Alternative Dispute Resolution (ADR)

Alternative dispute resolution (ADR) is the name given to the methods where parties in a dispute come to a compromise or settle their dispute without going to court. (ADR) refers to a set of practices and techniques aimed at permitting the resolution of legal disputes outside the courts. The main reason people use ADR is to save the expenses of using the courts and solicitors. There are four main forms of Alternative Dispute Resolution I.e. Negotiation, Arbitration, Mediation, Conciliation, settling dispute by means other than litigations, such as arbitration and mediation. The purpose of this paper is to discuss about Alternative Dispute Resolution (ADR) and why is it chosen to resolve dispute, further to discuss the benefits to both parties over litigation process. Also, we have discussed over the effectiveness of Mediation even in case where agreements are not enforceable by law. Here we have also tried to put discussions and justification over ADR as a forced compromise or a suggested resolution. Potential benefits are said to include the reduction of the transaction costs of dispute resolution because ADR processes may be cheaper and faster than ordinary judicial proceedings; the creation of resolutions that are better suited to the parties' underlying interests and needs; and improved ex post compliance with the terms of the resolution. The focus of this article is on mediation and arbitration and not on unfacilitated negotiation which is, of course, the most common means by which parties and their counsel resolve legal disputes outside of court. Part I provides essential background for understanding ADR by focusing on arbitration and mediation. By comparing these processes with adjudication and negotiation - the two procedures conventionally used to resolve legal disputes - the potential advantages and disadvantages of arbitration and mediation are exposed and briefly analyzed. The workload of Indian Judiciary increased by leaps and bounds and has now reached a stage of unmanageable magnitude, which has in fact led to a large backlog of cases.