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VARIOUS TYPES OF ADR WITH SPECIAL REFERENCE TO LOK ADALAT

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This article is written by Ayushi Mahawar an intern under Legal Vidhiya

ABSTRACT

Alternative Dispute Resolution (ADR) has emerged as a pivotal component of India’s legal landscape, offering a paradigm shift from traditional litigation methods. Over time, ADR methods such as arbitration, mediation, conciliation, negotiation, and Lok Adalats have gained prominence, driven by the imperative to address the myriad challenges plaguing the judicial system. These challenges include the burden of overcrowded courts, protracted legal proceedings, and escalating litigation costs. Each ADR method possesses distinct characteristics, but collectively they provide expedient, cost-effective, and equitable avenues for resolving disputes. The legal framework governing ADR, encompassing statutes like the Arbitration and Conciliation Act, 1996, and the Legal Services Authorities Act, 1987, alongside judicial precedents, has bolstered the legitimacy and efficacy of these mechanisms. Among them, Lok Adalats stand out as pivotal forums for non-adversarial dispute resolution. These forums prioritize amicable settlement, offering swift and accessible justice, particularly to marginalized segments of society. By emphasizing mediation, conciliation, and negotiation, Lok Adalats not only alleviate the strain on the formal court system but also foster a culture of collaborative resolution, thereby underscoring their indispensable role in India’s legal landscape.

KEYWORDS

Alternative Dispute Resolution (ADR), arbitration, Mediation, Conciliation, Negotiation, Lok Adalat, Judicial settlement, Jurisdiction

INTRODUCTION

ADR, which offers an alternative to traditional litigation for settling conflicts, has become an important part of India’s legal landscape. ADR includes a range of techniques including arbitration, conciliation, mediation, and Lok Adalats that provide effective and adaptable ways to resolve disputes. ADR’s acceptance in India has been progressively increasing as a result of issues like overcrowded courts, lengthy legal proceedings, and rising costs of litigation. The types of ADR that are used in India are as follows[1]:

  1. Arbitration
  2. Mediation
  3. Conciliation
  4. Judicial Settlement
  5. Negotiation
  6. Lok Adalat

ARBITRATION

Arbitration is a method used to settle disputes without going to court. It’s considered an alternative dispute resolution (ADR) method. In arbitration, when two parties are in disagreement, they agree to let one or more arbitrators decide for them. Both parties agree in advance to accept the decision of the arbitrator(s) as final and legally binding. During arbitration, evidence is presented, and the arbitrator(s) carefully examine it before issuing a decision. Unlike court cases, where decisions can often be appealed multiple times, arbitration decisions usually have limited options for review and appeal. There are different types of arbitration[2]. Voluntary arbitration happens when both parties agree to go through arbitration willingly. Compulsory arbitration, on the other hand, occurs when parties are required by law or agreement to resolve their disputes through arbitration, even if they don’t know exactly what those disputes might be in the future. In India, the laws governing arbitration fall under the Arbitration and Conciliation Act of 1996. This act provides guidelines and regulations for arbitration proceedings in the country. Apart from voluntary and compulsory arbitration, there are other forms of ADR, such as ad-hoc, institutional, statutory, and domestic or international arbitration. These different types cater to various needs and circumstances, offering flexibility and options for resolving disputes outside of the traditional court system.

