation standards, and promoting online mediation.
The Arbitration and Conciliation Amendment Bill 2024 introduces various changes and strengthens the arbitration laws in India. The bill removes the restrictions on the qualification of arbitrators which now allows experts from various fields to serve as arbitrators. The bill introduced emergency arbitration which would now allow the legal status to the decisions in emergency arbitration. The new provisions introduce the requirement for arbitrators to stay independent and impartial and to disclose any circumstances that may affect their ability to act fairly.
Through these procedural changes, the bill aims to regulate the appointment procedure of the arbitrators, enhance the power of tribunals to manage the arbitration proceedings efficiently, and set clear guidelines for costs and time to prevent delays in the arbitration proceedings.
CHALLENGES AHEAD:
The cost of ADR in India has attracted much attention, it is lower than in many other countries but efforts continue to exist to make it more affordable and accessible. Many centres have now started providing simpler procedures for small disputes at an affordable cost. This helps small businesses and individuals to use ADR services. The Mediation Act of 2023 also addresses costs by helping provide legal aid services and regulation of the fees. ADR's success in India depends on balancing quick resolutions with fair procedures. While speed and efficiency is important in the resolution of disputes, they should not come at the cost of delivering justice to the parties. The ongoing amendments and the decisions of the court suggest that both goals can be achieved together.
CONCLUSION:
The future of ADR seems promising with the latest technologies, well-trained personnel, and new laws in this field. The outlook of people continues to change with more people are now choosing ADR over traditional courts. It becomes increasingly important now to maintain high standards while making them accessible to all. The dispute should no longer be about justice versus efficiency but the focus should be on providing accessible, cost-effective, and timely solutions to all the parties involved in the dispute.
WRITTEN BY ADV AYANTIKA MONDAL
