pptx by himcapes

1. BALLB 7TH SEMESTER PPT OF ADR
HIMCAPES COLLEGE OF LAW
(Affiliated to HP University Shimla and Approved by Bar Council of India, New Delhi)
V.P.O. BADHERA, TEH. HAROLI
UNA (HP)
Presented By:
Nitasha Thakur
Asst Professor
HIMCAPES College of Law

2. What is alternative
dispute resolution?
• Alternative dispute resolution (ADR) refers to a
range of dispute settlement methods which help
the parties in the dispute to come to a
settlement without going to court, or without
litigating on the said matter. These methods
usually involve a third party, who helps them in
settling the disputes. In many cases, ADR
methods are used alongside the litigation
process as well through court authorisation.

3. INTRODUCTION & HISTORICAL
BACKGROUND OF ADR IN INDIIA
• Today’s world has become globalised and commercial with the
advent of technology. People can now contact each other and
settle business deals and disputes when they are sitting at the
opposite ends of the world. Most people no longer have the
time to go and file papers at the courts and then wait long
periods for a hearing. We are rapidly approaching a stage
where litigation is being replaced with alternative dispute
resolution (ADR), due to the inefficiencies and drawbacks of
litigation. India hasn’t quite reached a stage where litigation
has been completely displaced by ADR methods, but the legal
system is beginning to see the benefits of ADR.
This Photo by Unknown author is licensed under CC BY-SA.

4. Ancient India
• In ancient India when there
was Kulas, people used to
live in joint families with
their clans and when there
was caste system prevalent
in the society. The disputes
among the kulas were
resolved by the head of the of
the family, clan or Kula.
Likewise, when there was
common trade,corporations
or Shrenis among the people,
they used to appoint person
to resolve the disputes within
the Shrenis.

5. Pre- Independence: British rule
• During the British rule in India, many legislations were introduced and a
drastic change came in the administration of India. In 1772, the courts
were empowered to refer disputes to arbitration either at the request of
the parties or by its own discretion. Then after a decade, in 1859 The
Code of Civil Procedure was enacted, sections 312 to 327 of the act
mentioned arbitration but in 1882 the sections relating to relating to
arbitration was repealed.
• In 1899 The Indian Arbitration Act, 1899 was enacted to give effect to
alternate dispute mechanism in India. The act was based on the English
legislation.
• Then in 1908, CPC was again amended and section 89 with second
schedule gave wide powers to the courts to refer the disputes to ADR
mechanism. Then, The Indian Arbitration Act, 1899 and section 89 read
with second schedule of Code of Civil Procedure, 1908 were two effective
legislation to deal with arbitration. Thereafter, in 1937 Geneva
Convention was signed and adopted by India and a parallel legislation
was introduced in the form of The Arbitration (Protocol and Convention)
Act, 1937. In 1940, The Indian Arbitration Act, 1899 and section 89 with
second schedule of CPC was repealed and replaced by The Arbitration
Act, 1940.

6. Post-
Independence
Era
• The Arbitration (Protocol and Convention) Act, 1937 for the enforcement of foreign
awards and The Arbitration Act, 1940 for referring disputes to ADR mechanism
were presently in force in India. Then in 1961, India became signatory to the New
York Convention and The Foreign Award (Recognition and Convention) Act, 1961
was enacted.
• In 1981, in M/S Guru Nanak Foundation vs. Rattan Singh & Sons, the Supreme
Court described the Arbitration Act, 1940 in off- quoted passage. It observed that
“the way in which the proceedings under the act are conducted and without an
exception challenged in courts, has made lawyers laugh and legal philosophers
weep. Experience shows and law reports bear ample testimony that the proceedings
under the act have become highly technical and accompanied by unending prolixity,
at every stage providing a legal trap to the unwary.”
• In 1985, the UNCITRAL model law was adopted and signed by India on
International commercial arbitration.
• In 1996, finally The Arbitration (Protocol and Convention) Act, 1937; The
Arbitration Act, 1940 and The Foreign Award (Recognition and Convention) Act,
1961 was repealed and consolidated in a single piece of legislation following the
UNCITRAL model law, the act was called the Arbitration and Conciliation Act,
1996. to make the act more effective and efficient Section- 89 with Order- X (Rule-
1A to 1C) was re- introduced in CPC in 2002. The act of 1966 was amended twice in
2015 and 2019. However, to deal with ADR mechanism we have a consolidated,
single, effective, efficient and a good piece of legislation.

