1.

Alternative means of Settlement of Disputes

Introduction

Indian judiciary is one of the oldest judicial system, a world-renowned fact but
nowadays it is also well-known fact that Indian judiciary is becoming inefficient
to deal with pending cases, Indian courts are clogged with long unsettled cases.
The scenario is that even after setting up more than a thousand fast track
Courts that already settled millions of cases the problem is far from being
solved as pending cases are still piling up.

To deal with such a situation Alternative Dispute Resolution (ADR) can be

helpful mechanism, it resolves conflict in a peaceful manner where the
outcome is accepted by both the parties.

ONE OF THE MOST IMPORTANT FEATURE OF ADR IS IT RESOLVES DISPUTE IN

COST EFFECTIVE MANNER, LESS TIME CONSUMING AND PRODUCES DESIRED

RESULT.

Alternative Dispute Resolution

The concept of Alternative Dispute Resolution (ADR) mechanism is capable of

providing a substitute to the conventional methods of resolving disputes. ADR
offers to resolve all type of matters including civil, commercial, industrial and
family etc., where people are not being able to start any type of negotiation
and reach the settlement. Generally, ADR uses neutral third party who helps
the parties to communicate, discuss the differences and resolve the dispute. It
is a method which enables individuals and group to maintain co-operation,
social order and provides opportunity to reduce hostility.

Importance of ADR in India

To deal with the situation of pendency of cases in courts of India, ADR plays a
significant role in India by its diverse techniques. Alternative Dispute
Resolution mechanism provides scientifically developed techniques to Indian
judiciary which helps in reducing the burden on the courts. ADR provides
various modes of settlement including, arbitration, conciliation, mediation,
negotiation and lok Adalat. Here, negotiation means self-counseling between
the parties to resolve their dispute but it doesn’t have any statutory
recognition in India.

ADR is also founded on such fundamental rights, article 14 and 21 which deals
with equality before law and right to life and personal liberty respectively.
ADR’s motive is to provide social-economic and political justice and maintain
integrity in the society enshrined in the preamble. ADR also strive to achieve
equal justice and free legal aid provided under article 39-A relating to
Directive Principle of State Policy(DPSP).

Few important provisions related to ADR

 Section 89 of the Civil Procedure Code, 1908 provides that

opportunity to the people, if it appears to court there exist elements
of settlement outside the court then court formulate the terms of the
possible settlement and refer the same for: Arbitration, Conciliation,
Mediation or Lok Adalat.
 The Acts which deals with Alternative Dispute Resolution are
Arbitration and Conciliation Act, 1996 and,
 The Legal Services Authority Act, 1987

Advantages of Alternative Dispute Resolution

 Less time consuming: people resolve their dispute in short period as

compared to courts
 Cost effective method: it saves lot of money if one undergoes in
litigation process.
 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. They can reveal the true facts without disclosing it to any court.
 Efficient way: there are always chances of restoring relationship back
as parties discuss their issues together on the same platform.
  It prevents further conflict and maintains good relationship between
the parties.
 It preserves the best interest of the parties.

Various modes of Alternative Dispute Resolution

Arbitration

The process of Arbitration cannot exist without valid arbitration agreement

prior to the emergence of dispute. In this technique of resolution parties refer
their dispute to one or more persons called arbitrators. Decision of arbitrator is
bound on parties and their decision is called ‘Award’. The object of Arbitration
is to obtain fair settlement of dispute outside of court without necessary delay
and expense.

Any party to a contract where arbitration clause is there, can invoke arbitration
clause either himself or through their authorized agent which refer the dispute
directly to the arbitration as per the Arbitration clause. Here, arbitration clause
means a clause that mention the course of actions, language, number of
arbitrators, seat or legal place of the arbitration to be taken place in the event
of dispute arising out between the parties.

 Initially, applicant initiates an arbitration by filing a statement of claim

that specifies the relevant facts and remedies. The application must
include the certified copy of arbitration agreement.
 Statement of claim is a written document filed in the court or tribunal
for judicial determination and a copy also send to the defendant in
which claimant described the facts in support of his case and the
relief he seeks from the defendant.
 The respondent reply to the arbitration by filing an answer against the
arbitration claim of claimant that specifies the relevant facts and
available defenses to the statement of claim.
 Arbitrators selection is the process in which the parties receive lists of
potential arbitrators and select the panel to hear their case.
 Then there is the exchange of documents and information in
preparation for the hearing called ‘Discovery’.
  The parties meet in persons to conduct the hearing in which the
parties present the arguments and evidences in support of their
respective cases.
 After the witnesses examined and evidences are presented, then
there in conclusion arbitrator gives an ‘Award’ which is binding on the
parties.
Now the intricacies of the proceedings vary with the arbitration agreement.
For example, there could be a timeline which must be followed. This timeline
would be stipulated in the agreement.

Section 8 of Arbitration and Conciliation Act, 1996 provides if any party

disrespects the arbitral agreement and instead of moving to arbitration, moves
that suit to civil court, other party can apply the court for referring the matter
to arbitration tribunal as per the agreement but not later the submission of the
first statement. The application must include a certified copy of arbitration
agreement and if courts satisfy with it, the matter will be referred to
arbitration.

Mediation

Mediation is an Alternative Dispute resolution where a third neutral party aims

to assist two or more disputants in reaching agreement. It is an easy and
uncomplicated party centered negotiation process where third party acts as a
mediator to resolve dispute amicably by using appropriate communication and
negotiation techniques. This process is totally controlled by the parties.
Mediator’s work is just to facilitate the parties to reach settlement of their
dispute. Mediator doesn’t impose his views and make no decision about what
a fair settlement should be.

THE PROCESS OF MEDIATION WORKS IN VARIOUS STAGES. THESE ARE,

 Opening statement
 Joint session
 Separate session and,
 Closing
At the commencement of mediation process, the mediator shall ensure the
parties and their counsels should be present.
  Initially in the opening statement he furnishes all the information
about his appointment and declares he does not have any connection
with either of parties and has no interest in the dispute.
 In the joint session, he gathers all the information, understand the
fact and issues about the dispute by inviting both the parties to
present their case and put forward their perspective without any
interruption. In this session, mediator tries to encourage and promote
communication and manage interruption and outbursts by the
parties.
 Next is separate session, where he tries to understand the dispute at
a deeper level, gathers specific information by taking both the parties
in confidence separately.
 Mediator asks frequent questions on facts and discusses strengths
and weaknesses to the parties of their respective cases.
 After hearing both the sides, mediator starts formulating issues for
resolution and creating options for settlement.
 In the case of failure to reach any agreement through negotiation in
mediation, mediator uses different Reality check technique like:
Best Alternative to Negotiated Agreement (BATNA)

It is the best possible outcome both the party come up with or has in mind. Its
suitable situation as each party thinks about their most favorable scenario
looks like.

Most Likely Alternative to Negotiated Agreement (MLATNA)

For a successful negotiation the result always lies in the middle, mediator after
considering both the parties comes up with most likely outcome. Here result is
not always in the middle but little left or right of the center depending on
negotiation situation.

Worst Alternative to Negotiated Agreement (WATNA)

It the worst possible outcome a party has in their mind for what could happen
during negotiation.
It may be helpful to the parties and mediator to examine the alternative
outside the mediation (specifically litigation) and discusses the consequences
of failing to reach agreement like: effect on the relationship of the parties or
effect on the business of the parties. It is always important to consider and
discuss the worst and most probable outcomes, it’s not always people get the
best outcome.

Mediator discusses the perspective of the parties about the possible outcome
at litigation. It is also helpful for the mediator to work with parties and their
advocates to come to a proper understanding of the best, worst and most
probable outcome to the dispute through litigation as that would help the
parties to acknowledge the reality and prepare realistic, logical and workable
proposals.

Conciliation

Conciliation is a form of arbitration but it is less formal in nature. It is the

process of facilitating an amicable resolution between the parties, whereby the
parties to the dispute use conciliator who meets with the parties separately to
settle their dispute. Conciliator meet separately to lower the tension between
parties, improving communication, interpreting issue to bring about a
negotiated settlement There is no need of prior agreement and cannot be
forced on party who is not intending for conciliation. It is different from
arbitration in that way.

Actually, it is not possible for the parties to enter into conciliation agreement
before the dispute has arisen. It is clear in Section 62 of The Arbitration and
Conciliation Act, 1996 which provides,

 The party initiating conciliation shall send to the other party a written
invitation to conciliate under this part, briefly identifying the subject
of the dispute.
 Conciliation proceedings shall commence when the other party
accepts in writing the invitation to conciliate.
If the other rejects the invitation, there will be no conciliation
proceedings.
Above provision clearly states conciliation agreement should be an
extemporary agreement entered into after the dispute has but not before.
Parties are also permitted to engage in conciliation process even while the
arbitral proceedings are on (section 30).

Lok Adalat

Lok Adalat is called ‘People’s Court’ presided over by a sitting or retired judicial
officer, social activists or members of Legal profession as the chairman.
National Legal Service Authority (NALSA) along with other Legal Services
Institutions conducts Lok Adalat’s on regular intervals for exercising such
jurisdiction. Any case pending in regular court or any dispute which has not
been brought before any court of law can be referred to Lok Adalat. There is
no court fees and rigid procedure followed, which makes the process fast. If
any matter pending in court of referred to the Lok Adalat and is settled
subsequently, the court fee originally paid in the court when the petition filed
is also refunded back to the parties.

Parties are in direct interaction with the judge, which is not possible in regular
courts. It depends on the parties if both the parties agree on case long pending
in regular court can be transferred to Lok Adalat. The persons deciding the
cases have the role of statutory conciliators only, they can only persuade the
parties to come to a conclusion for settling the dispute outside the regular
court in the Lok Adalat. Legal Services Authorities (State or District) as the case
may be on receipt of an application from one of the parties at a pre-litigation
stage may refer such matter to the Lok Adalat for which notice would then be
issued to the other party. Lok Adalats do not have any jurisdiction to deal with
cases of non-compoundable offenses.

2.Merits & Demerits of ADR

Advantages of ADR

The advantages of ADR are:

1. Cost-Effectiveness
One of the primary advantages of ADR is that it is generally more cost-effective
than traditional litigation. Court proceedings can be expensive, with costs
including attorney fees, court fees and other related expenses. ADR, on the
other hand, often involves fewer formalities and can be completed in a shorter
timeframe, resulting in lower costs.

