 Question- Discuss the Composition and

Functions of Various Authorities

Provided Under the Legal Services
Authorities Act, 1987. Discuss Briefly
about Lok Adalats?
INTRODUCTION
“ To no one will we sell to no one will we deny or delay right or justice.”

Justice social economic and political- is our constitutional pledge

enshrined in the preamble of our constitution. The incorporation of
Article 39-A in the directive principals of state policy in the year 1976,
enjoined upon the State to ensure justice on the basis of equal
opportunity by providing free legal aid.

In India, concern for legal aid to poor and to the needy is continuously
on the rise. Legal assistance and free legal advice is the only way to
guarantee equal protection of law to the poor.

The legal Service Authorities Act was enacted to constitute legal services
authorities for providing free and competent legal services to the
weaker sections of the society to ensure that opportunities for securing
justice were not denied to any citizen by reason of economic or other
disabilities.

“The concept of seeking justice cannot be equated with the value of

dollars. Money plays no role in seeking justice.”

Justice Blackmaun
 Question- What are Legal Services?
LEGAL AID: CONCEPT
Legal aid which means giving free legal services to the poor and needy
who are unable to afford the services of an advocate for the conduct of
a case or a legal proceeding in any court tribunal or before an judicial
authority.

The legal aid means providing an arrangement in the society so that the
missionary of administration of justice becomes easily accessible and is
not out of reach of those who have to resort it for enforcement of their
rights given to them by law.

Under Section 2 (1) © of the Legal Services Authorities Act, 1987. “Legal
Services” includes the rendering of any services in the conduct of any
case or other legal proceeding before any court or other authority or
tribunal and the giving of advice on any legal matter.

Justice P.N. Bhagwati aptly stated that legal aid means providing an
arrangement in the society which makes the machinery of
administration of justice easily accessible and in reach of those who
have to resort to it for enforcement of rights.

 Question- Right to free legal Aid: A

Fundamental Right?
LEGAL AID PROVISIONS
CONSTITUTIONAL PROVISIONS
1. THE PREAMBLE- In the preamble itself our Constitution
expresses this ideal which talks of justice in all it’s forms i.e. social
economic and political and equity of status and of opportunities.
2. ARTICLES 14- It makes it obligatory for the State to ensure equality
before law and a legal system which promotes justice on the basis of
equal opportunity to all. Legal aid strives to ensure that constitutional
pledge is fulfilled in its letter and spirit and equal justice is made
available to the poor and weaker section.
3. ARTICLE 21- Free legal aid is a recognized right under articles 21,
as is the right to speedy justice and a fair trial. This right to free legal aid
is the duty of the government and is an implicit aspect of Article 21 in
ensuring fairness and reasonableness.
4. ARTICLE 22- It provides protection against arrest and detention in
certain circumstances. As a result everyone who is taken to prison
without being told has the right to consult with and be represented by a
legal practioner of his choice.
5. ARTICLE 39-A Article 39-A obliges the State to ensure that the
operation of a legal system that promotes justice on the basis of equal
opportunity and in particular grants free legal assistance through
appropriate legislation or schemes pm in any other way, ensures that
opportunities for justice are not denied to any citizen on account of
economic or other disabilities.

LEGAL AID UNDER C.P.C AND Cr.Pc

ORDER 33, C.P.C- Suit by or against an indigent person.

SECTION 304,Cr.p.c- It provides legal aid to the accused at State

expenses in certain cases.

SUPREMES COURT ON LEGAL AID

Judiciary has always been a major supporter and a proponent of free
legal aid in India. Various judgments by the judiciary have proven
effective in promoting the legal aid program.

Some major landmark judgments of Supreme Court are:-

 Hussainara Khatoon V. Home Secretary, State of Bihar
(1980) 1 SCC98
In the landmark decision, the Hon’ble SC said that Articles 39 A
underlined that free legal services were an intrinsic component of
reasonable. Fair and just procedure and that the right to free legal
services was implied in Articles 21.

