Why Alternative Dispute Resolution (ADR) Is Crucial for India’s Courts?

Syllabus: GS2/Polity & Governance

Context

• India’s judicial system is grappling with an unprecedented backlog underscoring the urgent need for alternative mechanisms to ensure timely delivery of justice.

About Alternative Dispute Resolution (ADR)

• It refers to a set of processes that allow parties to resolve disputes outside the formal court system. These include:
  • Arbitration: A binding process where a neutral arbitrator delivers a decision.
  • Conciliation: A non-binding process where a conciliator helps parties reach a settlement.
  • Mediation: A voluntary, confidential process facilitated by a neutral mediator.
  • Judicial Settlement / Lok Adalat: Court-referred settlements, often used for public utility disputes.

Why Is ADR Essential?

• Pendency Challenge in Indian Courts: According to the National Judicial Data Grid (NJDG), India currently faces an enormous backlog of 4,57,96,239 pending cases:
  • Supreme Court: 81,768 cases;
  • High Courts: ~62.9 lakh cases.
• Systemic Inefficiencies and State-Level Disparities: The India Justice Report 2025 reveals critical gaps:
  • Vacancy rates: 33% in High Courts and 21% in District Courts.
  • Judicial workload: Judges in Uttar Pradesh, Himachal Pradesh, and Kerala handle over 4,000 cases each.
  • Case pendency exceeding 10 years across many jurisdictions.
• Cost-Effective and Time-Saving: ADR methods like arbitration, mediation, and conciliation offer quicker resolutions.
  • It promotes ease of doing business and contract enforcement, especially critical in commercial disputes.
• Social Inclusion and Accessibility: ADR is less adversarial and more participatory.
  • Mediation allows parties to resolve disputes in a neutral, confidential setting, preserving relationships and reducing hostility.

Constitutional and Legal Basis of ADR

• Article 39A: It mandates the State to ensure equal justice and free legal aid.
• Section 89 of the Code of Civil Procedure (1908): ADR processes such as arbitration, conciliation, mediation, and judicial settlement (Lok Adalat) derive statutory recognition from Section 89 CPC.
• The Arbitration and Conciliation Act, 1996 (Amended in 2021): It provides the legal framework for arbitration and conciliation in India.
  • It establishes the Indian Arbitration Council to regulate procedures.
  • Fixes a maximum resolution period of 180 days, ensuring time-bound justice.
  • Permits exit from mediation after two sessions if parties are dissatisfied.
  • Promotes pre-litigation mediation for civil and commercial disputes to ease judicial backlog.
• Mediation Act, 2023: It mandates pre-litigation mediation for civil and commercial disputes.
  • Lok Adalats and Gram Nyayalayas provide community-level dispute resolution, rooted in India’s traditional ethos.

Global Alignment and Commercial Relevance

• ADR aligns with international norms like the UNCITRAL Model Law.
• Foreign investors prefer ADR for its neutrality and efficiency, making it crucial for India’s global economic engagement.

Towards a More Accessible and Accountable Justice System

• Strengthening ADR mechanisms aligns with India’s constitutional vision of speedy and inclusive justice. With rising case pendency and resource constraints, ADR offers a collaborative, humane, and efficient pathway to justice.
  • By reinforcing legal awareness, institutional capacity, and community engagement, India can transform ADR into a pillar of 21st-century justice delivery, resonating with its civilisational philosophy of consensus and fairness.
• The recent reiteration of the doctrine of Panch Parmeshwar (a traditional principle symbolising collective consensus in dispute resolution) by the Union Minister of Law and Justice and underlining the importance of global cooperation are vital for strengthening Alternative Dispute Resolution (ADR) mechanisms.

Source: TH