‘Alternative Dispute Resolution’ (ADR) refers to any means of settling disputes outside the courtroom. Normally ADR are Cost Effective, Fast, Flexible and Fair. (ADR also known as External Dispute Resolution in some countries) includes dispute resolution processes and techniques that act as a means for disagreeing parties to come to an agreement short of litigation. It is informal. There are various forms or ways of resolving disputes under ADR and generally classified into at least four types: (1) negotiation, (2) mediation, (3) collaborative law or Conciliation, and (4) arbitration. Despite historic resistance, ADR has gained widespread acceptance among both the general public and the legal profession in recent years.

Alternative dispute resolution in India is not new and it was in existence even under the previous Arbitration Act, 1940. The Arbitration and Conciliation Act, 1996 has been enacted to accommodate the harmonisation mandates of UNCITRAL Model. To streamline the Indian legal system the traditional civil law known as Code of Civil Procedure, 1908 (CPC) has also been amended and section 89 has been introduced. Section 89(1) of CPC provides an option for the settlement of disputes outside the Court. It provides that where it appears to the court that there exist elements, which may be acceptable to the parties, the court may formulate the terms of a possible settlement and refer the same for arbitration, conciliation, mediation or judicial settlement. Due to extremely slow judicial process, there has been a big thrust on Alternate Dispute Resolution mechanisms in India. While Arbitration and Conciliation Act, 1996 is a fairly standard western approach towards ADR, the Lok Adalat system constituted under National Legal Services Authority Act, 1987 is a uniquely Indian approach.

The Law Commission of India by its 176th Report had proposed certain changes for the Arbitration & Conciliation Act, 1996 in the year 2001. A Bill for amendment was introduced in the Parliament in 2003, but it was subsequently withdrawn for bringing in a fresh legislation. The changes have not seen the light of the day even after a period of 9 years. Now a Consultation Paper has been released by the Ministry of Law & Justice and the Comments are being called for. 

Therefore, it needs to be kept in mind that the Arbitration & Conciliation Act, 1996 will be undergoing tremendous  changes, in the near future, to improve institutional arbitration, fairness amongst the arbitrators, minimizing interference by Courts, clarifying domestic and international arbitrations (nullifying the effects of some controversial judgments of the Supreme Court) and speedy execution of awards. Once this new Act comes into force, Indian Arbitration Law will witness sweeping changes and this book will then be revised to suit the changed scenario. The present book is based on the existing Act on which the revised syllabus has been formulated.

This book provides a short cut to the students of the 5 year law degree course to enable them to get a broad understanding of the topics that would be covered under the revised syllabus with effect from the academic year 2009-2010. Though every effort has been taken to incorporate the developments / amendments on the subject, it may happen that some developments might have taken place subsequent to release of the book for publication. Hence, the readers are therefore, advised to study recent amendments /case laws.