Khatri V. State of Bihar

AIR 1981 sc 262
The SC in this case decided that the State is legally required to give legal
aid not only during the trial state but also when they are initially
presented before the magistrate or remanded at any time.

 Question- What is Legal Services

Authority?

THE LEGAL SERVICES

AUTHORITES ACT, 1987
Legal Services Authorities Act was enacted to constitute Legal Services
Authorities for providing free and competent legal services to the
weaker sections of the society to ensure that opportunities for securing
justice were not denied to any citizen by reason of economic or other
disabilities and to organize Lok Adalats to ensure that the operation of
the legal system promoted justice on a basis of equal opportunity.

This Act is a very good legislation for the amicable and speedy disposal
of dispute.

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 it’s committees. It came into effect on 9 th
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.

KEY ELEMENTS OF THE ACT

Major Key elements are:-

To establish polices and guidelines for providing legal services in

accordance with the Act’s Provisions.

To create the most efficient and cost- effective plans for providing legal
services in accordance with the Act’s provisions;

Organizing legal aid clinics particular in rural areas, slums, or labor

colonies with the dual goals of teaching the under privileged about their
rights and promoting Lok Adalats as a means of dispute resolution.

Encourage the use of dispute resolution methods such as negation,

arbitration and conciliation;

To ensure that opportunity for securing justice was not denied to any
citizen by reason of economic or other disabilities.

Making appropriate financial allocations to state and district authorities.

CRITERION FOR PROVIDING LEGAL

AID
Section 12 of legal services Authorities Act, 1987

Prescribes the criteria for giving legal services to the eligible persons.
Section 12 of Act reads as under:-

Every person who to file or defend a case shall be entitled to legal

services under this Act if that person is-
(A) A member of a Scheduled Caste or Scheduled Tribe;
(B) A victim of trafficking in human beings or beggar as referred to in Article
23 of the Constitution;
(C) A women or a child;
(D) A mentally ill or otherwise disabled person;
(E) A person under circumstances of undeserved want such as being a
victim of mass disaster, ethnic violence, castle atrocity, flood, draught,
earthquake or industrial disaster;
(F) As industrial workmen;
(G) In custody, including custody in a protective home within the meaning
of clause (g) if Section 2 of the Immoral Traffic (Prevention) Act 1956; or
in a juvenile home within the meaning of clause ( ) of Section 2 of the
Juvenile Justice Act, 1986, or in a psychiatric hospital or psychiatric
nursing home within the meaning of clause ( ) of Section 2 of the Mental
Health Act, 1987;
(H) 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.

(Rule have already been amended to enhance) this income ceiling.

Legal Services Authorities after examining criteria of an applicant and

the existence of a prima facie case in his favor provide him counsel at
State Expense pay the required court fee in the matter and bear all
incidental expenses in connection with the case.

An affidavit made by a person as to his income is generally regarded as

sufficient for making him/ her eligible for the entitlement. (Section 13)

WHAT LEGAL AID INCLUDES

Regulation 13 of the Supreme Court Legal Services Committee
Regulations, 1996 provides the modes of legal services.
 Regulation 13 provides that-

Legal Services to be provided may include any one or more of the

following-

(a) Payment of court- fees, process fees and all other charges payable or
incurred in connection with any legal proceedings;
(b) Charges for drafting, preparing and filling of any legal proceedings and
representation by a legal practioner in legal proceedings;
(c) Cost of obtaining and supply of certified copies of judgments, order and
other documents in legal proceedings;
(d) Cost of preparation of paper book (including paper, printing and
translation of documents) in legal proceedings and expenses incidental
there to.

LEGAL SERVICES WHEN NOT TO BE

PROVIDED
Regulation 14 of the Supreme Court legal services committee
regulation, 1996 provides that-

Legal services shall not be given in the following cases, namely.

