The mechanism of ADR System and its techniques are an extra-judicial remedy to resolve disputes outside the legal fora. These techniques can be used in all those cases, which are capable of being resolved, under law, by mutual agreement between the parties. The scope of ADR is wider and can cover cases of civil nature, commercial, industrial and family disputes or any other cases of urgent nature. The ADR works across the full range of business disputes: banking; contract performance and interpretations, construction contracts, intellectual property rights, insurance coverage, conflicts in joint ventures, partnership differences, personal injury; product liability; professional liability, real estate, and securities.
The mechanism of the ADR system may offer the best solution in commercial disputes of an international character. The scope of an ADR System is not intended to supplant existing means of dispute resolution. It offers only alternative options to litigation. There is a large number of important areas where there is no substitute for Court decisions. For example, the matter pertaining to Constitutional law and Criminal laws is beyond the purview of an amicable settlement. But the ADR system through conciliation or negotiations offers a viable substitute to resolve the dispute if the matters are of such a nature that is compoundable in the eyes of law.
The demand for the introduction of the ADR system has been persistently gathering momentum from every walk of life. The jurists, legal luminaries including judicial officers presiding over the Courts, and administrative heads consider that the application of ADR shall reduce the mounting pressure of cases in the higher and subordinate judiciary. The conferences and meetings on judicial reforms always start with preliminary speeches and address in search of a viable substitute to the existing legal system. Every delegate stresses for promotion of the Mechanism of the ADR system using its various forms of conciliation, negotiations, and mediation instead of initiating trials in the Court. The fast-emerging importance of ADR, its wider scope, and commendable objectives emphasized for creation of more Lok Adalats including the establishment of the Fast Track Court.
The fantastic growth of commerce and business activities in the field of information technology has created an entirely new forum for business and the conduct of global operations. It has created the necessity of a new chapter with adequate definitions because business transactions at the international level have completely extinguished the geographical borders. The laws neither have been enacted in a single day nor could be so. The speed of the justice delivery system is not as fast as the commerce of today expects. The rapidity and the advancement of technologies will remain far away from the updating and administering of the relevant enactment. The contracts and disputes in growing information technology, new business transactions, environmental laws, etc can not be underrated.
The dispute resolution in the absence of appropriate laws shall have to take place on the basis of outdated laws in order to address the consumers. In such a situation, the scope mechanism of the ADR System extends its hands to cover the new fields, especially through arbitration whose award is non-appealable and can not be easily set aside. The ADR offers the best solution and attempts to cover every field. The ADR system works to compromise the suit where disputants are genuinely interested in a settlement. The ADR system may operate successfully in dispute resolution of both domestic and international character. It may be commercial in nature or civil. The ADR system is expanding its horizon continuously keeping in view the modalities of time and delay in the dispensation of justice. The scope and application of the ADR system are not only beneficial from litigation or commercial point of view at the international level but also assuage the sentiments of Constitution makers while helping promote international peace and security among the nations.
The Constitution of India under Article 51 provides that the State shall endeavor to promote international peace and security and maintain just and honorable relations between the nations. The Constitution of India under Articles 51(c) and (d) specifically emphasized that the State shall foster respect for international law and treaty obligations in the dealings of organized people with one another and would encourage the settlement of international disputes by arbitration.
All in all, we can say that evolution of the ADR mechanism is a game-changer in the area of dispute resolution. We all being aware of the lengthy process and extreme consequences of the conventional mode of dispute resolution, this was the need of the hour. ADR is an easy way to resolve a dispute in terms of less cost, faster disposal, access to global expertise, less formality, and less adversarial which is going to overpower the conventional method to resolve disputes. With days going by ADR is becoming a necessity because of the above-laid reasons for people around the globe. ADR has already shown significant growth in countries around the world as being the most viable option to resolve disputes and increase access to justice. We all must embrace this opportunity to opt for a cheaper, less time-consuming, less adversarial, easily accessible mode of conflict resolution rather than going for the traditional methods.