Chapter: I

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Chapter:-I
INTRODUCTION
Alternative Dispute Resolution ("ADR") refers to any means of settling disputes outside of the
courtroom. ADR typically includes early neutral evaluation, negotiation, conciliation, mediation,
and arbitration. As burgeoning court queues, rising costs of litigation, and time delays continue
to plague litigants, more states have begun experimenting with ADR programs. Some of these
programs are voluntary; others are mandatory.
ADR is a term used to describe several different methods of resolving legal disputes without
going to court. The rising cost of litigation is making traditional lawsuits impractical for many
individuals and businesses. At the same time, civil courts face backlogged dockets, resulting in
delays of a year or more for private parties to have their cases heard by a jury.
The ADR movement in the United States was launched in the 1970s, beginning as a social
movement to resolve community-wide civil rights disputes through mediation, and as a legal
movement to address increased delay and expense in litigation arising from an overcrowded
court system
Arbitration is a process of judging and settling of disputes by a person not acting as a an judge
appointed by law, but by a person or a group of person jointly accepted by the parties in disputes
as having the authority to examine the dispute and give judgment. The arbitrator appointed may
have a legal background, but this is not an essential requirement for acting as an arbitrator. Such
arbitration judgment, generally called awards, are limited to decision involving monetary matters
and meeting of contractual, commercial and social obligations.
The concept of Lok Adalat is an innovative Indian contribution to the world jurisprudence. Lok
Adalat means peoples’ court. India as a long tradition and history of such methods practiced in
the society at grass root level. These are called Panchayat and legally it’s called arbitration. In
Lok Adalat justice is dispensed.
Legal aid is essential to guaranteeing equal access to justice for all, as provided for by Article 6.3
of the European Convention on Human Rights regarding criminal law cases. Especially for
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citizens who do not have sufficient financial means, the provision of legal aid to clients by
governments will increase the likelihood, within court proceedings, of being assisted by legal
professionals for free (or at a lower cost) or of receiving financial aid.1
Legal aid is required in many forms and at various stages, for obtaining guidance, for resolving
disputes in Courts, tribunals or other authorities. It has manifold facets. The explosion in
population, the vast changes brought about by scientific, technological and other developments,
and the all round enlarged field of human activity reflected in modern society, and the
consequent increase in litigation in Courts and other forums demand that the service of
competent persons with expertise in law is required in many stages and at different forums or
levels and should be made available.
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Chapter: II
ALTERNATIVE DISPUTE RESOLUTION
INTRODUCTION
Alternative dispute resolution (ADR) (also known as external dispute resolution in some
countries, such as Australia includes dispute resolution processes and techniques that act as a
means for disagreeing parties to come to an agreement short of litigation. It is a collective term
for the ways that parties can settle disputes, with (or without) the help of a third party. Despite
historic resistance to ADR by many popular parties and their advocates, ADR has gained
widespread acceptance among both the general public and the legal profession in recent years. In
fact, some courts now require some parties to resort to ADR of some type, usually mediation,
before permitting the parties' cases to be tried (indeed the European Mediation Directive (2008)
expressly contemplates so-called "compulsory" mediation; this means that attendance is
compulsory, not that settlement must be reached through mediation). The rising popularity of
ADR can be explained by the increasing caseload of traditional courts, the perception that ADR
imposes fewer costs than litigation, a preference for confidentiality, and the desire of some
parties to have greater control over the selection of the individual or individuals who will decide
their dispute. Some of the senior judiciary in certain jurisdictions (of which England and Wales
is one) are strongly in favour of this (ADR) use of mediation to settle disputes. 2Alternative
Dispute Resolutions ("ADR") are alternative methods that; an independent, objective and
impartial third party provides the parties of the legal dispute to reach an agreement about the
dispute by bringing them together and communicating with each other.
Dispute resolution in Turkey is a fundamental duty of State. For any dispute arising from a legal
relationship between the concerned parties, application to the state courts is the initial and
essential judicial remedy.
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programs are voluntary; others are mandatory.3
WHAT IS ALTERNATIVE DISPUTE RESOLUTION (ADR)?
ADR is a term used to describe several different methods of resolving legal disputes without
going to court. The rising cost of litigation is making traditional lawsuits impractical for many
individuals and businesses. At the same time, civil courts face backlogged dockets, resulting in
delays of a year or more for private parties to have their cases heard by a jury. New types of
proceedings have been developed in response, and they are proving beneficial, saving time and
money for everyone involved. These include arbitration, mediation, and additional kinds of ADR
designed for specific cases and subject matters.
The basic goals of ADR include:

1. To create a speedier and more efficient forum in which to resolve civil disputes;
2. To lower the costs of the arbitration process, which continue to rise under the
present system;
3. To reduce overcrowding in the public courts;
4. To allow the parties involved in the dispute greater control over the resolution
process;
5. To provide a more confidential forum of debate;
6. And, to allow the mediator and the parties involved to work more closely
together toward a satisfactory resolution.
Obviously, this list is not all–inclusive, but it provides a basic framework of what
exactly alternative dispute resolution seeks to accomplish.4
The term can refer to everything from facilitated settlement negotiations in which disputants are
encouraged to negotiate directly with each other prior to some other legal process, to arbitration
systems or minitrials that look and feel very much like a courtroom process. Processes designed
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to manage community tension or facilitate community development issues can also be included
within the rubric of ADR. ADR systems may be generally categorized as negotiation,
conciliation/mediation, or arbitration systems. Negotiation systems create a structure to
encourage and facilitate direct negotiation between parties to a dispute, without the intervention
of a third party. Mediation and conciliation systems are very similar in that they interject a third
party between the disputants, either to mediate a specific dispute or to reconcile their
relationship. Mediators and conciliators may simply facilitate communication, or may help direct
and structure a settlement, but they do not have the authority to decide or rule on a settlement.
Arbitration programs may be either binding or non-binding. Binding arbitration produces a third
party decision that the disputants must follow even if they disagree with the result, much like a
judicial decision. Non-binding arbitration produces a third party decision that the parties may
reject.5
KEY FEATURE OF ALTERNATIVE DISPUTE RESOLUTION

APPROCHES
Alternative Dispute Resolution comprises various approaches for resolving disputes in a non-
confrontational way, ranging from negotiation between the two parties, a multiparty negotiation,
through mediation, consensus building, to arbitration and adjudication The report introduces the
key skills required, with particular attention to their important role in the process of negotiation
and mediation, with examples of their application in national and international water conflicts.
Conflict is endemic to human society, among individuals and groups, and it is important to
manage it. We find stories in the Bible, in the Islamic culture, among Native Americans, First
Nations in Canada, and many other traditions that describe processes that have been used from
the earliest times to find peaceful solutions to various disputes, and much can be learned from
the past. In recent decades, the various conflict resolution approaches have become a widely
accepted field both of academic study and of practice, with official and/or legislative functions in
many countries. In international relations, they plays an increasing role in containing, managing
and resolving potential sources of conflict. The report reviews its complex development. While
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conflict can be dangerous, it also carries the possibility of producing creative cooperation in a
win–win solution. The key to this is for participants to engage as joint problem solvers, seeking
to resolve the dispute, and to try and “enlarge the pie” rather than acting as adversaries
andaggravating the situation. Alternative Dispute Resolution is of two historic types. First,
methods for resolving disputes outside of the official judicial mechanisms. Second, informal
methods attached to or pendant to official judicial mechanisms. There are in addition free-
standing and or independent methods, such as mediation programs and ombudsman offices
within organizations. The methods are similar, whether or not they are pendant, and generally
use similar tool or skill sets, which are basically sub-sets of the skills of negotiation.
For example, freeform negotiation is merely the use of the tools without any process. Negotiation
within a labor arbitration setting is the use of the tools within a highly formalized and controlled
setting.6
A mediator can play a valuable role in this process, facilitate a negotiation process which has
come to a dead end, helping the parties concerned to focus on their essential interests rather than
defend (or attack) fixed positions. The principles and procedures of consensus building are dealt
with in some detail. The report outlines the principles of negotiation, based on interests and
needs of the parties, the use of proper communication, and maintenance of a working
relationship as an essential component for reaching a durable agreement. It lists and considers
the essential skills needed by negotiators and mediators, and points the different cultural
expectations (national, regional, religious, or professional) and the psychological aspects that
affect perceptions and communications. It outlines a range of strategies for and approaches to
mediation, and the ethical problems that may arise. ADR traditions vary somewhat by country
and culture. There are significant common elements which justify a main topic, and each country
or region's difference should be delegated to sub-pages.
HISTORICAL BACKGROUND
Dispute resolution outside of courts is not new; societies world-over have long used non-judicial,
indigenous methods to resolve conflicts. What is new is the extensive promotion and
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proliferation of ADR models, wider use of court-connected ADR, and the increasing use of ADR
as a tool to realize goals broader than the settlement of specific disputes. The ADR movement in
the United States was launched in the 1970s, beginning as a social movement to resolve
community-wide civil rights disputes through mediation, and as a legal movement to address
increased delay and expense in litigation arising from an overcrowded court system. Ever since,
the legal ADR movement in the United States has grown rapidly, and has evolved from
experimentation to institutionalization with the support of the American Bar Association,
academics, courts, the U.S. Congress and state governments. For example, in response to the
1990 Civil Justice Reform Act requiring all U.S. federal district courts to develop a plan to
reduce cost and delay in civil litigation, most district courts have authorized or established some
form of ADR. Innovations in ADR models, expansion of government-mandated, court-based
ADR in state and federal systems, and increased interest in ADR by disputants has made the
United States the richest source of experience in court connected ADR. While the court-
connected ADR movement flourished in the U.S. legal community, other ADR advocates saw
the use of ADR methods outside the court system as a means to generate solutions to complex
problems that would better meet the needs of disputants and their communities, reduce reliance
on the legal system, strengthen local civic institutions, preserve disputants' relationships, and
teach alternatives to violence or litigation for dispute settlement. In 1976, the San Francisco
Community Boards program was established to further such goals. This experiment has spawned
a variety of community-based ADR projects, such as school based peer mediation programs and
neighborhood justice centers. In the 1980s, demand for ADR in the commercial sector began to
grow as part of an effort to find more efficient and effective alternatives to litigation. Since this
time, the use of private arbitration, mediation and other forms of ADR in the business setting has
risen dramatically, accompanied by an explosion in the number of private firms offering ADR
Services. The move from experimentation to institutionalization in the ADR field has also
affected U.S. administrative rule-making and federal litigation practice. Laws now in place
authorize and encourage agencies to use negotiation and other forms of ADR in rulemaking,
public consultation, and administrative dispute resolution. Internationally, the ADR movement
has also taken off in both developed and developing countries. ADR models may be straight-
forward imports of processes found in the United States or hybrid experiments mixing ADR
models with elements of traditional dispute resolution. ADR processes are being implemented to
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meet a wide range of social, legal, commercial, and political goals. In the developing world, a
number of countries are engaging in the ADR experiment, including Argentina, Bangladesh,
Bolivia, Colombia, Ecuador, the Philippines, South Africa, Sri Lanka, Ukraine, and Uruguay. 7
TYPES OF ALTERNATIVE DISPUTE RESOLUTION
The main types of ADR that deal with consumer disputes are conciliation, arbitration or
mediation and are usually provided by trade associations. If you wish to use one of these
schemes, you should ask the suppliers whether they are members of a trade association and, if so,
contact the trade association to find out whether it has a conciliation and/or arbitration service.
Some trade associations are part of the Trading Standards Institute Consumer Codes Approval
Scheme (CCAS). Any traders who are part of this scheme agree to provide good standards of
service and must provide ADR for disputes between consumers and traders.
CONCILITION
In consumer disputes, conciliation is the first stage in the arbitration process and the conciliator
is usually a member of the trade association. Both you and the supplier will be asked to give
written details of the complaint, including any evidence, and the conciliator will give an opinion
on the best solution. Any decision is not binding and won't prevent you from taking court action.
If you disagree with the opinion offered, you can then proceed to the arbitration stage or consider
suing in court. There is usually no charge for conciliation. In conciliation, the resolution of the
dispute by the parties themselves is the essential point.
In opposition to the mediation method, conciliation is based on right and rightfulness and the
history of the dispute is taken into consideration. At the same time, conciliation method is less
flexible than mediation method and is mostly based on provisions of law.
NEGOTIATION
Negotiation is a type of ADR which is generally referred to initially in case of a dispute and it
covers all methods of ADR. This type of ADR aims for the parties to settle the dispute between
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the same by negotiating and deliberating with each other with the attendance of their attorneys if
needed, without intervention of any third party.
Negotiation is a kind of ADR method that each party tries to obtain a benefit for themselves at
the end of the process by persuading the other party to act in the way the former desires.
ARBITRATION
While arbitrations are technically voluntary, many people agree to participate in arbitrations
before a dispute even arises. For example, many formal contracts require that any dispute
arising out of the contract be arbitrated. In an arbitration, the parties agree to have their case
heard by an impartial person, the arbitrator, who issues a final and binding decision. Typically,
an arbitration case is heard much faster than a court case would be heard and is less expensive
than a formal litigation. It is the process of refering a dispute to an impartial intermediar y chosen
by the parties who agree in advance to abide by the arbitrator’s award that is issued after a
hearing at which all parties have the opportunity to be heard. Arbitration resembles traditional
civil litigation in that a neutral intermediary hears the disputants’ arguments and imposes a final
and binding decision that is enforceable by the courts. One difference is that in arbitration the
disputants elect to settle anyfuture disputes by arbitration before a dispute actually arises,
whereas with civil litigation the judicial system is generally chosen by a disgruntled party after a
dispute has materialized. Another difference is that the disputants to an arbitration select the
intermediary who will serve as arbitrator, whereas parties to civil litigation have little to no
control over who will preside as the judge in judicial proceedings.Arbitration is a procedure for
settling disputes in which both you and the supplier usually agree to accept the decision of the
arbitrator as legally binding. This means you cannot take court action, except to enforce the
award if the supplier doesn't pay. The arbitrator will usually be a member of the Chartered
Institute of Arbitrators and often acts independently of the trade association. The arbitrator will
make a decision based on the written evidence presented by you and the supplier. The decision is
confidential and cannot be made public without the supplier's agreement. You will have to pay a
registration fee which may be refunded if you are successful. Some contracts for services and
delivery notes include an arbitration clause stating that you will refer any dispute to arbitration.
Although this is binding once you have signed the agreement, if the total cost is below the small
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claims limit (£10,000), you cannot be forced to arbitrate unless you gave your agreement after
the dispute arose.
MEDIATION
In mediation, an independent mediator works with the parties to come to a resolution. Mediators
are trained professionals who are able to help the parties communicate and accept a fair
resolution of their dispute. A mediator does not have the authority to impose a solution on the
parties. If the mediation is successful then the parties will sign a legally enforceable mediation
agreement to which they each agree to abide. If the mediation is ultimately unsuccessful then the
parties will fail to reach an agreement and can take their dispute to court.
Mediation is a rapidly growing ADR technique. It consists of assisted negotiations in which the
disputants agree to enlistthe help of a neutral intermediary, whose job it is to facilitate a
voluntary, mutually acceptable settlement. A mediator’s primary function is to identify issues,
explore possible bases for agreement, discuss the consequences of reaching impasse, and
encourage each party to accommodate the interests of other parties through negotiation.
However, unlike arbitrators, mediators lack the power to impose a decision on the parties if they
fail to reach an agreement on their own.
Although some jurisdictions have enacted statutes that govern mediation, most mediation
proceedings are voluntary for both parties. Accordingly, a mediator’s influence is limited by the
autonomy of the parties and their willingness to negotiate in good faith. Thus, a mediator can go
no further than the parties themselves are willing to go. Since agreements reached by mediation
bear the parties’ own imprint, however, many observers feel that they are more likely to be
adhered to than decisions imposed by an arbitrator or court. Disputants who participate in
mediation without representation of legal counsel are also more likely to adhere to settlements
when the alternative is to pursue civil litigation, where attorney’s fees consume a significant
portion of any monetary award granted to the parties.
MINITRIALS
A minitrial is a process by which the attorneys for the parties present a brief version of the case
to a panel, often comprised of the clients themselves and a neutral intermediary who chairs the
process. Expert witnesses (and less frequently, lay witnesses) may be used in presenting the case.
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After the presentation, the clients, normally top management representatives who by now are
more aware of the strengths and weaknesses of their positions, attempt to negotiate a settlement
of the dispute. If a negotiated settlement is not reached, the parties may allow the intermediary to
mediate the dispute or render a non-binding advisory opinion regarding the likely outcome of the
case were it to be tried in civil court.
Minitrials are often effective because they usually result in bringing top management officials
together to negotiate the legal issues underlying a dispute. Early in the negotiation process, upper
management is sometimes pre-occupied by the business side of a dispute. Minitrials tend to shift
management's focus to the outstanding legal issues. Minitrials also allow businesses to share
information with each other and with their attorneys, providing a forum for initial face-to-face
negotiations. Management also generally prefers the time-saving, abbreviated nature of minitrials
over the more time-consuming and costly civil-litigation alternative. Minitrials expedite
negotiations as well, by making them more realistic. Once the parties have seen their case play
out in court, even in truncated fashion, the parties are less likely to posture over less relevant or
meaningless issues.
ADVANTAGES & DISADVANTAGES OF ALTERNATIVE