2. Time Efficiency

ADR processes are typically faster than court litigation. Traditional legal
proceedings can take months or even years to resolve, whereas ADR methods
like mediation or arbitration can often be completed in a matter of days or
weeks. This can be particularly beneficial in business disputes where a speedy
resolution is desired.

3. Flexibility

ADR offers more flexibility compared to the rigid structure of court

proceedings. Parties have the freedom to choose the ADR method that best
suits their needs and can tailor the process to their specific dispute. This
flexibility extends to scheduling, location and even the choice of the neutral
third party (mediator or arbitrator) who will oversee the process.

4. Confidentiality

Unlike court cases, which are typically public, ADR proceedings are private and
confidential. This is particularly advantageous in disputes where the parties
wish to keep sensitive information out of the public domain. Confidentiality
can also help preserve business relationships and reputations.

5. Control over the Outcome

In ADR, the parties have more control over the outcome of the dispute. For
example, in mediation, the parties work together to reach a mutually
acceptable agreement, rather than having a decision imposed upon them by a
judge. This can lead to more satisfactory and sustainable resolutions.

6. Preservation of Relationships

ADR methods like mediation focus on collaboration and communication, which

can help preserve and even improve relationships between the disputing
parties. This is especially important in disputes involving ongoing business
relationships or family matters.
Disadvantages of ADR

The disadvantages of ADR are:

1. Lack of Precedent

Decisions made in ADR do not set a legal precedent, which can be seen as a
disadvantage in certain cases. Precedents are important in the legal system as
they provide guidance for future cases. Without precedents, there may be less
certainty and predictability in the law.

2. Limited Scope for Appeal

In some forms of ADR, such as binding arbitration, the opportunities for

appealing the decision are limited. This can be problematic if one of the parties
believes the decision was unjust or if there was an error in the process.

3. Enforcement Issues

While court judgments are enforceable by law, enforcing the outcome of an

ADR process can sometimes be more challenging. For instance, if a party does
not comply with the terms of a mediation agreement, the other party may
need to go to court to enforce the agreement.

4. Power Imbalances

In disputes where there is a significant power imbalance between the parties,

ADR may not provide a fair resolution. One party may dominate the process,
influencing the outcome in their favor. This is less likely to happen in a court
setting, where there are more formal checks and balances.

5. Lack of Legal Representation

In some ADR processes, parties may not have legal representation, which can
be a disadvantage, especially for those who are not familiar with legal matters.
This can lead to one party being at a disadvantage if the other party is more
knowledgeable or has legal counsel.

6. Inconsistency

Since ADR processes are less formal and more flexible, there can be
inconsistency in how disputes are resolved. Different mediators or arbitrators
may have different approaches, which can lead to varying outcomes for similar
disputes.

Conclusion

Alternative Dispute Resolution offers a range of benefits, including cost and

time efficiency, flexibility, confidentiality and the potential to preserve
relationships. However, it also has its drawbacks, such as the lack of legal
precedent, limited scope for appeal, enforcement issues, potential power
imbalances, lack of legal representation and inconsistency. When deciding
whether to pursue ADR, it is important to weigh these advantages and
disadvantages in the context of the specific dispute and the needs of the
parties involved.

3.Negotiation

Introduction
Alternative dispute resolution (ADR), also known as external dispute resolution
(EDR), is basically a method to resolve a dispute outside the court, i.e., without
any interruption from the court. At this point in time, when there are many
cases pending before the court and there are not sufficient judges and time to
resolve them all in court, ADR gained widespread acceptance to resolve
disputes. There are many methods of ADR, like mediation, arbitration,
conciliation and many more.

Negotiation is also a prominent method of ADR. When two or more parties

have different interests and want to come to a mutually acceptable conclusion,
they opt for negotiation as an ADR method.

What is negotiation
Negotiation is derived from the Latin word ‘negotiari’ which means ‘to carry on
business, do business’. Negotiation is very prominent among Indians; we get to
see it from the street while negotiating the price of anything with the big
multinational companies while negotiating deals with them. Negotiation is
defined as self-counseling between the parties to resolve the dispute. In
negotiation, parties, with their own will, by discussing politely and patiently,
try to come up with a solution that is acceptable to both parties regarding the
issue.

Negotiation is a process of discussion and communication between two or

more parties with the aim of reaching an agreement or resolving a dispute. It
involves identifying common interests, exploring potential solutions, and
finding compromises that satisfy all parties involved.

One of the key reasons why negotiation is important is its ability to preserve
relationships. Unlike litigation, which often results in winners and losers,
negotiation allows people to work together towards a resolution that meets
everyone’s needs. This collaborative approach fosters understanding, builds
trust, and maintains positive connections for future interactions.

Moreover, negotiation provides a cost-effective alternative to legal

proceedings. Litigation can be time-consuming, expensive, and emotionally
draining for all parties involved. By engaging in negotiations instead,
individuals can save valuable time and resources while still achieving their
desired outcomes.

Additionally, negotiation promotes creative problem-solving. It encourages

participants to think outside the box and explore innovative solutions that may
not have been considered initially. This flexibility allows for unique agreements
tailored specifically to the needs of those involved.

Negotiation empowers individuals by giving them control over the outcome of

their disputes. Rather than relying on judges or arbitrators to make decisions
on their behalf, negotiators have the opportunity to actively shape the terms
of their agreements.

Characteristics of negotiation
Characteristics of negotiation are:

 Voluntary: This is one of the important characteristics of negotiation,

i.e., it should be completely voluntary, and no party can be forced to
negotiate with the other party. Whichever party wants to negotiate
will send a letter to the other party, asking to negotiate. If the other
 party agrees to negotiate without any force or threat, only then can
both parties take further steps to negotiate.
 Bilateral/multilateral: Negotiation can be conducted between two or
more parties, as many as may be required.
 Non adjudicative: Negotiation is a process that includes only parties
to the issue to get a solution amicably and no third neutral party takes
part in the negotiation process.
 Informal: unlike other alternative dispute resolutions, negotiation is
an informal method. There are no rules defined for negotiation;
parties to the issue make their own rules with mutual discussion and
acceptance.
 Flexible: Negotiation totally depends on the choice of parties, i.e.,
where it will take place, when it will take place, what will be the topic
of negotiation, which approach they will take, etc.

Advantages of negotiation
The advantages of negotiation are:

 Negotiation is a flexible process, i.e., it depends on the discretion of

the parties as to whether they want to opt for negotiation to resolve
the issue or not; if yes, where it should be conducted; in how many
meetings the negotiation should be done; and there are no specified
rules for negotiation; parties can conduct it in their own way.
 Unlike other issue resolving processes (e.g., litigation, arbitration,
etc.), it is more likely to come to a conclusion that can be favourable
for both parties.
 It is a voluntary process and can only be opted for with the consent of
each party. It is the discretion of the parties whether they want to
negotiate or not and the decision of any party shouldn’t be forced or
manipulated by the other party.
 Negotiation involves only parties to the issue and there is no
interference from any third party for dispute resolution, which is a
great advantage for the parties who don’t want to involve any
outsiders in the issue.
 Negotiation is the process that only binds the parties to an issue,
unlike other processes (e.g., litigation). For example, in litigation, if a
 decision is passed by the court, then it will be taken into
consideration or, as a in further similar cases, but in negotiation,
there’s nothing like that; if somebody gets into a similar dispute with
someone else, then it is not necessary to take their decision into
consideration i.e., they can come to a different conclusion.
 since in negotiations, disputes are resolved amicably, which enhances
the relationship between the parties for future interactions.
 As negotiation is a voluntary process, there will be no court fees or
other expenses, which makes it a less expensive dispute resolution
process compared to others.
 Evidently, negotiation is a faster process to resolve any dispute, as
there is no interruption by the court or any other third party to keep
giving dates for the hearings to resolve the issue.
 Negotiation is always a good option for any sensitive issue because
this is a very private resolution process that only includes the parties
to the dispute.

Disadvantages of negotiation
The disadvantages of negotiation are:

 If the negotiation is conducted between the unequal parties, then

there are huge chances that the stronger party will get more benefits
as compared to the weaker party, which is morally wrong.
 Where there are benefits to the absence of the third party, there are
also drawbacks. Due to the absence of third party, there are chances
in negotiation that the parties will not come to any agreement and all
the time and money incurred by the parties will be a waste.
 If one of the parties doesn’t know about their rights, then due to the
absence of this neutral party, there are huge chances that the other
party can take advantage of that party.
 If any party changes its mind, backs off after initiating negotiation,
and withdraws itself from the proceedings of negotiation, then the
amount of time and money invested in the negotiation will become a
waste.

Steps for negotiation

Steps for negotiation are:

 Preparation: Before becoming a part of the negotiation process,

parties need to prepare themselves for what can be the Best
Alternative to a Negotiated Agreement (BATNA) and what can be the
Worst Alternative to a Negotiated Agreement (WATNA). They also
need to decide whether the other party is willing to resolve the
dispute or not.
 Discussion: Before conducting negotiation, setting ground rules for
the negotiation is crucial that what will be the venue of the
negotiation, timings, what will be the approach they want to go with
etc.
 Clarification of goals: Parties to the negotiation should have to clarify
their goals and viewpoints and resolve any misunderstandings.
 Bargaining and problem solving: this is the most important part of
the negotiation process. Parties to the negotiation share their points
of view, adjust according to the situation and come to a conclusion
that is acceptable to all parties.
 Agreement: after coming to a conclusion, an agreement is made
according to the decided solution of the dispute and then signed by
the parties to the negotiations.
 Implementation: After signing the agreement, parties need to
implement and operate according to the agreement.
 Prepare alternatives: It’s important to consider alternative options if
an agreement cannot be reached through traditional negotiations.
Brainstorm potential alternatives before entering into negotiations so
that you have backup plans ready if needed

Types of negotiation
Types of negotiations are:

 Distributive negotiation: In this type of negotiation, parties negotiate

over one topic, which creates a win-lose situation for the parties due
to which one party will get the advantage.
  Integrative negotiation: In this, parties negotiate over many topics,
which creates chances to get a win-win situation for the parties and
mutual gain.
 Team negotiation: In this type of negotiation, the parties negotiate in
teams.
 Multiparty negotiation: In whichever negotiation there are more
than two parties, that negotiation becomes a multiparty negotiation.

