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.
- 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.
- 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
Prelims Take away
- Lok Adalats
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.