ADR can be defined as a technique or mechanism of dispute resolution through the intervention of the third party. In ADR the neutral third party may bridge the gap between the parties by bringing them together through the process of arbitration, conciliation, mediation or negotiation, thus the ADR aims to provide an inexpensive, speedy and less formalistic remedy to the aggrieved party. Its purpose is to provide a remedy which is most appropriate in the circumstances of the case.

Advantages of ADR System

The merits/advantages of ADR are as follows:

1. ADR process can be initiated at any time, when the disputing party takes recourse to ADR.
2. It can provide more expeditious and less expensive settlement of disputes.
3. It promotes conducive and amicable mechanisms.
4. This system provides a flexible procedure and is not rigid.
5. No lawyer’s assistance is mandatory, it does not mean that the role of lawyer is diminished.
6. ADR reduces the workload of the regular courts of law.
7. ADR helps in confining disputes as a private matter.
8. ADR can be used to reduce the gravity of contentious issues between the parties.

Disadvantages of ADR system

There is no method which does not have its some demerits. In other words, a particular ADR method may not suit the requirement of the parties. Therefore, ADR has following demerits/disadvantages:

1. Unfamiliarity of the process is a factor covering obstruction in ADR.
2. In the case of unequal positions of the parties, the weaker party may not be willing to submit to the ADR process and prefer court protection.
3. Lack of binding effect of solution arrived after exercise of ADR process.
4. Disputes related to rights of parties and title could not be decided by means of ADR because in such matters the decision arrived at after the ADR process lacked enforcement.
5. Practically ADR process takes much time in obtaining consents of the parties before initiation of the process.

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Also Read –

ADR: Meaning, History, Types, Nature And Concept

The Main Objectives And Salient Features Of Arbitration & Conciliation Act, 1996.