By Subhashish Kumar Sahu, Penultimate year, KIIT School of Law
“Justice delayed is Justice denied”, as William E. Gladstone rightly quotes it, but by the implementation of ADR in the process, one can get the right justice delivered in his doorstep right in time without any delays. When the dispute is between two parties, the maturity and greatness lie in solving it amongst themselves without involving the court and other unnecessary elements into the picture. So, ADR here acts as a means to provide the parties seek the appropriate remedy for themselves in connivance to the aroused dispute. As. The belief should be that; it’s only the parties who can give the best resolution and not even the courts.
ADR as the acronym expands to its literal meaning, defining itself as the Alternate Dispute Resolution, so as providing an alternative method to resolve any dispute among two or more parties. It sounds simple, so are the methods of ADR. But, when there are such methods to choose from, to solve their dispute, one might actually confuse amongst them to choose a suitable one to decide and further settle their issue. Before deciding to go with the ADR, the parties must be agreeing and clear to pick the correct alternative for themselves. For the very dame reason, the parties must be thorough through the process of each knowing of the dire consequences of opting them along with the repercussions which can be made easy to identify by learning and distinguishing from each one’s advantages and disadvantages plus their process. Identifying the right choice of ADR for your issue is a crucial step to resolution. This doesn’t make just any sort of compromise, it acts as a channel to meaningful solutions.
Introduction
ADR is a vast topic in itself, which is booming in the current stage of law at a booming rate. Regardless of its origin being in existence even before the 2000s, there is still no substantial laws on it. Even in India, we focus on enacting lesser laws on these. The main reasons for all of it, is to keep it free from regulation, helps encourage and motivate the greater autonomy of the parties in this process, which is ADR’s main motto and the prime reasons for parties to choose it for resolving their disputes amicably among themselves abstaining court intervention.
There are various types of ADRs available, which act as various means or methods for solving the dispute using their own processes with varying merits and demerits. Everything is done without the court’s interference. As they say, in choosing ADR, we are owners of our own outcomes in our favors without any judge. But, even in that, we need to choose the right path to solve our problem from the ADR mechanisms, by carefully looking into them and knowing about each of them.
It is believed that, in within every dispute lies an opportunity to for parties to converse and decide, ADR is the key to it. Even after finding the key, you need to use the right combinations for the best results. Likewise, it’s not done after option ADR. Failing to choose the right one, can cause tables to turn other way round, making the situation even worse, eventually leading to litigation. So, in ADR, we need to choose the right type in resolving our dispute by deeply looking into its processes, advantages, disadvantages and then deciding it.
Types of ADR
Arbitration – It is the most conventional process of ADR, involving a formal and proper process of adjudication of dispute amongst the parties without involvement of court. It is the only process which resembles similarity to the litigation. But this does not involve a judge, rather involves an arbitrator who is neutral to the parties and might sometimes involve a panel of arbitrators, essentially odd in number. This arbitrator can be appointed by the parties which is called ad hoc and can also be done by an institution called institutional arbitrators. Unlike other processes, here arbitrator produces arbitral awards to both the parties.
Advantages | Disadvantages |
Faster than court | Can be expensive |
Binding outcome | Limited appeals |
Private & secure | Rigid remedies |
Expert decision‑maker | Arbitrator fees |
Flexible procedure | Procedural formality |
A Step-by-Step guide to Arbitration:
- Agreement to Arbitrate – Before any dispute arises, contracts typically include an arbitration clause. By signing, both parties commit that, should a disagreement occur, they will pursue arbitration rather than litigation.
- Appointment of Arbitrator(s) – The disputing parties jointly select one or more arbitrators—often experts in the dispute’s subject matter. If they cannot agree, an appointing authority may step in to make the appointment.
- Preliminary Conference – The arbitrator convenes the parties for an organizational meeting. Here, they agree on timelines, document exchanges, hearing dates, and any interim measures (for example, evidence preservation).
- Exchange of Submissions – Each side files a statement of claim or defense, along with supporting documents and witness lists. The arbitrator may set word or page limits and deadlines to keep proceedings efficient.
- Hearing – Both parties present evidence, examine witnesses, and make legal arguments. Hearings can be in person, by videoconference, or a hybrid format, with procedural rules less rigid than in court.
