For a nation with a population of over 1.3 billion people, providing accessible and speedy justice through conventional litigation in courts is an immense challenge in India. The massive backlog of over 40 million pending cases across different levels of the judiciary requires innovative solutions. (Source: Economic Survey 2018-19, Government of India) This is where Alternative Dispute Resolution (ADR) mechanisms have emerged as a gamechanger, offering a quicker, more economical and less adversarial approach to resolving disputes.

What is ADR?
ADR refers to techniques for disagreeing parties to come to an agreement short of litigation. It covers a range of processes like arbitration, mediation, conciliation and negotiation as means of amicable dispute settlement. The focus of ADR is to facilitate dialogue between parties towards a mutually accepted solution, avoiding the formalities and adversarial nature of court battles.

Growth of ADR in India
While informal community mediation has ancient roots in India's panchayat system, the modern ADR movement began in the 1980s through sector-specific legislation like the Arbitration and Conciliation Act 1996. However, it is only in the last couple of decades that ADR has seen exponential growth and acceptance across all aspects of legal practice in India.

The Statistics Speak Volumes

1. According to the annual report of the Commercial Division of the Delhi High Court, up to 50% of commercial cases are now getting settled via mediation as of 2022, compared to just 15% a few years ago. (Source: Delhi High Court Annual Report 2021-22)
2. The Mumbai Center for International Arbitration (MCIA) reported administering over 500 domestic and international arbitrations in 2021-22, with a combined dispute value of over ₹35,000 crores ($4.5 billion). (Source: MCIA Annual Report 2021-22)
3. The Bangalore Mediation Centre, established in 2006, reported resolving over 15,000 cases through mediation as of 2022 across domains like matrimonial, corporate, banking, etc. (Source: BMC Statistics 2022)
4. A study by the Federation of Indian Chambers of Commerce & Industry (FICCI) in 2021 estimated time and cost savings of 64% and 68% respectively through mediation as compared to litigation. (Source: FICCI ADR Report 2021)
    

Institutional Growth
The rapid growth of ADR in India is evident from the burgeoning institutional framework and initiatives supporting it across the country:

1. At least 22 States/UTs in India have enacted dedicated laws and rules for setting up mediation centers attached to courts, training accredited mediators and making mediation proceedings enforceable. (Source: Gazette Notifications of State Mediation Acts)
2. The NITI Aayog, India's policy think tank, recommended employing ADR methods to resolve disputes in the emerging Gig Economy and shortening dispute resolution timelines to improve the ease of doing business in its 2021 report. (Source: NITI Aayog Report on Gig Economy 2021)
3. India is home to specialized ADR institutions like the International Centre for Alternative Dispute Resolution (ICADR) and the Indian Institution of Arbitration & Mediation (IIAM) dedicated to administering arbitrations and mediations as well as training professionals. (Source: ICADR and IIAM Websites)
4. In 2018, the Government amended the Arbitration & Conciliation Act to make arbitration by an accredited institutional body the default mechanism rather than ad-hoc tribunals. It also introduced strict time limits to reduce delays in the arbitration process. (Source: Arbitration & Conciliation (Amendment) Act, 2018)
5. The Supreme Court of India established the SAMARTH Resolution Alliance in 2019 comprising top legal minds, industry leaders and former judges to promote mediation and negotiation as mainstream dispute resolution methods. (Source: Gazette Notification on SAMARTH, 2019)
    

Benefits Driving the Adoption
The benefits of ADR methods in expediting dispute resolution and reducing the burden on Indian courts have been the key drivers of their widespread adoption:

1. Time & Cost Efficiency: ADR processes like mediation and arbitration can resolve conflicts in a matter of months compared to litigation spanning years or even decades across multiple court levels. According to the Economic Survey 2018-19, on average, a case in the subordinate courts takes about 7 years while in High Courts it is around 5 years. Quick disposals through ADR translate into immense cost savings in legal fees as well as operational disruptions and opportunistic costs for businesses locked in disputes.
2. Preserving Relationships: In cases involving family disputes between relatives, contractual obligations between businesses with continuing relationships, or workplace issues between employers and employees, ADR processes focus on preserving relationships rather than adversarial court battles leading to permanent breakdowns. This is highly valued in India's cultural context emphasizing social harmony.
3. Confidentiality & Enforceability: While court judgments are public records, arbitration proceedings and awards are confidential in nature as per the Arbitration & Conciliation Act. Arbitral awards are also easier to enforce both within India and internationally compared to domestic court judgments, making arbitration preferable for commercial and business disputes involving parties from multiple jurisdictions. India is a signatory to the New York Convention on enforcement of foreign arbitral awards across 166 nations.
4. Subject Matter Specialization: A key advantage of ADR is the ability to have arbitrators and mediators with domain-specific expertise preside over disputes in areas as diverse as construction, maritime, intellectual property, taxation, insolvency etc. Such specialized expertise allows more effective dispute resolution compared to generalist court environments.

The Road Ahead
While still at a relatively nascent stage compared to developed economies, the adoption of ADR in India reflects the nation's shift towards an integrated dispute resolution landscape combining litigation, arbitration, mediation and negotiation as per the needs of different conflict scenarios. The growth of a robust ADR ecosystem with credible institutions aligned to global best practices holds the key to incentivizing parties to opt for these alternate routes to achieve timely and affordable remedies.

Recent budget proposals by the Indian government suggest the intent to abolish the decades-old system of Tribunals and instead promote ADR mechanisms like mediation as the preferred approach to settle tax disputes. (Source: Union Budget 2022-23 Speech) The Supreme Court of India has also issued directives pushing for pre-litigation mediation to be made mandatory and reduce the pendency burden on courts. (Source: Supreme Court Case Management Rules, 2022)

International recognition and seamless integration of India's ADR regime as per global conventions like the Singapore Convention on Mediation (signed by India in 2020) will be crucial factors spurring further growth in cross-border deal-making and investments into the country.

As India's justice infrastructure embraces the new normal of leveraging technology through platforms like electronic filing, virtual courts and online dispute resolution (ODR), ADR processes are poised for exponential growth in the years ahead. Efficient, low-cost conflict resolution through structured ADR systems will be pivotal for catalyzing an entrepreneurial, innovation-driven economy in India while preserving access to justice for all sections of the society.