Alternative Dispute Resolution :- The Future Of Speedy Justice In India

Introduction
One of the biggest and most intricate legal systems in the world is found in India. However, the burden of pending cases and the growing number of conflicts have made it extremely difficult to administer justice effectively.¹ Delays in the administration of Justice are caused by the numerous civil, criminal, and business cases that are pending before different courts for extended periods of time. The parties concerned suffer discomfort and hardship as a result of these delays, which also raise the expense of litigation. Despite being crucial for the defence and upholding of legal rights, the conventional court-based system is frequently costly, time-consuming, and formal.

The issue of court delays has highlighted the necessity for more effective and accessible methods of resolving disputes. In India, Alternative Dispute Resolution (ADR) has gained importance as a remedy for this problem. ADR establishes a system for settling conflicts outside the frequently lengthy and resource-demanding conventional legal process.² Its main goal is to enhance settlement processes by promoting efficiency, cost-effectiveness, and flexibility through dialogue, compromise, and the active involvement of all parties.

This article examines the legal structure regulating ADR in India, critically assesses its effectiveness and obstacles, and highlights potential improvements for enhancing speedy justice delivery.

Why ADR Is Necessary
There are a lot of unresolved cases in India's traditional court system, which has caused a significant delay in the administration of justice. Nearly 4.99 crore cases are outstanding before India's District and Subordinate Courts, according to the National Judicial Data Grid (NJDG).³ About 48.5 lakh cases have been outstanding for more than ten years, according to the NJDG data.⁴ Such a large backlog of cases shows that the traditional litigation system may not always be able to guarantee prompt settlement of all disputes.

Litigation can also be expensive, time-consuming and highly formal. In many disputes, particularly those involving family relationships, commercial transactions and continuing personal or professional relationships, prolonged court proceedings may further increase hostility between the parties. Therefore, there is a growing need for alternative mechanisms that can provide quicker, simpler and more cooperative methods of dispute resolution.

It becomes important to have Alternative Dispute Resolution (ADR), as it helps the parties resolve their disputes using different methods like arbitration, mediation, conciliation, and Lok Adalat.⁵ It helps the parties to come to an agreement and reduces their dependence on lengthy court processes by which it becomes possible to reduce the burden on the judiciary and save time and costs and helps in maintaining the relationship among others.

Major legal framework

Arbitration and conciliation Act, 1996
The Arbitration and Conciliation Act, 1996 is the main parent law which regulates ADR in India. It covers two main substances — arbitration and conciliation.⁶ In arbitration, there is a neutral arbitrator who listens to both parties during the arbitration process and gives a decision which is known as an award. In conciliation, there is one conciliator who helps both parties reach a final settlement; the decision given by the conciliator is not binding upon the parties.⁷ This Act is based on the UNCITRAL Model Law. Through the amendments of 2015, 2019 and 2021, a certain time limit was decided — after the amendment, it became necessary to solve the dispute within 12 months without any extension. The interference of courts should be reduced, and these amendments also try to make India an international arbitration hub.⁸

Section 89, Civil Procedure Code, 1908
In the Civil Procedure Code, 1908, there is a specific section which deals with ADR in India. Section 89 gives power to the court related to the possibility of settlement of a dispute between both parties, where the judge refers the case to arbitration, conciliation, mediation or Lok Adalat before starting any trial in court.⁹ This helps in reducing the burden of courts and also gives faster resolution to parties than litigation.

Legal Services Authorities Act, 1987 (Lok Adalat)
The Legal Services Authorities Act, 1987 is the legal foundation of Lok Adalats — "people's courts" where disputes are resolved using compromise or settlement, without any formal trial.¹⁰ This method is free, fast and informal. The decision, known as an award, given by the Lok Adalat, is treated as binding upon parties in the same way as a civil court decree, and there is no appeal against the decision.¹¹ Lok Adalats are mainly used for small disputes, minor civil cases, matrimonial cases and recovery matters.

Mediation Act, 2023
The Mediation Act, 2023 is a new ADR law in which mediation, for the first time, has been given a standalone comprehensive statute in India.¹² Mediation refers to a process in which a neutral third party listens to both parties and tries to find out a solution for their issue; the mediator does not give any decision and only facilitates the discussion between the parties. This Act encourages the pre-litigation method of dispute resolution, and it also makes the settlement reached through mediation legally enforceable.¹³

Commercial Courts Act, 2015
The Commercial Courts Act, 2015 establishes fast-track courts for commercial and business disputes.¹⁴ One important rule of this Act is that it is mandatory for parties to file a pre-institution mediation before starting any formal litigation, unless a party requires urgent interim relief.¹⁵ This helps in solving disputes related to commercial cases in a faster manner and makes the settlement legally enforceable if it is achieved through mediation.