(1) Proceedings wholly or partially in respect of –

(a) Defamation; or
(b) Malicious prosecution; or
(c) A person charged with contempt of court proceedings
(d) Perjury

(2) Proceedings relating to any election.

(3) Proceedings in respect of offences where the fine imposed is not more
than rupees 50.
(4) Proceedings in respect of economic offences and offences against social
laws, such as , the protection of Civil Rights Act, 1955 and the Immoral
Traffic (Prevention) Act, 1956 unless in such cases the aid is sought by
the victim.
 WITHDRAWL OF LEGAL AID
Regulation 18 of the Supreme Court Legal Services Committee
Regulations, 1996 provides that-

(1) The Committee may either on it’s own motion or otherwise withdraw
legal services granted to any aided person in the following circumstances
namely-
(a) In the event of it being found that the aided person was possessed of
sufficient means or that he obtained legal services by misrepresentation
or fraud.
(b) In the event of any material change in the circumstances of the aided
person.
(c) In the event of any misconduct misdemeanor or negligence on the part
of the aided person in the course of receiving legal service.
(d) In the event of the aided person not cooperating with the committee or
with the legal service.
(e) In the event of the aided person engaging a legal practioner other than
the one assigned by the committee.
(f) In the event of death of the aided person, except in the case of civil
proceedings where the right or liability services.
(g) In the event of the application for legal services or the matter in
question is found to be an abuse of the process of law or of legal
services.

Provided that legal service shall not be withdrawn without giving due
notice thereof to the aided person or to his legal representatives in the
event of his death, to show causes as to why the legal service should not
be withdrawn.

Where the legal services are withdrawn on the grounds set out in clause
(a) of sub-regulation 1 above, the committee shall be entitled to recover
from the aided person the amount of legal service granted to him.
 Question- What are Organogram of Legal
Service Authorities /Committees?
AUTHORITIES UNDER THE ACT
A nationwide network has been envisaged under the Act for providing
legal aid and assistance. The main core of the Legal Services Authorities
Act 1987 is the hierarchical legal service institutions in the center, state,
district and talk level.

As a result of the Act, a National Legal Services Authority (NALSA) was

established as the apex body for regulating the legal aid provisions. State
Legal Services Authority Handles the implementation of NALSA’s powers
at the state level, which delegates further to a number of organizations.

The hierarchical legal service system in India exists at following levels:-

1. National Legal Services Authority (NALSA) and Supreme Court legal

services committee.
2. State Legal Services Authority (SLSA) and High Court Legal Services
Committee.
3. District Legal Services Authority (DLSA)
4. Taluk Legal Services Authority (TLSA)
 Question- What is the National Legal
Services Authority (NALSA)?
NALSA
The NALSA was established to create a nationwide network uniform in
nature that would provide competent legal services to the weaker
sections of the society at no cost.

It was founded to monitor and review the effectiveness of legal aid

programs and to develop rules and principles for providing legal services
under the Act.

CONSTITUTION
Section 3 of the legal services Authorities Act. 1987 provides for the
Constitution of the National Legal Services Authority. It provides that-

(1) The Central Government shall constitute a body to be called national

Legal Services Authority to exercise power and perform the function
assigned to it under the Act.
(2) The Central Authority shall consists of-
(a) The chief justice of India who shall be the patron- in- chief.
(b) A serving or retired judge of the Supreme Court to be nominated by the
President, in consultation with the chief Justice of India, who shall be the
Executive Chairman.
(c) Such number of other members possessing such experience and
qualifications, as may be prescribed by the Central Government to be
nominated by that Government in consultation with CJI.
(3) The Central Government shall, in consultation with the CJI, appoint a
person to be the Member Secretary of the Central Authority, possessing
such experience and qualifications as may be prescribed by that
Government.
 (4) The terms of office and other conditions relating to the members and
the Member Secretary shall be such as may be prescribed by that
Government i.e. Central Government in consultation with CJI.
(5) The administrative expenses of the Central Authority including the
salaries, allowances and pensions payable to the Member Secretary,
officers and other employees shall be defrayed out of the consolidated
found of India.
(6) All orders and decisions of the Central Authority shall be authenticated
by the Member Secretary or any other officer of the Central Authority
duly authorized by the Executive chairman of that Authority.
(7) No act or proceeding of the Central Authority shall be invalid merely on
the ground of the existence of any vacancy in or any defect in the
Constitution of Central Authority.

