CJI stresses on Mediation as an Alternate Dispute Mechanism

• Mediation is increasingly gaining prominence in the international commercial sphere as a dispute resolution mechanism according to the CJI of India
• Quoting famous author R.L. Stevenson, he said, "Compromise is the best and cheapest lawyer."

Alternate Dispute Mechanism

• It is a non-adversarial method of resolving disputes, in which parties work together cooperatively to find the best solution for everyone.
• It can help courts reduce the load of litigation while also providing a well-rounded and rewarding experience for the parties involved.
• It allows them to "grow the pie" by engaging in creative, collaborative bargaining and ensuring that their demands are met.

Mediation

• It is a type of ADR in which a neutral person known as a "mediator" assists the parties in attempting to obtain a mutually agreeable resolution of the disagreement during mediation.
• The mediator does not decide the problem; instead, he or she assists the parties in communicating so that they can try to resolve it on their own.
• The parties retain control of the outcome in mediation.

Benefits of ADR

• Confidentiality: dispute resolution takes place in private which helps to maintain privacy
• Time efficient: it happens usually in lesser time in comparison to the court decision
• Better outcomes: it often results in creative solutions, sustainable outcomes, greater satisfaction, and improved relationships

ADR in India

• To make the arbitral process more effective and to bring it at par with the international law on arbitration, the Arbitration and Conciliation Act was enacted in 1996
• It was amended in 2015, in 2019, and in 2021
• The Legal Services Authorities Act was passed in 1987 to encourage out-of-court settlements
• Lok Adalat: also known as "people's court," is an informal approach that encourages talks in the presence of a judicial officer and allows issues to be resolved without putting too much emphasis on legal jargon.
• The Lok-decision Adalat's is final and binding on the parties, and it cannot be challenged in court.

Conclusion

• In the previous three years, ADR has been successful in clearing the backlog of cases at all levels of the judiciary - Lok Adalats alone have disposed of more than 50 lakh cases per year on average.
• It can also be used for commercial disputes resolution among parties as an efficient tool and making India’s environment more business friendly

Exam Track

Prelims Take away

• ADR
• Mediation
• Lok Adalats

Mains Track

Q Mediation is increasingly gaining prominence in the international commercial sphere as an ADR. It should also be incorporated in India for making India’s environment more business friendly. Discuss.