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Alternative Dispute Resolution in Civil Procedure Law

Introduction​

Alternative Dispute Resolution (ADR) refers to various methods of resolving disputes outside of traditional litigation. India, ADR techniques have become increasingly popular as a means of efficiently resolving civil disputes while reducing the burden on courts.

This guide will explore the key aspects of ADR in the context of civil procedure law, focusing on its relevance for law students and LLB students. We'll examine the legal framework governing ADR, discuss common ADR methods, and highlight relevant case laws to illustrate practical applications.

The legal framework for ADR in India is primarily governed by the following sections of the Code of Civil Procedure (CP):

  • Section 89: Compounding of suits
  • Section 89A: Mediation
  • Section 89B: Arbitration
  • Section 89C: Lok Adalat

These provisions were introduced through the Amendment Act of 2002 to promote ADR methods in civil cases.

Case Law: Rupa Ashok Mardikar v. Ramesh Candra Mardikar​

In this landmark case 1, the Supreme Court of India emphasized the importance of ADR in civil matters:

"The object of introducing mediation under Section 89(2) of the CPC is to encourage settlement of disputes amicably without resorting to lengthy and expensive litigation."

Common ADR Methods​

Mediation​

Mediation involves a neutral third party facilitating communication between parties to reach a mutually acceptable agreement.

Case Law: Union of India v. Ansley Development India Ltd.​

In this case 2, the Delhi High Court upheld the validity of a mediated settlement:

"The court cannot interfere with the terms of compromise arrived at through mediation unless there is a clear abuse of process of law."

Arbitration​

Arbitration involves submitting disputes to one or more impartial persons chosen by the parties involved.

Case Law: Reliance Industries Ltd. v. Union of India​

The Supreme Court of India ruled in favor of arbitration in this high-profile case 3:

"The Arbitral Tribunal's award was valid and enforceable, despite certain irregularities in the arbitration proceedings."

Lok Adalats​

Lok Adalats are people's courts established to settle disputes out of court.

Case Law: State of Maharashtra v. Bhagwan Singh​

The Bombay High Court recognized the legitimacy of Lok Adalat settlements 4:

"A Lok Adalat order is not a judgment but a decree, and can be executed like any other decree."

Conclusion​

Alternative Dispute Resolution offers a valuable alternative to traditional litigation in civil matters. By understanding the legal framework, common ADR methods, and relevant case laws, law students and LLB students can better appreciate the role of ADR in modern legal practice.

As the legal system continues to evolve, ADR methods are likely to play an increasingly important role in dispute resolution. This knowledge will serve students well in their future careers, whether they choose to specialize in civil law or pursue other areas of legal practice.