Alternative Dispute Resolution (ADR): Need & Advantages

Amid over 4.57 crore pending cases (NJDG, 2025), Alternative Dispute Resolution (ADR) mechanisms such as arbitration, mediation, and Lok Adalats are seen as essential for faster and inclusive justice delivery.

What is Alternative Dispute Resolution (ADR)?

Alternative Dispute Resolution (ADR) refers to mechanisms for resolving disputes outside traditional courts, using methods such as arbitration, conciliation, mediation, negotiation, and Lok Adalat.
- To ensure speedy, cost-effective, and participatory justice aligned with Article 39A of the Constitution (equal access to justice).
Statutory Basis
- Recognised under Section 89 of the Civil Procedure Code (CPC), 1908.
- Governed primarily by the Arbitration and Conciliation Act, 1996 (amended 2021).
- Supported by the Legal Services Authorities Act, 1987 (for Lok Adalats).
- The Mediation Act, 2023, provides a legal framework for mediation.

Need for Strengthening ADR in India

Case Pendency: Over 4.5 crore cases pending; High Courts face a 33% vacancy rate.
Constitutional Backing: Article 39A ensures equal justice and free legal aid.
Efficiency: The Arbitration & Conciliation (Amendment) Act, 2021, mandates resolution within 180 days.
Social Cohesion: Mediation fosters harmony and aligns with Gandhian principles of reconciliation.

Advantages of ADR

Cost-effective: ADR reduces expenses. Lok Adalat cases cost almost zero versus ₹1–5 lakh in courts.
Time-saving: 1062 Nari Adalat meetings resolved 497 cases in Assam and J&K (2023-24).
Decongests Courts: With 4.57 crore pending cases, ADR eases judicial backlog (NJDG 2025).
Maintains Harmony: Mediation prevents disputes from escalating, preserving relationships at the community level.
Flexible Process: Arbitration and conciliation allow tailored, mutually acceptable solutions.

Challenges of ADR in India

Low Awareness: Many citizens are unaware of ADR mechanisms, limiting participation. E.g., less than 30% of disputes in High Courts are referred to mediation (NJDG 2025).
Uneven Adoption: States like Uttar Pradesh, Bihar, and Andhra Pradesh face extremely high pendency. E.g., UP has over 6 lakh pending cases in High Courts alone (India Justice Report 2025).
Shortage of Mediators: India has limited trained mediators; judicial vacancy rates are 33% in High Courts and 21% in lower courts, affecting ADR efficiency.
Institutional Gaps: No national mediation authority exists yet, despite the Justice B.N. Srikrishna Committee (2017) recommendation for standardisation of ADR.
Limited Accessibility: Rural areas have poor ADR access. Gram Nyayalayas (2008) cover a few villages, whereas 68% of India’s population resides in rural areas.

Way Forward

Institutionalisation of ADR: Establish a National Mediation Authority for Standardisation as recommended by Justice B.N. Srikrishna Committee (2017).
ADR Education: Integrate ADR techniques into judicial academies and law schools to promote a pre-litigation mediation culture. E.g. UK Judicial College conducts certified mediation modules for judges.
Leverage Technology: Justice A.K. Sikri Committee (2020) on ODR (Online Dispute Resolution) recommended a standard framework for online mediation and data governance.
Inclusive Dispute Resolution: Gram Nyayalayas Scheme (2008) provides mobile village courts designed for quick, affordable justice. E.g. Rwanda’s Gacaca Courts resolving 90% of rural disputes locally.

Alternative Dispute Resolution (ADR) offers a faster, affordable, and socially inclusive way to resolve disputes, easing India’s 4.57 crore case backlog and strengthening justice delivery; as Joseph Grynbaum said, “An ounce of mediation is worth a pound of arbitration and a ton of litigation!”

Reference: The Hindu

PMF IAS Pathfinder for Mains – Question 367

Q. Alternative Dispute Resolution embodies a transformative shift from confrontation to consensus in India’s justice delivery system. Critically examine its scope, challenges, and the roadmap for effective institutionalisation. (250 Words) (15 Marks)

Approach

Introduction: Write a brief introduction about Alternative Dispute Resolution (ADR) and mention the constitutional backing and pending cases.
Body: Examine the scope of ADR, challenges, and the roadmap for institutionalisation of ADR for speedy, inclusive, and cost-effective justice.
Conclusion: Emphasis on dispute resolution at the grassroots level for faster, affordable, and socially inclusive.