Alternative Dispute Redressal (ADR) is an alternate way of resolving disputes, primarily out of courts in an independent but formal manner. It had been the means to assist the courts to get to eliminate the massive backlog of the pending cases that led to the evolution of a mechanism that might resolve the disputes in a very quick and independent manner. The essential concept of Alternate dispute redressal is to appoint a neutral adjudicator who would help the parties to succeed in a mutualist settlement through negotiations, bargaining, cooperation and coordination between them to confirm an inexpensive, fair and acceptable settlement.
Whether arbitration will overtake litigation in India
Will arbitration overtake litigation in India? And is arbitration better than litigation? The answer to these questions is, it depends. It depends on the parties to the dispute and the way they require the proceedings to be concluded. The question of arbitration overtaking litigation seems to be very bleak because if we glance into the statistics of even the developed countries, arbitration procedure hasn’t marginally reduced litigation. Although these countries have seen a steep rise in the arbitration proceedings as compared to the past, and also diverting many private entities to go for arbitration instead of litigation. This, in turn, has reduced the burden of the courts generally. Therefore, similarly in India arbitration can help to cut back the burden of courts to a good extent. India may favour having commercial courts like that of the United States of America. India currently has commercial courts, which isn't much efficient and for that matter always overcrowded. Also having a screening system to mandatorily refer arbitral matters to arbitration could be a measure to cut back the burden of courts together with the efficient disposal of the cases.
Therefore, both arbitration and litigation have their pros and cons. It's for the parties to decide which method may be more advantageous for them, reckoning on the necessities. Hence, both arbitration and litigation can work together to solve the pile-up of cases, making both the systems equally important and efficient.