NIOS Class 12 Introduction to Law Chapter 15 Alternate Dispute Resolution Mechanism

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NIOS Class 12 Introduction to Law Chapter 15 Alternate Dispute Resolution Mechanism

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Alternate Dispute Resolution Mechanism

Chapter: 15

Module – 4 Indian Court System and Methods of Resolution Disputes

INTEXT QUESTIONS 15.1 

1. Why there is a need for Alternative Dispute Resolution (ADR) Mechanism?

Ans: The present Judicial System is extremely expensive and delaying. This lengthy and expensive process of litigation has reduced the faith of common people in the Judicial System being followed by the Courts and has given birth to Alternative Dispute Resolution (ADR) mechanism. ADR provides economic and speedy Justice.

2. Define briefly Alternative Dispute Resolution (ADR). 

Ans: ADR refers to such Methods of resolving a dispute, which are alternative for litigations in Courts.

3. Identify some disputes which can be resolved through ADR. 

Ans: Consumer complaints; Family Disputes; Property Disputes; Construction Disputes; and Business Disputes.

INTEXT QUESTIONS 15.3 

1. Which form of ADR was popular and prevalent in ancient India? 

Ans: The popular and prevalent form of ADR in ancient was ‘Arbitration’.

2. What is the full form of ADR? 

Ans: The full form of ADR is ‘Alternate Dispute Resolution’.

3. What do you understand by the term “litigation”? 

Ans: The term ‘litigation’ means to fight a case in the Court of law

4. List the cases which can be resolved through ADR. 

Ans: The disputes as to quality of the commodity, Business partnership, trades, rent of commercial property, consumer disputes and many small disputes can be resolved through ADR.

5. List the main advantages of ADR? 

Ans: The parties have the freedom to choose the applicable law. They can be conducted in any manner and in the language to which the parties agree. The matter may be settled in few meetings thereby reducing expenses. No court fee is payable. No expenses are involved in obtaining copies of proceedings and reports. They can choose the time and place for the meetings. ADR provides speedy and economic Justice

6. How many States are under the Guwahati High Court?

Ans: The seven States in North East India are under the High Court at Guwahati.

INTEXT QUESTIONS 15.4 

1. Define an ‘Arbitration Agreement’? 

Ans: ‘Arbitration Agreement’ is an agreement where two or more persons in dispute agree that an impartial person can settle their dispute and they shall be bound by his/ her decision.

2. Whether you are 20 years old or 18 years, can only be decided by a panel of 3 Arbitrators. (Yes/No). 

Ans: ‘No’. The question as to the age of the parties can only be decided by the Court.

3. Give one word for “finishing work as soon as possible”. 

Ans: The word “expeditiously” means doing something quickly and efficiently, or finishing work as soon as possible.

Example: The teacher asked the students to complete the assignment expeditiously.

4. Is the Arbitration award binding on the parties? (Yes/No) 

Ans: Yes, Arbitration Award is binding on the parties.

5. What is the basic difference between ‘Mediation’ and ‘Conciliation’? 

Ans: The basic difference between ‘Mediation’ and ‘Conciliation’ is that a Mediator does not express his/ her opinion on the merits of the dispute. On the other hand a Conciliator may express an opinion about the merits of the dispute to the parties.

6. ‘Mediation’ is a process for resolving the dispute with the aid of an independent third person that assists the parties in dispute to reach a __________ resolution. (Fill in the blank) 

Ans: Negotiated.

7. When and where was the First Lok Adalat started? 

Ans: ‘Lok Adalat’ were initially started in Gujarat in 1982.

8. What is the main purpose of Lok Adalat? 

Ans: The main purpose of establishment of Lok Adalats is to diminish the heavy burden of pendency of cases in the Courts which are of petty nature.

9. Who provides funds for organizing Lok Adalats? 

Ans: Funds for Lok Adalat are provided by the Government.

10. Lok Adalats is the most popular Alternative Dispute Resolution (ADR). (True/False) 

Ans: True.

11. Define briefly the term ‘Med Arbitration’. 

Ans: ‘Med-Arbitration’ is such a method which is not governed by ‘Arbitration’ Act and there is no formality. The dispute is referred to a third person authorised by the disputing parties and the decision of the authorised third person is binding on both the parties.

