ADR in criminal cases

Alternative Dispute Resolution (ADR) is mainly used in civil disputes, but it also plays a role in
criminal cases, particularly for minor and compoundable offenses where settlement is legally
permitted.

Key ADR Mechanisms in Criminal Cases:

1. Plea Bargaining (Section 290 BNSS) – The accused pleads guilty in exchange for a reduced
sentence.

2. Lok Adalat (Legal Services Authorities Act, 1987) – Settles compoundable offenses (e.g., petty
theft, cheque bounce, traffic violations) through mutual agreement.

3. Mediation – Used in family disputes, matrimonial cases, and defamation, promoting reconciliation
and settlement.

4. Compounding of Offenses (Section 359 BNSS) – Certain minor offenses can be settled between
parties with court approval.

5. Restorative Justice – Focuses on reconciliation between the victim and offender, ensuring
compensation and rehabilitation.

ADR in criminal cases helps in reducing court burden, promoting faster resolutions, and ensuring
victim satisfaction, but it is not applicable for serious crimes like murder, rape, or terrorism.

ARBITRAL TRIBUNAL

An Arbitral Tribunal is a neutral body that resolves disputes through arbitration instead of court
litigation. It is governed by the Arbitration and Conciliation Act, 1996 in India.

Key Features:

1. Composition – Can be a sole arbitrator or a panel of arbitrators (usually an odd number like three).

2. Independence & Impartiality – Arbitrators must be neutral and free from bias.

3. Authority – Has powers similar to a civil court, including summoning witnesses, examining
evidence, and granting interim relief.

4. Binding Decision – The final ruling (arbitral award) is legally enforceable like a court decree.

5. Flexible & Confidential – Proceedings are private and follow a less rigid procedure than courts.

LOK ADALAT

Lok Adalat is a dispute resolution forum under the Legal Services Authorities Act, 1987, designed to
provide speedy and cost-effective justice through mutual settlement. It follows Alternative Dispute
Resolution (ADR) principles, focusing on compromise rather than litigation.
Key Features:

1. Informal & Quick – No strict legal procedures, ensuring fast resolution.

2. Voluntary & Non-Adversarial – Both parties must agree to settle the dispute amicably.

3. Binding & Final Award – The decision (award) is final, binding, and cannot be appealed.

4. No Court Fees – No court fee is required, and any fee paid is refunded upon settlement.

5. Jurisdiction – Deals with civil, matrimonial, land, labor, and compoundable criminal cases.

Types of Lok Adalats:

- Permanent Lok Adalat (for public utility services).

- Mobile Lok Adalat (for rural areas).

- National & State-Level Lok Adalats.

Salient Features of the Legal Services Authorities Act, 1987

The Legal Services Authorities Act, 1987 was enacted to provide free and competent legal aid to
weaker sections of society and ensure access to justice for all.

Key Features:

1. Establishment of Legal Services Authorities

Constitutes National Legal Services Authority (NALSA), State Legal Services Authorities (SLSA), District
Legal Services Authorities (DLSA), and Taluk Legal Services Committees.

2. Free Legal Aid (Section 12)

Provides free legal services to economically weaker sections, Scheduled Castes (SCs), Scheduled
Tribes (STs), women, children, disabled persons, and other disadvantaged groups.

3. Lok Adalats (Section 19 -22B)

Encourages settlement of disputes through Lok Adalats, which function as alternative dispute
resolution forums.

Awards passed by Lok Adalats are binding and enforceable like court judgments.

4. Public Awareness and Legal Literacy

Promotes legal literacy, awareness programs, and legal aid camps to educate people about their
rights.

5. Victim Compensation Schemes

Assists victims of crime, particularly women and children, by ensuring compensation and support.

The Act plays a crucial role in ensuring speedy justice, reducing litigation burden, and making legal
aid accessible to all.
Principles of Natural Justice

Natural justice ensures fairness, impartiality, and transparency in Alternative Dispute Resolution
(ADR) processes like arbitration, mediation, and conciliation. The key principles include:

1. Nemo Judex in Causa Sua (No Bias Rule) – The decision-maker (arbitrator, mediator, or conciliator)
must be neutral and impartial to ensure a fair outcome.

2. Audi Alteram Partem (Right to be Heard) – Both parties must be given an equal opportunity to
present their case, submit evidence, and respond to arguments.

3. Reasoned Decision – In arbitration, the arbitrator must provide a clear and logical reasoning for
the award to ensure transparency.