CONCILIATION

Conciliation is another ADR method where parties hire a conciliator to help them resolve their issues collaboratively. Unlike arbitration, where a decision is imposed, conciliation focuses on reducing conflicts and fostering cooperation between the disputing parties. The goal is to identify the root of the problem and facilitate discussions that lead to a mutually agreed-upon settlement. One key aspect of conciliation is that it’s a voluntary process. Both parties willingly participate and have the freedom to decide on the terms of the conciliation, including when and how it takes place. This flexibility allows for a more collaborative approach to resolving conflicts. In India, conciliation and mediation are often used interchangeably, referring to the same process of dispute resolution facilitated by a neutral third party. The conciliator or mediator helps parties understand each other’s perspectives, identify common ground, and explore potential solutions. The aim is to reach an agreement that satisfies the interests and concerns of both parties. Importantly, any settlement reached through conciliation holds legal validity. Once parties agree on a resolution, it becomes binding and enforceable, similar to an arbitration award. This provides assurance that the agreed-upon terms will be upheld and respected by both parties. Overall, conciliation offers a collaborative and flexible approach to resolving disputes, allowing parties to work together toward a mutually acceptable solution with the assistance of a neutral facilitator.

MEDIATION

Mediation is a type of dispute resolution where a neutral third party, known as a mediator, helps people who are in disagreement to come to a solution they both find acceptable. Unlike arbitration, where a decision is made for them, in mediation, the parties retain full control over the outcome. The mediator’s role is not to impose a decision but to facilitate communication and negotiation between the disputing parties. One of the key features of mediation is its voluntary nature. The parties involved choose to participate in the process willingly, and they can decide to withdraw at any time if they feel it is not working for them. This voluntary aspect often leads to a more cooperative atmosphere, where parties are more inclined to work together to find common ground. Mediation is also an informal process. It does not follow strict legal procedures like a court trial or arbitration hearing. Instead, it provides a relaxed and comfortable environment where parties can openly discuss their concerns and explore potential solutions without the constraints of formalities. By empowering parties to maintain control over the resolution process, mediation helps preserve relationships that the dispute may have strained. Since the parties are actively involved in crafting the solution, they are more likely to feel satisfied with the outcome and less resentful towards each other afterward. Another advantage of mediation is its ability to minimize stress and expenses associated with traditional legal proceedings. Because mediation is typically faster and less formal than going to court, it can save parties time, money, and emotional energy. Overall, mediation offers a collaborative and flexible approach to resolving disputes, allowing parties to work together towards a mutually agreeable solution with the guidance of a neutral mediator.

JUDICIAL SETTLEMENT

The judicial settlement, as outlined in Section 89 of the Code of Civil Procedure, involves resolving disputes within the court system but with a focus on achieving an amicable resolution. The aim is to encourage parties to settle their disputes cooperatively, rather than engaging in lengthy and adversarial litigation. Unlike traditional court proceedings where a judge makes a final decision after hearing arguments from both sides, judicial settlement allows parties to actively participate in finding a solution. This can involve negotiations, discussions, and compromises facilitated by the court with the assistance of a judge. It is important to note that while there are no specific procedural rules outlined for judicial settlements, they are recognized and supported under the Legal Services Authority Act of 1987, especially if they are reached in a friendly and cooperative manner. This Act aims to provide access to justice for all, including those who may not have the means to afford legal representation. In a judicial settlement, the court may act as a facilitator, helping parties communicate effectively, understand each other’s positions, and explore potential solutions. The goal is to reach a mutually acceptable agreement that resolves the dispute satisfactorily for both parties. Once a settlement is reached through judicial settlement, it can be legally binding and enforceable, similar to agreements reached through other forms of dispute resolution. This ensures that the terms of the settlement are upheld and respected by both parties. Overall, judicial settlement offers parties an opportunity to resolve their disputes collaboratively and efficiently within the court system, promoting amicable solutions while reducing the burden on the judiciary and the parties involved[3].

NEGOTIATION

Negotiation stands as a primary method for resolving conflicts as it involves individuals engaging in discussions to resolve disputes through persuasion. Unlike scenarios where external parties intervene, negotiation grants the involved parties control over the process and the outcome. Participation in negotiation is voluntary, allowing individuals to decide whether or not to engage, and any resulting agreements are based on mutual consent rather than legal mandates. This means they have full control over the negotiation and its results. Negotiation gives chances to find different solutions that benefit everyone. Even though it is not officially recognized by law in India, people still use negotiation a lot. It is like working together to figure things out without strict rules, but it usually follows a predictable pattern that can change depending on the situation.

