Alternative Dispute Resolution (ADR)
- 10 Oct 2025
In News:
India’s judiciary faces an unprecedented crisis of pendency and delay, with over 4.57 crore cases pending across various courts, according to the National Judicial Data Grid (NJDG). Of these, the Supreme Court has about 81,768 cases, and High Courts collectively hold around 62.9 lakh cases. The situation underscores an urgent need to adopt efficient and accessible mechanisms like Alternative Dispute Resolution (ADR) to ensure timely and inclusive justice.
Understanding ADR
Alternative Dispute Resolution (ADR) refers to a set of methods that allow parties to settle disputes outside traditional court systems. It includes:
- Arbitration: A binding process where a neutral arbitrator delivers a decision.
- Conciliation: A non-binding process facilitated by a conciliator to promote settlement.
- Mediation: A voluntary and confidential dialogue process led by a neutral mediator.
- Judicial Settlement / Lok Adalat: Court-referred or community-level settlement platforms.
ADR processes are based on consensus, flexibility, and confidentiality, allowing parties to preserve relationships while saving time and resources.
Why ADR Is Crucial for India
The India Justice Report 2025 highlights critical inefficiencies within India’s justice system — including 33% vacancy in High Courts and 21% in District Courts. Judges in states such as Uttar Pradesh, Himachal Pradesh, and Kerala handle workloads exceeding 4,000 cases each. Prolonged pendency not only delays justice but also undermines trust in legal institutions.
ADR addresses these challenges by offering:
- Speed and Efficiency: Arbitration and mediation significantly reduce case duration compared to conventional litigation.
- Cost-Effectiveness: Reduced procedural formalities make justice affordable and accessible.
- Ease of Doing Business: ADR, especially in commercial disputes, enhances investor confidence by ensuring timely contract enforcement.
- Social Inclusion: Mediation and Lok Adalats provide participatory platforms, particularly beneficial for rural and marginalized communities.
Legal and Constitutional Framework
The foundation of ADR in India rests on multiple legal provisions:
- Article 39A of the Constitution mandates equal access to justice and free legal aid.
- Section 89 of the Code of Civil Procedure (1908) legally recognizes ADR processes such as arbitration, conciliation, and mediation.
- The Arbitration and Conciliation Act, 1996 (amended in 2021) provides the institutional framework, stipulating a 180-day resolution period and creating the Indian Arbitration Council.
- The Mediation Act, 2023 introduces mandatory pre-litigation mediation for civil and commercial disputes, encouraging resolution before approaching courts.
Additionally, Lok Adalats, functioning under the Legal Services Authorities Act, 1987, operationalize Article 39A’s spirit. They include Permanent Lok Adalats, National Lok Adalats, and e-Lok Adalats, offering binding decisions without appeal, thus ensuring swift justice at the grassroots level.
Global and Cultural Resonance
ADR aligns with international standards like the UNCITRAL Model Law, making it essential for cross-border commercial arbitration and foreign investment. At the same time, it resonates with India’s civilisational ethos of collective consensus, reflected in the traditional “Panch Parmeshwar” doctrine — a principle recently highlighted by the Law Minister as a model for community-based dispute resolution.
Conclusion
In an overburdened judicial ecosystem, Alternative Dispute Resolution represents a pragmatic and human-centered reform. Strengthening ADR through legal awareness, institutional support, and public participation can transform India’s justice system into one that is efficient, inclusive, and globally credible. By embracing ADR, India not only advances its constitutional mandate of “speedy justice for all” but also revives its age-old tradition of resolving disputes through dialogue and consensus.