DISPUTE RESOLUTION
There are many advantages, and some disadvantages, to using Alternative Dispute Resolution.
Advantages include the fact that it usually takes far less time to reach a final resolution than if
the matter were to go to trial. Usually (but not always), it costs significantly less money, as well.
Furthermore, in the case of arbitration the parties have far more flexibility in choosing what rules
will be applied to their dispute (they can choose to apply relevant industry standards, domestic
law, the law of a foreign country, a unique set of rules used by the arbitration service, or even
religious law, in some cases.).
The parties can also have their dispute arbitrated or mediated by a person who is an expert in the
relevant field. In an ordinary trial involving complicated and technical issues that are not
understood by many people outside a relevant industry, a great deal of time has to be spent
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educating the judge and jury, just so they can make an informed decision. This large time
investment often translates into a great deal of money being spent. Both sides might have to call
expert witnesses, who may charge very large fees for their time. If an arbitrator has a background
in the relevant field, however, far less time needs to be spent on this, and the parties can get to
the actual issues of the case much sooner.
There are some disadvantages, as well. Generally, arbitrators can only resolve disputes that
involve money. They cannot issue orders requiring one party to do something, or refrain from
doing something (also known as injunctions). They cannot change title to property, either. Also,
some of the safeguards designed to protect parties in court may not be present in ADR. These
might include the liberal discovery rules used in U.S. courts, which make it relatively easy to get
evidence from the other party in a lawsuit.
Also, there is very limited opportunity for judicial review of an arbitrator's decision. While a
large arbitration service could, if it so chose, have some kind of process for internal appeals, the
decision is usually final and binding, and can only be reviewed by a court in limited cases. This
generally happens when the original arbitration agreement is found to be invalid. Because both
parties must voluntarily agree to arbitration, if the consent of one party is obtained by fraud or
force, it will not be enforced. Also, if the decision of the arbitrator is patently unfair, it will not
be enforced. This is a difficult standard to meet. The fact that the arbitrator made a decision that
the court would not have made is not, by itself, a basis to overturn the decision.
A court might also overturn an arbitrator's decision if it decided issues that were not within the
scope of the arbitration agreement.8
CONCLUSION
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programs are voluntary; others are mandatory.
A wide variety of processes, practices, and techniques fall within the definition of "alternative
dispute resolution." Arbitration and mediation are the best known and most frequently used types
of ADR, but not the only ones. Minitrials, early neutral evaluations, and summary jury trials are
less well-known forms of ADR. Many of these ADR techniques have little in common except
that negotiation plays a prominent role in each. Parties to ADR procedures generally agree that a
negotiated settlement is worth pursuing before investing time and money in full blown civil
litigation.
The procedures and techniques discussed above are the most commonly employed methods of
ADR. Negotiation plays an important role in each method, either primarily or secondarily.
However, there are countless other ADR methods, many of which modify or combine the above
methods. For example, it is not uncommon for disputants to begin negotiations with early neutral
evaluation and then move to nonbinding mediation. If mediation fails, the parties may proceed
with binding arbitration. The goal with each type of ADR is for the parties to find the most
effective way of resolving their dispute without resorting to litigation. The process has been
criticized as a waste of time by some legal observers who believe that the same time could be
spent pursuing the claims in civil court, where negotiation also plays a prominent role and
litigants are protected by a panoply of formal rights, procedures, and rules. But many participants
in unsuccessful ADR proceedings believe it is useful to determine that their disputes are not
amenable to a negotiated settlement before commencing a lawsuit.
Despite its success over the past three decades, ADR is not the appropriate choice for all
disputants or all legal disputes. Many individuals and entities still resist ADR because it lacks the
substantive, procedural, and evidentiary protections available in formal civil litigation. For
example, parties to ADR typically waive their rights to object to evidence that might be deemed
inadmissible under the rules of court. Hearsay evidence is a common example of evidence that is
considered by the parties and intermediaries in ADR forums but that is generally excluded from
civil trials. If a disputant believes that he or she would be sacrificing too many rights and
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protections by waiving the formalities of civil litigation, ADR will not be the appropriate method
of dispute resolution.
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Chapter: III
ARBITRATION :- A CASE STUDY
INTRODUCTION
Arbitration, often called alternative dispute resolution is a means of settling a dispute between
parties instead of one of the parties filing a civil lawsuit. Several benefits of arbitration are that it
is often alot less expensive than filing suit and the matter is often resolved much sooner than
going to court. Civil suits must find a slot on the court's calendar, depending on the jurisdiction
this can be anywhere from six to eighteen months or longer.
Courts in different national systems vary with respect to how interventionist they are in the
arbitral process. In recent decades, as India has entered the ranks of the world’s major trading
nations, the role of its judiciary in the matter of arbitration has increasingly been the subject of
debate, as a result of a number of controversial decisions given by the courts. Arbitration can
only take place if both parties have agreed to it. In the case of future disputes arising under a
contract, the parties insert an arbitration clause in the relevant contract. An existing dispute can
be referred to arbitration by means of a submission agreement between the parties. In contrast to
mediation, a party cannot unilaterally withdraw from arbitration.
Under the WIPO Arbitration Rules, the parties can select a sole arbitrator together. If they
choose to have a three-member arbitral tribunal, each party appoints one of the arbitrators; those
two persons then agree on the presiding arbitrator. Alternatively, the Center can suggest potential
arbitrators with relevant expertise or directly appoint members of the arbitral tribunal. The
Center maintains an extensive roster of arbitrators ranging from seasoned dispute-resolution
generalists to highly specialized practitioners and experts covering the entire legal and technical
spectrum of intellectual property.9
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SCOPE & OBJECT OF THE ARBITRATION AND

CONCILATION ACT, 1996.
The Arbitration and Conciliation Act, 1996 enacted in 1996 is an Act to consolidate and
amend the law relating to domestic arbitration, international commercial arbitration and
enforcement of foreign arbitral awards. Copy of the Act is annexed as Annexure-I. The
Act is based on the Model Law adopted by the United Nations Commission on
International Trade Law (UNCITRAL) in 1985. The objects and basis of the said Act is
to speedy disposal with least court intervention. Some of the objects, as mentioned in the
Statement of Objects and Reasons for the Arbitration and Conciliation Bill, 1995 are as
follows:
i) to comprehensively cover international and commercial arbitration and conciliation as
also domestic arbitration and conciliation;
ii) to make provision for an arbitral procedure which is fair, efficient and capable of
meeting the needs of the specific arbitration;
iii) to provide that the arbitral tribunal gives reasons for its arbitral award;
iv) to ensure that the arbitral tribunal remains within the limits of its jurisdiction;
v) tominimise the supervisory role of courts in the arbitral process;
vi) to permit an arbitral tribunal to use mediation, conciliation or other procedures during
the arbitral proceedings to encourage settlement of disputes;
vii) to provide that every final arbitral award is enforced in the same manner as if it were
a decree of the court;
viii) to provide that a settlement agreement reached by the parties as a result ofconciliation
proceedings will have the same status and effect as an arbitral award on
agreed terms on the substance of the dispute rendered by an arbitral tribunal; andix) to provide
that, for purposes of enforcement of foreign awards, every arbitral award made in a country to
which one of the two International Conventions relating to foreign arbitral awards to which India
is a party applies, will be treated as a foreign award.” The Supreme Court in the case of ONGC
v. Saw Pipes Ltd.,10examined the scope and ambit of jurisdiction of the Court under section 34 of
the Act. It was held that if the award is (a) contrary to the substantive provision of law, or (b) the
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(2003) 5 SCC705
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provisions of the Act, or (c) against the terms of thecontract, it would be patently illegal which
could be interfered u/s 34. Supreme Court further held that phrase “public policy of India” use in
Section 34 is required to be given a wider meaning and stated that the concept of public policy
connotes some matter which concerns public good and the public interest. The award which is on
face of it, patently in violation of statutory provisions cannot
be said to be in public interest.
Scheme of the Act:

