It is a fine substitute for the more common judicial process. It includes methods like negotiation, conciliation, mediation and arbitration. All these methods have some common features, which makes ADR a very viable and preferable mode in dealing with disputes. Most commonly, these have a shorter time duration as the court route. The cost is considerably less than the court and legal fees. Privacy, neutrality of the proceedings and of the decision and possibilities of customizing the procedures are some more attractive features.
The rising population of ADR can be explained by increasing case loads of the traditional courts, the perception that ADR imposes fewer costs than litigation, a preference for confidentiality, and the desire of some parties to have greater control over the selection of the individuals who will decide their disputes.
The salient features of ADR are:-
- Negotiation - Participation is voluntary and there is no third party who facilitates the resolution process or impose a resolution.
- Mediation - There is a third party, a mediator, who facilitates the resolution process, but does not impose the resolution on the parties.
- Arbitration - Participation is typically voluntary, and there is a third party who, as a private judge, imposes a resolution.
- Conciliation - Each party has an attorney who facilitates the resolution process within specifically contracted terms.
Almost all disputes including commercial, civil, labor and family disputes, in respect of which the parties are entitled to conclude a settlement, can be settled by an ADR procedure. The techniques have been proven to work in the business environment.
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