Conclusion
Alternative dispute resolution (ADR) includes many methods to resolve
disputes; one of them is negotiation. When parties to a dispute want to resolve
it amicably, they opt for negotiation. In negotiation, there are high chances to
reach a conclusion that is good for both parties and get satisfaction with the
solution. But sometimes, due to the absence of the third neutral party, there
are chances that either party to the negotiation may not get a solution or one
party will wrongly use its position or any party can back off at any time.
Therefore, negotiation is a great method to resolve disputes, but there are
some drawbacks to it.

Sources of Negotiation
1. Having a strong alternative
If you have a strong alternative going into a negotiation, then you have
significant power and leverage in your negotiation. In negotiation terms, our
best alternative is the BATNA (Best Alternative to a Negotiated Agreement).
In fact, there is probably no bigger source of power and leverage than having a
great alternative, opportunity to go after, if the current deal falls apart.
For example, if you need it services and you have several qualified vendors to
choose from, this gives you tremendous power over the other party. They will
likely make concessions more readily to get your business.
2. Know the BATNA of the Other Side
You must determine the other side’s BATNA for the solution you are offering.
Take the time to determine what the other party will do, if the deal with them
falls apart. If they don’t have a great alternative, then they have a weak power
position. If they have a great alternative, then they have a strong power
position.
Knowing their level of power can completely change the way you approach
the negotiation.
3. Have Something the Other Side Needs
Always remember that if you are in a negotiation, it’s because the other side
sees value in what you are offering. In other words, you have something they
need or want.
Understanding what the other side wants can give you significant power.
So often we go into a negotiation assuming we have little or no power or
leverage. Don’t jump to that conclusion so quickly, and spend some time
identifying why they would spend the time to negotiate with you. What value
do you bring that they need?
4. Uniqueness
If what you provide is unique and different from everyone else in the industry,
then this gives you tremendous leverage allowing you to call the terms of the
agreement.
But whatever your uniqueness is, it must be in demand. If your company is the
only one that provides a certain product or service that is in demand, you can
push harder for what you want.
5. Position/Role/Title
If you hold a higher position, level, rank or seniority over the other party, this
can grant you a level of authority over them.
However, for position power to be effective, you must have earned respect
and legitimacy from the other party. A fancy title doesn’t mean much if the
other side doesn’t believe you carry influence.
6. Expertise
There is extreme value in being an expert in something. You or your company
are sought out for the knowledge that you have, and that knowledge is power.
This knowledge could be the experience you have, ways you have figured out
how to navigate difficult situations, or your opinions on strategy and execution.
Perhaps you are highly regarded and considered indispensable and critical to
success. This power allows you to mandate certain deal elements without
much push back from the other party.
7. Coercive
This is the power that is derived through threats, punishments, sanctions and
other negative consequences. For example, one party threatens to put the
other party out of business or ruin their reputation if they don’t agree to
certain deal points.
This is an area that requires additional caution. If you use coercive power, it
may jeopardize your ability to do business with the other party in the future.
Remember good negotiations are stepping stones to future business and
growth.
8. Psychological
If you present yourself as confident, assured, calm, knowledgeable and
prepared… whether you are or not, the other side will read your approach and
assume you have some edge in the negotiation.
Amy Cuddy, a social psychologist and professor at Harvard Business
School states that non-verbal display can have a significant impact on the level
of power the other side will grant you.
She has proven that if you change your body language, you can change the way
you behave. And, the way you behave in a negotiation can determine your
level of power. Some of the body language techniques she recommends for
increasing your power and power behavior include spending some time in
“power poses” to the meeting….some of these are not appropriate at the
negotiating table, but some clearly are and you will need to decide which ones
make sense.
These power poses include standing with your feet apart and hands on your
hips (Superman or Wonder Woman pose), standing at the end of a table and
leaning on your hands, and spreading yourself out making yourself seem bigger
and taking up more space.
9. Referent
This kind of power comes from having other people that can provide a
powerful reference to you or your company’s abilities, ROI, trustworthiness,
commitment, etc. This power is derived by making personal connections with
key and influential people, and having those people speak on your behalf or
support you in some way as you attempt to get your deal accomplished.
Referent power allows you to persuade people to agree to deal elements they
normally wouldn’t because others are providing a testimonial about your
ability to deliver.
10.Reward
Reward power is the ability to provide some incentive, compensation, or other
forms of remuneration to the other party.
For example, a manager can impact the salary or bonus for their employees.
Therefore, reward power can drive the other party to agree to deal elements
more readily and willingly. Other examples involve one party being able to
open new markets, sell more products, buy more goods and services or
provide some ROI that is material.

4. Kinds of Approaches to Negotiation

Negotiation is a fundamental skill in the business world as it facilitates effective
agreements across various scenarios—and so do the types of negotiation itself.

In this article, we are going to explore two negotiation approaches that are
central to the practice of negotiation. Then, we look at different types of
negotiation as well as some key considerations for using one over the others.

Negotiation approaches

Before we dive into various types of negotiation, it is important to understand

that most, if not all, negotiations are often categorised into two main
approaches: distributive negotiation and integrative negotiation. Let's take a
closer look.

Distributive negotiation

Distributive negotiation is also known as competitive, or win-lose negotiation.

It involves a situation where the resources in question are fixed and limited,
leading to a scenario where one party's gain is another party's loss. The goal in
distributive negotiations is to get the largest possible piece of the pie, so it is
about maximising one's own benefit.

Common scenarios include haggling over prices where the buyer wants to pay
less, and the seller wants to charge more. Consider using the distributive
approach when:

 • The interests of both/all parties clearly conflict

 • The other party insists on taking a win-lose approach
 • You do not need to foster or nurture long-term relationships
 • You are powerful enough to prevail
 • Short-term goals are more important

For example, a tech company is negotiating a contract with a software

development firm for a specific project. The tech company aims to minimise its
costs, while the software firm seeks to maximise its project fee. After several
rounds of negotiations, a contract is agreed upon at a lower fee than initially
quoted by the software firm, but with stipulations for additional payments
based on the project meeting certain milestones, thus providing a compromise
that allows the tech company to manage its budget while offering the software
firm potential for higher earnings.

Integrative negotiation

Integrative negotiation is known as collaborative, or win-win negotiation.

Unlike distributive negotiation, integrative negotiation involves a scenario
where all parties seek to find solutions that bring mutual gains. It assumes that
the pie can be expanded through cooperation and by understanding the
underlying interests and values of the other parties.

In integrative negotiations, parties work together to find creative solutions to

their problems that can increase the value for all involved. Consider using the
integrative approach when:

 • You and the other party have common/shared interests

 • The other party is willing to consider a win-win approach
 • You are in a weaker position, or power is approximately equal
 • Building a continuing, trusting relationship is important
 • Long-term goals are more important

As an example, two companies are negotiating a partnership to develop a new

product. Each has unique resources and capabilities that can contribute to the
success of the project. Through integrative negotiation, they explore ways to
combine their resources and expertise in a manner that enhances the project's
value, resulting in a more profitable outcome for both than if they pursued the
project independently.

9 Common types of negotiation

Each negotiation type has its context, strategies, and tactics, which influence
how parties prepare, engage, and conclude their negotiations. Understanding
these nuances is crucial for effective negotiation.

1. Competitive negotiation

Competitive negotiation thrives on the principle of win-lose outcomes, where

one party aims to secure the most advantageous deal possible, often at the
expense of the other party. For instance, in a procurement process, multiple
suppliers might bid for a contract, with each aiming to outdo the others on
price or service terms to win the business.

2. Compromising negotiation

In compromising negotiation, parties seek a middle ground, making

concessions to achieve a mutually acceptable solution. This approach is often
seen in wage or salary negotiations, where employers and employees agree on
a number that balances the company's budget constraints with workers'
demands.

3. Power-based negotiation

Power-based negotiation leverages one party's position of strength over

another to dictate terms. A large retailer negotiating supply prices with a small
manufacturer might use its purchasing power to secure lower prices, knowing
the manufacturer depends heavily on the retailer's business.

4. Principled negotiation

Principled negotiation focuses on mutual interests rather than positions,

aiming for win-win outcomes. It involves identifying shared goals and working
in collaboration to achieve them. An example is a business partnership where
two companies collaborate on a joint venture, pooling resources and expertise
for mutually beneficial outcomes.
5. Team negotiation

Team negotiation involves multiple representatives or negotiators from one or

both parties. It is common in complex business deals, such as mergers and
acquisitions, where various departments (legal, financial, operational, etc.)
need to agree on different aspects of the deal.

6. Multiparty negotiation

Multiparty negotiation includes more than two parties and is seen in situations
like coalition government formations, where multiple political parties must
negotiate to form a government, agreeing on policy priorities and cabinet
positions.

7. Adversarial negotiation

In adversarial negotiation, parties view each other as opponents, and the

process may be confrontational. Legal disputes often take this form, with each
side aiming to secure a judgment in their favour.

8. One-shot negotiation

One-shot negotiation happens when parties negotiate a single deal with no

expectation of future interactions. For example, buying a car from a dealer you
are unlikely to visit again may involve one-shot negotiation as it focuses on
getting the best immediate terms.

9. Repeated negotiation

Repeated negotiation occurs between parties with ongoing relationships. It

emphasises long-term outcomes and trust. Long-term supplier agreements are
a typical scenario where both sides aim for terms that will sustain their
relationship over time.

Which type of negotiation to use?

While no two negotiations are ever the same, there are some "basics" you can
consider to choose the most effective approach to achieve your goals, and,
ideally, the other's. Ask yourself:

What is the ultimate goal?

Whether you are seeking a quick win, a long-term partnership, or a fair
solution, the choice of negotiation type directly ties to what you hope to
achieve.

Competitive strategies might be preferred for maximised personal gains, while

principled or compromising negotiations aim for mutual benefits and
sustaining relationships.

How complex is the issue?

This includes the specifics of what is being negotiated with the desired speed
of resolution. Simply put, how complex it is and how fast the parties involved
want it resolved.

Straightforward, transactional negotiations might lean towards one-shot or

competitive strategies for speed and efficiency. In contrast, complex issues or
those with significant long-term implications call for more collaborative
approaches like principled or team negotiations to ensure all interests are
thoroughly considered.

What are the relationship dynamics?

This is about your relationship with the other party – and vice versa – and the
power dynamics at play. At the end of the day, the last thing you want to do is
to burn bridges if compromises can be made to benefit all parties.

Ongoing relationships might benefit from more collaborative forms like team
or repeated negotiations, where trust and mutual benefit are paramount.
Conversely, in situations where power is unevenly distributed, power-based or
adversarial negotiations might emerge, necessitating a strategic balance
between asserting one's interests and maintaining the relationship.