The Act is a composite piece of legislation. It provides for domestic arbitration; international
commercial arbitration; enforcement of foreign award and conciliation (the latter being based on
the UNCITRAL Conciliation Rules of 1980). The more significant provisions of the Act are to
be found in Part I and Part II thereof. Part I contains the provisions for domestic and international
commercial arbitration in India. All arbitration conducted in India would be governed by Part I,
irrespective of the nationalities of the parties. Part II provides for enforcement of foreign awards.
Part I is more comprehensive and contains extensive provisions based on the Model Law. It
provides inter alia for arbitrability of disputes; non-intervention by courts; composition of the
arbitral tribunal; jurisdiction of arbitral tribunal; conduct of the arbitration proceedings; recourse
against arbitral awards and enforcement. Part II on the other hand, is largely restricted to
enforcement of foreign awards governed by the New York Convention or the Geneva
Convention. Part II is thus, (by its very nature) not a complete code. This led to judicial
innovation by the Supreme Court in the case of Bhatia International v. Bulk Trading,11 Indian
courts jurisdiction was invoked by a party seeking interim measures of protection. Hence the
Court was faced with a situation that there was no propriovigorelegal provision under which it
could grant interim measure of protection. Creatively interpreting the Act, the Supreme Court
held that the “general provisions” of Part I would apply also to offshore arbitrations, unless the
parties expressly or impliedly exclude applicability of the same. Hence by judicial innovation,
the Supreme Court extended applicability of the general provisions of Part I to off-shore
arbitrations as well.
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(2002) 4 SCC 105 (‘Bhatia’).
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It may be stated that this was premised on the assumption that the Indian Court would otherwise
have jurisdiction in relation to the matter (in the international sense). This became clear in a
subsequent decision of the Supreme Court in ShreejeeTraco (I) Pvt. Ltd. v.
PaperlineInternational Inc.12the Court’s assistance was sought for appointing an arbitrator in an
offshore arbitration. The power of appointment by court exists under Section 11 of Part I of the
Act. The Court declined to exercise jurisdiction. It found that the arbitration was to be conducted
in New York and that the law governing the arbitration proceedings would be the law of seat of
the arbitration. Hence, the extension of Part I provisions to foreign arbitrations sanctified by
Bhatia.13
ARBITRATION
Arbitration, a form of alternative dispute resolution (ADR), is a technique for the resolution of
disputes outside the courts. The parties to a dispute refer it to arbitration by one or more persons
(the "arbitrators", "arbiters" or "arbitral tribunal"), and agree to be bound by the arbitration
decision (the "award"). A third party reviews the evidence in the case and imposes a decision that
is legally binding on both sides and enforceable in the courts.
Arbitration is a process of judging and settling of disputes by a person not acting as a an judge
appointed by law, but by a person or a group of person jointly accepted by the parties in disputes
as having the authority to examine the dispute and give judgments. The arbitrator appointed may
have a legal background, but this is not an essential requirement for acting as an arbitrator. Such
arbitration judgement, generally called awards, are limited to decision involving monetary
matters and meeting of contractual, commercial and social obligations. Arbitrators are not
expected to give punishments such as jail sentence.
The process of arbitration is employed to facilitate settlement of disputes without incurring the
cost and time of formal legal process. Arbitration is now used by individuals, groups, companies
and nations.
12
(2003) 9 SCC 79.
13
https://ipba.org, on 16/11/14 at 05:32pm.
19 | P a g e
Arbitration is adjudicatory, as opposed to advisory, because of the fact that the arbitrator (usually
a retired judge or attorney) renders a decision at the end of an arbitration hearing, and that
decision is final and binding, subject only to a very limited court review. Arbitration is
sometimes referred to as "non-binding" if the parties agree to make it so, but that is really a
misnomer. Think of arbitration as a binding, adjudicatory process.
Other forms of ADR include mediation (a form of settlement negotiation facilitated by a neutral
third party) and non-binding resolution by experts. Arbitration is often used for the resolution of
commercial disputes, particularly in the context of international commercial transactions. In
certain countries such as the United States, arbitration is also frequently employed in consumer
and employment matters, where arbitration may be mandated by the terms of employment or
commercial contracts.
Arbitration can be either voluntary or mandatory (although mandatory arbitration can only come
from a statute or from a contract that is voluntarily entered into, where the parties agree to hold
all existing or future disputes to arbitration, without necessarily knowing, specifically, what
disputes will ever occur) and can be either binding or non-binding. Non-binding arbitration is
similar to mediation in that a decision can not be imposed on the parties. However, the principal
distinction is that whereas a mediator will try to help the parties find a middle ground on which
to compromise, the (non-binding) arbitrator remains totally removed from the settlement process
and will only give a determination of liability and, if appropriate, an indication of the quantum of
damages payable. By one definition arbitration is binding and so non-binding arbitration is
technically not arbitration.14
ADVANTAGES AND DISADVANTAGES
Parties often seek to resolve disputes through arbitration because of a number of perceived
potential advantages over judicial proceedings:
 In contrast to litigation, where one cannot "choose the judge",arbitration allows the
parties to choose their own tribunal. This is especially useful when the subject matter of
14
20 | P a g e
the dispute is highly technical: arbitrators with an appropriate degree of expertise (for
example, quantity surveying expertise, in the case of a construction dispute, or expertise
in commercial property law, in the case of a real estate dispute) can be chosen.
 Arbitration is often faster than litigation in court
 Arbitration can be cheaper and more flexible for businessesArbitral proceedings and an
arbitral award are generally non-public, and can be made confidential. In arbitral
proceedings the language of arbitration may be chosen, whereas in judicial proceedings
the official language of the country of the competent court will be automatically applied
 Because of the provisions of the New York Convention 1958, arbitration awards are
generally easier to enforce in other nations than court judgments
 In most legal systems there are very limited avenues for appeal of an arbitral award,
which is sometimes an advantage because it limits the duration of the dispute and any
associated liability
Some of the disadvantages include:
 Arbitration may be subject to pressures from powerful law firms representing the stronger
and wealthier party.
 Arbitration agreements are sometimes contained in ancillary agreements, or in small print
in other agreements, and consumers and employees often do not know in advance that
they have agreed to mandatory binding pre-dispute arbitration by purchasing a product or
taking a job
 If the arbitration is mandatory and binding, the parties waive their rights to access the
courts and to have a judge or jury decide the case
 In some arbitration agreements, the parties are required to pay for the arbitrators, which
adds an additional layer of legal cost that can be prohibitive, especially in small consumer
disputes. In some arbitration agreements and systems, the recovery of attorneys' fees is
unavailable, making it difficult or impossible for consumers or employees to get legal
representation; however most arbitration codes and agreements provide for the same
relief that could be granted in court
 If the arbitrator or the arbitration forum depends on the corporation for repeat business,
there may be an inherent incentive to rule against the consumer or employee
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 There are very limited avenues for appeal, which means that an erroneous decision
cannot be easily overturned
 Although usually thought to be speedier, when there are multiple arbitrators on the panel,
juggling their schedules for hearing dates in long cases can lead to delays
 In some legal systems, arbitral awards have fewer enforcement options than judgments;
although in the United States arbitration awards are enforced in the same manner as court
judgments and have the same effect
 Arbitrators are generally unable to enforce interlocutory measures against a party, making
it easier for a party to take steps to avoid enforcement of member or a small group of
members in arbitration due to increasing legal fees, without explaining to the members
the adverse consequences of an unfavorable ruling
 Rule of applicable law is not necessarily binding on the arbitrators, although they cannot
disregard the law. Discovery may be more limited in arbitration or entirely nonexistent.,
 The potential to generate billings by attorneys may be less than pursuing the dispute
through trial
 Unlike court judgments, arbitration awards themselves are not directly enforceable. A
party seeking to enforce an arbitration award must resort to judicial remedies, called an
action to "confirm" an award
 Although grounds for attacking an arbitration award in court are limited, efforts to
confirm the award can be fiercely fought, thus necessitating huge legal expenses that
negate the perceived economic incentive to arbitrate the dispute in the first place.
KIND OF ARBITRATION
(1) Ad-hoc Arbitration: When a dispute or difference arises between the parties in courseof
commercial transaction and the same could not be settled friendly by negotiation inform to
conciliation or mediation, in such case ad-hoc arbitration may be sought by theconflicting
parties. This arbitration is agreed to get justice for the balance of the un-settled part of the dispute
only.
(2) Institutional Arbitration: This kind of arbitration there is prior agreement between the parties
that in case of future differences or disputes arising between the parties duringtheir commercial
22 | P a g e
transactions, such differences or disputes will be settled by arbitrationas per clause provide in the
agreement.
(3) Statutory Arbitration: It is mandatory arbitration which is imposed on the parties byoperation
of law. In such a case the parties have no option as such but to abide by the lawof land. It is
apparent that statutory arbitration differs from the above 2 types of arbitration because (i) The
consent of parties is not necessary; (ii) It is compulsoryArbitration; (iii) It is binding on the
Parties as the law of land; For Example: Section 31of the North Eastern Hill University Acts,
1973, Section 24,31 and 32 of the Defence of India Act, 1971 and Section 43(c) of The Indian
Trusts Act, 1882 are the statutory provision, which deal with statutory arbitration. Therefore, all
disputes referred to "Disputes-Settlement-Trust", shall be decided through "Arbitral Tribunals"
under Statutory Arbitration.
(4) Domestic or International Arbitration: Arbitration which occurs in India and have allthe
parties within India is termed as Domestic Arbitration. An Arbitration in which any party
belongs to other than India and the dispute is to be settled in India is termed asInternational
Arbitration.
(5) Foreign Arbitration: When arbitration proceedings are conducted in a place outsideIndia and
the Award is required to be enforced in India, it is termed as ForeignArbitration.
ARBITRATION AGREEMENT
The foundation of arbitration is the arbitration agreement between the parties to submit to
arbitration all disputes which have arisen or which may arise between them. Thus, the provision
of arbitration can be made at the time of entering the contract itself. It is also possible to refer a
dispute to arbitration after the dispute has arisen. An arbitration agreement may be in the form of
an arbitration clause in a contract or in the form of a separate agreement. The agreement must be
in writing and must be signed by both parties.
“Arbitration agreement” means an agreement by the parties to submit to arbitration all or certain
disputes which have arisen or which may arise between them in respect of a defined legal
relationship, whether contractual or not.15
15
Section 7(1), the Arbitration and Conciliation Act1996.
23 | P a g e
An arbitration agreement is a written contract in which two or more parties agree to settle a
dispute outside of court. The arbitration agreement is ordinarily a clause in a larger contract. The
dispute may be about the performance of a specific contract, a claim of unfair or illegal treatment
in the workplace, a faulty product, among other various issues. People are free to agree to use
arbitration concerning anything that they could otherwise resolve through legal proceedings.
Arbitration agreements are generally divided into two types:
 Agreements which provide that, if a dispute should arise, it will be resolved by

arbitration. These will generally be normal contracts, but they contain an arbitration
clause
 Agreements which are signed after a dispute has arisen, agreeing that the dispute should
be resolved by arbitration (sometimes called a "submission agreement")
The former is the far more prevalent type of arbitration agreement. Sometimes, legal significance
attaches to the type of arbitration agreement. For example, in certain Commonwealth countries, it
is possible to provide that each party should bear their own costs in a conventional arbitration
clause, but not in a submission agreement. In Oil and Natural Gas Corporation vs. Saw
Pipes,16the Court added an additional ground of “patent illegality”, thereby
considerablywidening the scope of judicial review on the merits of the decision. In Saw Pipes
case the court accepted that the scheme of Section 34 which dealt with setting aside the domestic
arbitral award and Section 48 which dealt with enforcement of foreign award were not identical.
The court also accepted that in foreign arbitration, the award would be subject to being set aside
or suspended by the competent authority under the relevant law of that country whereas in
domestic arbitration MN the only recourse is to Section 34. The Supreme Court observed:
“But in a case where the judgment and decree is challenged before the Appellate Courtor the
Court exercising revisional jurisdiction, the jurisdiction of such Court would be wider.
Therefore, in a case where the validity of award is challenged there is no necessity of giving a
narrower meaning to the term 'public policy of India'. On the contrary, wider meaning is
required to be given so that the 'patently illegal award' passed by the arbitral tribunal could be
set aside.
16
(2003) 5 SCC 705
24 | P a g e
……….. Similarly, if the award is patently against the statutory provisions of substantivelaw
which is in force in India or is passed without giving an opportunity of hearing to theparties as
provided under Section 24 or without giving any reason in a case where parties have not agreed
that no reasons are to be recorded, it would be against thestatutory provisions. In all such cases,
the award is required to be set aside on theground of 'patent illegality'.”
ARBITRAL AWARD
An arbitration award (or arbitral award) is a determination on the merits by an arbitration

tribunal in an arbitration, and is analogous to a judgment in a court of law. It is referred to as an
'award' even where all of the claimant's claims fail (and thus no money needs to be paid by either
party), or the award is of a non-monetary nature.
One of the most common forms of dispute resolution is arbitration. Through the arbitration
process, an arbitrator listens to the disputes between two or more parties. Depending on the
specific kind of arbitration, there may or may not be lawyers involved. There may be expert
witnesses and even a presentation of physical evidence in many arbitration disputes. After
hearing each party present their side of the dispute, the arbitrator then renders her decision,
called an arbitration award.
A contract, written and signed long before a dispute arose, will usually dictate the specifics of the
arbitration proceeding. For example, it will state whether lawyers can be present and, most
importantly, whether the final decision of the arbitrator will be binding. In most cases, the award
will hold firm, just like the decision of a courtroom judge. In the alternative, if the contract
specifies that the decision is not binding, then the parties do not have to comply with the
arbitrator’s decision.
In most cases, the arbitrator has about 30 days to reach her decision on the issues in dispute. As
mentioned before, the decision is called the arbitration award. The award can be financial or it
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can be a matter of halting some form of labor practice, adding some form of employment
incentive, or another form of non-financial award.17
An arbitral award or arbitration award refers to a decision made by an arbitration tribunal in an

