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The most common modes of ADR are:
a.Negotiation
b.Arbitration
c.Conciliation or mediation
d.Tribunals
e.Lok-Adalats
 !
This is the most simple mode of ADR. When parties themselves,
agree/negotiate to settle the disputes, without the help / assistance
of any third party, it is negotiation. Since there is an agreement
arrived at out of negotiation between the parties, the parties
generally give due regard to the outcome. It may be oral or in writing.
Generally parties, in order to bring clarity reduce the settlement into
writing. A family dispute of property or amount and payment of debt
if settled through negotiation of parties, are examples of negotiation.
"c#
]eaning of arbitration: arbitration involves the
determination of a matter in dispute by the
judgment of one or more persons, called
arbitrators. An arbitration is the reference of the
dispute or difference between parties foe
determination, after hearing both sides in a
judicial manner, by the arbitrator. In popular
parlance, arbitration may be defined as a private
process set up by the parties as a substitute for
the court litigation to obtain a decision on their
dispute.
 $ c#
„ Domestic;
„ International;
„ Ad-hoc;
„ Institutional;
„ Specialized; and
„ Statutory
 %&!c#
X The process of arbitration is governed by the
arbitration and conciliation Act, 1996 (the
act). The act has been bought into force with
effect from 25 January, 1996. The act is
broadly based on the model law on arbitration
adopted by the United Nations commission on
international trade law (UNCITRAL).
 c#c!'
The act defines arbitration agreement as ͞ an agreement by
the Parties to submit to arbitration all or certain disputes
which have arisen between them in respect of a defined legal
relationship whether contractual or not.͟

The essentials of an arbitration agreement are:

X It must be in writing.
X It must have all the essential elements of a valid contract.
X It must refer a dispute, present or future, between the
parties.
X It may be in the form of an arbitration clause or in the form of
a separate agreement. It is not necessary that an arbitrator
should be named in the arbitration agreement.
X Arbitral tribunal: the ͚arbitral tribunal͛ means a ͚sole
arbitrator͛ or a panel of arbitrators.

X Arbitrator: A person of any nationality who is

appointed by the parties themselves by their
mutual consent to act as a judge to decide their
dispute out of the court is called an arbitrator. The
act gives the parties the freedom to fix the number
of arbitrators, provided that such number shall not
be even number. If they fail to determine the
number of arbitrator, the arbitral tribunal shall
consist of a sole arbitrator.
Grounds for challenging the appointment of
arbitrators
X Circumstances exist that give rise to justifiable
doubts as to his independence or impartiality: or
X He does not posses the qualifications agreed to by
the parties.

Rules and procedure for conduct of arbitration

proceedings
X Arbitrator shall treat all the parties with equality
and shall give full opportunity to each party to
present his case.
X Arbitrator is neither bound by the code of civil
procedure, 1908, nor by the Indian evidence act,
1872. Thus he is not bound to follow the procedure
as followed by court. Parties are free to agree the
procedure.
X Parties are free to agree on the place of arbitration.
Where the parties have not agreed, the arbitrator
may determine the place of arbitration.
X Parties are free to decide the language to be used in
the arbitral proceeding.
X Statement of claim and defence is to be made
within the period of the time agreed by the parties
or determined by the arbitrator. While making a
statement or claim, the fact supporting it are to be
stated. The points in issue are to be identified. The
relief or remedy sought os to be stated. All relevant
documents are to be submitted. The claims and
reply once filed may be amended or supplemented
subsequently. He may appoint one or more experts
to examine specific issues and report to him. In
situation involving more then one arbitrator, the
decision is taken as per the majority view.
 c#%(A judgment or final decision of arbitrator
on matters referred to him is called the arbitral award. Some
of the other rules relating to award are:
X It must be in writing and be made on stamp paper of
appropriate value.
X It must be certain and not vague.
X No time limit is fixed for making an award but there should
not be undue delay.
X It must be signed by the arbitrator
X It must state the reason upon which it is based.
X The arbitrator may make an interim award and thereafter
final award.
X After an award is made a signed copy is delivered to each
party.
X Am arbitral award shall be final and binding on the parties.
c! c#
X Avoidance of publicity.
X Simplicity of procedure.
X Avoidance of delay and uncertainty involved in
appeals.
X Reduction of expenses
X Less time consuming.
X Decision by a technical expert.
X Social efficacy.
X Candour in presenting facts and figures.
 ! c#
X If it is based on biased or incompetent arbitrator.
X Informality of the procedure.

)*'
or the first time the word Conciliation is given
statuary recognition by the arbitration and
conciliation Act, 1996. This concept is based on
conciliation rules adopted by UNCITRAL. In
conciliation, an impartial third party, the conciliator,
assists the parties to a dispute in reaching a
mutually agreed settlement of the dispute.
 ]ediation and conciliation are interchangeable
expression. In mediation the parties have the
freedom to agree as they please and the mediator
decides nothing, advises as to nothing. the
conciliator is not bound by the code of civil
procedure or the Indian evidence act. the
conciliator may conduct the proceeding in such a
manner as he considers appropriate taking into
account:
X The circumstances of the case.
X The wishes the parties may express, including any
request by a party that the conciliator hear oral
statements; and
X The need for the speedy settlement agreement duly
signed by the parties and authentication by the
conciliator has the same status and effect as if it is
an arbitral award on agreed terms on the substance
of the dispute rendered by an arbitral tribunal. The
conciliator and the parties are required to keep
confidential all matters relating to conciliation
proceedings. parties to a conciliation proceedings
are not to resort to initiating arbitral or judicial
proceedings are not to resort to initiating arbitral
or judicial proceedings.
  #
X Disputes may be referred to tribunal for
settlement rather than courts. This is provided in
the relevant states. Examples are motor accident
claims tribunal, labor tribunal or industrial. The
advantages of this step are speed, less expensive,
no procedural tangle and at times no need of
even representation by lawyers.
 + ,-c
X When disputes are referred to lok adalats foe
settlement, it is done in accordance with the
provisions of the legal services authority
act,1987. Examples are bijli adalats, telephone
adalats etc.
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