What is ADR?
Alternate Dispute Resolution is simply an alternate route for resolving
disputes between parties, not necessarily seeking justice or penalty for any
illegality or wrongdoings, but rather solutions to the problems in hand. These methods usually involve a third party, who helps them in settling the disputes.
The different methods of ADR:
1. Arbitration
2. Mediation
The purpose of ADR is to settle a legal dispute through the active participation of a third party (mediator) who works to find points of agreement and make those in conflict agree on a fair result.
ADR process is that can be independent (non-judicial) or court-annexed (judicial), binding or non-binding, formal or informal, obligatory or voluntary.
Advantages of ADR:
- Less time consuming
- Cost effective method
- It is free from technicalities of courts, here informal ways are applied in resolving dispute.
- People are free to express themselves without any fear of court of law.
- Efficient way
- It prevents further conflict and maintains good relationship between the parties.
- It preserves the best interest of the parties.
Disadvantages of ADR:- There Is no guaranteed resolution
- decision of final
- limits of awards
- facts may not be fully disclosed
- Adr not for all cases