Q.13. What alternative mechanism of dispute resolution have emerged in recent years? How far have they been effective?

In recent years, several alternative dispute resolution (ADR) mechanisms have emerged to provide more efficient, cost-effective, and harmonious ways of resolving disputes outside the traditional court system. These mechanisms include:

• Arbitration: A process where a dispute is submitted to an arbitral tribunal which makes a binding decision on the dispute. It is less formal than a trial and often faster.

• Conciliation: A non-binding procedure where an impartial third party assists the disputing parties in reaching a mutually satisfactory settlement.

• Mediation: Involves a neutral mediator who helps the parties communicate and try to reach a mutually acceptable resolution of the dispute. The mediator does not decide the dispute but facilitates the parties to settle it themselves.

• Online Dispute Resolution (ODR): Utilizes technology to resolve disputes through the internet. It includes various forms of ADR processes, particularly mediation and arbitration, and is designed to handle a wide range of disputes, especially those arising from e-commerce transactions.

• Lok Adalats: These are informal courts in India where disputes are settled by direct negotiation or mediation. They are effective in reducing the burden of cases on the formal court system.

As for their effectiveness, ADR mechanisms have been quite successful in various contexts:

• Reduced Burden on Courts: ADR has helped in decreasing the backlog of cases in courts by providing alternative forums for dispute resolution.

• Cost and Time Efficiency: ADR processes are generally faster and less expensive than traditional litigation, making them accessible to a wider population.

• Flexibility and Informality: The procedures in ADR are more flexible and less formal, which can be less intimidating for the parties involved and can lead to more amicable settlements.

• Confidentiality: ADR proceedings are usually private, which helps maintain confidentiality and can be preferable for parties who do not wish to make their disputes public.

However, ADR is not without its challenges. For instance, there may be power imbalances between the parties that could affect the fairness of the outcome, and there is also the question of the enforceability of ADR decisions, especially in cross-border disputes. Despite these challenges, ADR remains a valuable tool for dispute resolution and its use is likely to continue growing in the future.