arbitration proceeding. An arbitral award is analogous to a judgment in a court of law. An
arbitral award can be of a non-monetary nature where the entire claimant's claims fail and no
money needs to be paid by either party.
An arbitration award can be made for payment of a sum of money, declaration upon any matter
to be determined in the arbitration proceedings, injunctive relief, specific performance of a
contract and for rectification, setting aside or cancellation of a deed or other document. 18
POWERS AND DUTIES OF ARBITRATORS
(1) Arbitrators shall have the duty to appoint a time and place of hearing at a convenient location
in the state of Montana and provide reasonable notice to the manufacturer and consumer of such
time and place, to conduct fair and impartial hearings, to take all necessary actions to avoid delay
in the disposition of proceedings, to maintain order and to render a final decision no later than 60
days after the department has accepted a request for arbitration. The decision must comply with
Title 61, chapter 4, part 5 and Title 27, chapter 5, MCA. The arbitrators shall have all powers
necessary to meet these ends including, but not limited to, the following:
(a)to consider any and all evidence offered by the parties which the panel deems necessary to an
understanding and determination of the dispute;
(b)to request the department to issue subpoenas to compel the attendance of witnesses and the
production of documents, papers and records relevant to the dispute;
(c) to request the department to forward a copy of all written testimony and documentary
evidence to an independent technical expert certified by the national institute of automotive
17
http://jamsadr.com, on 16/11/14 at 05:pm.
18
definitions.uslegal.com, on 16/11/2014 at 05:56pm.
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excellence, to consult with the technical expert as necessary and to request the technical expert to
sit as a nonvoting member of the arbitration panel during presentation of oral testimony;
(d)to regulate the course of the hearings and the conduct of the parties and their counsel therein;
(e)to hold conferences for simplification of the issues or for other purposes;
(f)to schedule vehicle inspections, if deemed necessary, at such facility as the arbitrators
determine;
(g)to continue the arbitration hearing to a subsequent date if a party requests a continuance
before hearing, or at the initial hearing or if the panel determines that additional information is
necessary in order for the panel to render a fair and accurate decision. A continuance shall be
held within five days of the initial hearing;
(h)to reopen the hearing at will or upon motion of either party for good cause shown at any time
before the decision is rendered; and
(i)to permit a deposition to be taken of a witness who cannot be subpoenaed or is unable to

attend the hearing upon the application of a party and for use as evidence, in the manner and
upon the terms designated by the arbitrators.
(2) Arbitrators shall maintain their impartiality throughout the course of the arbitration
proceedings.
(3) An arbitrator shall not be assigned to an arbitration panel if he or she has any relationship to
either party to the dispute to be decided by that panel.
(4) There shall be no direct communication between the parties and the arbitrators other than at
the oral hearing. Any other oral or written communications between the parties and the
arbitrators shall be channeled through the department for transmittal to the appropriate
individual(s). Any such prohibited contact shall be reported by the arbitrators to the department
and noted in the case record.19 In State of Orissa v. B.N. Agarwalla,20 the supreme courtobserved
19
www.mtrule.org, 16/11/14 at 06:02pm.
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that a person deprived of the use of money to which he is legitimately entitlked has a right to be
compensated for the deprvation, call it by any name. it may be called interest, compensation or
damages. This basic consideration is as valid for the period the disputes is pending before the
arbitrator as it is for the period prior to the arbitrator entering upon the reference. This is the
principle of section 34, Civil Procedure Code and there is no reason or principle to hold
otherwise in the case of arbitrator.21
CONCILIATION
Conciliation is an alternative out-of-court dispute resolution instrument. Conciliation is an

alternative dispute resolution (ADR) process whereby the parties to a dispute use a conciliator,
who meets with the parties separately in an attempt to resolve their differences. They do this by
lowering tensions, improving communications, interpreting issues, providing technical
assistance, exploring potential solutions and bringing about a negotiated settlement.
Like mediation, conciliation is a voluntary, flexible, confidential, and interest based process. The
parties seek to reach an amicable dispute settlement with the assistance of the conciliator, who
acts as a neutral third party.
The main difference between conciliation and mediation proceedings is that, at some point
during the conciliation, the conciliator will be asked by the parties to provide them with a non-
binding settlement proposal. A mediator, by contrast, will in most cases and as a matter of
principle, refrain from making such a proposal.
Conciliation is a voluntary proceeding, where the parties involved are free to agree and attempt
to resolve their dispute by conciliation. The process is flexible, allowing parties to define the
time, structure and content of the conciliation proceedings. These proceedings are rarely public.
They are interest-based, as the conciliator will when proposing a settlement, not only take into
account the parties' legal positions, but also their; commercial, financial and / or personal
interests.
20
AIR 1997 SC 925.
21
Sukumar Ray, Alternative Dispute Resolution, Eastern Law House, ed.2012, at p. 46.
28 | P a g e
Like in mediation proceedings, the ultimate decision to agree on the settlement remains with the
parties.Conciliation differs from arbitration in that the conciliation process, in and of itself, has
no legal standing, and the conciliator usually has no authority to seek evidence or call witnesses,
usually writes no decision, and makes no award.
Conciliation differs from mediation in that the main goal is to conciliate, most of the time by
seeking concessions. In mediation, the mediator tries to guide the discussion in a way that
optimizes parties' needs, takes feelings into account and reframes representations.
In conciliation the parties seldom, if ever, actually face each other across the table in the
presence of the conciliator.
WHAT IS CONCILIATION
The terms conciliation and mediation are interchangeable in the Indian context. Conciliation is a
voluntary process whereby the conciliator, a trained and qualified neutral, facilitates negotiations
between disputing parties and assists them in understanding their conflicts at issue and their
interests in order to arrive at a mutually acceptable agreement. Conciliation involves discussions
among the parties and the conciliator with an aim to explore sustainable and equitable resolutions
by targeting the existent issues involved in the dispute and creating options for a settlement that
are acceptable to all parties. The conciliator does not decide for the parties, but strives to support
them in generating options in order to find a solution that is compatible to both parties. The
process is risk free and not binding on the parties till they arrive at and sign the agreement. Once
a solution is reached between the disputing parties before a conciliator, the agreement had the
effect of an arbitration award and is legally tenable in any court in the country.
Most commercial disputes, in which it is not essential that there should be a binding and
enforceable decision, are amenable to conciliation. Conciliation may be particularly suitable
where the parties in dispute wish to safeguard and maintain their commercial relationships.
The following types of disputes are usually conducive for mediation: commercial, financial,
family, real estate, employment, intellectual property, insolvency, insurance, service,
partnerships, environmental and product liability. Apart from commercial transactions, the
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mechanism of Conciliation is also adopted for settling various types of disputes such as labour
disputes, service matters, antitrust matters, consumer protection, taxation, excise etc.22
HISTORICAL CONCILIATION
Historical conciliation is an applied conflict resolution approach that utilizes historical narratives
to positively transform relations between societies in conflicts. Historical conciliation can utilize
many different methodologies, including mediation, sustained dialogue, apologies,
acknowledgement, support of public commemoration activities, and public diplomacy.
Historical conciliation is not an excavation of objective facts. The point of facilitating historical
questions is not to discover all the facts in regard to who was right or wrong. Rather, the
objective is to discover the complexity, ambiguity, and emotions surrounding both dominant and
non-dominant cultural and individual narratives of history. It is also not a rewriting of history.
The goal is not to create a combined narrative that everyone agrees upon. Instead, the aim is to
create room for critical thinking and more inclusive understanding of the past and conceptions of
“the other.”
ADVANTAGES OF CONCILIATION
 Conciliation offers a more flexible alternative to arbitration as well as litigation, for

resolution of disputes in the widest range of contractual relationships, as it is an entirely
voluntary process.
 In conciliation proceedings, the parties are free to withdraw from conciliation, without
prejudice to their legal position, at any stage of the proceedings.
 The matter is settled at the threshold of the dispute, avoiding protracted litigation efforts
at the courts. As conciliation can be scheduled at an early stage in the dispute, a
settlement can be reached much more quickly than in litigation.
 Parties are directly engaged in negotiating a settlement.
22
www.dispute-resolution-hamburg.com, on 17/11/14 at 03:10pm.
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 The conciliator, as a neutral third party, can view the dispute objectively and can assist
the parties in exploring alternatives which they might not have considered on their own.
 Parties generally save money by cutting back on unproductive costs such as traveling to
court, legal costs of retaining counsels and litigation and staff time.
 Conciliators may be carefully chosen by the parties for their knowledge and experience.
 Conciliation enhances the likelihood of the parties continuing their amicable business
relationship during and after the proceedings.
 Creative solutions to special needs of the parties can become a part of the settlement.
 Confidentiality is maintained throughout the proceedings with respect to information
exchanged, the offers and counter offers of solutions made and the settlement arrived at.
Also, information disclosed at a conciliation meeting may not be divulged as evidence in
any arbitral, judicial or other proceeding
The conciliation prize is a reward gained by the conciliator on a successfully resolved dispute. 23
CASE STUDY: JagdishChandervs Ramesh Chander&Ors on 26

April, 2007
CASE NO.: Appeal (civil) 4467 of 2002
PETITIONER: JagdishChander
v.
RESPONDENT: Ramesh Chander&Ors
DATE OF JUDGMENT: 26/04/2007

BENCH: H K Sema& R V Raveendran
FACT OF THIS CASE:
23
www.ficci-arbitration.com, on 17/11/14 at 03:07pm.
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This appeal by special leave is against the order dated 10.7.2001 passed by the Designate of
Chief Justice of the High Court of Delhi, allowing Arbitration Application No.284 of 1997 filed
under section 11 (5) and (6) of the Arbitration and Conciliation Act, 1996 ('the Act' for short).
The appellant and first respondent entered into a Partnership as per deed dated 9.1.1964 to carry
on the business under the name and style of 'Empire Art Industries'. Clause 16 of the said Deed
relates to settlement of disputes. The said clause is extracted below :
"16) If during the continuance of the partnership or at any time afterwards any dispute touching
the partnership arises between the partners, the same shall be mutually decided by the partners or
shall be referred for arbitration if the parties so determine."
The first respondent filed the application for appointment of an Arbitrator to decide the disputes
in regard to dissolution of the said partnership firm and for rendition of accounts. In the said
application, the first Respondent arrayed the appellant herein as the first respondent.
Respondents 2 to 6 herein were also impleaded as respondents alleging that the two partners
entered into an arrangement/agreement with Respondents 2 to 6 in the year 1974 under which
Respondents 2 to 6 were to supervise the business of the firm and pay to each of the two
partners, a fixed sum, which was increased periodically. According to first Respondent, the
arrangement worked satisfactorily for several years, but for some years, the entire amount was
being received by the appellant and he was not paying the first Respondent's half share. The
appellant resisted the petition, inter alia, on the ground that the partnership had come to an end in
the year 1979 and the accounts were all settled. He also contended that the partnership deed did
not contain any agreement to refer disputes to arbitration. It was specifically contended that
clause 16 of the Deed of Partnership was not an arbitration agreement.
The appellant has challenged the said order appointing the Arbitrator. It is submitted that the
power under section 11 of the Act, to appoint an Arbitrator, can be exercised only if there is a
valid arbitration agreement between the parties, and that as there is no arbitration agreement
between the parties, the Arbitrator could not have been appointed.
ISSUES:
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whether clause 16 of the Deed of Partnership dated 9.1.1964 is an 'arbitration agreement' within
the meaning of section 7 of the Act.
RATIO:
The existence of an arbitration agreement as defined under section 7 of the Act is a condition
precedent for exercise of power to appoint an Arbitrator/Arbitral Tribunal, under section 11 of
the Act by the Chief Justice or his Designate. It is not permissible to appoint an Arbitrator to
adjudicate the disputes between the parties, in the absence of an arbitration agreement or mutual
consent. The designate of the Chief Justice of Delhi could not have appointed the Arbitrator in
the absence of an arbitration agreement.
JUDGEMENT:
The appeal is therefore allowed, the order appointing an Arbitrator is set aside and the
application by the first respondent under section 11 of the Act is rejected. Parties to bear their
respective costs.
CONCLUSION
India has in place a modern, an efficient Arbitration Act. There have been some decisions which
are not in tune with the letter or spirit of the Act. Hopefully, these would be addressed by the
judiciary in the near future and continuing popularity of arbitrations would be served by a truly
efficient ADR mechanism.
Arbitration is a proceeding in which a dispute is resolved by an impartial adjudicator whose

decision the parties to the dispute have agreed, or legislation has decreed, will be final and
binding. Arbitration is adjudicatory, as opposed to advisory, because of the fact that the arbitrator
(usually a retired judge or attorney) renders a decision at the end of an arbitration hearing, and
that decision is final and binding, subject only to a very limited court review. Arbitration is
sometimes referred to as "non-binding" if the parties agree to make it so, but that is really a
misnomer. Think of arbitration as a binding, adjudicatory process. Conciliation differs from
arbitration in that the conciliation process, in and of itself, has no legal standing, and the
33 | P a g e
conciliator usually has no authority to seek evidence or call witnesses, usually writes no decision,
and makes no award.Conciliation is a voluntary proceeding, where the parties involved are free
to agree and attempt to resolve their dispute by conciliation. The process is flexible, allowing
parties to define the time, structure and content of the conciliation proceedings. These
proceedings are rarely public. They are interest-based, as the conciliator will when proposing a
settlement, not only take into account the parties' legal positions, but also their; commercial,
financial and / or personal interests.
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Chapter:-IV
LOK ADALAT AND ITS IMPORTANCE: A PRATICAL