4. Confidentiality and Fair Procedure – The ADR process should be fair, unbiased, and confidential,
ensuring trust between parties.

Applying natural justice in ADR enhances credibility, trust, and enforceability of dispute resolution
outcomes.

Powers and Functions of a Conciliator

A conciliator is a neutral third party who helps disputing parties reach a mutually acceptable
settlement. The role of a conciliator is governed by Part III of the Arbitration and Conciliation Act,
1996.

Powers of a Conciliator:

1. Independence and Impartiality (Section 67) – Must remain neutral and act fairly.

2. Flexible Procedure (Section 66) – Not bound by strict legal rules or the Code of Civil Procedure.

3. Meeting with Parties (Section 69) – Can meet parties together or separately to understand their
concerns.

4. Suggesting Settlement Terms (Section 67(4)) – Can propose solutions and guide negotiations.

5. Confidentiality (Section 75) – Cannot disclose discussions or settlement terms without consent.

6. Recording Settlement as an Agreement (Section 73) – If parties agree, the conciliator drafts and
signs a binding settlement agreement, which is enforceable like an arbitral award.

Functions of a Conciliator:

- Facilitates open communication between parties.

- Identifies key issues in the dispute.

- Encourages parties to consider practical solutions.

- Helps in drafting and finalizing a settlement.

Conciliators play a crucial role in resolving disputes amicably, preserving relationships, and reducing
litigation costs.

Procedure for Enforcement of Foreign Arbitral Awards

The enforcement of foreign arbitral awards in India is governed by Part II of the Arbitration and
Conciliation Act, 1996, which incorporates the New York Convention (1958) and the Geneva
Convention (1927).

Step-by-Step Procedure:

1. Determine Applicability

The award must be from a country that is a signatory to either the New York or Geneva Convention
and notified by the Indian government.

2. Filing an Application

The winning party must file an application for enforcement before the High Court in whose
jurisdiction the assets of the award debtor are located.

3. Submission of Documents (Section 47)

A duly authenticated original or certified copy of the award.

The original arbitration agreement or a certified copy.

A certified translation if the award is in a foreign language.

4. Court Examination

The court will verify whether the award meets the conditions under Section 48, such as valid
arbitration agreement, fair procedure, and compliance with public policy.

5. Enforcement as a Decree

If no objections succeed, the award is deemed a decree of the Indian court and enforced like a
domestic court judgment (Section 49).

Grounds for Refusal

Incapacity of parties or invalid arbitration agreement

Lack of fair notice or opportunity to present the case

Award beyond the scope of arbitration agreement

Irregular arbitral procedure

Contrary to Indian public policy

Once recognized, the award holder can execute it against the debtor’s assets in India as per the Code
of Civil Procedure, 1908.

SETTLEMENT
Settlement in ADR refers to the resolution of disputes through mutual agreement between parties
without court intervention. It can occur in mediation, negotiation, conciliation, or arbitration, leading
to a legally binding agreement.

Key Aspects of Settlement in ADR:

1. Voluntary Agreement – Parties decide the terms of settlement on their own.

2. Confidential & Cost-Effective – Keeps disputes private and reduces legal expenses.

3. Legally Binding – In conciliation and mediation, a signed settlement agreement is enforceable. In

arbitration, a settlement can be recorded as an arbitral award (Section 30 of the Arbitration and
Conciliation Act, 1996).

4. Preserves Relationships – Encourages cooperation and avoids hostility.

Settlement through ADR is widely used in commercial, family, labor, and consumer disputes, ensuring
quick and amicable dispute resolution.

Grounds to Set Aside an Arbitral Award in India

An arbitral award can be set aside under Section 34 of the Arbitration and Conciliation Act, 1996. The
party challenging the award must file an application within three months of receiving it.

Key Grounds for Setting Aside an Award:

1. Incapacity of Parties – If a party was legally incapable (e.g., a minor or mentally incompetent)
when entering into the arbitration agreement.

2. Invalid Arbitration Agreement – If the arbitration agreement itself is not valid under applicable law.

3. Lack of Proper Notice – If a party was not given proper notice of the proceedings or was unable to
present their case.

4. Exceeding Scope of Arbitration – If the award includes decisions beyond the scope of the
arbitration agreement.

5. Procedural Irregularities – If the arbitral procedure was not conducted as per the agreement or the
Act.

6. Fraud or Corruption – If the award was obtained through fraud, corruption, or undue influence.

7. Contrary to Public Policy – If the award is against India’s public policy, morality, or fundamental
laws.

Judicial Review & Appeal

Courts have a limited role and do not review the merits of the case. A set-aside order does not
automatically reopen the dispute unless a fresh arbitration is ordered.

