There are two methods of resolving a dispute. Firstly adjudication and secondly non - adjudication. This process may be with the help of a third party . The adjudication is further divided into judicial dispute resolution and arbitration. In these kind of process both the disputing parties agree to bind themselves to the third party decission i.e. court of law in case of judicial dispute resolution and arbitrator in case of arbitration. In case of non - adjudication process it is further divided into two methods i.e. negotiation and conciliation or mediation.
In the above said methods resolution of dispute through the court of law is known as judicial dispute resolution and other methods i.e. arbitration , conciliation and negotiation are alternate dispute resolution.
ADR in India is the old method which was in existence even prior to arbitration act 1940.The arbitration and conciliation Act 1996 has adopted from UNCITRAL model.the Indian legal system has introduced sec 89 and sec89(1) by amending the CPC for settlements outside the court. Due to the slow running of the judicial system in India there is a lot of burden on the ADR.
Lok Adalat or known as people's court .In India disputes and litigation on any issues shall been decided by the elders of the villages.This Lok Adalats follows the Ghandian principles.This Lok Adalats are runned for settlements of disputes through conciliation.Every Lok Adalat is a civil court.
There should be a valid agreement inorder to start the arbitration process between the parties before coming across a dispute.The agreement should be in the form of writing as per sec 7 of the Act.The contract between parties must contrain arbitral clause or seperate documents of arbitral agreement.The party can appoint an arbitrator with concern of the other party orelse they can approach chief justice for appoint of an arbitrator.The appointed arbitrator must not be partial on any side and he should be enough qualified to act as an arbitrator.The arbitral tribunal has jurisdiction on its own jurisdiction. The party has to file appeal before the very same tribunal itself but section 34 of the Act provides speacial provissions to appeal before the principal civil court of original jurisdiction. Conciliation is simple than Arbitration.Any party can ask the other party to appoint a conciliator. But if a party does not want a conciliator then there is no question of conciliation.