CASE STUDY
INTRODUCTION
Lok Adalat is one of the components of ADR systems. It is an Indian contribution to the world
jurisprudence of ADR. Lok Adalat (people’s courts), established by the government settles
dispute by the principles of justice, equity and fair play, which are the guiding factors for
decisions based on compromises to be arrived at before such Adalats.
Lok Adalat, as the name suggest means People’s Court. ‘Lok’ stands for People and the word
‘Adalat’ means Court. Lok Adalat is a special kind of people’s court in which disputes solved by
direct talks between the litigants. The members of legal profession, college students, social
organisations, charitable and philanthropic institutions and other similar organisations may be
associated with Lok Adalat. Salient features of this dispute resolutions are
participation,accomadation,fairness,expectations,voluntariness,neighbourliness,transparency and
lack of animosity.Lok Adalat after studying the case, try to solve the simple differences which
otherwise are likely to leave for reaching consequences through mutual understanding and
compromise. ADR has been an integral part of our historical past. Like the zero, the concept of
Lok Adalat (Peoples' Court) is an innovative Indian contribution to the world jurisprudence. The
institution of Lok Adalat in India, as the very name suggests, means, People's Court. "Lok"
stands for "people" and the vernacular meaning of the term "Adalat" is the court. India has a long
tradition and history of such methods being practiced in the society at grass roots level. These are
called panchayat and in the legal terminology, these are called arbitration. These are widely used
in India for resolution of disputes ?both commercial and non-commercial. Other alternative
methods being used are Lok Adalat (People's Court), where justice is dispensed summarily
without too much emphasis on legal technicalities. It has been proved to be a very effective
alternative to litigation.
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The ancient concept of settlement of dispute through mediation, negotiation or through arbitral
process known as "Peoples' Court verdict" or decision of "Nyaya-Panch" is conceptualized and
institutionalized in the philosophy of Lok Adalat. Some people equate Lok Adalat to conciliation
or mediation, some treat it with negotiations and arbitration. Those who find it different from all
these, call it "Peoples' Court". It involves people who are directly or indirectly affected by
dispute resolution.
The concept of Lok Adalats was pushed back into oblivion in last few centuries before
independence and particularly during the British regime. Now, this concept has, once again, been
rejuvenated. It has, once again, become very popular and familiar amongst litigants. This is the
system which has deep roots in Indian legal history and its close allegiance to the culture and
perception of justice in Indian ethos. Experience has shown that it is one of the very efficient and
important ADRs and most suited to the Indian environment, culture and societal interests.24
The camps of Lok Adalats were initially started in the state of Gujarat in 1982. The first Lok
Adalat was organized on 14th March 1982 at Junagarh. Maharashtra commenced the Lok
Nyayalaya in 1984. The movement has now subsequently spread to the entire country. The
reason to create such camps was only the pending cases and to give relief to the litigants who
were in a queue to get justice. Lok Adalat is the only institutionalized mechanism of dispute
resolution in which the parties do not have to bear any expenses. There is no court fee in Lok
Adalat. If the case is already filed in the regular court, the fee paid is refunded in the manner
provided under the Court Fees Act if the dispute is settled at the Lok Adalat. This kind of refund
is an incentive given to parties to negotiate for settlement. Lok Adalat is a boon to the litigant
public, where they can get their disputes settled fast and free of cost.
MEANING OF LOK ADALAT
Lok Adalat (people’s courts), established by the government settles dispute through conciliation
and compromise. The First Lok Adalat was held in Chennai in 1986. Lok Adalat accepts the
cases which could be settled by conciliation and compromise, and pending in the regular courts
24
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within their jurisdiction. The Lok Adalat is presided over by a sitting or retired judicial officer as
the chairman, with two other members, usually a lawyer and a social worker. There is no court
fee. If the case is already filed in the regular court, the fee paid will be refunded if the dispute is
settled at the Lok Adalat. The procedural laws, and the Evidence Act are not strictly followed
while assessing the merits of the claim by the Lok Adalat. Main condition of the Lok Adalat is
that both parties in dispute should agree for settlement. The decision of the Lok Adalat is binding
on the parties to the dispute and its order is capable of execution through legal process. No
appeal lies against the order of the Lok Adalat. 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. Lok Adalat is a boon to the litigant public, where they can get their disputes
settled fast and free of cost.
The expression ‘Lok Adalat’ refers to a summary procedure for disposal of cases pending in
various courts through the process of arbitration and settlement between the parties at the
instance of the institution called Lok Adalat. Thus the expression Lok Adalat can be used in the
following two senses:
1. The process by which the cases pending in various courts are settled with the consent of the
parties in a summary way.
2. The institution which take initiative for arriving at a settlement of the case.
By virtue of Sec.19 of the Legal Services Authorities Act, 1987, every state authority, district
authority, Supreme Court Legal Services Committee or High Court Legal Services Committee or
the Thaluk Legal Service Committee may organize Lok Adalats for settlement of cases pending
in courts.
The Lok Adalat is presided over by a sitting or retired judicial officer as a chairman, with two
other members, usually a lawyer and a social worker. There is no Court Fee. If the case is
already filed in the regular court the fee paid will be refunded if the dispute is settled at the Lok
Adalat. The procedural laws, and the Evidence Act are not strictly followed while assessing the
merits of the claim by the Lok Adalat. Main condition of the Lok Adalat is that both parties in
dispute should agree for settlement. The decision of Lok Adalat is binding on the parties to the
37 | P a g e
disputes and its order is capable of execution through legal process. No appeal lies against the
order of the Lok Adalat.
EVOLUTION
The evolution of this movement was a part of the strategy to relieve heavy burden on the Courts
with pending cases and to give relief to the litigants who were in a queue to get justice. The first
Lok Adalat was held on March 14, 1982 at Junagarh in Gujarat the land of Mahatma Gandhi.
Lok Adalats have been very successful in settlement of motor accident claim cases,
matrimonial/family disputes, labourdisputes, and disputes relating to public services such as
telephone, electricity, bank recovery cases and so on.
Ancient concept of settlement of dispute through mediation, negotiation or through arbitral

process known as ‘People’s court verdict’ or decision of ‘Nyaya-Panch’ is
conceptualisedinstutionalised in the philosophy of Lok Adalat. The concept of Lok Adalat was
pushed back into oblivion in last few centuries before independence and particularly during
British regime.
Now this concept has been rejuvenated and became more popular amongst litigants. Camps of
Lok Adalat were initially started in Gujarat in March 1982, and now it has been extended
throughout the country. The evolution of this movement was a part of the strategy to relieve
heavy burden on the Courts with pending cases and to give relief to the litigants who were in the
queue to get justice. And the Legal Services Authorities Act 1987 gave a statutory status to Lok
Adalats pursuant to the Constitutional mandate in Art. 39-A of the Constitution of India, contains
various provisions for settlements of dispute through Lok Adalat.25
ORGANISATION OF LOK ADALAT
(1) Every State Authority or District Authority or the Supreme Court Legal Services Committee
or every High Court Legal Services Committee or, as the case may be, Taluk Legal Services
25
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Committee may organise Lok Adalats at such intervals and places and for exercising such
jurisdiction and for such areas as it thinks fit.
(2) Every Lok Adalat organised for an area shall consist of such number of – (a) serving or
retired judicial officers; and(b) other persons,of the area as may be specified by the State
Authority or the District Authority or the Supreme Court Legal Services Committee or the High
Court Legal Services Committee, or as the case may be, the Taluk Legal Services Committee,
organising such Lok Adalats.
(3) The experience and qualifications of other persons referred to in clause (b) of sub-section (2)
for Lok Adalats organised by the Supreme Court Legal Services Committee shall be such as may
be prescribed by the Central Government in consultation with the Chief Justice of India.
(4) The experience and qualifications of other persons referred to in clause (b) of sub-section (2)
for Lok Adalats other than referred to in sub-section (3) shall be such as may be prescribed by
the State Government in consultation with the Chief Justice of the High Court.
(5) 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 -(i) any case pending before; or
(ii) any matter which is falling within the jurisdiction of, and is not brought before, any court for
which the Lok Adalat is organised:
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.26
JURISDICTION OF LOK ADALAT
The Lok Adalat has no jurisdiction in respect of any case or matter regarding an offence not
compoundable under any law. It is impermissible for the Lok Adalat to enter into any
determination or to arrive at a compromise settlement in relation to a case or matter regarding an
offence which is a non compoundable one i.e. offence punishable.27 The Lok Adalat is not
empowered to issue direction upon an investigating officer to do a particular ting in a particular
26
Section 19, the Legal Service Authorities Act 1987.
27
Section 326, 397, 302, 307, the Indian Penal Code.
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manner to file report on the basis that the complaint was made on a misunderstanding or mistake
of fact.28
Lok Adalat have no adjudicatory function and they are not meant for pressuring the people and
bringimg pressure on the public officials. The Lok Adalat has no jurisdiction to award less than
contractual rate of interest affecting the interest of the Bank as well as the interest of the society
by adopting the approach of “flexible and pragmatism” keeping their eyes revetted on the
disposal figures of the cases and on the encomiums to be received in print media and from
interest group.29 Lok Adalat has no adjudicatory or judicial function. Its function purely related
to conciliation.30
COGNIZANCE OF CASES BY LOK ADALAT
A Lok Adalat may take cognizance of cases, as per Section 20 of the Legal Services Authority
Act where: (I) (a) the parties thereof agree; or (b) one of the parties thereof makes an application
to the court for referring the case to the Lok Adalat for settlement and if such court is prima facie
satisfied that there are chances of such settlement; or
(II) the court is satisfied 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.31
WHY LOK ADALAT?

The Constitution of India is the fundamental law of the land. Part IV of the Constitution deals
with Directive Principles of State Policy. By virtue of Art.39-A the State is under a positive duty
to secure that the operation of the legal system promotes justice on the basis of equal
opportunity. The State shall also provide free legal aid to ensure that opportunities for securing
justice are not denied to any citizen by reason of economic or other disabilities.
28
State of Kerala v. Eruakulam District Legal Sservice, AIR 2008 Ker 70.
29
Union Bank of India, Bhavnagar v. M/s. Narendra Plastics, Bhavnagar, AIR 1992 Guj 67.
30
31
Section 20, Legal Services Authorities Act 1987.
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By virtue of Article: 21, “no person shall be deprived of his life or personal liberty except
according to procedure established by law”. In HussainnaraKhatoon v. Home Secratery, State of
Bihar,32 , the Supreme Court held that “right to speedy trial” is a fundamental right guaranteed
under Art: 21 of the Constitution. Justice delayed is justice denied. Speedy trial was held to be
the essence of criminal justice.
In Suk Das v. Union Territory of Arunachal pradesh33, the Supreme Court held that failure to
provide free legal aid to an accused at the cost of the State unless refused by the accused would
vitiate the trial. He need not apply for the same. Free legal aid is at the State cost is a
fundamental right of an accused person under Art.21 of the Constitution.
A combined reading of Art.21 as interpreted by the Supreme Court of India and Art.39-A of the
Constitution establish beyond doubt that speedy trial, free legal aid and equal opportunities for
securing justice are fundamental rights of citizen of India and a Constitutional mandate which
state has to follow in governance of this country. In order to ensure these rights more effectively,
the Parliament enacted the Legal Services Authorities Act, 1987 to organise Lok Adalat to secure
that the operation of the legal system promotes justice on a basis of equal opportunity.
COMPOSITION
The secretary of the high court legal services committee organising the Lok Adalat shall
constitute benches of the Lok Adalat. Each bench shall comprise of two or three of the
following:-
1. a sitting or retired judge of the high court.
2. a serving or retired judicial officer.
3. a member of the legal profession.
4. a social worker.
The secretary of the district authority organising the Lok Adalat shall constitute benches of the
Lok Adalat. Each bench shall comprise of two or three of the following:-
1. a sitting or retired judicial officer.
32
AIR 1979 SC 1360
33
1986 5 SCC 401
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3. a social worker.
The chairman of the taluk legal services committee organising the Lok Adalat shall constitute
benches of the Lok Adalat. Each bench shall comprise of two or three of the following:-
1. a sitting or retired judicial officer.
3. a social worker.
Jurisdiction Both civil and criminal cases which are pending before the courts can be brought
before the Lok Adalat for settlement and award. However the Lok Adalat shall have no
jurisdiction in respect of any case or matter relating to an offence not compoundable under any
law.A case pending in a court may be referred to Lok Adalat on an agreement between parties or
on an application made by one of the parties to the court for referring the case to Lok Adalat for
settlement. So also the court can suomoto refer a pending case to Lok Adalat.
When cases are referred to a Lok Adalat, it shall make sincere efforts to bring about a
conciliatory settlement in every case put before it without bringing about any kind of coercion,
threat or undue influence, allurement of misrepresentation. Every Lok Adalat shall, while
determining any reference before it, act with at most expedition to arrive at a compromise of
settlement between the parties and shall be guided by the principles of justice, equity, fair and
other legal principles.
PROCEDURE OF LOK ADALAT