- Deliberation – After the hearing closes, the arbitrator reviews submissions, legal authorities, and testimony. This private evaluation culminates in a reasoned decision.
- Issuance of the Award – The arbitrator issues a written award that resolves the dispute and may include remedies such as damages, specific performance, or injunctive relief. Awards are typically final and binding.
- Enforcement of the Award – Because most major jurisdictions are signatories to the New York Convention, international awards can be recognized and enforced around the world with relatively little additional judicial review.
Implications: Arbitration is favoured in resolving complex commercial contract disputes, cross‑border trade disagreements, employment and workplace conflicts, construction and engineering claims, and intellectual property licence issues.
Mediation – It is the most chosen form of ADR where there is involvement of a neutral mediator who facilitates the discussion between the parties, aids in resolving the dispute by mediating through the parties on the deadlock issues amongst them. The main role of mediator not lies in pronouncing any rights to either party, but to assist them to communicate well with each other to resolve it mutually among themselves by impartial and unbiased mediating.
Advantages | Disadvantages |
Confidential | No guaranteed outcome |
Voluntary | Depends on goodwill |
Relationship‑saving | Lacks enforcement |
Flexible format | Power imbalances play |
Low‑cost potential | May drag on |
A Step-by-Step guide to Mediation:
- Selection of the Mediator – Parties jointly appoint—or rely on an appointing body to recommend—a mediator with the appropriate background and skills for their dispute.
- Initial Joint Session – The mediator opens a meeting with all participants, explains the process, sets ground rules, and establishes confidentiality and voluntary participation.
- Individual Meetings (Caucuses) – To understand each side’s concerns and interests, the mediator meets separately with each party. These private sessions allow candid discussion of strengths, weaknesses, and priorities.
- Issue Analysis – Drawing on information from the caucuses, the mediator identifies core issues and underlying interests, helping parties see the dispute’s heart beyond stated positions.
- Facilitated Negotiation – The mediator proposes frameworks for resolution, encourages trade‑offs, and assists parties in brainstorming options. Through back‑and‑forth bargaining, common ground starts to emerge.
- Drafting the Settlement – Once a tentative agreement forms, the mediator helps articulate its terms in writing—covering obligations, timelines, and any follow‑up mechanism.
- Closure and Next Steps – If both sides sign the settlement, it becomes binding as a contract. If talks stall, the mediator may suggest further sessions or alternative avenues, but no decision is imposed.
Implications: Mediation often resolves family law matters such as divorce and child custody, workplace and employment disagreements, landlord–tenant conflicts, small‑business partnership spats, and community or neighbourhood disputes.
Conciliation – It is the least formal process among all other ADRs which involves a neutral third party to facilitate the dispute resolution process among parties by providing various types of recommendations, amicable solutions and advices to both of them, which is again non-binding in nature. The conciliator plays an important and active role to navigate through the issues and constantly facilitates the discussion by providing his valuable inputs.
Advantages | Disadvantages |
Flexible, informal structure | No guaranteed resolution |
Conciliator actively proposes solutions | Recommendations not binding by default |
Addresses power or communication gaps | Relies on full participation |
Preserves ongoing relationships | Lacks arbitration’s enforceability |
Cost‑effective compared to litigation | May require multiple sessions |
A Step-by-Step guide to Conciliation:
- Appointment of the Conciliator – The disputing parties select—or an authority appoints—a conciliator experienced in the subject matter and skilled in guiding difficult negotiations.
- Initial Separate Meetings – The conciliator meets each party individually, exploring their concerns, interests, and any communication or power imbalances that may impede agreement.
- Proposal of Solutions – Drawing on these private discussions, the conciliator suggests compromise options, offers settlement ideas, and helps each side appreciate the other’s perspective.
- Issue Framing and Reframing – By clarifying and reframing key points of contention, the conciliator reshapes the dispute into manageable components, making common ground more visible.
- Facilitated Joint Dialogue – With a clearer structure, the parties come together—often in a joint session—to discuss conciliator‑proposed terms and negotiate final adjustments.
- Formulation of the Conciliation Proposal – The conciliator drafts a detailed recommendation or “conciliation proposal” outlining agreed terms, timelines, and responsibilities.
