Alternate Dispute Resolution Mechanisms ADRs

Arbitration, Conciliation, Mediation, Negotiation, Lok Adalats (,Parivarik Mahila Lok Adalats, Permanent Lok Adalats)

Arbitration

It is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute and the binding decision is enforceable in the courts
In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court.
Arbitration is often the first alternative amongst various ways to manage contract related disputes and it holds the promise of flexibility, speed and cost-effectiveness.

Conciliation

Conciliation is a less formal form of arbitration. This process does not require an existence of any prior agreement. Any party can request the other party to appoint a conciliator. One conciliator is preferred but two or three are also allowed. In case of multiple conciliators, all must act jointly. If a party rejects an offer to conciliate, there can be no conciliation.

Mediation

Mediation aims to assist two (or more) disputants in reaching an agreement. The parties themselves determine the conditions of any settlements reached— rather t an accepting something imposed by a third party. The disputes may involve (as parties) states, organizations, communities, individuals or other representatives with a vested interest in the outcome.

Negotiation

Negotiation is a dialogue intended to resolve disputes, to produce an agreement upon courses of action, to bargain for individual or collective advantage, or to craft outcomes to satisfy various interests. It is the primary method of alternative dispute resolution.

Arbitration

Arb-Med-Arb

Arb-Med-Arb Arbitration-Mediation-Arbitration is a process where

A dispute is first referred to arbitration before mediation is attempted.
If mediation works, mediated settlement may be recorded as a consent award.
If mediation fails, they may continue with the arbitration proceedings

Arbitration and Conciliation Act 1996

The Arbitration and Conciliation Act 1996 is an Act that regulates domestic arbitration in India.
It was amended in 2015, to make arbitration a preferred mode of settlement of commercial disputes and making India a hub of international commercial arbitration
It provides for arbitration authority to cure defects in award by itself
It provides for setting side of Arbitral award and can apply for the court

Arbitration and Conciliation (Amendment) Act, 2019

Amends the Arbitration and Conciliation Act, 1996 to deal with domestic and international arbitration
Arbitration Council of India (ACI)

Independent body to be setup by the act
Promotion of alternative dispute redressal mechanisms
maintaining a depository of arbitral judgments made in India and abroad
framing policies for grading arbitral institutions and accrediting arbitrators,
maintenance of uniform professional standards for all alternate dispute redressal matters.

Appointment of arbitrators will now be done by the Supreme Court designated arbitral institutions, which was earlier used to be done by parties themselves
It seeks to remove time restriction for international commercial arbitrations (earlier tries to dispose matters within 12 months)
Completion of written submissions to be completed within six months of the appointment of the arbitrators

Arbitration Hub in India

Arbitration and Conciliation (Amendment) Act, 2015 envisages various ways to encourage foreign investment by projecting India as an investor friendly country having a sound legal framework and ease of doing business in India.

B.N Srikrishna High-level committee

Centre has constituted a high-level committee, led by the former Supreme Court judge B.N. Srikrishna, to draw a road map to make India a global arbitration hub.
Report features

Part 1 -

measures to improve the overall quality and performance of arbitral institutions in India and to promote the standing of the country as preferred seat of arbitration.
Arbitration Promotion Council of India (APCI),

Setting up of APCI autonomous body
having representatives from all the stakeholders for grading arbitral institutions in India
recognize professional institutes providing for acceleration of arbitration

Creation of a specialist arbitration bench to deal with commercial disputes in the domain of the courts
National Litigation Policy must promote arbitration in government contracts

Part II

reviewed the working of International Centre for Alternate Dispute Redressal(ICADR).
Declaring the ICADR as an Institution of national importance

Part III

‘International Law Advisor (ILA)

recommended for the creation of post of ‘International Law Advisor’ (ILA)
to advise the Government and coordinate dispute resolution strategy for the Government in disputes arising out of its international law obligations, particularly disputes arising out of BITs

International Centre For Alternative Dispute Resolution (ICADR)

Setup in 1995 as a society under Societies Registration Act 1860 by Department of Legal Affairs, Ministry of Law and Justice.
Autonomous body

HQ: Delhi, Regional branches: Hyderabad, Bangalore

The Minister for Law & Justice is the Chairman of ICADR
Objective: For the promotion and development of ADR facilities and techniques to facilitate early resolution of disputes and to reduce the increasing burden of arrears in Courts.
Criticism

It failed to account for the latest developments in the field of arbitration such as provisions for joinder of parties, consolidation of arbitral proceedings, emergency arbitration, etc.

New Delhi International Arbitration Centre (NDIAC) Act 2019

Propose to constitute New Delhi International Arbitration Centre
It replaces International Centre for Alternative Dispute Resolution (ICADR)
Designates NDIAC as an Institution of National Importance
It will facilitate conducting of international and domestic arbitration, mediation and conciliation proceedings in a most professional, cost effective and timely manner
Chairperson: who has been a judge of the Supreme Court or a High Court or an eminent person having special knowledge and experience in the administration of arbitration

NOTE: Chairman of ICADR is Minister for Law & Justice

Alternate Dispute Resolution ADR