Goemkapronn desk
Panaji: With disputes affecting parties, including businesses, across the global community, alternate dispute resolution (ADR) has emerged as the powerful tool to address these challenges, Stated Ms. Justice Hima Kohli, Judge, Supreme Court of India.
She was speaking as the Chief Guest at the Conference on Ease To Justice Through Arbitration and Mediation in Commercial Disputes organised by the Indian Council of Arbitration (ICA) at Vagator.
Also present were Mr. Justice Mahesh Sharadchandra Sonak, Judge, High Court of Bombay at Goa, Mr. Arun Chawla, Director General, ICA, Mr. J.E. Coelho Pereira, Senior Advocate, President, Bar Association of Bombay High Court at Goa and Ex-Adv. General (Goa), and Mr. N G Khaitan, President, ICA & Senior Partner, Khaitan & Co.
Justice Kohli said that ADR is known for its flexibility, adaptability and efficiency, making it valuable to navigate the complexities of global business.
“In today’s world, thanks to globalisation, everything is moving at a fast pace. This has led to increased commercial transactions with businesses spanning across cultural and geographical boundaries. This has thrown up a variety of legal challenges. International trade and investments have grown phenomenally, making dispute resolutions more complex. Disputes can affect not only the parties involved but the entire global community. To address these challenges, ADR has emerged as a powerful tool for businesses. ADR is known for its flexibility, adaptability and efficiency making it valuable to navigate the complexities of global business,” she stated.
Stating that the concept of arbitration harks back to the panchayat system or the village council where disputes were amicably resolved through collective deliberation, this tradition is steeped in the ethos of community participation and consensus building that reflects our country’s commitment to inclusivity and harmony.
“As per data published by the National Legal Services Authority for 2021-22, India has 464 ADR centres, out of which 397 are functional, and 570 mediation centres and 16,565 mediators and counting, while 53,000 cases have been settled through mediation. The Mediation Act 2023, which is a significant milestone in the Indian legal landscape, is not merely an Act, but a testament of our collective yearnings for a more efficient and harmonious and less adversarial method of dispute resolution. It offers autonomy to parties to resolve their differences creatively, preserves relationships and saves both time and resources,” she added.
In his address, Justice Sonak stressed on the importance of developing an ADR culture in the country.
Many countries, especially South East Asian countries like Singapore, have invested in ADR through conciliation, arbitration and mediation. We must develop an ADR culture in India which is best developed through dissemination. We must disincentivize resort to frivolous litigation aimed only at exploiting our unfortunately tardy legal process. The contracting parties are often fully aware of their breaches and weaknesses but would resist enforcement simply because it is commercially profitable to do so. The vagaries of litigation encourage unethical practices and also incentivise taking of chances. This culture and attitude have to change,” he said.
“One of the major stakeholders, even in commercial disputes, is government or public sector undertakings. They must be sensitised on the virtues of ADR, which should now form one of the most important components of the National Litigation Policy. Justice Shrikrishna has suggested that this policy should be renamed as the National Disputes Resolution Policy rather than National Litigation Policy,” he added.
In his opening remarks, Chawla said that the demand for efficient and swift resolution of disputes has never been more critical.
“India’s economy has become increasingly interconnected with the rest of the world and exhibits dynamic growth. The demand for efficient and swift resolution of disputes has never been more critical. In the past, the Government of India has emphasised at various forums on the access and ease of justice. It is often said that inordinate delay and cost of the legal process and inaccessibility are impeding the effective delivery of justice,” he said.
“These issues especially aggravate economic transactions and impede investments and growth of the economy. Hence, to ensure timely, cost-effective and accessible solutions, it is pertinent to have credible and alternate means of dispute resolution like arbitration and mediation, and appropriate institutions. Alternate dispute resolution also encompasses conflict avoidance and conflict management resolution. ADR is also used to prevent potential disputes between parties like in elder mediation and succession of family business for the next generation,” he further added.