FUNCTION
Section 4 of the Legal Services Authorities Act provides the functions
which are to be performed by Central Authority.
The Central Authority shall perform all or any of the following functions-

(1) Lay down polices and principles for making legal services available
under the Act.
(2) Frame the most effective and economical schemes for the purpose of
making legal services available under the Act.
(3) Utilize the funds at it’s disposal and make appropriate allocations of
funds to State & District Authorities.
(4) Organize legal aid camps, especially in rural areas slums or labour
colonies with the dual purpose of educating the weaker sections of the
society as to their rights as well as encouraging the Settlement of
Dispute through Lok Adalats.
(5) Undertake and promote research in the field of legal services with
special reference to the need for such services among the poor.
(6) Monitor and evaluate implementation of the legal aid programs at
periodic intervals and provide for independent evaluation of programs
and schemes implemented.
(7) Provide grants-in-aid for specific schemes to various voluntary social
services institutions and State and District Authorities.
(8) Develop in consultation with bar council of India, the Programs for
clinical legal education and promote guidance and supervise
establishment and working of legal services clinics in universities, law
colleges and other institutions.
(9) Take appropriate measures for spreading legal literacy and legal
awareness among people, in particular to educate weaker section about
rights, benefits and privileges guaranteed.
(10) Coordinate and monitor the functioning of State and District Authorities,
etc.

 Question- What is the State Legal

Services Authority (SLSA)?
SLSA
It is not possible for the NALSA to implement the provisions of this Act
without the assistance of other subsidiary authorities. So in every State,
a State Legal Services Authority (SLSA) is constituted to give effect to the
police and directions of the Central Authority and to give legal services
to the people and conduct Lok Adalats in the State.

CONSTITUTION
Section 6 of the Legal Services Authorities Act. 1987 provides for the
constitution of SLSA. It provides that-

(1) Every State Government shall constitute a body to be called the legal
Services Authority for the State to exercise the powers and perform
functions assigned to it under this Act.
(2) A State Authority shall consists of –
(a) The chief Justice of the High Court who shall be the patron-in-chief.
(b) A serving or retired judge of HC, to be nominated by Governor, in
consultation with CJ of HC, who shall be the Executive Chairman.
(c) Such number of other members possessing such experience and
qualifications as may be prescribed by the State Government, to be
nominated by that Government in consultation with CJ of High Court.
(3) The State Government shall, in consultation with the Chief Justice of HC,
appoint a person belonging to State Higher Judicial Service, not lower in
rank than that of district Judge, as a Member Secretary of State
Authority.

FUNCTIONS
(1) To give effect to the polices and directions of Central Authority.
(2) Give legal service to persons who satisfy the criteria laid down under the
Act.
(3) Conduct Lok Adalats, including Lok Adalats for High Court cases.
(4) Undertake preventive and strategic legal aid programs.
(5) Perform such other functions as the State Authority may in consultation
with the Central Authority fix by regulations.

 Question- What is District Legal Services

Authority (DLSA)?
DLSA
The District Legal Service Authority work at district level. It is constituted
in every district to implement legal Aid Programs and schemes in the
district.