How many people and who are involved?

The more parties involved, the more complex the negotiation becomes, often
requiring a shift towards multiparty or team negotiations.

These scenarios demand strategies that can accommodate the broader range
of interests and perspectives, pushing towards more compromising or
principled approaches to achieve consensus.

Any cultural and ethical considerations?

The negotiation strategy may also be influenced by the cultural background of
the parties and ethical standards.

Cultural expectations can dictate whether a more competitive or collaborative

approach is appropriate, while ethical considerations can drive the preference
for principled negotiations to ensure fairness and integrity in the process.

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6. Obstructions to Negotiation
Negotiation aims to reach a mutually beneficial agreement comprised of
concessions, incentives, and must-haves. It is a delicate balancing act
between professionals and companies that can be challenging even to the
most experienced negotiators. So, what are the barriers to negotiation?
Understanding the answer to this question is the cornerstone of a
constructive negotiation skills training course, as it helps you detect potential
obstacles and overcome barriers.

Overconfidence

Overconfidence occurs when a person’s subjective confidence (belief in their

abilities and superiority) outweighs the objective accuracy and reality of the
situation. It is a barrier because it clouds a negotiator’s judgement and
prevents critical steps from taking place that are necessary to reach an
agreement. Signs of overconfidence include:

 Refusing to plan because they believe they already know everything

they need to know and therefore don’t require any preparation.
 Feelings of control lead to them feeling like they will secure a
successful outcome even when the likelihood is minimal.
  Focusing on winning and overreaching a mutually beneficial outcome
for both parties.
 Risk-taking even when there is unequivocal evidence that it won’t pay
off.
 Refusing to compromise and being too rigid in their approach because
they are sure they will win and want to be proven right.
 Assuming they know what the other side wants without asking
questions leads to subpar deals that lack value and fall through.

An overconfident negotiator will struggle to build rapport and collaborate

with others and could damage both their own and their company's
reputation. Recognising these signs in yourself or others is a critical first step
towards improving or adjusting your negotiation behaviour and tactics. To
avoid appearing overconfident, it is vital that you challenge your assumptions
through research, make preparations and re-focus your mindset. Speaking to
colleagues may be helpful for a more accurate idea of your skillset.

Lack of Confidence

Walking into a negotiation with a lack of confidence is equally problematic as

being over-confident because it indicates a lack of belief in their company or
position. A negotiator should want to achieve the best deal possible. If
they’ve already decided they’ve lost, they are more likely to delay
proceedings, defer to the other party, lack creativity, be over-emotional and
accept weak deals. This mindset undermines any pitches they give, their
skillset and their company’s incentives leaving the other party unconvinced
and prepared to dominate the discussion.

If your interpersonal skills need work, this can be a struggle. A lack of

confidence can be derived from a lack of negotiating experience. Our courses
are designed to give you the confidence to stay in control during a
negotiation. You can develop this confidence through negotiation
preparation, case-play scenarios, and feedback on your negotiating
behaviour, which is all part of our negotiation training courses.

Negativity

Whether you view a negotiation as a battle you need to win or a complicated

fight for survival, having a negative outlook can result in bullying behaviour,
underhanded tactics and aggressive policies that damage a business’
reputation, harms previous rapport and prevents future agreements. It is a
barrier that causes hostility and sets a poor precedent for future
negotiations. As previously mentioned, it is essential to remember that the
ideal outcome of any negotiation is to reach a mutually beneficial agreement
without too many opportunities for unnecessary conflict. People who view
negotiations negatively can only achieve this if they’re willing to change their
mindset and outlook.

In a negotiation, it is critical that you build rapport, inspire collaboration and

mediate emotions. No one wants to discuss a deal with someone aggressive
or over-emotional, so it is essential to set a positive tone. You can do this by
engaging in small talk, listening actively, employing empathy, asking
thoughtful questions, and searching for alternative solutions. Negotiations
are about problem-solving; emotions should be left at the door, whilst breaks
and mediation tactics should be used when tensions are high.

Lacking Empathy

Critically, sympathy is not the same as empathy. Sympathy is a reaction to

someone else’s misfortune, whilst empathy is the act of understanding and
sharing another person's feelings. A lack of empathy is a significant barrier to
negotiation, as it often lies at the heart of misunderstandings and conflict. A
discussion is shallow and perfunctory without empathy, leaving both sides
feeling undervalued and unheard.

Overcoming this obstacle starts outside the meeting room and begins when
conducting research. To express empathy, you must take the time to
understand the other party's situation, wants and needs. For example, if you
know they are working to a tight deadline and have empathy for the pressure
they are under, you can take steps to mediate future conflict by creating
strict agendas, timescales and deadlines and sticking to them. You can also
use time variables to your favour and give them what they want on your own
terms, for example, if they have tight schedules, promise to deliver in time,
and in exchange get something from your wish list. Showing empathy also
looks like active listening, asking questions to clarify understanding, staying
calm and recognising and responding appropriately to the other negotiator’s
emotions.

Ill Preparation

Fail to prepare, prepare to fail. A significant barrier to a successful

negotiation is going into the discussion, ill-equipped with incorrect data,
missing information, and poor alternatives. If you’ve not adequately
researched the other party, you’ll risk unknowingly walking into a win-lose
scenario, and if you can’t back up your proposal with evidence, they’re
unlikely to agree to it. In short, being ill-prepared, you’ll look like an amateur
and leave the other party feeling undervalued, hurting any chance of reaching
an equally advantageous deal or future opportunities to work together.

Before you enter any negotiation, you should always know the following:

 The goal of the negotiation

 Yours and the other party's ZOPA (Zone of Possible Agreement)
 Yours and the other party’s BATNA (Best Alternative to a Negotiated
Agreement)
 Yours and the other party’s situation, motivation, wants, needs and
outside interests
 Yours and the other party’s strengths, weaknesses, and negotiation
style
 Determine who will lead, summarise, and observe the negotiation

Lack of Trust

Negotiations involve a little bit of risk, and a lack of trust between both
parties forms a barrier that results in caution, conflict and little room for
compromise or creativity. You want the other negotiator to be open to
innovation, trades, and concessions, but if they don’t think you are
trustworthy, they are unlikely to agree to any of them.

So, how do you inspire trust in a negotiation? Firstly, you should use your
research to understand the other party to approach them with empathy and
an evident focus on a mutually beneficial outcome. Secondly, you should
provide reassurance by having a trustworthy reputation and excellent reviews
from previous companies (don’t be afraid to share these as part of the
discussion). Lastly, be honest, open, and upfront about your motivations,
intentions, and desired outcome, as being transparent creates an atmosphere
of safety and builds rapport.

Cultural Barriers

With the advent of globalisation, companies from across the world are
increasingly setting up negotiations with their foreign peers in other
countries in an attempt to expand their reach and increase profits, only to
discover that there is a cultural barrier. These can arise from historical
conflicts, religious disagreements, and communication issues. For example, in
Japan, using a person’s first name in the workplace is rude, whereas this is
commonplace in the UK or US.

The key to uniting both parties is to find common ground between them
rooted in respect, understanding and a shared goal. As part of your research
and preparation, you should seek to understand each other's cultural
differences and be mindful of religious practices, business etiquette and
cultural traditions. For example, suppose you are negotiating with a company
based in the Middle East. In that case, you’ll want to ensure you allow time
for prayer in your agenda, as practising Muslims pray five times a day facing
east toward Mecca. Offering a quiet space on the east side of your building as
a make-shift prayer room (if you don’t have one) can go a long way to
bridging the gap between your cultures and showing that you respect them.
However, you should also ensure that you don’t make assumptions. Taking
the example above, not all Muslims follow the strict five-day prayer structure,
so don’t be afraid to consider the individual you’ll be negotiating with. In your
research, you could consider asking businesses that had dealt with them
before about any accommodations they decided to make or were requested -
for example did they need translators? This can help you adjust your
approach and make plans ahead of time. Also, be aware of the historical
bigger picture between your two nations. If there is current or past animosity,
they may have a bias that you’ll need to overcome.

Lok Adalats
Lok Adalat is one of the alternative dispute redressal mechanisms, it is a forum
where disputes/cases pending in the court of law or at pre-litigation stage are
settled/ compromised amicably. Lok Adalats have been given statutory status
under the Legal Services Authorities Act, 1987. Under the said Act, the award
(decision) made by the Lok Adalats is deemed to be a decree of a civil court
and is final and binding on all parties and no appeal against such an award lies
before any court of law.

If the parties are not satisfied with the award of the Lok Adalat though there is
no provision for an appeal against such an award, but they are free to initiate
litigation by approaching the court of appropriate jurisdiction by filing a case by
following the required procedure, in exercise of their right to litigate.

There is no court fee payable when a matter is filed in a Lok Adalat. If a matter
pending in the court of law is referred to the Lok Adalat and is settled
subsequently, the court fee originally paid in the court on the
complaints/petition is also refunded back to the parties. The persons deciding
the cases in the Lok Adalats are called the Members of the Lok Adalats, they
have the role of statutory conciliators only and do not have any judicial role;
therefore they can only persuade the parties to come to a conclusion for
settling the dispute outside the court in the Lok Adalat and shall not pressurize
or coerce any of the parties to compromise or settle cases or matters either
directly or indirectly.

The Lok Adalat shall not decide the matter so referred at its own instance,
instead the same would be decided on the basis of the compromise or
settlement between the parties. The members shall assist the parties in an
independent and impartial manner in their attempt to reach amicable
settlement of their dispute.

Lok Adalat is a system of a dispensation of justice which has come into

existence to grapple with the problem of giving cheap and speedy justices to
the people. Lok Adalat as the very name suggests means people’s court. Lok
stands for people and the Adalat means court.

Nature and Scope: Generally speaking, Lok Adalat is not a court in its accepted
connotation. The difference between Lok Adalat and law court is that the law
court sets at its premises where the litigants come with their lawyers and
witnesses goes to the people to delivers justice at their door step. It is a forum
provided by the people themselves or by interested parties including social
activities or social activist legal aiders, and public spirited people belonging to
every walk of life. It is just a firm forum provided by the people themselves for
enabling the common people to ventilate their grievances against the state
agencies or against other citizens and to seek a just settlement if possible.

The basic philosophy behind the Lok Adalat is to resolve the people dispute by
discussion, counseling, persuasion and conciliation so that it gives speedy and
cheap justice, mutual and free consent of the parties. In short it is a party’s
justice in which people and judges participate and resolve their disputes by
discussion, persuasion and mutual consent.

