LLB. (Hons.

) VIL SEMESTER
SUBJECTALIERNATIVE DI SPUTE RESOLUTION
SYLLABUS

UNIT - ALTERNATIVE DISPU ERESOLUTION

i) ADR:Concept, Need and Dvelopment, Advant ages.
i) Legal framework: Legal ser ice Authorities Act. 1987 &Code of Civil
Procedure
ii.) Arbitration and Conciliation Act, 1966: Object, Development and Salient
features
iv.) Arbitration: Definition, soures, kinds, scope and differences to court
v) Arbitration agreement, composition of Arbitral Tribunal

PREVIOUS YEAR QUESTIONS ASKED IN LUCK NOW UNIVERSITY BASED ON THIS

TOPIC
Q.1) What do you mean byADR ? What are four types of ADR ?(2012, 2015, 2018)
NOTES

ALTERNATIVE DISPUTE RESOLUTION

> Alternative dispute resolution (ADR) refers to the different ways by which people can resolve
disputes without a litigation.
Common ADR processes inc lude mediation, arbitration, and neutral evaluation.
ADR regroups all processes and techniques of conflict resolution that occur outside the
Courtro0m.
> Alternative dispute resolution, in the United States, emerged out of the legal reform and civil
rights movements in the late 1960s.
FOUR TYPES OF ADR
1.) Negotiation- Anegotiation is a sirategic discussion that involves two or more parties that
resolves an issue in a way that each party finds acceptable
2.) Mediation- Anindependent third party steps in te try and find away for the insured and the
insurer to agree on a mutuallv acceptable outcome.
3.) Arbitrat on-Arbitration is a procedure in which edispute is submitted. by agreement of the
parties, to one or mcre arbitr itors who make a binding decision on the dispute. In choosing
arbitration. the parties opt fo a private dispute re solution procedure instead of going to court.
4.) Conciliation- Conciliation is an alternative dispue resolution (ADR) process whereby the parties
lo adispute use a conciliator who meets with the parties both separately and together in an
attempt to resolve their differences.
 dvantage ef ADR"
Q.2)Exp ain the development of AR and mention the
DEVELOPMENTOF ADR
>ADR is developed fiom olde 11times as there wer: no court in old times, so natters were solved
Irom by the head or bythe p rson who had the authority to solve the dispute
the coum
Se, by bok ing towad the ol dispute resolution system and to solve the dispute outof
concept of ADR was develo ed tYom following
PANCHAYATSYSTEM- Asmatter were solvelby the panch out of thecourtroom
By the family council
Ahikrita and Nripa- king sy stenn as the matters vere solved by the king in olden times and in
Maratha period. Where there were no court and Iiwyers
Muslim period-In muslim priod there were kazse working as ajudge, solving disputes without
courtrocm on his guidance.
By looking these olcendisp1 te resolution The Aibitration Act, 1940 was developed to resolve in
the same way out of the cou room and for speedy justice.
KINDS OF DISPUTE THAT ARE RESOLVED UNDER ADR
Familv Disputes- Mediatior is the most common method of' solving family disputes where a
neutral person facilitates the process.
Commereial Disputes- Acommereial dispute usually arises as part of adefined deal or
transaction that has taken pl ce between business entities
Industrial Disputes- Indust ial disputes are crea ed because of differences that arise between the
enmployers and the employees or between the employer and the workmen or among the
workmen.