12. What do you mean by ‘Medola’? 

Ans: ‘Medola’ is another technique of ADR mechanism. When it becomes impossible for Arbitrator to reach any agreement, then ‘Medola’ is used. It is such a method in which the person negotiating replaces the Arbitrator and acts, without bios. Such a person tries to reach at medium way during discussion and attempts for the ‘Agreement’ of the disputing parties over it. This is binding or the disputing parties. 

13. Mini-Trial is different from official trial of a suit. (True/False) 

Ans: True.

14. (a) __________ is the most popular of Alternative Dispute Resolution (ADR) Techniques. 

Ans: Lok Adalat.

(b) __________ is the process in which third party assists the parties to resolve their dispute by agreement. 

Ans: Conciliation.

(c) __________ is a method whereby parties can resolve their disputes privately. 

Ans: Arbitration.

15. (a) Mini-Trial is different from official trial of a suit. (True/False) 

Ans: True.

(b) Lok Adalats are organised with financial assistance from the government and monitored by the Judiciary. (True/False)

Ans: True.

INTEXT QUESTIONS 15.5 

1. List the main provisions of Legal services authorities (Amendment) Act, 1994. 

Ans: (a) Creation of National Legal Services Authority. 

(b) Creation of State Legal Services Authority. 

(c) Creation of District Legal Services Authority. 

(d) Creation of Supreme Court Legal Aid Committee. 

(e) Creation of High Court Legal Aid Committee. 

(f) Creation of District/Block Legal Service Committee. 

(g) Establishment of Legal Aid Fund. 

(h) Free Legal Aid. 

(i) Lok Adalat.

2. Define the following: 

(a) Legal Aid Fund. 

Ans: Legal Aid Fund: The Legal Services Authority (Amendment) Act 1994 provided for Free Legend Aid Fund for providing free legal aid to establishment weaker sections of the Society. 

(b) Free Legal Aid.

Ans: Free Legal Aid: The Legal Services Authority (Amendment) Act, 1994 provided for free legal aid to weaker sections of the society.

TERMINAL EXERCISES

1. What is the need of having Alternative Dispute Resolution (ADR)? 

Ans: Need of having Alternative Dispute Resolution (ADR): It is a well-known fact that the present Judicial System is expensive and time-consuming. The parties to a dispute often have to wait for years to get justice. This lengthy and costly litigation process has weakened the faith of common people in the regular court system.

To overcome these weaknesses, Alternative Dispute Resolution (ADR) mechanisms have emerged. ADR provides cheap, speedy, and effective justice without the complexities of formal court procedures. Hence, disputing parties increasingly prefer ADR methods such as arbitration, mediation, conciliation, and negotiation for resolving their disputes amicably and efficiently.

2. What are the advantages of Alternative Dispute Resolution (ADR)? 

Ans: Alternative Dispute Resolution (ADR) provides several benefits over the traditional court system. Its procedures are simple, cost-effective, and time-saving. 

The main advantages are as follows:

(i) Speedy and Time-Saving: ADR helps in resolving disputes quickly. Cases can often be settled in a few meetings instead of taking years in regular courts.

(ii) Cost-Effective: There are no court fees and very little procedural cost. It saves money on lawyer fees, travel, and other expenses.

(iii) Flexible Procedure: The process of ADR is informal and flexible. The parties can choose the law, language, place, and time of discussion as per their convenience.

(iv) Confidentiality: ADR proceedings are private. The discussions and settlements remain confidential, protecting the reputation and privacy of the parties.

(v) Voluntary and Cooperative: Both parties participate voluntarily and work together to reach a mutual solution. This encourages cooperation and understanding.

(vi) Preservation of Relationships: Unlike court judgments where one party wins and the other loses, ADR provides a win–win situation and helps maintain good relations.

(vii) Expert and Neutral Third Party: The neutral mediator, arbitrator, or conciliator is usually an expert in the relevant field. Their impartial advice helps in fair and practical settlement.

(viii) Legally Enforceable and Final: In cases like arbitration, the decision or “award” is binding on both parties and enforceable in a court of law.

3. List the different Techniques of Alternative Dispute Resolution (ADR)? 

Ans: Following are the main techniques of Alternative Dispute Resolution (ADR) along with their brief explanations —

(i) Arbitration: A process in which the dispute is referred to an independent third person (Arbitrator) chosen by the parties. The arbitrator hears both sides and gives a binding decision called an award.

(ii) Conciliation: A voluntary process where a Conciliator helps the parties to settle their dispute amicably. The conciliator does not impose a decision but encourages mutual agreement.

