Critical Analysis of ADR Mechanism in India

The term ADR means Alternative Dispute Resolving System, is used to describe a variety of dispute resolution processes that are available in alternative to full-fledge court process. This includes settlement through mediation, negotiation, mini-trial, arbitration etc. Most of the systems look and feels very much like a courtroom process. Processes designed to manage community tension or facilitate community development issues can also be included within the area of ADR. In the Indian context, Alternative Dispute Resolution (“ADR”) as a method of dispute resolution may trace its evolution to certain drawbacks in the judicial system of the country. To overcome the shortcomings of the judicial process the aggrieved parties now days tend to go for ADR process. ADR process may generally be categorized as negotiation, conciliation/mediation or arbitration systems. Since the legitimacy of the ADR mechanism is premised on parties consenting to the process, the costs of engaging with either the parallel system or benefiting from the ills of the formal system have to be raised considerably high to drive the parties to consent to the ADR processes.