CONSTITUTION
Section 9 provides for the constitution of District Legal Services
Authority (DLSA) at district level.
(1) The State Government shall, in consultation with the Chief Justice of HC,
constitute a body to be called the District legal services Authority for
every district in the State.
(2) A District Authority shall consist of-
(a) The District Judge who shall be the Chairman
(b) Such number of other members, possessing such experience and
qualifications as may be nominated by that Government in consultation
with Chief Justice of HC.
(3) The State Authority shall, in consultation with the chairman of the
District Authority, appoint a person belonging to the State Judicial
service not lower in rank than that of a subordinate Judge or Civil Judge
posted as Secretary of District Authority to exercise such powers and
perform functions as assigned to him.

FUNCTION
(1) It shall be the duty of every District Authority to perform such of the
functions of the State authority in the District as may be delegated to it
from time to time by the State Authority.
(2) It may perform all or any of the following functions
(a) Coordinate the activities of the taluk legal services committee and other
legal services in the District.
(b) organize Lok Adalats within the district, and,
(c) Perform such other functions as the State Authority may fix by
regulations.
 Question- Which of the following
functions can be performed by
Taluk legal services Committee?

TALUK LEGAL SERVICES

COMMITTEE
Taluk legal service committees are also constituted for each of the Taluk
or mandal or for group of Taluk or Mandals to coordinate the activities
of legal services in the Taluk and to organize Lok Adalts.

Composition
Section 11 A of the legal services Authorities Act, 1987
Provides for the constitution of TLSA.

(1) The State Authority may constitute a committee to be called the Taluk
legal services committee, for each Taluk or mandal or for group of Taluks
or Mandal.
(2) The committee shall consist of-
(a) The senior most Judicial officer operating within the jurisdiction of the
committee who shall be the ex-officio chairman.
(b) Such number of other members, possessing such experience and
qualifications as may be prescribed by the State Government to be
nominated by that Government in consultation with the Chief Justice of
HC.
(3) The administrative expenses of the committee shall be defrayed out of
the District Legal Aid Fund by the District Authority.
 FUNCTIONS
The Taluk legal Services Committee may perform all or any of the
following function-
(1) Coordinate the activities of legal services in the taluk.
(2) Organize Lok Adalats within the Taluk, and
(3) Perform such other functions as the District Authority may assign to it.
(4)

 Question- What is mean by Lok Adalat?

LOK ADALATS
The term ‘Lok Adalat’ means ‘People’s court and is based on Gandhi an
Principles.
As per the Supreme Court it is an old form of adjudicating system
prevalent in ancient India and it’s validity has not been taken away even
in the modern days too.
Lok Adalat is a forum where the cases which are pending in a court or
which is pre litigation (not yet brought) before a court are compromised
or settled in an amicable manner. It is one of the components of the
alternative dispute resolution (ADR) system and delivers informal, cheap
and expeditious justice to the common people.

ESTABLISHMENT
Lok Adalats were given statutory state under the Legal Services
Authorities Act, 1987 the Act makes the provisions relating to the
organization and functioning of Lok Adalats.

Section 19 of the Act provides for the establishment of Lok Adalats. Legal
Services Authorities at all levels, including the central, state and district
levels or the Supreme Court / High Court/ Taluk legal services committee
may organize Lok Adalats at such intervals and places and for exercising
such jurisdiction and for such areas as it thinks fit.
 COMPOSITION
Every Lok Adalat shall consists of such number of-
(a) Serving or retired judicial officers; and
(b) Other persons,
(c) Of the area as may be specified by the legal services Authorities or the
legal services committees. Organizing such Lok Adalat.

 Question- What is Jurisdiction in Lok

Adalat?
JURISDICTION
A Lok Adalat shall have jurisdiction to determine and to arrive at a
compromise or settlement between the parties to a dispute in respect
of-
(1) Any case pending before any court for which the Lok Adalat is
organized.
(2) 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 case or matter
relating to an offence not compoundable under any law.
 COGNIZANCE OF CASES BY THE LOK
ADALAT
Section 20 of the Act talks about the cognizance of cases by Lok Adalat,
It provides that-
(1) Where in any case pending before any court-
(a) The parties thereof agrees to settle the dispute in the Lok Adalat
(b) One of the parties thereof makes an application to the court for
referring case to Lok Adalat

(2) If such court is prima facie satisfied that there are chances of settlement
and that the matter is an appropriate one to be taken 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 by such court
except after giving a reasonable opportunity of being heard to the
parties.