Critical Analysis

Positive
ADR is faster than court proceedings because in ADR there is no need to follow the formal procedure, and as a result no lengthy trials happen in ADR. There is also avoidance of court fees, lawyer fees and lengthy procedure, which is why ADR is less expensive than litigation. Arbitration and mediation are private procedures, whereas court proceedings happen in public.¹⁶ Parties themselves choose their arbitrator or mediator and also decide their own terms and conditions. With the help of cooperative methods like mediation, the relationship between parties is protected and remains safe.

Challenges
Despite these advantages, ADR in India faces several challenges. Like lack of awareness about ADR among the public, especially in rural areas. Also a shortage of trained professionals to act as arbitrators and mediators. Sometimes courts interfere in arbitration decisions, which weakens the main purpose of ADR — that is, party autonomy and finality.¹⁷ In some cases, there is also delay in the enforcement of awards which creates delay in execution of justice. ADR is used more in cities than in rural areas, mainly due to a lack of awareness and infrastructure.
In my view, the success of ADR in India will depend not just on having good laws, but on building enough awareness and trained professionals to support them.

Case laws

Afcons Infrastructure Ltd v Cherian Varkey Construction Co (P) Ltd, (2010) 8 SCC 24

In this case, the Supreme Court explained how courts should refer disputes to different modes of ADR under Section 89, and laid down the correct procedure that judges must follow while making such a reference.¹⁸

Bharat Aluminium Co v Kaiser Aluminium Technical Services Inc, (2012) 9 SCC 552

In this case, the Supreme Court limited the scope of judicial interference in arbitration matters, which helped strengthen the independence and finality of the arbitration process in India.¹⁹

Way Forward
There should be proper and mandatory training for mediators, arbitrators and judges. also need awareness campaigns, especially in rural areas, to promote online dispute resolution.²⁰ With the use of technology, small or simple disputes are resolved more easily and without any office or court visit. In the current time, the use of online dispute resolution is being promoted in India. This could provide a solution for small disputes, especially in rural areas, without going to any office or court.²¹

There is also a need for stronger ADR institutions with better funding, which would help in providing better infrastructure to handle pending cases. This would also ensure the availability of high-quality, trained professionals, institutions and arbitrators or mediators. There is a need to strengthen ADR centres and reduce court interference into arbitration matters. Along with this, there should be proper execution of new laws like the Mediation Act, 2023.²²

Conclusion

In India, courts' backlog is the biggest problem. ADR — arbitration, mediation, conciliation and Lok Adalat — should become the effective solution for the removal of these backlogs. For this, we have the Arbitration and Conciliation Act, Section 89 of the CPC, and the Mediation Act, 2023, which give strong legal backing to ADR.
But only making new laws is not sufficient — real success is achieved when these laws are executed well, people are made aware about these laws, and there are always trained professionals available. If the ADR system is implemented well, it can create a better future for ADR and for speedy justice in India. ADR not only reduces the burden on courts but also saves time and cost for the parties, while helping maintain relationships that formal litigation often damages.As India continues to grow economically and socially, a strong and accessible ADR system will be essential in ensuring that justice is not just done, but done speedily and affordably for every citizen.

Reference

Legislation

• Arbitration and Conciliation Act 1996.
• Code of Civil Procedure 1908.
• Commercial Courts Act 2015.
• Legal Services Authorities Act 1987.
• Mediation Act 2023.

Cases

• Afcons Infrastructure Ltd v Cherian Varkey Construction Co (P) Ltd (2010) 8 SCC 24

• Bharat Aluminium Co v Kaiser Aluminium Technical Services Inc (2012) 9 SCC 552.

Government Reports / Official Sources

• National Judicial Data Grid, Pendency Statistics (Department of Justice, Government of India).
• Ministry of Law and Justice, Government of India, National Litigation Policy.

Academic Sources

• Aashna Bansal, ‘Alternative Dispute Resolution in India: Effectiveness, Challenges, and the Road Ahead’ (2025) 1(1) De Facto Law Journal.

• Karishma Singh and Jyoti Garg, ‘Mediation as an Effective Alternative Dispute Resolution Mechanism in India: A Legal and Empirical Study’ (2026) 7(1) Journal of International Commercial Law and Technology 653–659

• Ananya Rai and Rohit Shukla, ‘Alternative Dispute Resolution in Civil Litigation: Assessing Lok Adalats’ Impact on Judicial Backlog Reduction in India’ (2025) 8(2) International Journal of Law Management & Humanities 3652–3673