LOK ADALAT

Lok Adalat serves as an alternative dispute resolution mechanism within the Indian legal system, providing a forum for resolving disputes in a non-adversarial manner. As an integral part of the legal framework, Lok Adalats are empowered to settle cases pending in courts or at pre-litigation stages through amicable settlements or compromises. Lok Adalats were introduced in India in 1982, starting with the first one in Gujarat. They were created because many people in India could not read or write, making it hard for them to deal with legal issues. Lok Adalats helps reduce the burden on regular courts by resolving cases quickly and through negotiation. They focus on fairness, speed, and finding solutions that both sides agree on. These courts are especially helpful for people who are less powerful or don’t have much money. Instead of going through the usual court process, they can use Lok Adalats to settle their disputes. The Legal Services Authorities Act of 1987 officially recognizes Lok Adalats and makes them a part of the legal system. The main goal of this Act is to make sure everyone, especially those who are less privileged, can get fair legal help when they need it. Lok Adalats are a big part of this effort. The Act also says that agreements made in Lok Adalats are as valid as court orders, meaning they can be enforced just like any other legal decision. One notable aspect of Lok Adalats is the absence of court fees when filing cases, making them accessible to all. If a matter referred to Lok Adalat from a court is subsequently settled, any court fees originally paid are refunded to the parties. Operating under the guidance of members, Lok Adalats function as statutory conciliators, assisting parties in reaching amicable settlements independently and impartially. They do not impose decisions but encourage dialogue and mutual agreement between the parties[4].

IMPORTANCE OF LOK ADALATS

  1. Lok Adalats are very important in the Indian legal system because they help to speed up justice and reduce the workload of regular courts. They offer a fast and cheap way to resolve disputes, focusing on finding solutions that both sides can agree on.
  2. By getting the community involved, Lok Adalats makes the legal process easier for everyone to access. There are different types of Lok Adalats, like Permanent, National, Mega, Mobile, Daily, and Continuous, which handle many different kinds of disputes, making sure they can adapt to different situations.
  3. This way of resolving disputes emphasizes the idea that everyone should have a say in how justice is delivered, which is a big part of how the legal system works in India. Overall, Lok Adalats play a crucial role in making sure justice is fair and accessible to everyone.

DIFFERENT TYPES OF LOK ADALATS IN INDIA

The types of Lok Adalat include Permanent Lok Adalat, National Lok Adalat, Mega Lok Adalat, Mobile Lok Adalat, Daily Lok Adalat and Continuous Lok Adalat[5].

  1. Permanent Lok Adalat: These are set institutions that handle disputes related to public services like transportation and postal services. Unlike other Lok Adalats, Permanent Lok Adalats are always available to resolve disputes.
  2. National Lok Adalat: These were introduced in 2015 to clear pending cases across the country. They focus on specific themes or types of cases and are held every month to encourage friendly resolution of disputes and reduce the load on traditional courts.
  3. Mega Lok Adalat: These are large events where many Lok Adalats come together to resolve a lot of cases in one day. They cover a wide range of legal issues and help reduce the backlog of cases, providing relief to the overloaded court system.
  4. Mobile Lok Adalat: These are unique because they move from one place to another, reaching out to areas where people might have difficulty accessing legal services. This helps ensure that justice is available to everyone, even in remote areas.
  5. Daily Lok Adalat: These operate every day, providing a continuous platform for resolving disputes quickly. This helps ensure that people have a constant way to seek justice and reduces the burden on regular courts.
  6. Continuous Lok Adalat: These are set up to provide ongoing dispute resolution, operating continuously instead of having periodic sessions. This helps ensure that disputes are resolved promptly and avoids delays associated with traditional legal processes.

