LL.B. (Three Years) Sem 4 Alternate Dispute Resolution System Apr 2025 Question Paper with Solutions

For full marks, cover: what ADR is and why India needs it; the constitutional base (Articles 14, 21 and 39A; Hussainara Khatoon); section 89 and Order X Rules 1A to 1C of the Code of Civil Procedure (Salem Advocate Bar Association); the Arbitration and Conciliation Act 1996, Parts I to IV; the Legal Services Authorities Act 1987 and Lok Adalats (K.N. Govindan Kutty Menon, Jalour Singh); the Mediation Act 2023; the Commercial Courts Act 2015 (section 12A); conciliation under the Family Courts Act 1984 and the Hindu Marriage Act 1955; the industrial law; sector statutes; institutions; a table; a conclusion.

Introduction

Alternative Dispute Resolution (ADR) means the settlement of disputes outside the regular courts, by methods such as arbitration, conciliation, mediation, negotiation and Lok Adalat. India's courts carry a huge backlog of cases. ADR offers a quicker, cheaper and less formal way to resolve disputes, often while keeping relationships intact.

2. The Code of Civil Procedure: section 89

Section 89 was inserted in the Code of Civil Procedure, 1908 in 1999, in force from 2002. Where it appears to the court that there are elements of a settlement acceptable to the parties, the court shall formulate the terms of settlement. It may then refer the dispute to:

1. arbitration;
2. conciliation;
3. judicial settlement, including settlement through Lok Adalat; or
4. mediation.

Order X Rules 1A to 1C set out the procedure. The court directs the parties to opt for one mode, and if the effort fails, the parties come back to the court.

In Salem Advocate Bar Association, Tamil Nadu v. Union of India (II), (2005) 6 SCC 344, the Supreme Court considered the amendments. It accepted a model of case management, and set out Model Rules for ADR and mediation under section 89. It invited every High Court to adopt them.

3. The Arbitration and Conciliation Act 1996

This is the central statute. It is based on the UNCITRAL Model Law of 1985.

1. It sets up the National Legal Services Authority, State Authorities, District Authorities and Taluk Committees (sections 3 to 11).
2. It defines who is entitled to free legal services (section 12).
3. It provides for Lok Adalats (sections 19 to 21). A Lok Adalat settles disputes by compromise. Its award is deemed a decree of a civil court, final and binding, with no appeal (section 21).
4. It provides for Permanent Lok Adalats for public utility services (sections 22A to 22E). These may decide a dispute on merits if settlement fails.

The cases.

1. In K.N. Govindan Kutty Menon v. C.D. Shaji, (2012) 2 SCC 51, a cheque bounce case referred by a criminal court was settled in a Lok Adalat. The Supreme Court held that every Lok Adalat award is deemed a civil court decree, executable as such. It makes no difference whether a civil or a criminal court made the reference.
2. In State of Punjab v. Jalour Singh, (2008) 2 SCC 660, the Supreme Court held that Lok Adalats have no adjudicatory function. They act only on a compromise or settlement. Where no settlement is reached, the case must go back to the court.

2. Hindu Marriage Act 1955. Before granting relief, the court must, in every case where possible, endeavour to bring about a reconciliation between the parties (section 23(2)).
3. Industrial law. Conciliation officers and Boards of Conciliation have long settled industrial disputes. The Industrial Relations Code 2020 continues conciliation as the first step in industrial disputes.

8. Sector statutes

Many special laws build in ADR. The MSMED Act 2006 (section 18) sends disputes over delayed payments to micro and small enterprises to a Facilitation Council, for conciliation and then arbitration. The Consumer Protection Act 2019 provides consumer mediation cells attached to the Consumer Commissions.

9. Institutions

1. The India International Arbitration Centre Act, 2019 set up an institution for institutional arbitration.
2. Courts run mediation centres attached to them.
3. NALSA and the State Authorities run Lok Adalats, including National Lok Adalats held on fixed days across the country.

Conclusion

Conclusion. ADR in India rests on a layered framework. The Constitution makes speedy and equal justice a goal (Articles 14, 21 and 39A; Hussainara Khatoon). Section 89 of the Code lets courts refer disputes to arbitration, conciliation, Lok Adalat or mediation (Salem Advocate Bar Association). The Arbitration and Conciliation Act 1996 governs arbitration, conciliation and foreign awards. The Legal Services Authorities Act 1987 gives Lok Adalats, whose awards are decrees (K.N. Govindan Kutty Menon) but which cannot adjudicate (Jalour Singh). The Mediation Act 2023, section 12A of the Commercial Courts Act and family and industrial laws complete the picture.