(iii) Mediation: In this process, a Mediator assists the disputing parties to communicate and understand each other’s views, so that they can reach a mutually acceptable solution.

(iv) Pre-Trial Conciliation/Mediation: Before filing a case in court, parties are encouraged to settle the dispute through mediation or conciliation, reducing the burden on courts and saving time.

(v) Negotiation/Discussion: A direct dialogue between the disputing parties without involving a third person. The parties themselves try to resolve the dispute by discussion and compromise.

(vi) Lok Adalat: Known as the People’s Court, it is a system in India where disputes are settled speedily and cheaply by a panel of judges, social workers, and legal experts. Decisions are final and binding.

(vii) Med-Arbitration (Med-Arb): A hybrid method combining mediation and arbitration. The dispute first goes through mediation; if no settlement is reached, it moves to arbitration for a final decision.

(viii) Medola (Mediation + Lok Adalat): It combines the advantages of mediation and Lok Adalat. Parties first attempt settlement through mediation, and if successful, the settlement is formalized in Lok Adalat, making it legally binding.

(ix) Mini-Trial: Used mainly in commercial disputes, this process allows both parties to present summaries of their case before a neutral advisor who suggests a non-binding solution to encourage settlement.

4. Describe the main provisions of Legal Services Authorities (Amendment) Act, 1994. 

Ans: Main Provisions of Legal Services Authorities (Amendment) Act, 1994: 

(a) Creation of National Legal Services Authority: Section 3 of the Act provides for the creations of a National Legal Service Authority for providing legal services, preparing effective and less expensive plans for availability of Legal Services, proper steps taken towards social Justice, increase in following of dispositions of matters by discussion, settlement and mediations, evolution of legal aid programmes from time to time, publishing of legal awareness etc. Chief Justice of Supreme Court of India shall be its main guardian. It has one working chairman, who is appointed by the president after consultation with the chief Justice of India. 

(b) Creation of State Legal Services Authority: Like centre, a facility for the creation of State Legal Services Authority has been provided. According to section–G, Chief Justice of High Court of the Concerned State shall be its main guardian. It also has one working chairman who is appointed by the Governor of the State with the Consultation of Chief Justice of the High Court of the concerned state. The main duty of State Legal Service Authority is to provide legal aid to the persons entitled to obtain legal aid, organise Lok Adalat, provide flow to legal aid programmes and implement the policies and directions of National Legal Service Authority. 

(c) Creation of District Legal Services Authority: Section–9 of the Act provides for the creations of one District Legal Services Authority for every District. Its chairman is the District. Few other Members are also there. 217 Alternate Dispute Resolution Mechanism INTRODUCTION TO LAW Notes MODULE – 4 Indian Court System and Methods of Resolution Disputes The main function of the District Legal Service Authority is perform the duties provided by the State Legal A Service authority for every district, organize Lok Adalats in the district, establish coordination between Several Legal Service Committees of the district and implement legal aid programmes.

(d) Creation of Supreme Court Legal Aid Committee: Section-3-A of the Act provides for the creation of Supreme Court Legal Aid Authority for the organisation of Lok Adalats and avail legal aid to the eligible parties for quick disposal of pending cases in the Supreme Court. The presiding Judge of the Supreme Court is the Chairman

(e) Creation of High Court Legal Aid Committee: Section 8–A of the Act provides for the creation of High Court Legal Aid Committees for the organisation of Lok Adalts, implementation of Legal aid and Legal Service programmes etc for the purpose of quick disposal of pending cases in the High Court. Its Chairman is a Judge of the High Court. 

(f) Creation of District/Block Legal Service Committees: Section 11–A of the Act provides for the creation of District/Block Legal Service Committees for establishing Co-ordination between legal service related events in blocks, organize Lok Adalt and perform acts submitted by the District Legal /service Authority from time to time. Its official chairman is the Senior Civil Judge of the area. 

(g) Establishment of Legal Aid Fund: A National Legal Aid Fund, State Legal Aid Fund and District Legal Aid Fund has to be established under section 15, 16 and 17 of the Act respectively for the fulfillment of expenses related to legal aid by National Legal Services Authority, State Legal Services Authority and the District Legal Services Authority. 

(h) Free Legal Aid: As we have seen above, the main purpose of the Act is to provide free Legal aid to weaker Sections of the Society. For the achievement of this purpose, Section–12 of the Act mentions those persons who are entitled to free legal aid. 