TYPES OF CASES AT LOK ADALAT AND ITS JURISDICTION

  1. Lok Adalat handles and has jurisdiction over all cases pending in any court or those not yet filed. Cases not filed in any court are referred to Lok Adalats when parties or single party involved in the dispute visit the court or Lok Adalat for referral of the case. Disputes may also be referred to Lok Adalats when a party applies to a pre-litigation dispute[6].
  2. Cases typically dealt with by Lok Adalat include compoundable criminal offenses, land acquisition disputes, matrimonial disputes, family disputes, and land mutation matters. However, Lok Adalats lack jurisdiction over disputes related to non-compoundable offenses under any law and cases that remain outside their purview.

COMPOSITION AND ORGANIZATION OF LOK ADALAT

Members of Lok Adalat decide pending cases and act as statutory intermediaries without a judicial role. Each Lok Adalat for a specific area consists of a chairman and two members. A sitting or retired judicial officer serves as the chairman, while the other members shall be a lawyer and another one shall be a social worker[7].

PROCEDURE FOR ORGANIZING LOK ADALATS

  1. Lok Adalats are organized by State Authorities, District Authorities, Supreme Court Legal Services Committee, High Court Legal Services Committee, or Taluk Legal Services Committees at regular intervals, covering specific geographical areas as deemed suitable. Special Lok Adalats are organized regularly for all Family Courts.
  2. The Member-Secretary or Secretary of the High Court Legal Services Committee or District Authority, or the case may be, the Chairman of the Taluk Legal Services Committee may associate the members of legal professionals, college students, social organizations, charitable institutions, and similar groups in organizing Lok Adalats.
  3. Lok Adalats are organized by district or state Legal Services Authorities, the Supreme Court, High Courts, or Taluk Legal Services Committees at various intervals and locations. The National Legal Services Authority (NALSA) and other legal institutions are responsible for conducting Lok Adalats[8].

FUNCTIONING OF LOK ADALAT

  1. Lok Adalat serves as an alternative dispute resolution mechanism for settling disputes pending in court or at the pre-litigation stage. The awards issued by Lok Adalat are final and binding, although parties dissatisfied with the decision can initiate litigation by approaching the court and filing a case.
  2. Decisions in Lok Adalats are based on settlements reached by the parties involved. Members of the Lok Adalat assist parties impartially in reaching a settlement, providing accessible and speedy justice. Often, cases can be resolved in a single day through discussions, counseling, and conciliation.
  3. Lok Adalats offer a cost-effective method of dispute resolution, as there are no court fees involved and any previously paid fees are refunded to the parties. This mechanism minimizes expenses and saves time for the disputing parties.
  4. When no settlement is reached, the dispute returns to court. During proceedings, Lok Adalat acts as a conciliator, facilitating reconciliation between the parties.

POWERS OF LOK ADALAT

  1. Under Section 22[9] of the Legal Services Authorities Act of 1987, Lok Adalats are granted powers similar to those of civil courts under the Code of Civil Procedure, 1908. This includes powers related to the production of documents and access to public records.
  2. Additionally, Lok Adalats have the authority to establish their procedures for resolving disputes filed with them. All proceedings before Lok Adalats are considered judicial proceedings under relevant sections of the Indian Penal Code, and their awards are treated as decrees of civil courts, binding on the parties involved.

ADVANTAGES OF LOK ADALAT

Some of the advantages of Lok Adalat[10]:

  1. Swift Resolution: Lok Adalat offers speedy resolution to disputes, often faster than traditional litigation, with cases resolved within hours or days.
  2. Cost-effectiveness: It is a financially efficient method as it eliminates costly legal proceedings, with no court fees or legal expenses for the parties involved.
  3. Voluntary Participation: Parties can choose to participate voluntarily in Lok Adalat and can withdraw at any stage, ensuring mutual consent throughout the process.
  4. Reduced Judicial Burden: By providing an alternative dispute resolution mechanism, Lok Adalat alleviates the burden on the traditional judicial system, helping to clear backlog cases.
  5. Enhanced Access to Justice: Lok Adalat extends access to justice to a wider population, especially marginalized groups, who may otherwise struggle with expensive legal processes.