ADVANTAGES OF ADR
Excessive delay s in the legal proces from court overload and rising legal costs also encouraged more
widesprez dsupport of ADR method s, some advantages of ADR are
1.) Resolution in ADRare g ven very speedy, so it saves time
2.) Expenses are less spend in ADR as there is very less time taken by arbitrator to solve the
dispute
3.) ADR is more flexibility than acourt (litigaticn)
4.) No bias- As arbirator is ofneutral nature. So they are not partial to any party. And are free
to fair justice
5.) Result under ADR are ke Tt confidential. Result are only known to the parties in dispute and
to the arbitrator.
6.) Party also gets advantage of ADR as they are free to cho0se the method and the arbitrator by
themselves.
1) Equal participation of pa ties are in ADR.
 service authorites act 19879
0.3) What is the object of legl
AUTHORITIE AC T, 1987
LEGAL SERVICES
lved Ihel egal Services Authorities Acr was enacted by tle Parliameni which came into force on 9th
November, 1995.
Constitudion
This Act wasenforced on the tss of Article 39A of the Indian
kles ld and 22() also mak s it obligatory lor the State to ensure equality before law and alegal
system which promotes justicen i basis of equal op ortunityto all.
The main purpose of Legal aic is to ensure that equa justice is available to the poor, downtrodden and
Wcaker soctions of the society.
HISTORICAL DEVELOPMENTO TEEGAL SERVICEAUTHORITIES ACT, 1987
It was inroduced as a result of arecommendation made in the 14" report of the law commission of India.
In 1960, the central governme tintroduced a legal aid scheme but was scrapped later due to financial
de arth.
But in 1973, the government i troduced its second plase by forming a committee under Justice V.R.
Krishna lyer for developing les al aid schemes for every state.
leadership of
Thecommittee worked in a de entralized manner and formed a committee under the
Justice P.N. Bhagawathi to impiement the legal aid scheme.
ºThey suggested legal aid scher ies for every district, state and centre.
programmes
º In 1987 Legal Services Authori ies Act was enacted t give a statutory base to legal aid
throughout the country on a uni form pattern.
This Act isto provide free and competent legal services to the
weaker sections of the society.
º
equal opportunity.
Tosecure the operation of the egal system promotes justice on a basis of
any cost)
OBJECT-Toprovide free legal aid to weaker sections of society (Remedy without
ACT, 1987
IMPORTANTPROVISIONS UNDERJ EGAL SERVICES AL THORITIES
They are
The hierarchical legal service system in India exists at Three Levels,
Legal Services Committee (Section
Natioral Legal Service A ithority (NALSA)and Supreme Court
3&3A)
Legal Services Committee (Section 6 &
State Legal Service Auth rity (SLSA)and the Fligh Court
8)
District Legal Services A thority (Section 9 to 1)
necessity of free legal aid are
IMPORTA NCE OF FREE LEGAL AID he main reasons that direct the
society.
º It provides legal services to the vulrnerable sections of
} It enables the eradication of dif erences between rich and poor due to the privileges bagged by the riches.
the societies from taking the law into
It will ensure that the restrictiosareput on the privil ged group of
one's hads.

AVILABIL ITY OFIEGAL SE RVICE

legal services to
Section 12 of the Legal Servicis Authorities Act, 1937 prescribes the criteria for giving
the eligible persons, which are
services under this Act if that
Every person who has to file ar defend a case shal be entitled to legal
person is

Anember of aScheduled Caste or Scheduled Tribe,

 A.
on'? Discuss salient features of Arbitration and Conciliation
Q.4) What do you mean by 'arbitrat
1996. (2015,17, 19)
ARBITRATION
defines arbitration. It says arbitration
SI CTION 2(a) ofthe Arbitration andconciliaticn Act arbitral institution.
permanent
means any arbitration whethror not administered by
more arbitrators who make a
Arbitration is a procedure in which a dispute is submitted to one or
binding decision on the dispte.
In reffering the matter to arb tration, both parties should be agreed to refer the dispute.
In choosing arbitration, the parties opt for aprivate dispute resolution procedure instead of going
to court.

OBJECT OF ARBITRATION AND CONCILIATION ACT. 1996

To ensure that rules are laid lown for internation al as well as domestic arbitration and
conciliation.
> To ensure that arbitration pr ceedings are just, fair and effective.
Toensure that the arbitral tribural gives reasons for its award given.
º Toensure that the arbitral tribural acts within its jurisdiction.
º To permit the arbitral tribun l to use methods such as mediation and conciliation during the
procedure of arbitration.
To minimize the supervisory role of courts.
º Toensure that an arbitral aw ard is enforceable as a decree of the court.
SALIENT FEATURES OF ARBI (RATION AND CONCILIATIONACT
Basic features of Arbitration are as follows:

1. This is the biggest Act as there are IV schedules

PART I- Arbitration
PART I- Enforceme nt of foreign awards
PART III- Conciliati on
PART IV- Other sup plenentary provisio ns
2. The word arbitration is defined under this Act which was not defined under the previous Act.
3. This Actgives legal recognition to conciliation
4. Reasoned award is given by the ArbitralTribuna
5. Freedom of parties is define: under the Act as the parties to dispute are free to choose by which
method the dispute is to be solved.
6. Arbitral Tribunal is not bournd by C.P.C. and the Indian Evidence Act.
7. In this Act the provision of Iterim reliefis giver which was not given in the previous Act.
8. International arbitration is al o defined under the said Act.
Q.5) Discuss the scope of Arbitrationand Conciliation Act, 1996.
(2017, 2019)