(3) In case of pre-litigation dispute i.e. where the matter is not brought
before any court the matter can be referred to the Lok Adalat for the
settlement by the agency organizing the Lok Adalat on receipt of an
application from any one of the parties to the dispute.
Provided, reasonable opportunity of being heard is to be given to the
parties.

(4) Where the case is referred to a Lok Adalat under any of the cases
mentioned above, the Lok Adalat shall proceed to dispose of the case
and arrive at a compromise or settlement between parties.

Where no award is made by the Lok Adalat on the ground that no

compromise or settlement could be arrived at between the parties the
record of the case shall be returned back to the court from which
reference has been received for disposal such court shall proceed to deal
with such case from the stage which was reached before such reference
was made.
 Question – What is the power of Lok
Adalat and which types of Lok Adalat?

POWER OF LOK ADALAT

The Lok Adalat shall have same powers as are vested in civil courts. All
proceedings before Lok Adalat shall be deemed to be judicial
proceedings and every Lok Adalat shall deem to be a Civil Court.

AWARD OF LOK ADALAT

Every award of Lok Adalat shall be deemed to be a decree of Civil Court
and where the settlement has arrived by Lok Adalat, the court fee is
refunded. Every award made is final and binding on parties and no
appeal shall lie against the award.

PNB V. Lakshmichand Rah, AIR

2000 MP 301
The HC in the case held that the provisions of the Act shall prevail in the
matter of filling appeal. An appeal would not lie under the provisions of
sec.96 CPC moreover Lok Adalat is conducted under an Independent
enactment and once award is made right to appeal shall be governed by
legal services Authorities Act where it has been specifically barred under
the provisions of the Act. Further it was stated that CPC does not
provide an appeal U/S 96 (3) against consent decree.
 Question- DEFINES ADR. WHAT ARE ITS
MERITS AND DEMERITS? DISCUSS THE
REASONS FOR ITS GROWTH. DISCUSS IN
DETAIL THE CONCEPT OF NEGOTIATION AND
MEDIATION?

INTRODUCTION
The understructure of any civilized society is justice the quest for justice
has been an ideal that mankind has been aspiring for generations down
the line. Administration of justice involves maintenance of rights within
a political community by the means of protection of innocent;
punishment of the guilty along with the satisfactory resolution of
disputes. This has been rightly said that “An effective judicial system
requires not only that just results be reached but that they are reached
swiftly.”

But in India, available infrastructure of courts is not adequate to settle

the growing litigation within a reasonable time. Despite continuous
efforts by the judiciary the average person may sometime find himself
entrapped in litigation for as long as lifetime, at times it couriers on even
to the next generation.
Inadequacy of courts, tiresome process of litigation and cost of litigation
and cost of litigation gave rise to alternative dispute resolution (ADR).
We are rapidly approaching a stage where litigation and cost is being
replaced with alternative dispute resolution, due to inefficiencies and
drawbacks of litigation.
 Question- what are main type of (ADR)
Alternative Dispute Resolution and its
objectives and benefits of ADR?

ALTERNATIVE DISPUTE RESOLUTION

Alternative dispute resolution (hereinafter referred to as ADR), as the
name suggests, is an alternate way of resolution of disputes, issues in
some cases, which a person/legal person/ cooperation may encounter. It
is the settlement of disputes outside the scope of formal legal system
and is also referred to as external dispute system.

