Updated: Jul 10, 2021
Alternative Dispute Resolution Advantages & Dis-Advantages
Alternative dispute resolution (ADR), or external dispute resolution (EDR), typically denotes a wide range of dispute resolution processes and techniques that act as a means for disagreeing parties to come to an agreement short of litigation: a collective term for the ways that parties can settle disputes, with the help of a third party.
India Alternative dispute resolution in India is not new and it was in existence even under the previous Arbitration Act, 1940. The Arbitration and Conciliation Act, 1996 has been enacted to accommodate the harmonization mandates of UNCITRAL Model. To streamline the Indian legal system the traditional civil law known as Code of Civil Procedure, (CPC) 1908 has also been amended and section 89 has been introduced. Section 89 (1) of CPC provides an option for the settlement of disputes outside the court.
Alternative dispute resolution (ADR) is generally classified into at least four types: negotiation, mediation, collaborative law, and arbitration. Sometimes, conciliation is included as a fifth category, but for simplicity may be regarded as a form of mediation.
ADVANTAGES AND DISADVANTAGES OF ADR SYSTEM
1) ADVANTAGES OF ADR SYSTEM
ALTERNATIVE DISPUTE RESOLUTION ADR PROCEDURE HAVE SEVERAL ADVANTAGES
Reduce time in dispute it take less time to reach final decision.
reduce cost is related to the dispute resolution it requires less money and it is cheap
flexibility Party have more flexibility in choosing what rules will be applied to the dispute
produce good result settlement rules of up to 85% improve satisfaction with the outcome or manner in which the dispute is resolved among disputed increase compliance with agreed solution
2) DISADVANTAGES OF ADR SYSTEM
Some disadvantages of alternative dispute resolution are
it can be used as a stalling tactic
parties can are not complied to continue negotiation on mediation
does not produce legal presidents
exclusion of pertinent parties weakness final agreement
party may have limited bargaining power party do not have much of a say
little or no check on power imbalance between parties
may not protect parties legal right the right of the parties may not be protected by the alteration dispute resolution.