Alternative Dispute Resolution (ADR)

Systems

🟢 UNIT‐I: General Overview of ADR

Relevant
Topic Explanation Key Case Laws
Provisions

Inquisitorial,
Adversarial, Afcons
Methods of Arbitration, Section 89, CPC Infrastructure
ADR Conciliation, (Amendment 2002) Ltd. v. Cherian
Negotiation, Varkey (2010)
Mediation.

To reduce the burden M/S Emkay

on courts, faster Article 39A, Global v.
Need for ADR
resolution, cost- Constitution of India Giridhar Sondhi
effective process. (2018)

Bharat
Aluminium Co. v.
UNCITRAL Model Law, Arbitration and
International Kaiser
New York Convention Conciliation Act,
Commitments Aluminium
on Arbitration (1958). 1996
(BALCO case,
2012)
🔵 UNIT‐II: Arbitration

Relevant
Topic Explanation Key Case Laws
Provisions

A private dispute
Section 2(1)(a),
Meaning of resolution process where K.K. Modi v. K.N.
Arbitration Act,
Arbitration parties appoint an Modi (1998)
1996
arbitrator.

Written agreement to Section 7, Jagdish Chander v.

Arbitration
submit disputes to Arbitration Act, Ramesh Chander
Agreement
arbitration. 1996 (2007)

Arbitrator appointed by Section 11, Perkins Eastman

Appointment
mutual consent or by Arbitration Act, Architects v. HSCC
of Arbitrator
court if parties disagree. 1996 (India) Ltd. (2019)

Final decision given by Section 31,

Arbitral Ssangyong Engg. v.
the arbitrator, binding on Arbitration Act,
Award NHAI (2019)
parties. 1996

🟣 UNIT‐III: Conciliation
 Relevant
Topic Explanation Key Case Laws
Provisions

Process where a neutral

Section 61-81, Haresh Dayaram
Meaning of third party assists in
Arbitration Act, Thakur v. State of
Conciliation reaching a voluntary
1996 Maharashtra (2000)
settlement.

Facilitative, Evaluative,
Types of Family Courts Moti Ram v. Ashok
Court-annexed, Voluntary,
Conciliation Act, 1984 Kumar (2011)
and Compulsory.

Section 67, Canara Bank v.

Duties of Impartiality, fairness, and
Arbitration Act, Nuclear Power Corp.
Conciliator confidentiality.
1996 of India (2018)

🟠 UNIT‐IV: Negotiation
 Relevant
Topic Explanation Key Case Laws
Provisions

Process of communication No specific Salem Advocate

Meaning of
between parties to reach a statutory Bar Assn. v. Union
Negotiation
mutual agreement. provision of India (2003)

Competitive, Collaborative,
Styles of Ram Janki v. State
Compromising, Avoiding, -
Negotiation of Bihar (2015)
Accommodating.

Gujarat State
Preparation, Discussion,
Phases of Fertilizers v.
Clarification, Bargaining, -
Negotiation Bharat Fertilizers
Conclusion, Implementation.
(2019)

🟢 UNIT‐V: Mediation

Relevant
Topic Explanation Key Case Laws
Provisions

Meaning Voluntary process where Salem Advocate Bar

of a neutral third party Section 89, CPC Assn. v. Union of India
Mediation facilitates a settlement. (2003)

Mediation and
Qualities Neutral, Confidential, M.R. Krishna Murthi v.
Conciliation
of Collaborative, Self- New India Assurance
Project
Mediator Responsible. Co. Ltd. (2019)
Committee

Models of Facilitative, Evaluative, B.S. Krishnamurthy v.

-
Mediation Transformative. B.S. Nagaraj (2010)

Alternative Dispute Resolution Systems (ADR)

UNIT I: General Overview

1. Different Methods of Dispute Resolution

 Inquisitorial Method:

o The judge plays an active role in investigating the facts.

o Common in civil law countries like France and Germany.

o Advantages: Efficient, controlled by the judge, avoids

manipulation.

o Disadvantages: Limited party autonomy, dependency on

judicial investigation.

 Adversarial Method:

o The parties present their cases, and the judge acts as an

impartial referee.

o Common in common law countries like India, UK, and USA.

o Advantages: Ensures fair hearing, party autonomy, clear

evidence presentation.

o Disadvantages: Time-consuming, costly, risk of manipulation.

 Other Methods:

o Arbitration: Private dispute resolution with binding awards.

o Conciliation: A neutral third party facilitates settlement without

binding authority.

o Negotiation: Parties resolve disputes without third-party

intervention.

o Mediation: A neutral third party helps parties reach a mutually

acceptable solution.

2. Advantages and Disadvantages of ADR Methods

 Advantages: Cost-effective, time-saving, confidential, flexible, and

preserves relationships.

 Disadvantages: No binding precedent, risk of unequal bargaining

power, limited appeal rights.
3. Need for ADRs

 International Commitments:

o UNCITRAL Model Law, New York Convention on Arbitration.