The procedure followed at a Lok Adalat is very simple and shorn of almost all legal formalism
and rituals. The Lok Adalat is presided over by a sitting or retired judicial officer as the
chairman, with two other members, usually a lawyer and a social worker. It is revealed by
experience that in Lok Adalat it is easier to settle money claims since in most such cases the
quantum alone may be in dispute. Thus the motor accident compensation claim cases are brought
before the Lok Adalat and a number of cases were disposed of in each Lok Adalat. One
important condition is that both parties in dispute should agree for settlement through Lok Adalat
and abide by its decision. A Lok Adalat has the jurisdiction to settle, by way of effecting
compromise between the parties, any matter which may be pending before any court, as well as
matters at pre-litigative stage i.e. disputes which have not yet been formally instituted in any
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court of law. Such matters may be civil or criminal in nature, but any matter relating to an
offence not compoundable under any law cannot be decided by the Lok Adalat even if the parties
involved therein agree to settle the same. Lok Adalat can take cognizance of matters involving
not only those persons who are entitled to avail free legal services but of all other persons also,
be they women, men, or children and even institutions. Anyone, or more of the parties to a
dispute can move an application to the court where their matter may be pending, or even at pre-
litigative stage, for such matter being taken up in the Lok Adalat bench constituted for the
purpose shall attempt to resolve the dispute by helping the parties to arrive at an amicable
solution and once it is successful in doing so, the award passed by it shall be final which has as
much force as a decree of a civil court obtained after due contest. Finality of Lok Adalat award:
One issue which raises head often is the finality of the award of the Lok Adalat. During the Lok
Adalat, the parties agree to abide by the decision of the judge at the Lok Adalat. However, it is
often seen that later, the same order is challenged on several grounds. In one of the recent
decisions, the supreme court of India has once again laid to rest all such doubts. In unequivocal
terms, the court has held that award of the Lok Adalat is as good as the decree of a court. The
award of the Lok Adalat is fictionally deemed to be decrees of court and therefore the courts
have all the powers in relation thereto as it has in relation to a decree passed by itself. This
includes the powers to extend time in appropriate cases. The award passed by the Lok Adalat is
the decision of the court itself though arrived at by the simpler method of conciliation instead of
the process of arguments in court. Consent of parties: The most important factor to be considered
while deciding the cases at the Lok Adalat is the consent of both the parties. It can not be forced
on any party that the matter has to be decided by the Lok Adalat. However, once the parties
agree that the matter has to be decided by the Lok Adalat, then any party cannot walk away from
the decision of the Lok Adalat. In several instances, the supreme court has held that if there was
no consent the award of the Lok Adalat is not executable and also if the parties fail to agree to
get the dispute resolved through Lok Adalat, the regular litigation process remains open for all
contesting parties. The Supreme Court has also held that compromise implies some element of
accommodation on each side; it is not apt to describe it as total surrender.
A compromise is always bilateral and means mutual adjustment. Settlement is termination of
legal proceedings by mutual consent. If no compromise or settlement is or could be arrived at, no
order can be passed by the Lok Adalat.
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POWER OF LOK ADALAT

Lok Adalat has the same powers as those 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 or office ande) Such other matters as may be prescribed.
Every Lok Adalat shall have the requisite powers to specify its own procedures for the
determination of any dispute coming before it. In ShashiPrateek v. CharanSingh Verma,34 the
Allahabad High court observed:
The remedy to move for recalling the order/award ontained on the basis of playing fraud and
misrepresentation upon the petitioner and upon the Lok Adalat, cannot be foreclosed, for simple
reason that no court or tribunal can be regarded as powerless to recall its own order if it is
convicnced that the order was obtained through fraud or misrepresentation of such a high degree
or dimension as would affect the very basis of claim.35
AWARD OF LOK ADALAT

The Legal Service Authorities Act does not contemplate nor require an adjucatory judicial
determination, but non-adjudicatory determination based on a compromise or settle, arrived at by
the parties, with guidance and assistance from Lok Adalat. The “award” of Lok Adalat does not
mean any independent verdict or opinion arrived at by any decision-making process. The making
of the award is merely an administrative act of incorporating the terms of settlement or
compromise agreed by parties in the presence of the Lok Adalat, in the form of an executable
order under the signature and seal of the Lok Adalat.36
34
AIR 2009 All 109.
35
36
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Where no compromise or settlement is signed by the parties and the order of the Lok Adalat does
not refer to any settlement, but directs the respondent to either make payment if it agrees to the
order, or approach the High Court for disposal of appeal on merits, if it does not agree, is not
award of the Lok Adalat.
Where an award is made by the Lok Adalat in terms of a settlement arrived at between the
parties, it becomes final and binding on the parties to the settlement and becomes executable like
a decree of a civil court. No appeal lies it to any court.
If any party wants to challenge the award based on settlement, it can done only by filing a
petition under Article 226 and 227 of the constitution. But this can be done on very limited
grounds.37 In Dinesh Kumar v. Blbir Singh,38 the court can go into the legality of the order/orders
passed by the Lok Adalat or the permanent Lok Adalat if they are against the letter and spirit of
the Legal Service Authorities Act 1987.
ADVANTAGES OF LOK ADALAT
The benefits that litigants derive through Lok Adalat are many,
1. There is no court fee and even if the case is already filed in the regular court, the fee paid will
be refunded if the dispute is settled at the Lok Adalat.
2. There is no strict application of the procedural laws and the Evidence Act while assessing the
merits of the claim by the Lok Adalat. The parties to the disputes though represented by their
Advocate can interact with the Lok Adalat judge directly and explain their stands in the dispute
and the reasons therefore, which is not possible in a regular court of law.
3. Disputes can be brought before the Lok Adalat directly instead of going to a regular court first
and then to the Lok Adalat.
4. The decision of Lok Adalat is binding on the parties to the dispute and its order is capable of
execution through legal process. No appeal lies against the order of the Lok Adalat whereas in
regular courts of law there is always a scope to appeal to the higher forum on the decision of the
trial court, which cause delay in the settlement of dispute finally. The reason being that in a
regular court, decision is that of the court but in Lok Adalat it is mutual settlement and hence no
37
State of Punjab v. Jalour Singh, AIR 2008 SC 1209.
38
AIR 2008 HP 59.
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case for appeal will arise. In every respect the scheme of Lok Adalat is a boon to the litigant
public, where they can get their disputes settled fast and free of cost.
5. Last but not the least, faster and inexpensive remedy with legal status.
The scheme also helped the overburdened court to alleviate the burden of arrears of cases and as
the award becomes final and binding upon both the parties, no appeal is filed in the Appellate
Court and, as such, the burden of the Appellate Court in hierarchy is also reduced. The scheme is
not only helpful to the parties but also to the overburdened courts to achieve the constitutional
goal of speedy disposal of the cases.
PERMENENT LOK ADALAT

During the last few years Lok Adalat has been found to be a successful tool of alternate
disputeresolution in India. It is most popular and effective because of its innovative nature and
inexpensive style. The system received wide acceptance not only from the litigants, but from the
public and legal functionaries in general. In India, during the last few years Lok Adalat has been
functioning continuously and permanently in every district centre. In talukcentres also sittings of
Lok Adalats have been held successfully. Several thousands of pending cases and disputes which
had not reached law courts have been settled through Lok Adalats.
The Legal Service Authorities Act, 1987 provides for the conduct of Lok Adalats. Lok Adalats
can deal with pending cases which are referred to it for determination. Lok Adalats are organised
at regular intervals. The Legal Services Authorities Act has been amended in 2002 with the
object of establishing Permanent Lok Adalats. Sec. 22 B of the Act provides for the
establishment of the Permanent Lok Adalats. The Central Authority or every State Authority
shall, by notification, establish Permanent Lok Adalats. Every Lok Adalat established for an area
shall consist of the following persons:
1. A person who is, or has been a District Judge or Additional District Judge or has been held
judicial office higher in rank than that of a District Judge. He shall be the Chairman of the
Permanent Lok Adalat.
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2. Two persons having adequate experience in public utility service. They are to be nominated by
the Central or State government on the recommendation of the Central or the State authority.
The major defect of the mechanism of Lok Adalat is that it cannot take a decision, if one of the
parties, is not willing for a settlement, though the case involves an element of settlement. The
adamant attitude shown by one among the parties will render the entire process futile. Even if all
the members of the Lok Adalat are of the opinion that the case is a fit one for settlement, under
the present set-up, they cannot take a decision unless all the parties consent.
Any party to a dispute may, before the dispute is brought before any court, make an application
to the Permanent Lok Adalat for the settlement of the dispute. The Permanent Lok Adalat shall
not have jurisdiction in respect of any matter relating to an offence not compoundable under any
law. It shall not have jurisdiction in the matter where the value of the property in dispute which
exceeds rupees ten lacks. After an application is made to the Permanent Lok Adalat a party to
that application shall not invoke jurisdiction of any court in the same dispute. When an
application is made to the Permanent Lok Adalat, it shall direct each party to file written
statement stating the facts and nature of dispute. After filing of written statement the Permanent
Lok Adalat shall conduct conciliation proceedings. The Permanent Lok Adalat shall assist the
parties to reach an amicable settlement of dispute. If a settlement is arrived at, in the conciliation
proceedings, the Permanent Lok Adalat shall formulate a settlement agreement and obtain
signature on the settlement agreement and pass an award in terms of that agreement. A copy of
the award shall furnish to each of the parties to the dispute. If the parties failed to reach an
agreement, the Permanent Lok Adalat shall decide the dispute. The award of the Permanent Lok
Adalat shall be final and binding on all the parties thereon and on persons claiming under them.
Every award shall be deemed to be a decree of a Civil Court. The Permanent Lok Adalat shall
transmit any award made by it to a civil court having local jurisdiction to execute the same.
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LOK ADALAT CASE:-Dinesh Kumar vsBalbir Singh And Ors. on

12 September, 2007
Equivalent citations: AIR 2008 HP 59, 2008 I ShimLC 54
PETITIONER- Dinesh Kumar

Vs.
RESPONDENT- Balbir Singh AndOrs.
DATE OF JUDGEMENT:- 12/9/2008.

