Alternative Dispute Resolution (ADR) in india

The Act of 1996 for the first time in the country provides a detailed statutory framework for the conduct of independent conciliation proceedings outside the court. It is based on the conciliation rules adopted by the United Nations Commission on International Trade Law (UNCITRAL) in 1980 which were conceived primarily in the context of dispute resolution in international commercial relations.

A settlement agreement reached by the parties and signed by them with the help of the conciliator shall be final and binding on them and the persons claiming under them.

The parties may termainate a concilialiation procceding by giving a written notice addressed to the conciliator to the effect that the proceedings are terminated from the date of notice. The conciliation proceedings are entirely dependant on the continued goodwill of the parties and can be terminated by the parties at any time before the signing of the settlement agreement.

The act of 1956 provides that notwithstanding anything contained in any other law, the principle of confidentiality shall be maintained by the parties, as well as the conciliator except where its disclosure is necessary for the implementation and enforcement of the settlernent agreement.

The demand for Alternative Dispute Resolution (ADR) has led to an increase in demand for arbitral institutions. A systematised approach and effective institutions to conduct ADR are the need of the day.

The, scope for judicial review, therefore, even when the award is a speaking one, is limited. The only residuary ground which empowers the courts to go into the merits of the award is that the award is in conflict with the public policy of India.