ROLE OF ADRS IN COMMERCIAL DISPUTES.

Topic :- ROLE OF ADRS IN COMMERCIAL DISPUTES.

Author:- Monidipa Nandy, a student of Shyambazar law college

    What is ADR:- 

    

    Alternative dispute resolution (ADR) refers to a variety of methods and techniques used to settle disputes outside of the traditional court system. ADR is often used when parties cannot come to an agreement short of litigation. Common ADR processes include mediation, arbitration, and neutral evaluation. ADR is generally confidential, less formal, and less stressful than traditional court proceedings. ADR often saves money and speeds settlement. In mediation, parties play an important role in resolving their own disputes. This often results in creative solutions, longer-lasting outcomes, greater satisfaction, and improved relationships. ADR is growing increasingly and it will continue to grow because of its diversity as it offers rapidity, confidentiality, and flexibility.

what are the different types of ADRs used in commercial disputes:- 

          There are several types of Alternative Dispute Resolution (ADR) methods that can be used in commercial disputes. The most common types of ADR for civil cases are mediation, settlement conferences, neutral evaluation, and arbitration.

Other ADR methods include conciliation, negotiation, and private judging.

Negotiation is usually the first stage in a potential ADR process, and it is something that business owners do all day, every day.

In mediation, parties play an important role in resolving their own disputes, which often results in creative solutions, longer-lasting outcomes, greater satisfaction, and improved relationships.

  In arbitration, a neutral third party hears evidence and makes a decision that is binding on the parties.

ADR can also give people more opportunity to determine when and how their dispute will be resolved.

 ADR methods can be more efficient and less expensive than litigation, and they can help family members who are deeply invested in the business to preserve relationships.

what are the advantages of using ADR in commercial disputes:-

  There are several advantages of using ADR in commercial disputes, including:

Cost-effectiveness: ADR is generally much more cost-effective than litigation. The court fees and costs alone can be high, and ADR usually costs less time than litigation

Time-efficiency: ADR almost always leads to a faster resolution of the dispute, meaning both parties can get back to business quicker.

Flexibility: ADR processes are flexible, cost-efficient, and time-effective, giving the parties more control over the process and the results.

Confidentiality: Alternative processes are typically confidential, meaning the fight is out of the public eye, and sensitive documents, trade secrets, etc. are protected from disclosure.

Party autonomy: ADR affords parties the opportunity to exercise greater control over the way their dispute is resolved than would be the case in court litigation. The parties themselves may select the most appropriate decision-makers for their dispute. In addition, they may choose the applicable law, place, and language of the proceedings.

Increased satisfaction: Parties who resolve their disputes through ADR are generally more satisfied because they may directly participate in working out the terms of their settlement. ADR can help the parties find win-win solutions and achieve their real goals, which may increase the parties' overall satisfaction with both the dispute resolution and the outcome.

In summary, ADR can be a faster, less expensive, and more flexible way to resolve commercial disputes than traditional litigation. It can also provide greater confidentiality and party autonomy, and increase overall satisfaction with the dispute resolution process and outcome.

How ADR solve commercial dispute:-

Alternative Dispute Resolution (ADR) refers to any method of resolving disputes without litigation. ADR regroups all processes and techniques of conflict resolution that occur outside of any governmental authority. The most famous ADR methods are negotiation, mediation,