ONLINE DISPUTE RESOLUTION

Online Dispute Resolution (ODR)

Online Dispute Resolution (ODR) is a digital form of Alternative Dispute Resolution (ADR) that uses
technology to resolve disputes outside traditional courts. It includes arbitration, mediation, and
negotiation conducted through online platforms, video conferencing, and AI-based dispute
resolution tools.

Key Features:

1. Remote Access – Parties can resolve disputes without physical presence.

2. Cost-Effective & Faster – Reduces legal expenses and time delays.

3. Confidential & Secure – Ensures data privacy and encrypted communications.

4. Automated & AI-Assisted Resolution – Some platforms use AI to suggest settlements.

ODR in India:

Recognized under the Arbitration and Conciliation Act, 1996.

Used in e-commerce, banking, consumer disputes, and business contracts.

Platforms like SAMA, CADRE, and ODR India facilitate ODR services.

ODR is efficient, accessible, and future-ready, making it ideal for cross-border and commercial
disputes.

Distinction Between Arbitration, Mediation, Negotiation, and Conciliation

1. Arbitration is a formal and legally binding process where a neutral third party, known as an
arbitrator, hears both sides and delivers a decision called an arbitral award. The process is governed
by the Arbitration and Conciliation Act, 1996, and the award is enforceable like a court judgment.
Arbitration is commonly used in commercial and contractual disputes.

2. Mediation is a voluntary and non-binding process where a mediator facilitates discussion between
disputing parties to help them reach a mutually acceptable settlement. The mediator does not
impose a decision but guides negotiations. Mediation is widely used in family, workplace, and
commercial disputes and is governed by the Mediation Act, 2023. If parties reach a settlement, it
becomes binding upon signing.

3. Negotiation is the most informal method, where parties communicate directly without a third
party to settle their dispute. It is entirely voluntary, flexible, and confidential. There are no legal
frameworks governing negotiation, and its success depends on the willingness of parties to
compromise. It is commonly used in business deals, employment matters, and contract negotiations.

4. Conciliation is similar to mediation but involves a more active role by the conciliator, who suggests
possible solutions to resolve the dispute. Though the conciliator does not impose a decision, the
process is semi-formal and has legal backing under Part III of the Arbitration and Conciliation Act,
1996. If the parties accept and sign the settlement agreement, it becomes legally binding, similar to
an arbitral award.
Key Differences:

- Arbitration results in a binding decision, whereas mediation, negotiation, and conciliation focus on
mutual settlement.

- In mediation and negotiation, parties retain full control over the outcome, while in arbitration, the
arbitrator makes the final decision.

- Conciliation is more structured than mediation and involves an active third party suggesting
solutions.

- Negotiation is the least formal and does not require a third party, making it the fastest and cheapest
method.

Each method serves a different purpose, with arbitration being most suitable for legally binding
resolutions, while mediation, negotiation, and conciliation work best when preserving relationships
and achieving amicable settlements.

TERMINATION OF ARBITRATOR

The termination of an arbitrator is governed by Sections 14 and 15 of the Arbitration and Conciliation
Act, 1996. An arbitrator’s mandate ends under the following circumstances:

Grounds for Termination:

1. Incapacity or Legal Inability – If the arbitrator dies or becomes legally incapacitated.

2. Failure to Act – If the arbitrator fails to perform duties or causes undue delay in proceedings.

3. Withdrawal by Arbitrator – If the arbitrator voluntarily resigns.

4. Mutual Agreement – If both parties agree to remove the arbitrator.

5. Challenge on Grounds of Bias (Section 12 & 13) – If the arbitrator is found to be biased or has a
conflict of interest.

Replacement of Arbitrator:

A new arbitrator is appointed using the same procedure as the original appointment (Section 15).

APPOINTMENT OF ARBITRATOR

The appointment of an arbitrator is governed by Section 11 of the Arbitration and Conciliation Act,
1996. It ensures a fair and impartial selection process to resolve disputes efficiently.

Step-by-Step Process:

1. Agreement-Based Appointment:

Parties can mutually decide the number and method of appointing arbitrators in their arbitration
agreement.
If a sole arbitrator is agreed upon, both parties must jointly appoint them.

For a three-member tribunal, each party appoints one arbitrator, and both arbitrators select the third
(presiding) arbitrator.