Types of cases at Lok Adalat: The types of cases dealt with generally are:

1. Mutation of land cases.

2. Compoundable criminal offences.
 3. Family disputes.
4. Encroachment on forest lands.
5. Land acquisition disputes.
6. Motor accident claim, and
7. Cases which are not sub-judice.

Resources and achievement of Lok Adalat: Lok Adalat can only expect gratitude
of the people in distress in return. They must devote time for the cause of
social justice and dedicate their service for its success. Lok Adalats are
generally organized in the premises of courts. Lok Adalat can work as real good
substitutes for setting cases which are pending in superior courts. Encouraged
by the response that Lok Adalat have been receiving at the district level, the
state legal aid boards have started organizing Lok Adalats for cases pending in
the High Courts.

The Lok Adalat has also been organized even for the cases pending in the
Supreme Court.

Lok Adalats are known as Peoples festivals of justice because settlements are
not always necessarily according to legal principles settlements have an eye
mainly on;

a. Social goals like ending quarrels

b. Restoring family peace
c. Providing succor for destitute.

Organization of Lok Adalat (Sec. 18)

1. The State authority or district authority or the High Court legal services
committee or as the case may be; Tehsil legal services committee may
organize Lok Adalat at such intervals and places and for exercising such
jurisdiction and for such areas as it thinks fit. 2. Every Lok-Adalat
organized for an area shall consist of such number of;
a) Serving or retired on judicial officer, and
b) Other person of the area as may be specified by the state
authority or the district authority or the High Court legal services
committee or as the case may be, the Tehsil legal services
committee organizing such Lok Adalats.
2. The experience and qualifications of persons. Referred to in clause (b) of
sub sec. (2) for Lok Adalats shall be such as may be prescribed by the
government in consultation with the chief justice of the High Court.
 3. Lok Adalats shall have jurisdiction to determine and to arrive at a
compromise or settlement between the parties to a dispute in respect
of;
a) Any case pending before the court
b) Any matter which is falling within the jurisdiction of and is not
brought before any court for which the Lok Adalat is organized.
Provided that the Lok Adalat shall have no jurisdiction in respect
of any matter or case relating to an offence not compoundable
under any law.

Cognizance of cases by Lok-Adalat (Sec. 19)

1. Wherein any case referred in clause (1) of sub sec. (4) of sec. 18
i)

(a) The parties thereof agree; or

(b) One of the parties there of makes an application to the court of referring
the case to the Lok Adalat for settlement and if such court prime facie
satisfy that there are chances of such settlement, or
ii) That the court is satisfied that the matter is an appropriate one to
take cognizance of by the Lok Adalat; the court shall refer the case to
the Lok Adalat. Provided that no case shall be referred to the Lok-Adalat
under sub-clause (b) clause;

2. by such court after giving a reasonable opportunity of being heard to the

parties.
3. Not with standing anything contained in any other law for the time being
in force the authority or committee organizing the Lok Adalat under sub
sec. (1) of sec. 18 may on the receipt of application from any of the
parties to any matter referred to in clause (h) of sub sec. (4) of sec. 18,
that such matter needs to be determined by a Lok Adalat, for
determination.
Provided that no matter shall be referred to Lok-Adalat except after
giving a reasonable opportunity of being heard to the other party.
4. When any case is referred to a Lok Adalat under sub sec. (1) or where a
reference has been made to its under sub sec. (2), the Lok Adalat shall
proceed to dispose of the case or matter of case and arrive at the
compromise or settlement between parties.
5. Every Lok Adalat shall, while determining any reference before it under
this act, act to the utmost expedition to arrive at compromise or
 settlement between the parties and shall be guided by the principles of
justice, equality fair play and other legal principles.
6. Where no reward is made by the Lok Adalat on the ground that no
compromise or settlement could be arrived at between the parties, the
record of case shall be returned by it to the court, by which the
reference has been received under sub sec. (1) for disposal in
accordance with law.
7. Where no award is made by the Lok Adalat on the ground that no
compromise or settlement could be arrived at between the parties in a
matter referred to it under sub sec. (2) of sec. 18 that Lok Adalat shall
advise the parties in a matter referred to in sub sec. (2), that Lok Adalat
shall advise the parties to seek remedy in a court.
8. Where the record of the case is returned under sub sec. (5) to the court,
such court shall proceed to deal with such cases from the stage which
was reached before such reference under sub sec. (1).

Procedure of Lok-Adalats (Sec. 20)

1) The Lok Adalats are generally organized by state legal aid and advice boards
or the district legal aid committees etc.
2) Lok Adalats shall have jurisdiction to determine and arrive at a compromise
or settlement between the parties to a dispute in respect of;
a) Any case pending before the court; or
b) Any matter which is falling within the jurisdiction of and is not brought
before any court for which the Lok Adalat is organized.
The Lok Adalat shall not have jurisdiction in respect of any matter or
case relating to an offence not compoundable under any law.

3) The date and place of holding a Lok Adalat are fixed about a month in
advance by the Legal Aid Board. The date so fixed is generally a Saturday or
Sunday or some other holiday.
4) 1nformation about holding a Lok Adalat is given wide publicity through
press, posters, radio, TV, etc.
5) Before a Lok-Adalat is held, its organizers request the presiding officers of
the various local courts to examine cases pending in their courts where in
their opinion, conciliation is possible. Once the cases are identified, parties
to the dispute are motivated by the judges of the Lok Adalats to settle their
cases through Lok Adalat.
6) Generally, senior judicial officers are invited to inaugurate a Lok Adalat.
7) The team of Lok Adalat generally consist of retired judges, senior local
officers, members of the Bar, spirited public-men, active women social
worker, elders of the locality and voluntary social organizations. The
members of the Lok Adalat are called conciliators. The number of
conciliators is usually three.
8) If conciliation result in a settlement of a dispute, a compromise deed is
drawn up and after obtaining the signatures of the parties to the disputes
and their advocates, it is presented to the presiding officer of the
competent court who is normally present at the place where the Lok Adalat
is organized.
9) The judge (Presiding officer) after examining the fairness and legality of
compromise and satisfying himself that the compromise has been arrived at
by the free will and mutual consent of the parties, passes a decree.

Award of Lok-Adalat (Sec. 21)

1. Every award of the Lok Adalat shall be deemed to be a decree of civil

court or as the case may be, an order of any other court and where a
compromise or a settlement has been arrived at, by a Lok Adalat in a
case referred to it under sec. 20(1), the court fee paid in such case shall
be refunded in a manner provided under the court fee Act, 1870.
2. Even award made by a Lok Adalat shall be final and binding on all the
parties to the dispute and no appeal shall lie to any court against the
award.

Powers of Lok Adalat (Sec. 22)

1. The Lok-Adalat shall have the same powers as are vested in a civil court
under the code of civil procedure 1908 while trying a suit in respect of
the following matters namely;

a) The summoning and enforcing the attendance of any witness and

examining him on oath.
b) The discovery and production of any document.
c) The reception of evidence on affidavits.
d) The requisitioning of any public record or document or copy of such
record or document from any court of office and
e) Such other matters as may be prescribed.
 2. Without prejudice to the generality of the powers contained in sub sec.
(1), every Lok Adalat shall have the requisite powers to specify its own
procedure for the determination of any dispute coming before it.
3. All proceedings before the Lok Adalat shall be deemed to be judicial
proceedings within the meaning of sec. 193, 219 and 228 of the I.P.C and
every Lok-Adalat shall deemed to be civil for the purpose of sec. 195 of
C. P C.

Functions of the Lok Adalat:

Lok Adalat can accept only such cases as come within their competence and
capability for disposal. The movement towards organizing of Lok-Adalats came
into being in respect of a few selected matters. All their initial functioning they
entertained motor vehicle accident causes and appeals connected with them.
It is hopefully expected that the Lok Adalats would accept other causes also
among them being tenure matters, money causes, so that such disputes are
settled on personal bonds or under takings.

This will be indication of the fact that in the matters of resolution of disputes,
India is back to its traditional methods. But even so experience has shown that
it is not easy to bring the parties to dispute to the negotiation table and to ask
them to settle under some kind of compromise involving give and take.

A large number of legal causes are such that one of the parties is interested in
prolonging litigation and only the other wants a speedy trial. It would seem
that by this approach the state would be saved of needless costs of litigation
and also meaningless administrative compilations. Government has to bear
many direct and indirect cost of litigation. In the category of direct of costs, the
costs are court and lawyers fees, expenses of prosecution and of attending to
incidental matters.

Indirect costs are loss of time involved in disputes and increasing costs of
expending fiduciary. There are some categories of government litigation in
which Lok Adalats can play a constructive role. One of such categories is matter
arising out of land acquisition. Among the people whose land is acquired are
generally poor villagers those belonging to middle classes. When their land is
taken away, from their hands, they naturally except that compensation should
be provided to them at the earliest movement of time.

Another category of government litigation which can be handled through Lok

Adalats is disciplinary proceeding. Many proceedings in this category are such
in which the cause of dispute is very simple, the background is also very clear
and there is not controversy about it but the parties are not able to come out
openly but the time factor goes on accumulating complication. For example
with holding of pension and other retirement benefits. Labour disputes are
another category in which Lok Adalats can play healthy role. The machinery of
conciliation and amicable settlements available under the Industrial dispute
Legislations which has been generally successful in resolving needless conflicts
Lok Adalats would be a better form even in some service disciplinary matters.

Other forms of Lok-Adalats:

1. Mini Lok Adalat: Legal aid camps or Lok-Adalats at sub-district level and
in villages are like forums, functioning in rural areas especially to cater to
rural and tribal people competently and at their door steps to resolve
disputes with all the expediency.
2. Village Courts: These are units of self government they are like village
Panchayats administration is a state subject hence state Panchayats Raj
institutions enactments come into play, giving rise to village courts
under articles 40 of our Constitution.
3. Mediation Centre’s: These mediating Centres’s were started in the year
1983 in Tamil Nadu legal aid and advice Board.
4. Centre’s for women: To give a special status to women and their
exclusive problems Tamil Nadu state gave thrust and expansion to
women mediation Centre’s by starting such Centre’s exclusively for
women their role is to deal with matrimonial problems. They also help in
setting disputes involving women. They promote nights of women family
matters get special attention of;

1. Voluntary agencies
2. Professionals.

5. Mobile Lok Adalats are also organized in various parts of the country
which travel from one location to another to resolve disputes in order to
facilitate the resolution of disputes through this mechanism.

