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2.1. Rationale for alternative dispute resolution

Speedy and expeditious resolution of disputes: One of the main aims of arbitration, mediation and conciliation is the speedy resolution of disputes with an emphasis on conciliatory moves. Given the huge backlog and pendency in our courts at present, quick settlement is the need of the hour and also serves wider interests of the society.

Cost effective: Apart from being time consuming, traditional judicial process is expensive

and has been known to have consumed people’s savings. While litigation is unavoidable in a

number of circumstances, wherever possible there should be an attempt at settlement of the dispute. The greatest drawback of litigation is that one would have to keep paying huge sums of money to lawyers to keep fighting the case, which in case of most people is not viable.

Reduces the burden on public finances in a country where resources are already strained: As observed above, there is huge pendency and backlog in our courts. There is huge public expenditure to keep the clock ticking. Given the fact that we have limited public resources in this country, a slightly concerted effort at reducing the backlog in the courts by opting to settle disputes through mediation and conciliation, might pave the way towards a certain proportion of resources being put to better use.

Amiable settlement for people involved: A legal dispute involves acrimony and bad feelings which does take a toll on people, emotionally, physically and mentally. Mediation and conciliation and even arbitration to a degree aims at reducing such acrimony and aims to help parties to sit down and deal with their disputes, identify issues and try to work out an amicable settlement with benefits to

either side.

Confidentiality: Another important aspect of the three main alternative dispute resolution procedures is confidentiality, unlike court proceedings. Matters of business or family interest, which is meant to be discussed in a discretionary manner, can be kept private helping in conserving delicate human relationships.

 

♤ Harmonious resolution of disputes and