ADR refers to settling of disputes outside the courtroom other than the
means of litigation, where the settlement of the case is done by the
impartial third party through conciliation, medication, Lok Adalat,
arbitration and negotiations.
ADR techniques are extrajudicial and they can be used to resolve any
matter, under law, by the agreement between the parties. It can be a
helpful mechanism to resolve conflicts in peaceful manner where the
outcome is accepted by both the parties.
It is a method which enables individuals and groups to maintain
cooperation, social order and provides opportunity to reduce hostility.

OBJECTIVES OF ADR
The objectives of ADR are as follows-
 Aims to settle the disagreement peacefully by way of compromise,
negotiation or fair settlements.
 Affordable and speedy trials with less procedural work.
 Uses a direct approach to settle the dispute- one to one conversations
and rigorous discussions to give better understanding of each party’s
view.
 Works on principles of diplomacy- win-win for both sides.
 Communication is the key- the more the parties at dispute
communicate, the more it increases the chances of coming to a mutually
agreeable point.
 Maintaining confidentiality- keeping the information and dispute
classified and inside the organization.
 Creating pre- dispute guidelines and rules to save from future issues and
give systematic framework.
 Avoids judicial proceedings and trials- decreasing pendency of litigation.

 Question- What are the Approaches of

ADR?

PROVISIONS RELATED TO ADR

(1) CONSTITUTIONAL PROVISIONS
ADR first started as a quest to find solutions to the perplexing problem
of the ever increasing burden on the courts.
Alternative Dispute Resolution in India was founded on the
Constitutional basis of Article 14 and 21 which deal with Equality before
law and Right to life and personal liberty respectively.

ADR also tries to achieve the directive principles of State policy relating
to equal justice and free legal aid as laid down under Article 39 A of the
Constitution.

(2) OTHER STATUTES

(a) Section 89 of CPC- It deals with the settlement of disputes outside the
court. It provides that where it appears to the court that there exists
elements, which may be acceptable to the parties, the court may
formulate the terms of a possible settlement and refer the same for
arbitration, conciliation, mediation or judicial settlement.
 In salem Advocate Bar Association V. UOI
(2005) SCC 6(344)
The Supreme Court had directed the constitution of an expert
committee to formulate the manner in which section 89 and other
provisions introduced in CPC have to be brought into operation.

(b) Legal Services Authorities Act, 1987-

The advent of this Act gave a statutory status to Lok Adalats and to
constitute legal services authorities at different levels to provide free
and competent legal services to weaker section of society.

(c) Arbitration and Conciliation Act 1996-

This Act has made radical and uplifting changes in the law of arbitration
and has introduced the new concepts like conciliation to curb delays and
bring about speedier settlement of disputes.
(D) (1) the Industrial Disputes Act, 1947
(2) Section 23(2) of the Hindu Marriage Act, 1955
(3) The Family Court Act, 1984.

REASON FOR GROWTH

Alternative dispute resolution methods are being increasingly
acknowledged in the field of law and commercial sectors. Its diverse
methods can help he parties to resolve their disputes at their own terms
cheaply and expeditiously.

Some of the reasons of growth of ADR Mechanism are as follows-

(1) Prevents Pendency of litigation- The purpose of solving disputes through

ADR is to lower the burden upon the courts and provide early access and
speedy trials to those cases which can be resolved through settlement.
(2) Amicable settlement of disputes- ADR provides for a friendly settlement
of disputes. The procedures are often collaborative and allow parties to
understand each other’s position. In business it is a prudent approach to
have neither a competitor nor a rival.
(3) Speedy disposal of trials- unlike litigation process, in ADR there is no
scope of adjournment or stay orders. It is not time consuming.
(4) Economical settlement of disputes- Unlike litigation process were huge
expenses are incurred to pay the advocates and other people involved
in the trial, in ADR it is not the case and minimum amount of money is
required. ADR aims to provide the parties with cheap and less formalistic
remedy to aggrieved parties.
(5) Time saving management- In ADR the dispute is resolved without
following the cumbersome procedure of ordinary litigation that’s why
ADR is also known as dispute management.
(6) Legal recognition- ADR mechanism has been recognized in the Indian
statutes. For instance – now the civil procedure code, 1908, order 32-A ,
Rule 3 contains scope for compromise and the appealable. Notable,
section 12 of Industrial disputes Act, 1947 contemplated provisions for
conciliation as pre- requisite.
Hence, the search for a simple, quick, flexible and accessible dispute
resolution system has resulted in the adoption of ‘ADR’ which promotes
the ideas of “access to justice.”