2. Default Appointment (Court Intervention):

If parties fail to appoint an arbitrator within 30 days, they can request the High Court (domestic
cases) or Supreme Court (international cases) to appoint one.

The court may refer the matter to an arbitral institution for appointment.

3. Ensuring Neutrality and Impartiality:

Arbitrators must disclose any potential conflicts of interest before accepting the appointment.

This process ensures a transparent, fair, and efficient arbitration system.

CONCILIATION

Conciliation is a voluntary, flexible, and confidential form of Alternative Dispute Resolution (ADR)
where a neutral third party (conciliator) helps disputing parties reach an amicable settlement. Unlike
arbitration, the conciliator does not impose a decision but facilitates negotiation and suggests
solutions.

Key Features of Conciliation:

1. Voluntary and Non-Binding – Parties participate willingly and can reject suggestions.

2. Neutral Conciliator – Assists in resolving disputes without bias.

3. Confidential Process – Discussions and settlement terms remain private.

4. Flexible and Informal – No rigid legal procedures, making it cost-effective and quick.

5. Legally Recognized – Governed by Part III of the Arbitration and Conciliation Act, 1996.

6. Settlement Agreement is Binding – Once signed, it holds the same legal force as an arbitral award.

Conciliation is widely used in commercial, labor, consumer, and family disputes, ensuring mutual
agreement and preserving relationships.

TRIBUNALS

Tribunals are quasi-judicial bodies that resolve disputes outside the traditional court system. They
function as an alternative dispute resolution (ADR) mechanism, providing speedy, specialized, and
cost-effective justice in specific areas of law.

Role of Tribunals in ADR:

1. Specialized Dispute Resolution – Tribunals handle cases related to taxation, environment,

consumer rights, labor, telecom, and company law, ensuring expertise-based decisions.
2. Faster and Less Expensive – Tribunals follow simplified procedures, reducing delays and litigation
costs.

3. Reduced Burden on Courts – By handling specific disputes, tribunals help in decongesting the
judiciary.

4. Flexibility in Procedure – Unlike courts, tribunals can adopt mediation, negotiation, and arbitration
methods.

Key Tribunals in India:

National Company Law Tribunal (NCLT) – Handles corporate disputes and insolvency cases.

Income Tax Appellate Tribunal (ITAT) – Resolves tax-related appeals.

Central Administrative Tribunal (CAT) – Deals with government employee disputes.

National Green Tribunal (NGT) – Addresses environmental issues.

Tribunals play a crucial role in ADR by ensuring faster justice with expert adjudication.

LOKAYUKTA

The Lokayukta is an anti-corruption ombudsman at the state level, established under the Lokpal and
Lokayuktas Act, 2013, to investigate complaints against state government officials, ministers, and
public servants. While its primary role is investigation, it indirectly contributes to Alternative Dispute
Resolution (ADR) in governance-related disputes.

Lokayukta’s Role in ADR:

1. Mediation in Administrative Corruption Cases – In some states, Lokayuktas use mediation to

resolve minor grievances related to government inefficiency and corruption.

2. Negotiation & Conciliation – Helps in settling disputes between citizens and government officials,
reducing court cases

3. Systemic Reforms – Recommends procedural improvements to prevent future disputes.

4. Alternative to Litigation – Provides a speedy and cost-effective mechanism for grievance redressal.

Though not a formal ADR body, Lokayuktas promote negotiated settlements and administrative
accountability, reducing the burden on courts.

MEDIATION

Mediation is a voluntary, confidential, and non-adversarial method of Alternative Dispute Resolution

(ADR) where a neutral third party (mediator) helps disputing parties negotiate a mutually acceptable
settlement. Unlike arbitration, the mediator does not impose a decision but facilitates dialogue to
resolve disputes amicably.

Key Features of Mediation:

1. Voluntary Process – Parties participate willingly and can withdraw at any time.

2. Neutral Mediator – An impartial third party guides discussions without taking sides.

3. Confidentiality – Discussions and agreements remain private and cannot be used in court.

4. Flexible and Informal – No strict legal procedures, making it faster and cost-effective.

5. Mutually Agreed Settlement – The outcome is based on consensus, fostering long-term

relationships.

Mediation in India:

Governed by: The Mediation Act, 2023, and Section 89 of the Civil Procedure Code (CPC), 1908.

Institutional Mediation Centers: MCIA, ICADR, and court-annexed mediation centers.

Mandatory Pre-Litigation Mediation – Encouraged in commercial disputes before approaching courts.