Conclusion:

Lok Adalat is very effective in settlement of money claims. Disputes like

partition suits, damages and matrimonial cases can also be easily settled
before Lok Adalat, as the scope for compromise through an approach of give
and take is high in these cases. A Lok Adalat can take up civil cases (including
marriage, and family disputes) and compoundable criminal cases.

First time lok adalat was held in Gujrat in 1999. It is a forum where cases
pending on panchayat or at pre litigation stage in a court of law are settled.
They have been given statutory status under the Legal Services Authorities Act,
1987.

Under this Act, the award (decision) made by the Lok Adalats is deemed to be
a case of a civil court and is final and binding on all parties and no appeal
against such an award lies before any court of law. If the parties are not
satisfied with the award of the Lok Adalat (though there is no provision for an
appeal against such an award), they are free to initiate litigation by
approaching the court of appropriate jurisdiction.

Legal Aid under Constitution of India, 1950

Introduction
Disputes are an unavoidable element of human interaction and society needs
to develop constructive and creative solutions to solve them. A dispute is a
manifestation of unresolved conflict. Conflict can simply be interpreted as the
product of differences that make people different and bring individual desires
to life. While conflict is unavoidable, there is no need for disputes.

Richard .E. Miller and Austin Sarat in their article note that: “Disputes are not
discrete events like births or deaths; they are more like such constructs as
illnesses and friendships, composed in part of the perceptions and
understandings of those who participate in and observe them. Disputes are
drawn from a vast sea of events, encounters, collisions, rivalries,
disappointments, discomforts, and injuries. The span and composition of that
sea depend on the broad contours of social life …The disputes that arrive at
courts can be seen as the survivors of a long and exhausting process.”

Welfare state
The Constitution of India is based on the notion of a welfare state. It is the
State’s duty to ensure access to justice for its people by establishing judicial
and non-judicial dispute resolution mechanisms that provide prompt and
effective justice and protect their legal and constitutional rights. Ignorance,
poverty and other social dysfunctions should not become barriers to justice.

Free legal aid

It is now known that free legal aid must be given to the indigent individual who
is unable to defend himself in a court of law on the grounds of money and
others and is now also mandated by Article 39-A and Article 21 of the Indian
Constitution.

The law will help the poor who have no way to address their causes. The
rescue operation for the constitutional mandate started with justice V.R.
Krishna Iyer and the Committee Report of Justice P.N. Bhagwati, the weaker
section thus makes it possible to challenge the right of the law court from
Munsif courts to the Supreme Court.

Constitutional Provision

The Preamble
In the preamble itself, our Constitution expresses this ideal, which talks of
justice in all its forms i.e. social, economic and political. The Preamble
guarantees all Indian people justice, cultural, economic, and political rights.
The expression “Justice” speaks briefly of the and Legal Aid Camps, Family
Courts, Village Courts, Mediation Centres, Commercial Arbitration, Women
Centres Consumer Protection Forums, etc. which are but different facets of an
effective alternative dispute resolution system.

The Constitution of India is this country’s fundamental norm; it includes

provisions that signify a harmonious integration of individual behaviour with
the general welfare of society to achieve justice. A person’s behaviour or
action is said to be solely if it supports the community’s general well-being.

The attainment of the common good, therefore, as distinct from the good of
individuals, is the essence of justice. Legal justice is part and parcel of social
justice. As often the culture gets upset when the legal justice is refused. A legal
system forms part of a state which maintains social stability by resolving
disputes. In a country aimed at protecting citizens ‘ socio-economic and
cultural rights, it is extremely necessary to settle cases in India rapidly, as the
courts alone cannot handle the huge backlog of cases. This can be effectively
achieved by applying the mechanisms of Alternative Dispute Resolution.

Article 21

Article 21 states that “no person shall be deprived of his life or his personal
liberty except according to procedure established by law”.

The word life and liberty are not to be read narrowly; it is supposed to be
interpreted in its widest sense.

Right to a speedy trial

It has been described in Hussainara Khatoon I Vs. Home Secretary, Bihar that
the right to speedy trial is also a part of the right to life and personal rights.
The Supreme Court allowed Article 21 to expand goals as widely as legally
possible. The explanation for this liberal interpretation was very simple that
Article 21 is intended to alleviate the mental anguish, expenses and burden
that a person has to endure in litigation and which, combined with delay,
which result in deterioration of the accused’s capacity or ability to defend
himself.

Article 39-A Free Legal Aid

Article 39-A obliges the State to ensure that the operation of a legal system
that promotes justice on the basis of equal opportunities and, in particular,
grants free legal assistance, through appropriate legislation or schemes or in
any other way, ensures that opportunities for justice are not denied to any
citizen on account of economic or other disabilities

Through all of this we can see that the protection of justice is the most
important function of a state and helps in it by the processes of ADR. Hence a
great deal of legislation such as the Arbitration and Conciliation Act 1996;
Section 89 of the CPC; the 1987 Legal Services Authority Act to facilitate
justice.

Legal Provisions
In India, arbitration has been a statutorily recognized form of dispute
resolution since the end of the nineteenth century. Initially, the arbitration was
regulated by the rules found in various acts, including those in the Civil
Procedure Code; the first India Arbitration Act was passed in 1899, which was
replaced by the Arbitration Act of 1940 and arbitration was a known practice
as an alternative to the litigation. But under this Act, arbitration endured the
same illnesses as the courts as it forced parties to appeal to the courts in every
trivial matter and eventually frustrate the purpose of arbitration as an
alternative to litigation.

Guru Nanak Foundation v. Rattan Singh

In Guru Nanak Foundation v. Rattan Singh the Supreme Court of India while
referring to the 1940 Act, observed that “the way in which the proceedings
under the Act are conducted and without an exception challenged in courts has
made lawyers laugh and legal philosophers weep” in view of “ unending
prolixity at every stage providing a legal trap to the unwary.”

Food Corporation of India. v. Joginderpal

In Food Corporation of India. v. Joginderpal the Supreme Court of India stated

that the law of arbitration must be simply less technical and more responsible
to the actual reality of situations, responsive to the canons of justice and fair
play.

The Arbitration and Conciliation Act, 1996

In 1899, the first Indian Arbitration Act was introduced. The Act was largely
based on the English Arbitration Act of 1889 and extended only to cases
where, if the subject matter of a suit, the suit could be brought in what was
then known as a Presidential Town, whether with leave or otherwise. Absent
court interference, the purpose of this Act was limited to arbitration by
consent.

The year 1940 is a significant year in British India’s development of arbitration

law, as the 1940 Arbitration Act was passed that year. This revised and
modified the arbitration rules as set out in the Indian Arbitration Act, 1899,
and the Second Schedule to the Civil Procedure Code, 1908. It was based
primarily on the 1934 English Arbitration Act. But it was noted, or rather
observed, that certain proceedings were still pending, and the enforcement of
this Act had some disadvantages. Thus the Arbitration and Conciliation Act,
1996, was enacted.

This Act contains 85 Sections, besides the Preamble and three Schedules. The
Act is divided into four Parts. Part-I contains general provisions on arbitration.
Part-II deals with enforcement of certain foreign awards. Part-III deals with
conciliation. Part-IV contains certain supplementary provisions. The Preamble
to the Act explains the biases of the proposed legislation. The three Schedules
reproduce the texts of the Geneva Convention on the Execution of Foreign
Awards, 1927; The Geneva Protocol on Arbitration Clauses, 1923; and the New
York Convention on the Recognition and Enforcement of Foreign Arbitral
Awards, 1958 respectively.

Industrial Dispute Act, 1947

Conciliation has been accepted by law as an effective method for resolving

disputes in relation to disputes between employees and management. The
Industrial Dispute Act, 1947 calls for conciliation as well as arbitration for
dispute settlement purposes.

Rajasthan State Road Transport Corporation V. Krishna Kant

The Supreme Court in Rajasthan State Road Transport Corporation V. Krishna

Kant stated that “the policy of law emerging from Industrial Disputes Act, and
its sister enactments is to provide an alternative dispute resolution mechanism
to the workmen, a mechanism, which is speedy, inexpensive, informal and
unencumbered by the plethora of procedural Laws and appeals and revisions
applicable to civil courts.”
Features of the Act

The main purpose of the Industrial Dispute Act is to examine and settle
industrial disputes with that in mind that various bodies have been formed by
the Act like the works committee, conciliation Officer, Board of Conciliation
and Courts of Inquiry that attempt to try to resolve the conflict before it can be
resolved by the Labor Court or the Industrial Tribunal. The main goal is to settle
the labor dispute in a friendly manner.

Conclusion
We can thus see that the constitution has given key importance to the
alternative conflict resolution process. The state has an obligation to pass a law
to have an alternative forum for dispute resolution. The same has been
acknowledged by the legislature and by different legislation in the context of
the adoption of the Alternative Dispute Resolution Process.

The need to create an alternative model of access to justice is deeply felt. It is

said that alternative dispute settlement methods are versatile, affordable, swift
and less formalistic in nature, making it a feasible alternative for the court of
law to adjudicate. In the case of a simple disagreement, there is an alternative
approach to the option of parties, aside from legal proceedings. The ADR
framework serves as a helping agent to climb up the ladder of justice for all.
India is heading towards the ray of light of judicial equality. With greater
speed, the ADR movement needs to be carried forward.

This would greatly reduce the burden on the judiciary, apart from offering
immediate door-step justice, without requiring major costs if the effect is
successfully given to them.

Free Legal Services under Legal Services Authority Act

1987
Introduction
The Legal Services Authorities Act, 1987, was enacted by the Central
Government of India pursuant to Article 39-A of the Constitution of India and
the recommendations of its committees. The Legal Services Authority Act, of
1987 came into effect on 9th November 1995, following the Amendment Act
of 1994, which introduced several amendments to the main Act. According to
this Act, the economically weak, the backward, and the disabled are eligible to
receive legal aid. In 1971, Justice P.N.Bhagawati introduced the legal aid
scheme, which was overseen by the Legal Aid Committee. On 5th December
1995, the National Legal Services Authority was established by Justice R.N.
Mishra, which was an important contribution to the implementation of the
Act.