(i) Lok Adalats: The main characteristic of this Act to provide legal status to Lok Adalats. Section–19 of the Act provides 8 or the creation of Lok Adalats; Section 20 for the working of Lok Adalats; Section 21 for their Decree and Award. It is work mentioning that an ‘Award’ given by the Lok Adalat shall be equivalent to a ‘Decree’ of a civil court.

(j) Permanent Lok Adalat: Section 22–A of the Act provides for the establishment of permanent Lok Adalats. It is the result of the Legal Service Authority (Amendment) Act, 2002. A permanent Lok Adalat is a strong and powerful medium and a new concept for solving disputes by way of settlement.

(k) Public Utility Services: A major achievement of the Act is to make provisions regarding public Utility Services. Section 22–(C) mentions these public utility services.

5. Explain the importance of Alternative Dispute Resolution (ADR) in India. 

Ans: The importance of ADR in India can be explained as follows —

(i) Reduces Burden on Courts: Indian courts are overburdened with a huge number of pending cases. ADR helps to reduce this backlog by settling disputes outside the courts, allowing the judiciary to focus on more serious matters.

(ii) Provides Speedy Justice: ADR mechanisms like mediation, conciliation, and arbitration help parties to resolve their disputes within a short time, unlike the lengthy court process that often takes years.

(iii) Cost-Effective Method: ADR eliminates court fees and other procedural costs. It saves expenses on lawyers, documentation, and travel. Thus, it ensures cheap and accessible justice to all sections of society.

(iv) Maintains Relationships: ADR encourages cooperation and mutual understanding. Since it focuses on compromise rather than competition, it helps maintain friendly relations between the parties—especially in family, business, and community disputes.

(v) Promotes Access to Justice: ADR provides an opportunity for common people to seek justice without facing complex legal formalities. It supports the constitutional goal of equal access to justice for all.

(vi) Flexible and Informal Process: ADR proceedings are simple, informal, and flexible. The parties can choose the place, language, timing, and even the neutral person (mediator or arbitrator) according to their convenience.

(vii) Encouraged by Legal Framework: In India, several laws such as the Arbitration and Conciliation Act, 1996, and the Legal Services Authorities Act, 1987 promote ADR methods like Lok Adalats and Mediation Centres to strengthen the justice system.

(viii) Ensures Confidentiality: ADR proceedings are confidential, ensuring that sensitive information does not become public. This encourages parties to discuss issues openly and reach an honest solution.

(ix) Win–Win Outcome: Unlike court judgments where one party wins and the other loses, ADR aims for mutual satisfaction. Both parties emerge as winners, creating a sense of justice and fairness.

6. Define the following: 

(a) Permanent Lok Adalat.

Ans: Section 22–A of the Act provides for the establishment of permanent Lok Adalats. It is the result of the Legal Service Authority (Amendment) Act, 2002. A permanent Lok Adalat is a strong and powerful medium and a new concept for solving disputes by way of settlement. A permanent Lok Adalat consists of one Chairman and five others members. Permanent Lok Adalat mainly solves disputes related to public welfare services. Section 22–(C) mentions the working of permanent Lok Adalats. 

(b) Public Utility Services.

Ans: A major achievement of the Act is to make provisions regarding public Utility Services. Section 22–(C) mentions these public utility services. Thus, Legal Services Authority Act, 1987 (Amendment Act 1944) lays down important provisions regarding Legal Services, Legal Aid and Lok Adalats. 

(c) National Legal Services Authority. 

Ans: Section 3 of the Act provides for the creations of a National Legal Service Authority for providing legal services, preparing effective and less expensive plans for availability of Legal Services, proper steps taken towards social Justice, increase in following of dispositions of matters by discussion, settlement and mediations, evolution of legal aid programmes from time to time, publicing of legal awareness etc. Chief Justice of Supreme Court of India shall be its main guardian. It has one working chairman, who is appointed by the president after consultation with the chief Justice of India.

(d) State Legal Services Authority.

Ans: Like centre, a facility for the creation of State Legal Services Authority has been provided. According to section–G, Chief Justice of High Court of the Concerned State shall be its main guardian. It also has one working chairman who is appointed by the Governor of the State with the Consultation of Chief Justice of the High Court of the concerned state. The main duty of State Legal Service Authority is to provide legal aid to the persons entitled to obtain legal aid, organise Lok Adalat, provide flow to legal aid programmes and implement the policies and directions of National Legal Service Authority.