THE SCOPE OF ARBITRATION AND CONCILIA TION ACT, 1996

Arbitration is no more and less than litigation. These parts and apply where the place of
arbitration is in India.
India.
It shall not affect any other law for the time being in force in
commercial disputes also.
This Act covers all comnercial disputes and International
DEVELOPMENT OF ARBITRATION AND CONCILIATION ACT, 1996
traditions and customs where
Arbitration was long practiced in ancient India which followed
office was either hereditary or
local disputes were often setled by the village headman whose
elective.
rather, a council, and even to this day it is known
In some villages, it was not a single person but
as a Panchayat.
they brought with them their methods of
> Britishers set up the East India Company in Bengal,
matters were to be submitted to
settling disputes and as per the Bengal Regulation of 1772, all
the court.
arbitration, the award of which would be conside red to be the decree of
enactments were made
> Before Arbitration and Conciliation Act, 1996 there were 3
The Arbitration Act, 1940
The Arbitration ( Protocol& Convention) Act, 1987
The Foreign Award (Recognition & Enforcement) Act, 1961
changing for a
> The requirement was felt when the trade practices changed and economy was
new Act.
> So, Arbitration and Conciliation Act was developed in an updated form in 22 August, 1996.
 Q.6) What do you mean by arbitration And mention any four kinds of
arbitration.
ARBITRA TION
Arbitration isa procedure in which a dispute submiti ed, by agreement of the
is
arbitrators who makes a binding decision parties, to one or more
In choosing arbitration, theparties opt for a on the disput:.
º Section 2 (a) of Arbitration and Cnciliationprivate dispute resolution procedure instead of going to court.
Act, 1996 detines that- arbitration
not administered by perrnanent ar tra means any arbitration whether or
Inan English judgment named Co lins v. institution.
Arbitration which reads as follow: Collins, 1858 the court gave a wide definition to the
concept of
The word arbitration is included fi om the
new Act 1996. Before 1996 in all three
arbitration.
No arbitration could exist
Acts Umpire word was used not
without alid arbitration agreement.
KINDS OFARBITRATION
1. Ad hoc arbitration
2. Institutional arbitration
3. Statutory arbitration
4. Fast track
arbitration
5. Contractual arbiration

1.) AD-H0C ARBITRATION

In this type, the parties to dispute
the involvement of an arbitrationalthemselves agree and make arrangements for the procedure of arbitration without
In ad- hoc arbitration if the
tribunal.
parties are not able to come to a conclusion as to who will be the arbitrator
2.) INSTITUTIONAL ARBITRATION
In this kind of dispute parties agre in
advance that if in fut ure any kind of dispute arises in
will be reierred to any particular k nd of
institution future then the dispute
Such institution have their own published rules
and they ar point arbitrator for the parties from the
of the con cerned profession. panel of experts
3.) STATUTORY ARBITRATION
There are certain areas where arbi ration is statutorily imp sed
In this thcstatute of Parliament o a state on the parties by law
legislature provi les for arbitration, Such arbitration is called
arbitration. statutory
Statutory arbitration is lifferent from other kinds of arbitrtion as the
consent of the parties is not a necessary.
4.) FAST TRACKARBITRATION
Fast track arbitration is a form of rbitration where the rules are
stricter and the process is time bound which
excludes the option of delay.
Fast track arbitration is most suita ble or cases in which does not include much of
Oral hearings or examiration of witnesses and a conclusion can be reached on the basis of documents.
5.) CONTRACTUAL ARBITRATION
In this kind of arbitratiorn busines parties have agreed in vriting either in form of Purchase Order or separate
agreement dealing with terms of b siness or separate arbitration agreement
The contract contains the clause o. referring the disputes tT arbitration means contractual arbitration.
Q.7)Difference between arbitral triburl ard permanent court (2014)

NOTES
DIFFERENCE BETWEEN ARBITRAION AND COURT
COURT
ARBITRATION

1) Inarbitration, a settlement between the parties is 1.) court is involved in the case of litigation, as it is
done outside of court. alawsuit
a
On the other hand, litigation is describedtheascourt
2.)Arbitration is a method of resolving the dispute2.) in which the parties resort to
inwhich a neutral third party is appoint d to study legal process
settlement of disputes.
the dispute, listen to the parties and then make for the
recommendations, criminal
3,) litigation can be civil litigation or
3.) Arbitration is always civil in nature. litigation.

4)) Arbitration is a private method of re solving 4.) litigation is a public procedure.

controversies between the parties

5.) The cost of the arbitration process is lower. 5.) The cost of litigation is higher and expensive.
higher
6.)The decision made by the judge is final and 6.) In litigation, the litigants can appeal to
court,
binding in nature made by the
if they do not agree with the decision
court,but subject to certain conditions.

7.) Arbitration is a speedy process. 7.) Litigation is a slow process.

8.)There is no delay in justice. 8.) Due to slowproceeding there can be delay in

justice.
9.) Abitration is preferred by the parties over 9.) litigation has a number of advantages, i.e.
litigation due to many reasons such numerous appeals can be made, easy enforcement
judgenent, choice of the final outcome, etc
as greater confidentiality, quicksettlement,
of solutions, higher chances of low cost,
flexibilityin process etc.
10.) Decree of the court is binding on the litigants.
10.) Award by the Arbitral Tribunal is binding on
the parties and it is same as a decree of the court