7. LEGISLATIONS OF
ADR IN INDIA
• The Code of Civil Procedure, 1859
• Indian Arbitration Act, 1899:
• Arbitration (Protocol and Convention) Act
1937:
• The Arbitration Act of 1940:
• Arbitration and Conciliation Act, 1996:

8. FORMS OF
ADR
MECHANISM
• Arbitration
• The dispute is submitted to an arbitral tribunal which makes a decision
(an "award") on the dispute that is mostly binding on the parties.
• It is less formal than a trial, and the rules of evidence are often
relaxed.
• Generally, there is no right to appeal an arbitrator's decision.
• Except for some interim measures, there is very little scope for judicial
intervention in the arbitration process.
• Conciliation
• A non-binding procedure in which an impartial third party, the
conciliator, assists the parties to a dispute in reaching a mutually
satisfactory agreed settlement of the dispute.
• Conciliation is a less formal form of arbitration.
• The parties are free to accept or reject the recommendations of the
conciliator.
• However, if both parties accept the settlement document drawn by the
conciliator, it shall be final and binding on both..

9. FORMS OF
ADR
MECHANISM
• Mediation
• In mediation, an impartial person called a "Mediator" helps the parties
try to reach a mutually acceptable resolution of the dispute.
• The mediator does not decide the dispute but helps the parties
communicate so they can try to settle the dispute themselves.
• Mediation leaves control of the outcome with the parties.
Negotiation
• A non-binding procedure in which discussions between the parties are
initiated without the intervention of any third party with the object of
arriving at a negotiated settlement to the dispute.
• It is the most common method of Alternative Dispute Resolution.
• Negotiation occurs in business, non-profit organizations, government
branches, legal proceedings, among nations and in personal situations
such as marriage, divorce, parenting, and everyday life.

10. Lok Adalat
• Lok Adalat is one of the alternative dispute redressal mechanisms, it is a forum where
disputes/cases pending in the court of law or at pre-litigation stage are settled/
compromised amicably. Lok Adalats have been given statutory status under the Legal
Services Authorities Act, 1987. Under the said Act, the award (decision) made by the
Lok Adalats is deemed to be a decree of a civil court and is final and binding on all
parties and no appeal against such an award lies before any court of law.
• If the parties are not satisfied with the award of the Lok Adalat though there is no
provision for an appeal against such an award, but they are free to initiate litigation
by approaching the court of appropriate jurisdiction by filing a case by following the
required procedure, in exercise of their right to litigate.
• There is no court fee payable when a matter is filed in a Lok Adalat. If a matter
pending in the court of law is referred to the Lok Adalat and is settled subsequently,
the court fee originally paid in the court on the complaints/petition is also refunded
back to the parties. The persons deciding the cases in the Lok Adalats are called the
Members of the Lok Adalats, they have the role of statutory conciliators only and do
not have any judicial role; therefore they can only persuade the parties to come to a
conclusion for settling the dispute outside the court in the Lok Adalat and shall not
pressurize or coerce any of the parties to compromise or settle cases or matters either
directly or indirectly.

11. Constitution of Lok Adalat
• Lok Adalat have been given statutory recognition since 1987.
• The Legal Services Authority Act 1987 pursuant to the constitutional mandate in
Article 39A of the Constitution of India contains various provisions for the
settlement of disputes through Lok Adalat by which now the Lok Adalat has a
statutory basis.
• Its constitutive Legal services authorities to provide free and competent legal
services for poorer sections of the society to ensure the opportunities for
securing Justice which is not denied to any citizen by reason of economic or
other disabilities, and Lok Adalat to secure by the operation of the legal system
which promotes justice on a basis of equal opportunity.
• Parliament amended the Legal Services Authorities Act 1987 in 2002, requiring
the establishment of permanent Lok Adalat for the sake of public utility services.
• The Legal Services Authority Act 1987 provides for the setting up of a
permanent Lok Adalat which can be approached by any party to a dispute which
involves public utility services.

12. Constitution of Lok Adalat
• Any civil dispute with the public utility service and where the value of the property in
dispute does not exceed 1,000,000 or any criminal dispute which does not involve any
offense, not compoundable under any law can be taken up in the permanent Lok
Adalat.
• An important feature of this amendment is that after an application is made to the
permanent Lok Adalat, no party after an application can involve the jurisdiction of any
Court in the same dispute.
• Such disputes involving Public Utility Services shall be attempted to be settled by the
permanent Lok Adalat by way of Conciliation, and, failing that on merit, and in doing
so, the permanent Lok Adalat shall be guided by the principles of Natural Justice,
Objectivity, Fair play, Equity and other Principles of Justice without being bound by
the Code of Civil Procedure and Indian Evidence Act.
• Besides the Legal Services Authority Act, there have been several other changes in the
law in recent times, one of the most important being the amendment in the Code of
Civil Procedure.
• Section 89 of the Code of Civil Procedure, as amended in 2002, has opened the scope
of the introduction of Conciliation, mediation, and Pre-Trial Settlement Methodologies.

