Need for ADR:

1. Lesser burden:
   as the Indian legal system is overburdened, over 30 million cases are pending to date, and an average time span of 15years to get these disputes resolved.
    
2. Saves time:
   As ADR is out of court settlement i.e. settling disputes without litigation, it saves a lot of time for parties.
    
3. Cost-effective:
   ADR is cost-effective as compared to litigation which requires a lot of litigation fees. Most of the people cannot afford litigation fees and therefore do not take any action against their dispute.

Hence ADR was much needed for lessening the burden of the courts, for speedy disposal of disputes with less cost.

Techniques of ADR:

• Arbitration:
  Arbitration is a process in which a neutral third-party (the arbitrator), after reviewing the facts, evidence, and listening to arguments from both sides, issues a decision “award” to resolve the case.
   
• Mediation:
  Mediation is a process of facilitated negotiation in which a skilled and impartial third party seeks to enhance negotiations between parties to a conflict or their representatives, by improving the communication, identifying the interests of both the parties and exploring possibilities for a mutually agreeable resolution[4].
   
• Conciliation:
  This is a process where the parties to a dispute use a conciliator (neutral person), who meets with both the parties separately and together as well, in an attempt to resolve their dispute[5].
   
• Negotiation:
  Negotiation is defined as any form of direct or indirect communication whereby parties who have opposing interests discuss the form of any joint action which they might take to manage and ultimately resolve the dispute between them.

Salem Bar Association Vs. Union of India, the Supreme Court held that where it appears to the court that there exists a scope of settlement which may be acceptable to the parties, then the court may refer the parties, and opt for one of the methods of Alternative Disputes Resolution, namely Arbitration, Conciliation, Mediation, including settlement through Lok Adalat’s. If the parties do not agree, then the court may refer to the litigation proceedings.

Arbitration:

Whenever two persons come together in any business or for the purpose of any transaction, misunderstanding or conflict is very common between them. Hence a speedy and effective resolution is required for such conflicts. Besides litigation, Arbitration is another way of resolving disputes.

Arbitration is a form of Alternative Dispute Resolution. It is a technique for solving disputes outside the courts. Parties to a dispute refer it to arbitration and the arbitrator’s decision can be either binding on the parties if both the parties agree with it or it can be set aside by either of the parties. The non-binding decision is similar to mediation, where a decision is not binding on the parties.

The reason behind the emergence of ADR was that the courts in India are burdened with huge pending litigations that require to be solved as early as possible but because of various factors, the settlement of disputes by our formal courts has become a nightmare for the parties involved in the disputes.

The main purpose of the Arbitration Law in India is to give to the parties a quick and effective remedy. The decision of the arbitrator is regarded as the decree of the court.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.