There are different levels of legal aid, including provisions for legal assistance
to illiterate, poor, and physically challenged individuals who are unable to
access the courts due to their ignorance of the law or financial limitations.
Anyone who qualifies for legal aid under Section 12 of the Act, may obtain legal
assistance under the Act. The National Legal Service Day (NLSD) was declared
on November 9, 2009, the day the law came into force. As stated under the
Act, the legal aid is to be provided by the State, District, and Taluk Legal Service
Authorities/Commissions formed throughout the country in order to bring
about a re-dedication to ensure equality of opportunity and fairness to all
individuals. Through its various forms of legal assistance, the NLSD promotes
equal opportunity and justice for all citizens.

The Act envisions that no one will be denied access to justice because of
disability or economic reasons, and aims to educate the public about the law,
offer free legal aid, and establish Lok Adalats. As a result of the creation of Lok
Adalats, the process of dispensing justice has been revolutionized in the
country. There remains a large number of pending cases in the courts of the
country. A number of measures have already been taken by the government to
reduce the number of pending cases. In addition to providing a supplementary
forum for conciliatory settlements, the plan achieved success in providing an
additional forum for litigants.

Analysis of the Legal Services Authority Act, 1987

Types of services under Legal Services Authority Act

The Act provides many types of legal services to the general public:

Free legal awareness

This Act is primarily intended for the public to make them aware of laws and
schemes issued by public authorities. The Legal Service Authority teaches some
portions of the rules of law to the individuals. Legal camps and legal aid centres
are organized by authorities so that the general public can seek advice from
the legal aid centres located near their homes or places of work. The legal
guides and centres can help address the grievances of ordinary people as well.

Free legal aid counsel

A person who wants to defend or file a case in a court of law but does not have
the means to hire an advocate can seek the assistance of a free legal aid
attorney. The Act states that free legal aid counsel is available, and the Council
is responsible for assisting needy individuals to obtain justice. By adopting and
establishing this philosophy, the Indian Courts should be freed from the
burden of adjudicating the cases.

A Lok Adalat was held for the first time in Gujarat on 14th March 1982 and
succeeded in resolving many disputes pertaining to labour disputes, family
disputes, and bank recoveries. Lok Adalats are the primary method by which
the legal services authorities decide disputes. Our Indian courts have a huge
backlog of cases, and it takes an extremely long time to resolve disputes under
judicial supervision.

Lok Adalat was, thus, seen as an Alternative Dispute Redressal (ADR)

mechanism that was reliable, efficient, and friendly in resolving disputes. Lok
Adalats can be constituted by the legal services authorities at such spans and
locations to exercise the authority of their jurisdiction in such areas as they
think fit. There is a mix of lawyers and non-lawyers on the Lok Adalat bench in
order for it to possess a superior understanding of the dispute and convince
both parties to reach a mutually agreeable compromise.

Objectives of Legal Services Authority Act

Under Article 39A of the Constitution of India, free legal aid and equal justice
are provided to all citizens by appropriate legislation, schemes or other means
to ensure that no citizen is denied access to justice on the basis of economic
disadvantage or in any other way. The Legal Services Authorities Act, 1987 was
enacted as a consequence of this constitutional provision with the primary
objective of providing free and competent legal services to the weaker sections
of society in the country.

Structural Organization under Legal Services Authority Act

As a result of the Legal Services Act, a National Legal Services

Authority (NALSA) was established as the apex body for regulating the legal aid
provisions. State Legal Services Authority (SALSA) handles the implementation
of NALSA’s powers at the state level, which delegates further to a number of
organizations. NALSA is considered to be an alliance between the State, Social
Action Groups, individuals, and non-profit organizations that have their
presence from the grassroots level to the state level.

NALSA

In response to Section 4 of the Act, NALSA has been established to provide free
legal aid to all citizens of the country. The body has been established by the
government. It is headed by the Chief Justice of India, patron-in-chief. The
executive chairman of the organisation is a retired or serving judge of the
Supreme Court of India. The nominees are selected by the president after
consultation with the Chief Justice of India. An advisory committee referred to
as the Supreme Court Legal Services Committee is formed by the central
authority. A significant objective of the NALSA is to ensure that justice is
equally distributed among citizens, regardless of economic or other factors.
The main responsibilities of NALSA are the following:

 Through legal aid camps, the organization promotes legal aid in

slums, rural and labour colonies, as well as disadvantaged areas. It
plays an important role in providing education about the rights and
needs of the people who live in such areas. Lok Adalats are also
formed by the authority to settle disputes between these people.
 Amongst other things, it is primarily concerned with providing legal
services through clinics in law colleges, universities, etc.
  Arbitration, mediation, and conciliation are all methods that are used
by these organizations to settle disputes.
 The organisation provides grant aid to institutions that provide social
services at the grassroots level to marginalised communities from
various parts of the country.
 Research activities are also conducted to improve legal services for
the poor.
 Ensures that citizens commit to the fundamental duties they have
been entrusted with.
 As part of the proper implementation of the schemes and
programmes, they tend to evaluate the effectiveness of the actions
taken for the legal aid problems at specific intervals so that the
correct functions are being performed.
 Through the policy and scheme they laid down, the body ensures that
the legal services could be made available to the general public.
Through these schemes, the body is able to provide the most
economical and effective legal services
 Financial matters are handled by this body, and the funds allocated by
it are allocated to respective district and state legal services
authorities.
In NALSA v. Union of India (2014) the National Legal Services Authority of India
(NALSA) filed this case to recognize those who are outside the binary gender
distinction, including individuals who identify as “third gender”. There was a
question that the Court had to address regarding the recognition of people
who do not fit into the male/female binary as “third gender” individuals.
During the discussion, the panel deliberated whether ignoring non-binary
gender identities constitutes an infringement of Indian Constitutional rights.
For developing its judgment, the panel referred to an “Expert Committee on
Transgender Issues” established under the Ministry of Social Justice and
Empowerment.

There is no doubt that this was a landmark decision because the Supreme
Court of India recognised the identity of ‘third gender’ and transgender
persons for the first time. In its judgment, the Court recognized that third-
gender individuals had fundamental rights under the Constitution and the
International Covenant. As a result, the government of the state was directed
to develop mechanisms for the realization of the rights of “third
gender”/transgender individuals.
According to the Court, the concept of ‘dignity’ under Article 21 of the
Constitution includes all forms of self-expression, which permits a person to
live a dignified life. The rights to dignity under Article 21 include the right to
gender identity.

The Apex Court stated that Article 14 and Article 19(1)(a) were framed in
gender-neutral terms, and thus, the right to equality and freedom of
expression would extend to transgender persons also. Transgender persons all
over society are subject to “extreme discrimination” which is a violation of
their right to equality, which is illustrated by the fact that they are treated as
second-class citizens. Furthermore, under the freedom of expression, it was
indicated by the Court that the right to express one’s gender was included by
dressing, speaking, acting, or acting in a manner consistent with their gender
identity.

Thus, Articles 14, 15, 16, 19(1)(a) and 21 of the Constitution confer
fundamental rights on transgender individuals. The Court also relied on
the Yogyakarta Principles and core international human rights treaties while
recognizing the human rights of transgender people. To reduce the stigma
against transgender communities, public awareness programs were held to be
necessary by the Court.

State Legal Services Authority

Each state has a legal service authority, which provides free legal advice to
those who cannot afford it. This is covered under Section 6 of the Act. They
provide preventative and strategic legal assistance programs. Lok Adalat
sessions are also conducted by the authorities to assist clients. Among their
main duties is to implement the policies and schemes as directed by NALSA.
The respective High Court’s chief justices serve as patrons-in-chief. These
bodies are supervised by an executive chairman who is a retired or serving
judge. A high court legal service committee is usually formed by the state
authority. This body is headed by a sitting High Court judge, who is the
chairman and is administered by the Chief Justice of the respective High Court.

Legal Aid under Legal Services Authority Act, 1987

In 1971, Justice P.N. Bhagwati formed the Legal Aid Committee to introduce
the Legal Aid scheme. In his opinion, the legal aid system is aimed at making
the missionary of administration of justice easily available to the people able to
enforce their legal rights. The poor and the illiterate will be able to approach
the courts and as a result, they will get justice faster from the courts.

Poor and illiterate people should have access to legal aid. An individual does
not have to be a litigant in order to obtain legal aid. According to Article 39A of
the Indian Constitution, it is the duty of the State to ensure that the legal
system operates on the basis of equality and that in particular, it must ensure
the provision of free legal aid to ensure that citizens of every economic
category have access to justice. Furthermore, Articles 14 and 22(1) make it
mandatory for the State to ensure equality under the law and a legal system
that promotes justice from an equal opportunity standpoint. It is the aim of
legal aid to ensure that the law is enforced in its letter and spirit, and equally
just treatment is provided to the weakest, poorest, and most downtrodden
sections of society.

The concept of legal aid can be traced back to the year 1851 when in
France, enactments were passed to provide legal assistance to those in need.
As far back as 1944, England and Wales had also supported the provision of
legal advice to the poor and needy as part of its organized efforts to provide
legal services to the poor. The Rushcliffe Committee was appointed by the Lord
Chancellor, Viscount Simon, to look into the current facilities available to
provide legal advice to the poor and to recommend any measures that appear
relevant to ensuring that the needs of these individuals are met. As per the
Act, the Supreme Court Legal Services Committee, the High Court Legal
Services Committee, the State Legal Services Authority, the District Legal
Services Authority, and the Taluk Legal Services Committee have been
entrusted with the responsibility of organizing all Lok-Adalats in India.

Eligibility criteria for free legal aid

There was even an item on the committee’s (headed by Justice PN Bhagwati)

agenda on the eligibility criteria for the people to qualify for free legal aid,
which has been also mentioned in the Code of Criminal Procedure,
1973 under Section 304 to provide free and competent legal assistance to a
marginalised member of the society at the expense of the state. As established
in Hussainara Khatoon v. State of Bihar (1979), legal aid will be provided at the
expense and cost of the state to marginalised groups within society, and the
state is required to make such assistance available to the accused.
In a similar vein, the Supreme Court has also ruled in Suk Das v. Union Territory
of Arunachal Pradesh (1986) that an accused who cannot afford legal aid may
have his or her conviction set aside on socio-economic grounds.