13. The following types of cases can
be admitted in Lok Adalat
• Any dispute or case pending in any court of law in
India:
• Criminal offenses which is compoundable.
• Cases under section 138 of the Negotiable Instruments
Act.
• Issues relating to the recovery of money.
• Issues under the Indian Motor Vehicles Act, 1988.
• Issues relating to labour disputes.
• Issues relating to public utility bills such as electricity or
water, excluding non-compoundable offenses.
• Issues relating to matrimony.

14. Powers of lok Adalat
• The Lok Adalat will have the same authority as a Civil Court
under the Code of Civil Procedure (1908).Any matter that is
brought before a Lok Adalat may be resolved using any procedure
that the Lok Adalat deems appropriate.
• For the purposes of the Code of Criminal Procedure (1860), every
Lok Adalat shall be recognized as a Civil Court, and all actions
before a Lok Adalat shall be deemed to be judicial proceedings as
defined by the Indian Penal Code (1973).
• The Lok Adalat ruling is regarded as a civil court judgment under
the Legal Services Authorities Act, 1987, and is binding on all
parties.
• If the parties disagree with the Lok Adalat decision, there is no
recourse for an appeal.

15. CONCEPT OF LEGAL AID
• Legal aid is a government program that provides help, advice, and
representation to those who cannot afford it. Free legal aid is
every Indian’s fundamental human right according to the Indian
Constitution. The National Legal Services Authority regulates this
component of legal services. It guarantees help to the poorer parts
of society who fall under section 12 of the Legal Services
Authority Act, 1987. Legal help to the poor, weak, and illiterate is
required for the rule of law to exist. Poor, illiterate people are
denied access to justice unless they are given legal counsel.
• The Indian Constitution requires the court to be independent and
impartial. As a result, courts are accountable for upholding the
Constitution and protecting citizens’ rights, regardless of their
financial circumstances.

16. Objectives of Legal Aid
• The objective of legal aid lies in bridging
the gap and making legal services
accessible to all segments of our society. Its
core aim is to protect the rights and interests
of people. Legal aid is a step by which
weaker sections of our country can become
strong and enable themselves to live with
confidence.
• The concept of legal aid is made such that
no one feels like they are treated separately.
There are many negative aspects of the
society because of which some have reained
underprivileged – the objective of providing
legal aid is the upliftment of one and all.

17. Types of Legal Aid
Fund
• Grants by the Central
Government (National Legal Aid
Fund): The Central Government
shall make grants to the Central
Authority to carry out the
purposes of legal aid in the
amount it deems fit.
• State Legal Aid Fund: Established
by State Authority
• District Legal Aid Fund:
Established by District Authority

18. BENEFITS OF LEGAL AID
• Legal aid provides support to the underprivileged and
weaker sections of our society. Below are ways in which
legal aid has benefitted India’s marginalised communities:
• It has increased people’s trust in the fairness of the system
• It has made the judicial system accessible to everyone.
• It has made the judicial system work more efficiently.
• It has empowered citizens by informing them about the
different paths besides post-litigation.
• As a result, it has helped in getting better judgments.

19. Who Is Entitled to Receive Legal
Aid?
• The Indian Constitution states that every person is entitled to receive legal aid. Indian
citizens, irrespective of age, gender, or ethnicity, qualify for legal aid if they fall under the
following categories:
• A person belonging to Scheduled Caste or Scheduled Tribe
• A woman or a child
• People who have been victims of trafficking
• A mentally ill or otherwise disabled person
• A person under special circumstances
• An individual in custody, including custody in a protective home
• The person to whom legal aid is provided need not have to pay any money for the
following:
• Court fees or any other legal costs related to litigation
• Documentation fees (drafting of documents, getting copies, etc.)
• Fees of the lawyer

20. Challenges to Legal Aid
• Illiteracy and lack of awareness: Legal aid has not yet achieved its
goal because people are still unaware of their rights. Due to not
knowing the meaning of legal aid and a general lack of
information, poor people are abused and deprived of their rights
and benefits.
• Insufficient financial support: According to sources, only 0.2 per
cent of the GDP (Gross Domestic Product) is spent on the
administration of law and justice in our country. This amount is
grossly inadequate and insufficient in a democracy.
• Legal aids have a limitation: There are limitations in covering the
total cost borne by the person. It only covers the deposition
charges and lawyer fees, but it does not cover bribes,
transportation costs, and other expenses required at the ground
level.

21. Legal Framework for Legal
Aid in India
• The articles and laws that have been formulated to make
legal aid accessible to the people in need include:
• Article 14
• Article 21
• Article 22(1)
• Article 39(A)
• Rule 46 of Bar Council of India
• Rules in part-VI
• Section 304 of Criminal Procedure Code, 1973
• Order 33 of Civil Procedure Code, 1908

22. THANK
YOU