Author: R Sharma
Bench: R Sharma
FACTS
A challenge has been laid to the order dated 19.4.2003 passed by the Permanent Lok Adalat,
Kangra at Dharamshala in MACP No. 10-G/2002. . The brief facts necessary for the adjudication
of this petition are that the petitioner was driving his tempo bearing No. HP-20-5587 on
13.11.2001 and was proceeding from Kaloha to Pragpur. Bus bearing registration No. HP-55-
3486 (M/s. Sayal Bus Service) came from Pragpur side and dashed against the tempo resulting in
grievous injuries to the petitioner. The accident took place around 10.30 A.M. He was firstly
taken to hospital at Dehra (District Kangra) and thereafter underwent treatment in Bharaj
Nursing Home, Jallandhar Road, Hoshiarpur. He remained indoor patient in Bharaj Nursing
Home with effect from 13.11.2001 to 17.11.2001 and also underwent surgical operation costing
Rs. 80,000/-. He filed a petition before the Motor Accident Claims Tribunal-1, Kangra at
Dharamshala in the month of January, 2002 claiming the compensation for the grievous injuries
received in the accident resulting in fracture of right Tibia and many other injuries. He had
claimed in all Rs. 3 lakhs towards compensation.
Respondents No. 1 and 2 had filed detailed reply to the claim petition and had admitted that the
bus was insured with New India Insurance Company Limited, Branch Office Dev Pal Chowk,
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Hamirpur i.e. respondent No. 3. The respondent No. 3 had also filed separate reply and in
preliminary objection it has denied that the bus bearing No. HP-55-3486 was insured with it. The
objection was also taken with regard to the validity of the driving licence of the petitioner
besides the objections of invalid certificate of registration. The learned Motor Accident Claims
Tribunal issued notices to the respondents on 28.2.2002. The Motor Accident Claims Tribunal,
Kangra at Dharamshala has passed the following order on 19.2.2003:
ISSUE
*Whether any case is referred to a Lok Adalat under Sub-section (1) or where a reference has
been made to it under Sub-section (2), the Lok Adalat shall proceed to dispose of the case or
matter and arrive at a compromise or settlement between the parties?
*Whether Section 20 postulates the cases of which the Lok Adalat can take cognizance?
RATIO
This Court is of the view that despite expression used in Sub-section (2) of Section 21 of the Act
that no appeal shall lie to any Court against the award and the expression used like original suit,
application or execution proceedings as mentioned in Sub-section (4) of Section 22(E) will not
include the writ jurisdiction. Thus the contention of Mr. B.M. Chauhan with regard to the
maintainability and the adjudication of the writ petition by this Court is untenable and rejected.
The Court has also to ensure that the provisions of the Legal Services Authorities Act, 1987 are
implemented in letter and spirit. The manner in which the jurisdiction has been exercised by the
Permanent Lok Adalat is against the very spirit of the Act.
In case P.T. Thomas v. Thomas Job , cited by Mr. B.M. Chauhan, Advocate will not apply in the
present case since the order passed by the Permanent Lok Adalat is without jurisdiction.
JUDGEMENT
The writ petition is allowed. the Permanent Lok Adalat is set aside. The matter is remanded
back to the learned Motor Accident Claims Tribunal, Kangra at Dharamshala with the directions
to decide the same on its own merits within a period of three months from the date of receipt of
record alongwith copy of this judgment In view of the facts and circumstances of the case and
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the manner in which the matter has been compromised by the functionary of respondent No. 3-
company, a costs of Rs. 11,000/- is imposed upon the Divisional Manager of the New India
Assurance Company Limited on whose statement the matter was compromised. The respondent
No. 3 will ensure that the cost is recovered from the Divisional Manager. To avoid further delay
the parties are directed to appear before the learned Motor Accident Claims Tribunal, Kangra at
Dharamshala on 13.10.2007.
CONCLUSION
Lok Adalats play a very important role to advance and strengthen “equal access to justice”, the
heart of the Constitution of India, a reality. This Indian contribution to world ADR jurisprudence
needs to be taken full advantage of. Maximum number of Lok Adalats need to be organized to
achieve the Gandhian Principle of Gram Swaraj and “access to justice for all”.
Lok Adalat lends itself to easy settlement of money claims; there is scope for other disputes as
well. Partition suits damages and matrimonial cases can be easily settled before Lok Adalat as
the scope for compromise through an approach of give and take is high in these cases. In Lok
Adalat justice is dispensed summarily without too much emphasis on legal technicalities. It has
to be a very effective alternative to litigation. Lok Adalat is a boon to the litigant public, where
they can get their dispute settled faster and at free of cost. Experience has shown that it’s one of
the efficient and important ADR and most suited to the Indian environment, culture and social
interests. Objective of Lok Adalat is to settle the disputes which are pending before the courts, by
negotiations, conciliation and by adopting persuasive common sense and human approach to the
problems of the disputants. The large population of India and the illiterate masses have found the
regular dispensation of justice through regular courts very cumbersome and ineffective. The
special condition prevailing in the Indian society and due to economic structure, highly
sensitized legal service is required which is efficacious for the poor and the ignorant masses. The
Lok Adalat movement is no more an experiment in India. It’s now a success and needs to be
replicated in certain matters. It properly, thoughtfully, and wisely constituted, Lok Adalats can
become an additional arm of existing judicial institution, and moreover, if the process of
accumulation of arrears is reversed and there is less burdening, its qualitative performance can
improve.
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Chapter:- V
LEGAL AID CLINIC
INTRODUCTION
The provision of legal aid to the poor and the disadvantaged exists in all civilised countries, often
guided by charitable and philanthropic concerns. In a democratic set-up, the philosophy of legal
aid has acquired a new meaning, with an emphasis on the concept of equality of all human
beings, increasingly drawn from the universal principles of human rights. Free legal aid to the
poor and marginalised members of society is now viewed as a tool to empower them to use the
power of the law to advance their rights and interests as citizens, and as economic actors. Such a
paradigm shift in the concept of legal aid gains greater importance when India is viewed as a
growing economic power.
Parliament enacted the Legal Services Authorities Act, 1987 in order to give effect to Article 39-
A of the Constitution to extend free legal aid, to ensure that the legal system promotes justice on
the basis of equal opportunity. (November 9 is observed as National Legal Services Day, to
commemorate the enactment of the legislation.) Those entitled to free legal services are members
of the Scheduled Castes and the Scheduled Tribes, women, children, persons with disability,
victims of ethnic violence, industrial workmen, persons in custody, and those whose income does
not exceed a level set by the government (currently it is Rs.1 lakh a year in most States). The Act
empowers legal services authorities at the district, State and national levels, and the different
committees (legal services institutions) to organise Lok Adalats to resolve pending and pre-
litigation disputes. It provides for permanent Lok Adalats to settle disputes involving public
utility services. Under the Act, “legal services” have a meaning that includes rendering of service
in the conduct of any court-annexed proceedings or proceedings before any authority, tribunal
and so on, and giving advice on legal matters. Promoting legal literacy and conducting legal
awareness programmes are functions of legal services institutions.
An act to constitute legal services authorities to provide free and competent legal service to the
weaker sections of the society to ensure that opportunities for securing justice are not denied to
51 | P a g e
any citizens by reason of economic or other disabilities, and to organize Lok Adalats to secure
A legal clinic or law clinic is a nonprofit law practice serving the public interest. Legal clinics
originated as a method of practical teaching of law school students, but today they encompass
also free legal aid with no academic links. In the academic context, these law school clinics
provide hands-on experience to law school students and services to various (typically indigent)
clients. Academic Clinics are usually directed by clinical professors.[1] Many legal clinics offer
pro bono work in one or more particular areas, providing free legal services to clients. The
remainder of this article will discuss clinical legal education.39
In this ways both categories of people spend most of their lives overlooking a lot of facts,
intentionally or unintentionally, that a lot of wrongs are being done against them. Other people,
or the Government or whoever may be is infringing their rights. But the wronged ones are not
very eager to protest against the wrong doer. Even some times they are not knowledgeable
enough that a wrong is being done against them.If they do not know that a wrong is being done,
it is a different scenario. But if they know about the fact, they are still not standing against it. As
because, it may cause a lot of problem in their field of profession and might have to face a bigger
loss. In this way they are actually ABATING THE WRONG. So, for both the categories of
people it is necessary to make them understand what sort of wrongs they actually are facing and
the abatement is also causing a greater harm to the society and it can hamper the well being of
their own next generation. The Legal Aid Clinic has been working to secure “justice for and to
protect the rights of the needy.40
WHAT IS LEGAL AID
Under Section 2(1)(c) of the Legal Services Authorities Act, 1987 (hereinafter referred to as ‘the
said Act’), “Legal Service” includes the rendering of any service 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; To provide free and competent legal services to the weaker section of the
39
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52 | P a g e
society was the basic object of enacting the aforesaid Act. 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 Principles 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.
The assumption of our legal system is that all citizens have equal access to means of legal
redress. Access to inexpensive and expeditious justice is a basic human right. But, in practice,
legal services of all kinds have gone to the highest bidders. Wealthy persons and large
corporations receive the highest quality advice. There should be a system of administration of
justice of which the poorest are able to take advantage. Equal access to the law for the rich and
the poor alike is essential for the maintenance of the rule of law. It is, therefore, essential to
provide adequate legal advice and representation to all those, threatened as to their life, liberty,
property or reputation, who are not able to pay for it.
Legal aid is the provision of assistance to people otherwise unable to afford legal representation
and access to the court system. Legal aid is regarded as central in providing access to justice by
ensuring equality before the law, the right to counsel and the right to a fair trial. This article
describes the development of legal aid and its principles, primarily as known in Europe, the
British Commonwealth, India and the United States.
A number of delivery models for legal aid have emerged, including duty lawyers, community
legal clinics and the payment of lawyers to deal with cases for individuals who are entitled to
legal aid.
53 | P a g e
levels and should be made available.41
Free legal aid undoubtedly is beneficial to poor people and has been instituted with the noble
purpose. Yet it has become a good ground for breeding corruption. Free legal aid for a fee is
common practice. Once a lawyer is engaged through legal aid, obviously the party or his men
would come to the lawyer for consultation and it is then that they are asked to fish out some
money, which they naturally cannot refuse. One factor that largely contributes to this is that the
meager remuneration (less than Rs. 200/-) paid to the lawyers by Legal Aid Committee is a
paltry and sometimes even does not meet the incidental expenses, what to speak of compensating
the labour put in by the lawyer. Beyond that, the greed to pocket some easy money out of the
helplessness of the victims is always there. But what speaks worst about the system is the fact
that entrustment of cases under the scheme has become a case of distribution of largess amongst
the favorites just as our Governments are notorious for distribution of licenses. The distribution
is guided by many factors but largely other than by reason and the capacity to deliver the goods.
In the circumstances, expectedly, the quality of aid is compromised to the determent of the
beneficiary and, of course, Justice. The whole purpose is, thus, defeated.
CONCEPT OF LEGAL AID
Legislative History - The right to assignment of counsel at Government expenses was

emphasized in the 14th Law Commission Report. Thereafter, in 1969, the Law Commission
again strongly recommended that the right of the accused to representation at the cost of
Government should be placed on statutory footing in relation to trials for serious offences and as
a first step in this direction, the Commission proposed that such a right should be available in all
trials before the Court of Session.
In order to achieve the objective enshrined in Article 39-A of the Constitution, Government had,
with the object of providing free legal aid, by a Resolution appointed a Committee for
implementing Legal Aid Scheme to monitor and implement Legal Aid Programmes on a uniform
basis in all States and Union Territories. The said Committee evolved a model scheme which
41
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54 | P a g e
was accordingly implemented by the Government. But on review, certain deficiencies were
found and it was considered desirable to constitute statutory legal authorities at National, State
and district levels so as to provide effective monitoring of Legal Aid Programmes.
For the disposal of large number of cases expeditiously and without much cost Lok Adalats have
been constituted and they have been functioning as a voluntary and conciliatory agency without
any statutory backing for its decisions. In order to provide for the composition of statutory legal
authorities and to provide statutory backing to Lok Adalats and its awards the Legal Services
Authorities Bill, 1987, was introduced in the Lok Sabha on 24th August 1987.
Article 39-A of the Constitution provides that the State shall secure that the operation of the legal
system promotes justice on a basis of equal opportunity, and shall, in particular, provide free
legal aid, by suitable legislation or schemes or in any other way, to ensure that opportunities for
securing justice are not denied to any citizen by reason of economic or other disabilities. With
the object of providing free legal aid, Government had, by Resolution, appointed the “Committee
for Implementing Legal Aid Schemes” (CILAS) under the Chairmanship of Mr. Justice P.N.
Bhagwati (as he then was) to monitor and implement Legal Aid Programmes on a uniform basis
in all the States and Union territories CILAS evolved a model scheme for Legal Aid Programme
applicable throughout the country by which several Legal Aid and Advice Boards have been set
up in the States and Union territories, cilas in funded wholly by grants from the central
Government.
Object of the enactment of the said Act - In our democratic set-up, all laws are made for all men
- common or uncommon. By common man, in common parlance, we understand a man on the
street. A man who may not have any status, office, post or rank in society. He is only a human
being, an ordinary citizen with expectations of a just and human order. He may be a Tom, Dick
or Harry, Ram, Rahim or Shyam. The Expression includes a cobbler, sweeper, baker, butcher, a
priest, or a soldier. A person of whatever name and nomenclature known in the society. A legal
system and its effectiveness has to be gauged or measured by the extent of its usefulness to the
common man. The failure of law for common man is due to no change of hear or outlook of
other fellow beings who are privileged and have a better status in the society. There has been no
emotional integration between haves in the society and have nots. The society cannot be
55 | P a g e
improved by laws. Social reforms are done not by laws but by leaders in the society who are
virtuous, wise and of high moral character. Before making the laws or along with them, no
attempts have to be made on behalf of the State of their agencies to spread moral education to
encourage science with spirituality. The spirituality and science alone can rule the world
including the government based on democracy in the absence of any effort in proper direction,
the common man is deprived of the benefit of the laws enacted for him which do not reach him
due to inefficient bureaucracy and mal-administration.42
PERSONS WHO ARE ENTITLED TO GET FREE LEGAL AID

