ADR stands for Alternate Dispute Resolution and
represents any method by which parties to a Civil dispute often
arising in a business contract, agree to resolve their disputes outside the
Courts. It is an alternative to "Litigation" where the Courts of a given
jurisdiction are called upon to adjudicate the dispute and provide a
"Judgment". The "Judgment" of a Court has the power of enforcement.
ADR is always suggested by a Civil Court when a
dispute is first brought to them as per the provision of Section 89 of Civil
Procedure Code. It is expected to speed up the resolution and also use
procedures which are simple and follow the principle of natural justice.
ADR principally includes
c) Mediation and
Negotiation is a process by which the disputing
parties try to discuss and resolve their disputes, some times with the
assistance of other persons who can provide clarity to the dispute.
Negotiation works when the parties to the dispute are communicative and the
differences arise as to matters where either party is unable to accept the
interpretation of the other. The assistance is normally sought to provide a
neutral third party opinion particularly if such a party is an expert in the
domain of dispute. The agreement reached may be documented so that it
becomes an addendum to the basic contract.
and Mediation are forms of ADR in which the third party does more than
merely "Assisting" the disputing parties to arrive at a settlement. In
"Mediation", he uses his counseling skills to make each of the parties agree
to a "Give and Take" approach to find a solution. In "Conciliation", the
mediator is a little more persuasive and often suggests a solution himself.
He is often an "Expert" in the domain of the dispute and is respected by the
disputing parties for his expertise and agree to be persuaded. But Mediation or Conciliation is
still a process which has to be ratified by
the parties in a supplementary agreement as in the case of a Negotiation and
is not otherwise binding.
Arbitration on the other
hand is a process where the third party called the "Arbitrator" is appointed
by the disputing parties and they agree to bind themselves to the decision
of the Arbitrator. It is normally a part of the original contract which
includes an "Arbitration Clause" or is a supplementary agreement before the
Arbitrators are agreed upon. While agreeing to subject themselves to
Arbitration, parties also agree on the number of "Arbitrators" in the panel
if there should be more than one, the type of expertise that they look for
in the Arbitrator and also the Place where the Arbitration has to be held.
Often they agree to go a permanent Arbitral house and subject to the
conditions of the Arbitral house in terms of the place of arbitration and
detailed rules of arbitration.
Arbitration award is often
considered binding but is also challenged on the grounds that the process
used was not in accordance with the agreement or principles of natural
justice was not followed etc.
India has adopted Indian
Arbitration and Conciliation Act 1996 amended from time to time with the
latest Ordinance of 2015. (The amendment Bill to replace the ordinance is
pending passage in the Parliament) which is the reference point for all
Arbitrations. Other countries may have their own versions of Arbitration Act
which determine the recommended process and the conditions under which the
awards can be reviewed by the Judiciary as well as how the Awards are
Since all forms of ADR require meeting of
parties to the dispute including the experts involved, Counsels of the
disputing parties, witnesses etc, "Meeting" is the essence of ADR.
The services of ODR Global is meant to facilitate
meeting in a virtual place so that the parties can simply attend the meeting
without moving out of their office or residence or even while they are in
travel. Hence this service can be used for all forms of ADR.
By additional measures such as Recording of the entire proceedings, presence
of a representative of ODR Global as a Registrar and Certification of
the proceedings by CEAC under Section 65B of Indian Evidence Act, the
Virtual Meeting under ODR Global is rendered valuable perhaps as much as
if not more than the physical meeting.