Mediation is widely used in commercial, family, and labor disputes, promoting speedy and cost-
effective dispute resolution while reducing the burden on courts

UNCITRAL

The United Nations Commission on International Trade Law (UNCITRAL) is a UN body established in
1966 to harmonize and modernize international trade laws. It develops legal frameworks for
arbitration, mediation, electronic commerce, and international trade dispute resolution, ensuring
consistency in commercial laws across nations.

Key Contributions:

1. UNCITRAL Model Law on Arbitration (1985, amended 2006) – Forms the basis of arbitration laws
in many countries, including India’s Arbitration and Conciliation Act, 1996.

2. UNCITRAL Arbitration Rules (1976, revised 2010, 2013) – Standardized procedural rules for
international arbitration.

3. New York Convention (1958) – Facilitates the recognition and enforcement of foreign arbitral
awards.

4. UNCITRAL Model Law on International Commercial Mediation (2002, amended 2018) – Promotes
alternative dispute resolution (ADR).

India actively incorporates UNCITRAL guidelines in its arbitration laws, aligning its dispute resolution
system with international standards. This helps in attracting foreign investment and resolving cross-
border commercial disputes efficiently.

ARBITRATION AGREEMENT

An arbitration agreement is a written contract where parties agree to resolve disputes through
arbitration instead of courts. It is governed by Section 7 of the Arbitration and Conciliation Act, 1996
in India.

Key Features:
Must be in writing (can be a separate contract or a clause in an existing contract).

Disputes must be clearly defined as subject to arbitration.

Parties must agree to appoint an arbitrator or follow an appointment process.

Legally binding and enforceable in courts.

If a dispute arises, courts must refer parties to arbitration (Section 8), unless the agreement is invalid.

LOKPAL

The Lokpal is India’s anti-corruption ombudsman, established under the Lokpal and Lokayuktas Act,
2013 to investigate corruption complaints against public officials, including the Prime Minister,
Ministers, and MPs (except in certain cases related to national security).

Key Features:

Composition: A chairperson (former CJI or SC judge) and up to 8 members (50% from SC/ST/OBC,
minorities, or women).

Jurisdiction: Covers public servants, including Group A, B, C, and D officials.

Investigation Power: Can direct the CBI for inquiries and prosecution.

- Its role intersects with Alternative Dispute Resolution (ADR) in the following ways:

1. Mediation in Corruption Cases:

Though the Lokpal’s main function is investigation, it can encourage settlements in minor corruption
cases through mediation.

This can help reduce litigation burden and ensure quicker resolutions.

2. Arbitration & Conciliation in Public Disputes:

If corruption allegations arise in contractual disputes involving government bodies, ADR methods like
arbitration or conciliation may be suggested before formal investigation.

Helps prevent misuse of corruption complaints in business disputes.

3. Preventive ADR Mechanisms:

The Lokpal can recommend systemic reforms to prevent corruption-related disputes.

Encouraging whistleblower protection and compliance programs can reduce arbitration/litigation

needs.

Justice Ajay Manikrao Khanwilkar is the current Chairperson of the Lokpal of India. He was sworn in
on March 10, 2024.
FOREIGN AWARD

A foreign award in the Indian context is an arbitral award made outside India in disputes involving at
least one Indian party. It is governed by Part II of the Arbitration and Conciliation Act, 1996, which
provides for its enforcement under two international conventions:

1. New York Convention (1958) – More widely recognized and applied.

2. Geneva Convention (1927) – Less commonly used today.

Enforcement Process in India (Sections 47-49)

The award-holder must file an application in a High Court.

The court reviews whether the award meets the New York/Geneva Convention conditions.

Once recognized, the award is enforced like a civil court decree.

Grounds for Refusal (Section 48)

An Indian court may refuse enforcement if:

The arbitration agreement is invalid.

Lack of proper notice or violation of due process.

The award deals with issues beyond the arbitration agreement.

The award violates Indian public policy (e.g., fraud, corruption, or fundamental legal principles).

Judicial Approach

The Supreme Court of India has taken a pro-arbitration stance, limiting judicial interference in foreign
award enforcement (e.g., Vijay Karia v. Prysmian Cavi, 2020).

ARBITRAL AWARD

An arbitral award is the final decision given by an arbitrator or arbitral tribunal in an arbitration
proceeding. It is legally binding and resolves the dispute between parties.

