A
conflict is better resolved when it is neither viewed as good nor bad, but as a
fact. Dealing with facts is easier than dealing with “problems”. What is
important is how professionally and eloquently; a company manages or handles its
disputes. In this article we are not just talking about conflicts, but about
the various effective ways of conflict resolution. Negotiation techniques are
often central to resolving conflict and as a basic technique these have been
around for many thousands of years. Alternative Dispute Resolution (ADR) refers
to a variety of streamlined resolution techniques designed to resolve issues in
controversy more efficiently when the normal negotiation process fails.
Alternative
Dispute Resolution (ADR) is an alternative to the Formal Legal System or
litigation. It was being thought of in view of the fact that the Courts are
over burdened with cases. The said system stems from the discontent of various parties
to dispute with the way in which disputes are traditionally resolved resulting
in criticism of the Courts, the legal profession and sometimes lead to a
feeling of hostility from the whole legal system- thus, the need for
Alternative Dispute Resolution.
Although
the concept of dispute resolution through alternate methods is relatively new
in India, this mechanism has been found to be non-adversarial in nature and
which basically upholds the justice dispensation system of India more
effectively, which has previously been under great stress. The advantage of
providing parties with the opportunity to reduce hostility, regain a sense of
control, gain acceptance of the outcome, resolve conflict in a peaceful manner,
and achieve a greater sense of justice in each individual case has been
successfully provided by the course of ADR and is found to be more private, viable, economic and
efficient.
The
Indian Arbitration and Conciliation Act, 1996 provides the law relating to
Arbitration and Conciliation that is almost the same as in the advanced
countries. Statutory Recognition of processes like Conciliation as a means for
settlement of the disputes in terms of this Act has been provided for.
Guarantees Independence and impartiality of the arbitrators, irrespective of
their nationality is also a feature which can mean gold for foreign companies
seeking Indian investments. The new Act of 1996 brought in several changes to
expedite the process of arbitration. Hence, this legislation has developed
confidence among foreign parties interested to invest in India or to go for
joint ventures, foreign investment, transfer of technology and foreign
collaborations.
The advantage of ADR is that it is a more supple and flexible process and
avoids seeking remedy from the courts. Via ADR, parties can withdraw of their
own free will at any stage of time. It has been seen that resolution of
disputes is quicker and cheaper through ADR. The parties opting for ADR do not
develop strained relations; rather they effectively succeed in maintaining as
well as sustaining relationship between among themselves.
A brief introduction to the various types of
Alternate Dispute Resolution mechanisms is as follows-
·
Arbitration:
This process is sought after only
through predetermined valid Arbitration Agreements in the written form between
the parties when discussing the emergence of a dispute. The contract, regarding
which the dispute exists, must either contain an arbitration clause or must
refer to a separate document signed by the parties containing the arbitration
agreement. Any party to the dispute can start the process of appointing
arbitrator and if the other party does not cooperate, the party can approach
the office of Chief Justice for appointment of an arbitrator. Except for some
interim measures, there is very little scope for judicial intervention in the
arbitration process. An award made by an arbitration tribunal has the strength
of a decree by any higher courts.
·
Conciliation:
Conciliation is a less formal process
which does not require an existence of any prior agreement. Any party can
request the other party to appoint a conciliator. The decision of opting for
conciliation as an ADR has to be mutual between the parties to dispute, meaning
it cannot be enforced by one party on the other.
Parties that opt for this method,
submit statements to the conciliator describing the general nature of the dispute
and the points at issue. The conciliator may request further details, may ask
to meet the parties, or communicate with the parties orally or in writing.
Parties may even submit suggestions for the settlement of the dispute to the
conciliator.
When it appears to the conciliator that elements of settlement exist, he may
draw up the terms of settlement and send it to the parties for their
acceptance. If both the parties sign the settlement document, it shall be final
and binding on both.
·
Mediation:
Mediation is that form of ADR which aims
to assist two (or more) disputants in reaching an agreement by allowing the
parties themselves to determine the conditions of any settlements reached;
rather than accepting something imposed by a third party. Disputants may use
mediation in a variety of disputes, such as commercial, legal, diplomatic,
workplace, community and family matters. The disputes may involve (as parties)
states, organizations, communities, individuals or other representatives with a
vested interest in the outcome. Mediators use appropriate techniques and skills
to open and improve discussion between disputants, aiming to aid the parties in
reaching a fair agreement with definite effects on the disputed matter.
·
Negotiation:
As we have discussed in our previous article (add hyperlink), Negotiation is a
skill which lawyers have developed in order to explore all potential avenues of
resolving future disputes, including methods which do not involve litigation as
stated above. Negotiation plays a pivotal role in international peacekeeping
efforts by understanding what each party wants and trying to find a workable
legal solution to it. Legal experts are largely spending their time negotiating
effective settlements rather than advising on law. Negotiation is a dialogue
intended to resolve disputes, to produce an agreement upon courses of action,
to bargain for individual or collective advantage, or to craft outcomes to
satisfy various interests. It is the primary method of alternative dispute
resolution.
·
Lok
Adalat:
This unique Indian concept of ADR is
termed as roughly meaning a "People's court". It is a non-adversarial
system, where by mock courts called Lok Adalats are held by the State
Authority, District Authority, Supreme Court Legal Services
Committee, High Court Legal Services Committee, periodically for
exercising jurisdiction on minor disputes arising in due course of business between
parties. These are usually presided by retired judge, social activists, or
members of legal profession. There is no court fee and no rigid procedural
requirement which makes the process very fast. Parties can directly interact
with the judge, which is not possible in regular courts. This type of ADR is
not for big company disputes, but it acts as a boon for the litigant public by
being highly effective for small or Start-up Company facing disputes as the
focus is on compromise leading to a binding agreement which is enforceable in
any court.