UNDER THE LEGAL SERVICE AUTHORITY, 1987
Criteria for giving legal service are prescribed under the Section 12 of the said Act. Every
person who has 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 of 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 person with disability as defined in Clause (i) of Section 2 of the person with Disabilities
(Equal Opportunities, Protection of Rights and Full Participation)’ Act, 1995 . e. a person under
circumstances to the underserved want such as being victim of 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 clause (g) of Section 2 of
the Immoral Traffic (prevention) Act, 1956 (104 of 1956), or in a juvenile home within the
meaning of clause (j) of Section 2 of the Juvenile Justice Act, 1986 (53 of 1986), or in a
psychiatric hospital or psychiatric nursing home within the meaning of clause (g) of Section 2 of
the Mental Health Act, 1987 (14 of 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.
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Also, there are factors for disentitlement from getting legal aid - As per rules, the following
persons are not entitled to the legal aid unless the Chairman of the Committee approves it as a
special case-(1) Proceedings wholly or partly in respect of defamation or malicious prosecution
or any incidental proceedings thereto; (2) A person charged with contempt of court proceeding
or any incidental proceedings thereto; (3) A person charged with perjury; (4) Proceedings
relating to any election. (5) Proceedings in respect of offences where the fine imposed is not
more than Rs. 50/- (6) 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 shc cases the aid is sought by the victim : The legal aid is also denied where the
person seeking the legal services - (1) is concerned with the proceedings only in a representative
or official capacity; or (2) if a formal party to the proceedings, not materially concerned in the
outcome of the proceedings and his interests are not likely to be prejudiced on account of the
absence of proper representation.
In the above two circumstances even Chairman cannot sanction legal aid as a special case.
CONSTITUTIONAL PROVISION RELATING TO LEGAL AID
Legal aid a constitutional right - Articles 21 and 39-A of the Constitution are as under:-
“21. Protection of life and personal liberty – No person shall be deprived of his life or personal
liberty except according to procedure established by law. “39A. Equal justice and free legal aid -
The state shall secure that the operation of the legal system promotes Justice on a basis, of equal
opportunity, and shall in particular, provide free legal, aid, by suitable legislation or schemes or
in any other way, to ensure that opportunities for securing Justice are not denied to any citizen by
reason of economic or other disabilities”.
Article 21 is a fundamental right conferred under Part III of the Constitution. Whereas Article
39-A is one of the directive principles of the State Policy under Part IV of the Constitution. It has
been held by the Constitution Bench of Supreme Court in Chandra Bhawan Boarding and
Lodging, Bangalore V. –State of Mysore, 43
that “While rights conferred under Part III are
fundamental, the directives given under part IV are fundamental in the governance of the
43
AIR 1970 SC 2042.
57 | P a g e
country. There is no conflict on the whole between the provisions contained in Part III and Part
IV. They are complementary and supplementary to each other.
The Supreme Court in HussainaraKathoon vs.. Home Secretary, State of Bihar,44 had called
upon the Government to frame appropriate scheme for providing legal aid to the poor. The
following observations were made by the Supreme Court:
“We may also take this opportunity of impressing upon the Government of India as also the State
Governments, the urgent necessity of introducing a dynamic and comprehensive legal service
programme with a view to reaching justice to the common man. Today, unfortunately, in our
country the poor are priced out of the judicial system with the result that they are losing faith in
the capacity of our legal system to being about changes in their life conditions and to deliver
justice to them. The poor in their contact with legal system have always been on the wring side
of the law. They have always come across ‘law for the poor’ rather than ‘law of the poor’. The
law is regarded by them as something mysterious and forbidding-always taking something away
from them and not as a positive and constructive social device for changing the socio-economic
order and improving their life conditions by conferring rights and benefits on them. The result is
that the legal system has lost its credibility for the weaker sections of the community. It is,
therefore, necessary that we should inject equal justice into legality and that can be done only by
dynamic and activist scheme of legal services.”
In Abdul Hassan Vs. Delhi Vidyut Board,45 the Delhi High Court observed that “it is emphasized
in Article 39A that the legal system should be able to deliver justice expeditiously on the basis of
equal opportunity and provide free legal aid to ensure that opportunities for securing justice are
not denied to any citizen by reasons of economic or other disabilities. It was in this context that
the parliament enacted Legal Services Authority Act, 1987. One of the aims of the Act is to
organize Lok Adalat to secure that the operation of legal system promotes justice on the basis of
an equal opportunity. The provisions of the Act, based on indigenous concept are meant to
supplement the court system. They will go a long way in resolving the 0dispute at almost no cost
44
AIR 1979 SC 1369: 1980 [1] SC 98: 1979 [3] SCR 532: 1979 Cri LJ 1045 : 1980 SCC [Cr] 40.
45
AIR 1999 Del 88: 1999 (77) DLT 640 : 1999 (2) AD (Del) 105.
58 | P a g e
to the litigants and with minimum delay. The Act is a legislative attempt to decongest the courts
of heavy burden of cases.”
The Hon’ble Apex Court found and observed in the case of State of Haryana v. Smt. Darshana
Devi,46 no State, it seems, has , as yet, framed rules to give effect to the benignant provision of
legal aid to the poor in Order XXXIII Rule 9-A, Civil Procedure Code, although several years
have passed since the enactment. Parliament is stultified and the people are frustrated. Even after
a law has been enacted for the benefit of the poor, the State does not bring into force by willful
default in fulfilling the condition sine qua non. It is public duty of each great branch of
Government to obey the rule of law and uphold the tryst with the Constitution by making rules to
effectuate legislation meant to help the poor.
IMPORTANCE OF LEGAL AID
The importance of Legal Aid and Awareness Campaigns as a mechanism for social progress is
something that has been repeatedly stressed upon by the Government of India. In the backdrop of
Poverty and Inequality, Legal Aid is an effective way towards attainment of the ideals of ‘Social,
Economic and Political’ Justice that are enshrined in our Constitution under the Directive
Principles of State Policy.
The Legal Aid Implementation Committee of the Government of India formed out of the
constructive suggestions of the Bhagwati Committee on Jurisdicare of 1977 had envisaged the
setting up of legal aid dispensation clinic in the various state – run law schools. Thirty years
hence we stand in a situation where the West Bengal National University of Juridical Sciences
can state that they have indeed met with the suggestions of this committee by way of its own
Legal Aid Clinic. The establishment of the National Law Universities in the various parts of the
country has opened the gateway to work towards this cause in a greater way. Through a mutually
beneficial process of exchange, awareness is spread amongst the masses about their legal rights
and duties, and how to go about seeking the same, and students of law get exposed to the various
problems associated with the ‘real world’, thereby gaining practical knowledge on the subject.
The entire purpose of setting nation wide collegiate clinics is to acclimatize several thousand law
46
AIR 1979 SC 855 : 1979 [2] SCC 236: 1979 [3] SCR 184.
59 | P a g e
students of the nation to the problems faced by the masses ignorant about their rights and
remedies under the law. The aim is indeed a noble one but there difficulties which still need to be
addressed.
The WBNUJS Legal Aid Cell is one successful beacon while there many more colleges where
such beacons need to be lighted, many thousands whose legal dilemmas need to be efficiently
addressed. In the recently concluded ‘Intra-State Conference on Legal Networking in West
Bengal’, held at The West Bengal National University of Juridical Sciences(WBNUJS), Prof.
B.B. Pande, retired Faculty Advisor of the Legal Aid Society at The Delhi University Faculty of
Law, which was the birthplace of the legal awareness campaigns in Law Universities,
highlighted the importance of a systematic approach tempered with the right intention, and
identified WBNUJS as having the most functional Legal Aid Clinic in India.47
LEGAL AID CASE:-SheelaBarsevs State Of Maharashtra on 15

February, 1983
SUPREME COURT OF INDIA
Equivalent citations: 1983 AIR 378, 1983 SCR (2) 337
P PETITIONER: SHEELA BARSE
Vs.
RESPONDENT: STATE OF MAHARASHTRA
DATE OF JUDGMENT15/02/1983
Author: P Bhagwati
Bench: Bhagwati
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60 | P a g e
FACTS
LegalAid to the poor-Importance of legalaid to the poor explained-Directions given to Prison

authorities and police on providing Legalaid to the poor prisoners. The petitioner, a journalist, in
her letter addressed to this Court stated that Five out of fifteen women prisoners interviewed by
her in the Bombay Central Jail alleged that they had been assaulted by the police in the police
lock up and two of them in particular alleged that they had been assaulted and tortured in the
lock up. Treating the letter as a writ petition the Court issued notices to all concerned to show
cause why the writ petition should not be allowed In the meanwhile the Director of the College
of Social Workcustodians. It is also possible that he or the members of his family may have other
problems where legal assistance is required but by reason of his being incarcerate. it may be
difficult if not impossible for him or the members of his family to obtain proper legal advice or
aid. It is therefore essential that legal assistance must be made available to prisoners in jails
whether they be under-trials or convicted prisoners. 338 The Inspector General of Prisons in
Maharashtra should issue a circular to all Superintendents of Jails in Maharashtra requiring them
to send to the LegalAid Committee of each district in which the jail is situated.
ISSUES
*Whether the Police officer (accused) has violated the provisions of the Article 14, 21 &39 A of
the Constitution of India?
RATIO
section 54 of the Code of Criminal Procedure 1973 to be medically examined. We are aware that
section 54 of the Code of Criminal Procedure 1973 undoubtedly provides for examination of an
arrested person by a medical practitioner at the request of the arrested person and it is a right
conferred on the arrested person. But very often the arrested person is not aware of this right and
on account of his ignorance, he is unable to exercise this right even though he may have been
tortured or malterated by the police in police lock up.
JUDGEMENT
The writ petition will stand disposed of in terms of this order.

61 | P a g e
CONCLUSION
An act to constitute legal services authorities to provide free and competent legal service to the
weaker sections of the society to ensure that opportunities for securing justice are not denied to
any citizens by reason of economic or other disabilities, and to organize Lok Adalats to secure
India is a developing country. The development in the industrial sector is very much appreciable,
but still this progress in the field of industrialization, marketing, finance, etc. cannot hide the
indispensable drawbacks of our society like population explosion and illiteracy. These
drawbacks, coupled with environmental and social hinges results in increase in poverty and lack
of food for people. Legal aid is required in many forms and at various stages, for obtaining
guidance, for resolving disputes in Courts, tribunals or other authorities. It has manifold facets.
The explosion in population, the vast changes brought about by scientific, technological and
other developments, and the all round enlarged field of human activity reflected in modern
society, and the consequent increase in litigation in Courts and other forums demand that the
service of competent persons with expertise in law is required in many stages and at different
forums or levels and should be made available.
62 | P a g e
Chapter:- VI
CONCLUSION
programs are voluntary; others are mandatory.Many individuals and entities still resist ADR
because it lacks the substantive, procedural, and evidentiary protections available in formal civil
litigation. For example, parties to ADR typically waive their rights to object to evidence that
might be deemed inadmissible under the rules of court. Hearsay evidence is a common example
of evidence that is considered by the parties and intermediaries in ADR forums but that is
generally excluded from civil trials. If a disputant believes that he or she would be sacrificing too
many rights and protections by waiving the formalities of civil litigation, ADR will not be the
appropriate method of dispute resolution.
An arbitration agreement is a written contract in which two or more parties agree to settle a
dispute outside of court. The arbitration agreement is ordinarily a clause in a larger contract. The
dispute may be about the performance of a specific contract, a claim of unfair or illegal treatment
in the workplace, a faulty product, among other various issues. People are free to agree to use
arbitration concerning anything that they could otherwise resolve through legal proceedings.
Conciliation is a voluntary proceeding, where the parties involved are free to agree and attempt
to resolve their dispute by conciliation. The process is flexible, allowing parties to define the
time, structure and content of the conciliation proceedings. These proceedings are rarely public.
They are interest-based, as the conciliator will when proposing a settlement, not only take into
account the parties' legal positions, but also their; commercial, financial and / or personal
interests.
Lok Adalat, as the name suggest means People’s Court. ‘Lok’ stands for People and the word
‘Adalat’ means Court. Lok Adalat is a special kind of people’s court in which disputes solved by
63 | P a g e
direct talks between the litigants. The members of legal profession, college students, social
organisations, charitable and philanthropic institutions and other similar organisations may be
associated with Lok Adalat.Lok Adalat is a boon to the litigant public, where they can get their
dispute settled faster and at free of cost. Experience has shown that it’s one of the efficient and
important ADR and most suited to the Indian environment, culture and social interests. Objective
of Lok Adalat is to settle the disputes which are pending before the courts, by negotiations,
conciliation and by adopting persuasive common sense and human approach to the problems of
the disputants. The large population of India and the illiterate masses have found the regular
dispensation of justice through regular courts very cumbersome and ineffective. The special
condition prevailing in the Indian society and due to economic structure, highly sensitized legal
service is required which is efficacious for the poor and the ignorant masses. The Lok Adalat
movement is no more an experiment in IndiaLok Adalats play a very important role to advance
and strengthen “equal access to justice”, the heart of the Constitution of India, a reality.
levels and should be made available.

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ALTERNATIVE DISPUTE RESOLUTION

WHAT IS ALTERNATIVE DISPUTE RESOLUTION (ADR)?

The basic goals of ADR include:

KEY FEATURE OF ALTERNATIVE DISPUTE RESOLUTION

TYPES OF ALTERNATIVE DISPUTE RESOLUTION

ADVANTAGES & DISADVANTAGES OF ALTERNATIVE

ARBITRATION :- A CASE STUDY

SCOPE & OBJECT OF THE ARBITRATION AND

Scheme of the Act:

ADVANTAGES AND DISADVANTAGES

Some of the disadvantages include:

Arbitration agreements are generally divided into two types:

 Agreements which provide that, if a dispute should arise, it will be resolved by

An arbitration award (or arbitral award) is a determination on the merits by an arbitration

An arbitral award or arbitration award refers to a decision made by an arbitration tribunal in an

POWERS AND DUTIES OF ARBITRATORS

(i)to permit a deposition to be taken of a witness who cannot be subpoenaed or is unable to

Conciliation is an alternative out-of-court dispute resolution instrument. Conciliation is an

 Conciliation offers a more flexible alternative to arbitration as well as litigation, for

CASE STUDY: JagdishChandervs Ramesh Chander&Ors on 26

CASE NO.: Appeal (civil) 4467 of 2002

RESPONDENT: Ramesh Chander&Ors

DATE OF JUDGMENT: 26/04/2007

FACT OF THIS CASE:

Arbitration is a proceeding in which a dispute is resolved by an impartial adjudicator whose

LOK ADALAT AND ITS IMPORTANCE: A PRATICAL

MEANING OF LOK ADALAT

Ancient concept of settlement of dispute through mediation, negotiation or through arbitral

ORGANISATION OF LOK ADALAT

JURISDICTION OF LOK ADALAT

COGNIZANCE OF CASES BY LOK ADALAT

WHY LOK ADALAT?

PROCEDURE OF LOK ADALAT

POWER OF LOK ADALAT

AWARD OF LOK ADALAT

ADVANTAGES OF LOK ADALAT

PERMENENT LOK ADALAT

LOK ADALAT CASE:-Dinesh Kumar vsBalbir Singh And Ors. on

PETITIONER- Dinesh Kumar

DATE OF JUDGEMENT:- 12/9/2008.

LEGAL AID CLINIC

WHAT IS LEGAL AID

CONCEPT OF LEGAL AID

Legislative History - The right to assignment of counsel at Government expenses was

PERSONS WHO ARE ENTITLED TO GET FREE LEGAL AID

CONSTITUTIONAL PROVISION RELATING TO LEGAL AID

IMPORTANCE OF LEGAL AID

LEGAL AID CASE:-SheelaBarsevs State Of Maharashtra on 15

SUPREME COURT OF INDIA

Equivalent citations: 1983 AIR 378, 1983 SCR (2) 337

P PETITIONER: SHEELA BARSE

RESPONDENT: STATE OF MAHARASHTRA

LegalAid to the poor-Importance of legalaid to the poor explained-Directions given to Prison

The writ petition will stand disposed of in terms of this order.

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