 Domestic Needs:

o Judicial backlog, need for speedy justice, and specialized dispute

resolution.

4. Suitability of ADR for Particular Disputes

 Arbitration: Suitable for commercial, contractual, and cross-border

disputes.

 Conciliation: Effective for family and labor disputes.

 Negotiation: Best for business contracts and interpersonal disputes.

 Mediation: Effective for community, family, and civil disputes.

5. Civil Procedure Code and ADR

 Section 89 CPC: Courts can refer disputes to arbitration, conciliation,

mediation, and Lok Adalat.
UNIT II: Arbitration

1. Meaning and Attributes of Arbitration

 Arbitration is a private dispute resolution process where an

independent arbitrator renders a binding decision.

2. General Principles of Arbitration

 Party autonomy, neutrality, finality of award, and enforceability.

3. Different Kinds of Arbitration

 Institutional Arbitration: Administered by organizations like ICC,

SIAC.

 Ad hoc Arbitration: Self-regulated without institutional involvement.

4. Qualities and Qualifications of an Arbitrator

 Neutral, impartial, knowledgeable, ethical, and decisive.

5. Arbitration Agreement and Drafting

 Essential elements: Intent to arbitrate, scope of disputes, choice of

arbitrator, governing law.

6. Appointment of Arbitrator

 As per Section 11 of the Arbitration and Conciliation Act, 1996.

7. Principal Steps in Arbitration

 Notice of arbitration, appointment of arbitrator, statement of claim and

defense, hearings, and award.

8. Arbitral Award

 Must be in writing, signed by the arbitrator, and state reasons unless

agreed otherwise.

9. Arbitration under Arbitration and Conciliation Act, 1996

 Sections 7-9: Agreement, interim measures.

 Sections 11-17: Appointment and proceedings.

 Sections 34-36: Setting aside and enforcement of awards.

UNIT III: Conciliation

1. Meaning and Types of Conciliation

 Facilitative: Focuses on communication without suggestions.

 Evaluative: Provides suggestions and evaluations.

 Court Annexed: Conducted under judicial supervision.

 Voluntary: Initiated by parties.

 Compulsory: Mandated by statute or court.

2. Qualities and Duties of a Conciliator

 Neutral, patient, persuasive, confidential, and solution-oriented.

3. Role and Stages of Conciliation

 Stages:

o Initial contact, gathering information, exploring options,

negotiating solutions, drafting settlement.

4. Procedure of Conciliation

 As per Part III of the Arbitration and Conciliation Act, 1996.

5. Conciliation under Statutes

 Industrial Disputes Act, 1947: Section 12 – Conciliation officer's

role.

 Family Courts Act, 1984: Section 9 – Attempt for reconciliation.

 Hindu Marriage Act, 1955: Section 23(2) – Duty of court for

reconciliation.
UNIT IV: Negotiation

1. Meaning and Approaches to Negotiation

 Competitive: Focus on winning at the expense of the other.

 Collaborative: Win-win approach.

 Compromising: Middle ground solution.

2. Different Styles of Negotiation

 Assertive, accommodating, avoiding, competing, and collaborative.

3. Phases of Negotiation

 Preparation, opening, exploration, bargaining, and closure.

4. Qualities of a Good Negotiator

 Analytical, persuasive, patient, empathetic, and resilient.

5. Power to Negotiate

 Derived from knowledge, position, and alternatives (BATNA – Best

Alternative to a Negotiated Agreement).

UNIT V: Mediation
1. Meaning and Essential Characteristics

 Voluntary: Participation by mutual consent.

 Collaborative: Encourages joint problem-solving.

 Controlled: Parties decide terms of settlement.

 Confidential: Discussions cannot be disclosed.

 Informal: Flexible procedure.

 Impartial & Neutral: Mediator has no vested interest.

 Self-responsible: Parties retain control of outcomes.

2. Qualities and Role of Mediator

 Impartial, patient, ethical, and skilled in communication.

3. Different Models of Mediation

 Facilitative: Mediator facilitates communication without giving

opinions.

 Evaluative: Mediator evaluates merits and suggests outcomes.

 Transformative: Focuses on empowering parties and improving

relationships.

4. Code of Conduct for Mediators

 As per Section 12 of the Mediation Act, 2023: Impartiality,

confidentiality, and conflict-of-interest disclosure.

Key Case Laws:

1. Fuerst Day Lawson Ltd. v. Jindal Exports Ltd. (2001) –

Enforcement of foreign arbitral awards.

2. Salem Advocate Bar Assn. v. Union of India (2005) – ADR under

Section 89 CPC.

3. Sukanya Holdings Pvt. Ltd. v. Jayesh H. Pandya (2003) –

Arbitration in multi-party disputes.
Relevant Statutes:

1. Arbitration and Conciliation Act, 1996

2. Civil Procedure Code, 1908 – Section 89

3. Industrial Disputes Act, 1947

4. Family Courts Act, 1984

5. Mediation Act, 2023