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