CONCLUSION

In conclusion, Alternative Dispute Resolution (ADR), including methods like arbitration, mediation, conciliation, negotiation, and Lok Adalats, has emerged as a vital component of India’s legal framework. The various types of ADR methods cater to different needs and circumstances, providing flexibility and options for resolving disputes. From arbitration’s structured decision-making process to mediation’s collaborative approach, each method offers unique advantages aimed at facilitating fair and efficient conflict resolution. Lok Adalats, in particular, play a significant role in the Indian legal system by providing a forum for non-adversarial resolution of disputes. Their emphasis on community participation, accessibility, and timely justice aligns with the democratic principles of inclusivity and fairness. Lok Adalats have proven to be effective in reducing the burden on traditional courts, offering swift and cost-effective solutions while ensuring access to justice for all segments of society. Overall, the acceptance and utilization of ADR methods, including Lok Adalats, underscore their importance in promoting a more accessible, efficient, and citizen-centric legal system in India. As such, further research and exploration into the effectiveness and evolution of ADR mechanisms can contribute to enhancing the delivery of justice and strengthening the legal landscape in the country.

REFERENCES

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  2. iPleaders, https://blog.ipleaders.in/models-of-alternative-dispute-resolution/ (last visited Feb. 25, 2024).
  3. Legal Service India, https://www.legalserviceindia.com/legal/article-1823-lok-adalat-alternative-dispute-resolution-mechanism-in-india.html (last visited Feb. 27, 2024).
  4. LawBhoomi, https://lawbhoomi.com/types-of-lok-adalat/ (last visited Feb. 25, 2024).
  5. National Legal Services Authority (Lok Adalat) Regulations, 2009, https://upload.indiacode.nic.in/showfile?actid=AC_CEN_3_46_00003_198739_1517807322718&type=regulation&filename=nlsa_lokadalat_regu_2009.pdf (last visited Feb. 28, 2024).
  6. The EduLaw, https://portal.theedulaw.com/singlenotes?uid=312 (last visited Feb. 29, 2024).

[1] Academike, https://www.lawctopus.com/academike/arbitration-adr-in-india/amp/ (last visited Feb. 27, 2024).

[2] iPleaders, https://blog.ipleaders.in/models-of-alternative-dispute-resolution/ (last visited Feb. 25, 2024).

[3] iPleaders, https://blog.ipleaders.in/models-of-alternative-dispute-resolution/ (last visited Feb. 25, 2024).

[4] Legal Service India, https://www.legalserviceindia.com/legal/article-1823-lok-adalat-alternative-dispute-resolution-mechanism-in-india.html (last visited Feb. 27, 2024).

[5] LawBhoomi, https://lawbhoomi.com/types-of-lok-adalat/ (last visited Feb. 25, 2024).

[6] Legal Service India, https://www.legalserviceindia.com/legal/article-1823-lok-adalat-alternative-dispute-resolution-mechanism-in-india.html (last visited Feb. 27, 2024).

[7]Legal Service India, https://www.legalserviceindia.com/legal/article-1823-lok-adalat-alternative-dispute-resolution-mechanism-in-india.html (last visited Feb. 27, 2024).

[8] National Legal Services Authority (Lok Adalat) Regulations, 2009, https://upload.indiacode.nic.in/showfile?actid=AC_CEN_3_46_00003_198739_1517807322718&type=regulation&filename=nlsa_lokadalat_regu_2009.pdf (last visited Feb. 28, 2024).

[9] Legal Service India, https://www.legalserviceindia.com/legal/article-1823-lok-adalat-alternative-dispute-resolution-mechanism-in-india.html (last visited Feb. 27, 2024).

[10] The EduLaw, https://portal.theedulaw.com/singlenotes?uid=312 (last visited Feb. 29, 2024).

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