In India, arbitral awards are governed by the Arbitration and Conciliation Act, 1996, which classifies
them as:

1. Domestic Awards (awards made in India).

2. Foreign Awards (awards made outside India, enforceable under the New York Convention or
Geneva Convention).

Domestic awards are enforced like a civil court decree (Section 36), while foreign awards require
court recognition (Sections 47-49) before enforcement. Courts can set aside an award only on limited
grounds such as public policy violations, fraud, or procedural irregularities.

FOREIGN AWARD IN THE INDIAN CONTEXT

A foreign award in India refers to an arbitral award made outside India in a dispute involving at least
one Indian party. It is governed by Part II of the Arbitration and Conciliation Act, 1996, which
incorporates the principles of the New York Convention (1958) and the Geneva Convention (1927).

1. Definition of Foreign Award (Section 44 of Arbitration Act, 1996)

An award is considered "foreign" if:

1. It is made in a country outside India.

2. It is given in a dispute arising from a legal relationship (contractual or otherwise).

3. The country where it is made is a signatory to the New York or Geneva Convention.

4. The dispute was resolved through an arbitration agreement between the parties.

Thus, a foreign award is enforceable in India but not automatically binding—it must go through a
recognition and enforcement process in Indian courts.

2. Legal Framework for Foreign Awards in India

Foreign awards are recognized and enforced under Part II of the Arbitration and Conciliation Act,
1996, which is divided into:

(A) New York Convention Awards (Sections 44-52)

Applies to foreign awards from countries that are signatories to the New York Convention (1958).

India must have notified the country as a reciprocating territory (e.g., the USA, UK, France,
Singapore, etc.).

The award is treated as a decree of an Indian court once enforcement is allowed.

3. Enforcement of Foreign Awards in India (Section 47-49)

Step 1: Application for Enforcement

The award-holder must apply to the High Court in whose jurisdiction enforcement is sought.

The application must include:

1. Original or certified copy of the arbitral award.

2. Arbitration agreement under which the award was granted.

3. Official translation if the award is in a foreign language.

Step 2: Court Examination

The court reviews whether the award meets the New York Convention requirements.

If satisfied, the court recognizes and enforces the award.

Step 3: Execution as a Decree

Once recognized, the award is enforced like a civil court decree under Indian law.

4. Grounds for Refusal of Enforcement (Section 48)

An Indian court may refuse to enforce a foreign award if:

1. Incapacity of Parties – If one of the parties was legally incapable of entering into an arbitration
agreement.

2. Improper Notice – If the losing party was not properly informed about the arbitration proceedings.

3. Award Beyond Scope of Arbitration Agreement – If the award includes matters outside the
agreement’s scope.

4. Violation of Agreed Procedure – If arbitration was not conducted as per the parties’ agreement.

5. Award Not Yet Binding – If the award is not final or has been set aside in the country where it was
made.

6. Contrary to Indian Public Policy – If the award:

Was obtained by fraud or corruption.

Violates fundamental policy of Indian law.

Is against India’s morality or justice principles.

The 2015 and 2019 amendments clarified that mere errors in law or facts do not make an award
unenforceable.

5. Key Supreme Court Cases on Foreign Awards

(A) Renusagar Power Co. v. General Electric Co. (1994)

Defined public policy narrowly—only fundamental violations could block enforcement.

(B) Shri Lal Mahal Ltd. v. Progetto Grano Spa (2013)

Confirmed that Indian courts cannot review the merits of a foreign award.

(C) Vijay Karia v. Prysmian Cavi (2020)

Reaffirmed that public policy should not be misused to delay enforcement.

(D) NAFED v. Alimenta S.A. (2020)

Refused enforcement as the award violated Indian export regulations.

SECTION 89 CPC

Key Provisions of Section 89 CPC:

1. Reference to ADR Methods:

If the court believes that a dispute can be settled through ADR, it may refer the parties to one of the
following methods:

Arbitration (as per the Arbitration and Conciliation Act, 1996)

Conciliation (as per the Arbitration and Conciliation Act, 1996)

Judicial Settlement (including Lok Adalat)

Mediation

2. Procedure for Reference:

The court examines whether elements of settlement exist in the case.

If yes, it refers the matter to the appropriate ADR mechanism.

If ADR fails, the case proceeds in court as per regular procedure.

3. Objective of Section 89:

Reduce the backlog of cases.

Promote speedy and cost-effective justice.

Encourage parties to resolve disputes amicably.

Landmark Case: Afcons Infrastructure Ltd. v. Cherian Varkey Construction Co. (2010)

The Supreme Court clarified the scope of Section 89 and stated:

ADR should not be forced if parties are unwilling.

The court should choose the appropriate ADR mechanism based on the nature of the dispute.