- Mutual Acceptance and Binding Effect – If both parties formally accept the proposal—typically by signing—the recommendations become a binding agreement enforceable as a contract or under relevant statutes.
Implications: Conciliation is frequently employed in workplace conflicts over wages or working conditions, business‑to‑business service and contract disagreements, and family disputes where parties wish to maintain long‑term ties.
Negotiation – It is the most flexible forms in ADR for the parties as it does not involve any neutral third party which enables parties negotiate under certain terms between themselves according to their needs and interests along with their legal representations to formalise the process and carry forward their decision into a binding one with entering into agreement post the discussions and conclusion of session to effectively resolve the dispute.
Advantages | Disadvantages |
Highly flexible | Heavily depends on willingness to talk |
Fastest, low cost | Power imbalances can skew fairness |
Parties retain full control | May fail if opponents won’t compromise |
Confidential and private | No guaranteed resolution |
Adaptable to any communication channel | Outcomes lack formal enforceability |
A Step-by-Step guide to Mediation:
- Preparation and Planning – Each party identifies its interests, priorities, and “walk‑away” point. Gathering relevant facts and developing a clear understanding of objectives sets the stage for focused dialogue.
- Opening Discussion – The parties come together—either face‑to‑face, by phone, or via written exchange—to present their positions. This initial dialogue establishes the tone and framework for negotiation.
- Clarification of Interests – Beyond stated demands, the negotiators probe underlying needs and concerns. By asking questions and listening actively, each side uncovers the motivations driving the other’s position.
- Bargaining and Proposal Exchange – Through iterative offers and counter‑offers, the parties explore possible trade‑offs. Creative options are brainstormed, concessions are calibrated, and tentative agreements on specific terms begin to form.
- Closing and Agreement – Once both sides reach a mutually acceptable solution, they document the terms in writing. This agreement—whether a simple email confirmation or a formal contract—cements the negotiated outcome.
Implications: Negotiation is the go‑to method for business-to-business contracts, real‑estate purchase and lease agreements, workplace and labour‑management discussions, family law settlements, and virtually any scenario where parties prefer to craft their own solutions rather than involve an outside decision‑maker.
Lok Adalat – It is the most unpreferred options in ADR. Nonetheless, it is the closest option to a formal court process and hence is sometimes not considered as an ADR. Regardless, it can resolve some matters faster than other ADR mechanisms. But owing to its limited choice of cases in jurisdiction, it cannot be utilized to its maximum potential. It is called the People’s Court where matter is decided by the legal professionals which is binding in nature.
Advantages | Disadvantages |
Clears case backlog quickly | Limited to certain case types |
Virtually no fees | Quality varies with experts available |
Voluntary participation | Not binding without consent |
Informal, stress‑free setting | Complex disputes may not fit |
Court‑equivalent enforceability | Parties may decline referral |
A Step-by-Step guide to Lok Adalat:
- Consent to Refer – Both disputing parties must agree to refer their case to a Lok Adalat. Only with mutual consent can the court direct the matter into this alternative forum.
- Informal Hearing – A panel—typically a serving judge and one or two legal experts—conducts proceedings in a relaxed setting. Parties briefly present their evidence and positions, free from strict courtroom formalities.
- Guided Negotiation and Conciliation – The panel actively facilitates dialogue, reframes contentious issues, and proposes settlement options. Through a blend of negotiation and conciliation, the aim is to craft a mutually acceptable resolution.
- Award and Legal Effect – Once both sides agree on terms, the Lok Adalat issues an “award.” This award is then recorded by the court and gains the same enforceability as a regular judicial decree.
Implications: Lok Adalats routinely resolve family disputes such as divorce and maintenance, consumer grievances over defective goods or services, civil disagreements like property or tenancy conflicts, and compoundable criminal offenses including cheating or mischief.
Conclusion
ADR mechanisms like mediation, conciliation, and arbitration embody the principle of party autonomy enshrined in our legislative ethos, as rightly stated by Justice Arun Mishra in L. N. Mittal v. Gujarat State Fertilisers & Chemicals Ltd., (2018) 10 SCC 655. It is also pertinent for us to choose right path for our plan of action as your dispute deserves the right forum, hence choose ADR like your best ally. One must be aware of its processes, implications, their advantages along with disadvantages referring from above to satisfy their dispute.