The Alternative Dispute Resolution (ADR) consists of negotiation, conciliation, mediation, arbitration etc. The ADR techniques are extra-judicial in character and are applied to various kinds of disputes like, civil, commercial, industrial, family matters, intellectual property, insurance, partnership, personal injury and product liability including other commercial disputes.
The Arbitration and Conciliation Act came into force with effect from 22-8-1996. It is based on the Conciliation Rules adopted by the United Nations Commission on International Trade (UNCITRAL).
The ADR system keeps the dispute private and promotes creative and realistic business solutions. This system takes a much lesser time to arrive at a settlement without affecting the freedom of parties. Moreover it gives the full control on process.
The ADR proceeding can go on with or without the lawyers. It therefore, helps reduce the workload of the courts, a great deal and promotes realistic, mutually agreeable solutions to complex commercial disputes.