 Question- What are Merits and

Demerits of ADR?

MERITS OF ADR
Alternative dispute resolution is often considered as the best way to
resolve disputes. It is heavily favored by many judges, lawyers and
scholars for its ability to reach agreements without taking time from the
overwhelmed judicial system.
In addition, there are many advantages to using ADR over traditional
litigation, including-
(1) ADR is speedy- Trials are lengthy and in many states and countries it
could take years to have a case heard by a judge or jury. ADR saves a lot
 of time by allowing the parties to resolve their issues/ differences or
disputes in a short period of time. The saying, “justice delayed is justice
denied” can be sacked through this system.
(2) Expenses are reduced- It saves a lot of money that is disbursed on
lawyers and other miscellaneous expenses that one has to undergo in
the process of litigation. ADR offers the benefits of getting the issue
resolved quicker than would occur at trial- and that means less fees
incurred by all parties.
(3) More Flexibility- In ADR, the parties have more flexibility to select
what procedural and discovery rules will apply to their dispute. Also, it
leads to more flexible remedies than in court.
(4) Party participation- ADR permits more participation by the
litigation it allows the parties the opportunity to tell their side of the
story and have more control own the outcome than normal trials
overseen by a judge. Many parties desire the opportunity to speak their
piece in their own would rather than through counsel.
(5) Feels Informal- There are more formal ADR methods also. But, the
reality is that it is often much simpler and more informal than the
litigation process. The parties in most cases need not to worry about
rules of evidence or other court rules. Formalities our bypassed.
(6) Other merits of ADR-
I. This process can be initiated at any time wherever disputing parties take
recourse to ADR.
II. Involvement of skilled neutral.
III. Fosters cooperation and includes less stress.
IV. Keeps the disputes that are private as confidential.
 DEMERITS OF ADR
There are undoubtedly many benefits to ADR. However it is also
important to note the disadvantages. The pitfalls of alternative dispute
resolution includes-

(1) NO Guaranteed resolution- With the exception of arbitration, ADR

Processes do not always leads to a resolution. That means it is possible
that you could invest the time and money in trying to resolve the dispute
out of court and still end up having to proceed with litigation.
(2) Not suitable for every case- ADR methods may not be suitable for each
and every dispute. Some cases are to be dealt in the court of law; there
is no other “Informal” means of solving the said cases. Many a times,
one of the parties may not be comfortable with the idea of ADR
methods.
(3) Possibility of Bias- The possibility of bias, though negligible, or a conflict
or at least the appearance of impropriate, may arise if a neutral in ADR
gets a good deal of respect business from same institution.
(4) Binding Power- Decisions reached in ADR may not be binding on the
parties especially in cases of reconciliation and medication proceedings.
The final resolution to the dispute is open to the parties either to accept
or reject. An arbitral award whereas is final and binding on parties an
excluded to appeal to the court.
(5) Lack of formal rules- One potential disadvantage of ADR is the lack of
formal rules and procedures. While this can allow for greater flexibility,
it can also lead to uncertainty and confusion about how the process will
unfold.
(6) Lack of awareness- lack of awareness about ADR mechanism amongst
the people, especially in rural areas is also one of the obstacles in
realization of full potential of ADR mechanism.
(7) Running of statute limitation- Parties pursuing ADR must be careful not
to let a statute of limitation run while a dispute is in any ADR process.
Once the statute expires, judicial remedy may no longer be available.