The following are the people eligible for free legal aid under Section 12 of the
Act:

 a member of a Scheduled Caste or Scheduled Tribe;

 a victim of trafficking in human beings or beggars as referred to
in Article 23 of the Constitution;
 a woman or a child;
 a person with a disability as defined in Section 2(i) of the Persons with
Disabilities (Equal Opportunities, Protection of Rights and Full
Participation) Act, 1995;
 a person under circumstances of undeserved want such as being a
victim of a mass disaster, ethnic violence, caste atrocity, flood,
drought, earthquake or industrial disaster; or
 an industrial workman; or
 in custody, including custody in a protective home within the meaning
of Section 2(g) of the Immoral Traffic (Prevention) Act, 1956 or in a
juvenile home within the meaning of Section 2(j) of the Juvenile
Justice Act, 1986 or in a psychiatric hospital or psychiatric nursing
home within the meaning of Section 2(g) of the Mental Health Act,
1987; or
 in receipt of annual income less than rupees nine thousand or such
other higher amount as may be prescribed by the State Government,
if the case is before a court other than the Supreme Court, and less
than rupees twelve thousand or such other higher amount as may be
prescribed by the Central Government, if the case is before the
Supreme Court.

Lok Adalat under Legal Services Authority Act, 1987

Section 19 of the Act provides for the establishment of Lok Adalats. Legal
service authorities at all levels, including the central, state, and district levels,
shall hold Lok Adalats. Lok Adalats serve as an alternate dispute resolution
system. Their purpose is to settle cases that are pending or that have not been
heard in the courts. It consists of judicial officers or an authorized person
under the jurisdiction of the state, central government, or local government.
Following the conciliation of disputes between the parties and the agreement
of the parties, the award is handed down by conciliators in accordance
with Section 21 of the Act. The award has the same legal effect as a court
decision.

Scope of Lok Adalat

Unlike the Supreme Court, Lok Adalat is extremely broad to incorporate most
of the cases pending before it as well as new cases that will be filed in the near
future to be settled. The Lok Adalat does not have jurisdiction over cases
relating to offences that cannot be compounded under any law. The Lok Sabha
does not refer such matters to committees without giving the other party a
reasonable opportunity to be heard. The Lok Adalat proceeds to resolve any
case referred to it and tries to negotiate a mutually acceptable outcome
between the parties involved with the case. Whenever a Lok Adalat decides a
case before it, it adopts the most extreme efforts for a trade-off or settlement.
The following points elaborate on the scope of Lok Adalats:

 If no settlement or compromise is reached by the parties after the Lok

Adalat passes, no order is given.
 A reference will be sent automatically to the Court that drew up the
reference for disposition. Those involved in the dispute are urged to
seek redressal in courts.
 If the terms proposed by the bench do not satisfy the parties, the Lok
Adalat cannot be forced to compromise or reach a settlement. Orders
from Lok Adalats are definitive and restrict the parties.
 An order passed by a judge is a satisfactory means of stopping the
proceedings that demand justice.
 Lok Adalats have enough powers under the Act to make justice
without compromising the quality of their awards. The Lok Adalat’s
final order is considered judicial since it is given the status of a
decree.
 A Civil Court recognizes it as a form of evidence and is given the
power to summon, discover, and get an affirmation.
In the case of P.T. Thomas v. Thomas Job (2005), the Apex Court specifically
explained what Lok Adalat is. According to the Court, Lok Adalat is an ancient
form of adjudicating system that once predominated in India, and its validity
has not been questioned even today. According to Gandhian principles, the
term Lok Adalat means “People’s Court”. It is an essential component of
alternative dispute resolution. If the dispute is resolved at Lok Adala, there is
no court fee, and if it is already paid, the fee will be refunded.

According to the case of B.P. Moideen Sevamandir and others v. AM Kutty

Hassan (2008), the parties can communicate directly through their attorneys,
which is far more convenient than speaking in a regular courtroom. Because
Lok Adalats are dynamic, they are able to balance the interests of both parties
and pass orders that both sides find acceptable.

Functions of Lok Adalat

The following are the functions of Lok Adalat:

 Lok Adalat members should be impartial and fair to the parties.

 Lok Adalat is responsible for handling pending cases in court. In the
case of a Lok Adalat settlement, the court fee paid to the court on the
petition will be reimbursed
 When filing a dispute with Lok Adalat, you do not have to pay a court
fee.

Types of Lok Adalat

Lok Adalats can take the following forms:

National level Lok Adalat

The Lok Adalat held at the national level is held regularly throughout the
country at the Supreme Court level and taluk level, where thousands of cases
are disposed of. Every month a different topic is discussed in this Adalat.

Permanent Lok Adalat

The body is governed by Section 22B of the Act. There is a mandatory pre-
litigation mechanism in Permanent Lok Adalat that settles disputes concerning
public utilities such as transport, telegraph, postal service, etc. As a result of
the case Abdul Hasan and National Legal Services Authority v. Delhi Vidyut
Board and other (1999), the courts directed that permanent Lok Adalats be
established.

Permanent Lok Adalats are charged with resolving public utility disputes
quickly. Therefore, if parties neglect to show up at the settlement or
compromise, then it has a further advantage of choosing the dispute based on
merit. In this way, the possibility of postponement in the resolution of
questions is eliminated. Rather than following the formal procedure for
resolving disputes, it is bound to follow the principle of natural justice in order
to save time.

Thus, the establishment of the Permanent Lok Adalat is fundamental to settling

disputes with public utility administrations in a quick and amicable manner.
The awards of the Permanent Lok Adalat made under this Act are conclusive
and binding. In no case will it be included as a defence in an original suit,
application, or execution proceeding. Such actions are considered
announcements by a civil court. In case the Permanent Lok Adalat makes an
award, that award will be communicated to a civil court having nearby
jurisdiction, which will then execute the order as if it were a decree made by
the particular court.

Permanent Lok Adalats and Lok Adalats are indistinguishable in their essential
features. There have, however, been some differences. The fundamental
difference is that a common Lok Adalat must convene periodically and not
consistently whereas a Permanent Lok Adalat is a setup that functions like any
other court or tribunal.

Despite the Legal Services Authorities Act, 1987, which set up the Lok Adalats,
the permanent Lok Adalats were not established right away. Through
the Amendment Act of 2002, the foundation of the Permanent Lok Adalat was
enabled.

Mobile Lok Adalat

Mobile Lok Adalat is a method of settling disputes that travels from place to
place. Over 15.14 lakh Lok Adalats have been held in the country as of 30th
September 2015, and over 8.25 crore cases have been settled.

Mega Lok Adalat

The Mega Lok Adalat is an ad hoc body that is constituted at the state level on
a single day in all courts.

Daily Lok Adalat

On a daily basis, these Lok Adalats are held.

Continuous Lok Adalat

It is held continuously for a specific number of days.

Jurisdiction of Lok Adalats

Lok Adalats fall under the jurisdiction of the courts which organize them, thus,
they cover any cases heard by that Court under its jurisdiction. This jurisdiction
does not apply to cases regarding offences which are not compoundable by
law and the Lok Adalats cannot resolve these cases. The respective courts may
accept cases presented to them by parties concurring that the dispute should
be referred to the Lok Adalat. The Courts may accept such cases in situations
where one party makes an application to the court for the referral of the case
to the Lok Adalat and the court might consider that there is a possibility of
compromise through the Act.

Limitations of Legal Services Authority Act

The Government should not only establish the four-tiered Legal Services
Authority but also establish an independent body to oversee the workings of
these tiers and actively work to promote coordination between the Taluka,
District, State, and National Legal Services Authority. When establishing the
independent monitoring body, the government should recruit young legal
professionals who hold no other judicial posts, so that they will exclusively
serve the interests of the independent monitoring body. An institutional
network of legal services is constituted by the Legal Services Authority at the
Central, State, District, and Taluk levels have some limitations in relation to the
manner in which they are constituted, the composition, etc.

Major limitations under Legal Services Authority Act

Section 3

The National Legal Services Authority is established under Section 3 of the Act.
The organization chart of the body reveals, however, that the members are all
already overcharged with the assigned duties of their primary work; therefore,
a light modification of Section 3 is needed. As the government builds up the
National Legal Services Authority, it should emphasize the importance of
recruiting young legal professionals who do not hold other legal positions so
they can devote as much time to the purpose of the Act as possible.

Section 3-A

As set forth in Section 3-A of the Act, there is a requirement that the chairman
of the Supreme Court Legal Services Committee shall be a judge of the
Supreme Court. Now, in this case, the respective judge is already
overburdened with his entrusted duties of day-to-day litigation. As a result,
there is the possibility that the office may not be able to achieve the expected
results in providing legal services in the future if such an overburdened person
is again given the functions of the Supreme Court Legal Services Committee.
Therefore, if Section 3-A of the Act is to be implemented properly, then it will
be essential to amend this section.

Section 6

A State Legal Services Authority is established by Section 6 of the Act. Although

the organization of the body appears to be fairly straightforward at first glance,
a closer look at it reveals that each of the members is to a certain extent
occupied with duties outside the body, and therefore, a minor alteration of
Section 6 is required. It is important for the government to emphasize when
establishing the State Legal Services Authority that it will be recruiting young
qualified legal professionals who have the zeal to work in the field with utmost
devotion to achieve the core objective stated in the Act.

As a consequence of Supreme Court Bar Association v. Union of India and

Others (1988), it has been held that the normal rule should be that the
Chairman of the State Legal Services Authority should be a sitting judge and
retired judges were only to be appointed under exceptional circumstances.

Conclusion
As everyone knows, the Indian constitution stresses equality. All individuals are
equal under the law in a democracy. Regardless of one’s economic status, race,
creed, gender, sex, or any other social condition, each citizen has the right to
equal access to law and equal opportunities to obtain legal services. The Legal
Services Authorities Act of 1987 was passed by our government to address
these needs. The act ensures equality of opportunity in the pursuit of justice.
The Act has ensured that its officials tasked with executing its provisions have
adequate abilities. Recognition as a community servants has been granted to
them, along with the assurance that anything they do in good faith will be
protected. This Act’s provisions supersede different Acts, which provide for the
execution of its provisions with a minimum of disruption. Even if such
disruption occurs regardless of its superseding impact, the national and state
legislatures will be able to develop rules and guidelines for the effective
implementation of these provisions. Such guidelines and principles must pass a
rigorous approval process which eliminates any possibility of defiling,
wrongdoing, or other forms of neglect

Lok Adalats have become an integral part of the Indian legal system, providing
opportunities for the poor and discouraged to access justice. The organization
has overcome all obstacles to lawful aid, although there are specific areas for
improvement that could make it more effective. Although they are overcoming
any barriers to access to justice, they should also provide genuine admittance
to equity for aggrieved parties. There is more activity than was expected,
which could make Lok Adalats a better mechanism to deal with cases that are
on the rise.