How ADR helping in reshaping the Indian Judicial System

Introduction

“Discourage litigation. Persuade your neighbours to compromise wherever you can. Point out to them how the nominal winner is often a looser – in fee, expenses and waste of time.”-Abraham Lincoln

 India has witnessed an explosion of cases over the past 70 years. In 2023, India was ranked as the most populous country in the world. A status that has contributed significantly to the docket explosion, both in terms of pending cases and the increasing number of new filings. This growing caseload places immense pressure on the Indian judiciary. As population is a vital element for any nation’s progress, ensuring access to justice for all is critical. The burden on courts has led to various challenges, and Alternative Dispute Resolution (ADR) can play a key role in alleviating this strain. According to the National Judicial Data Grid, the number of pending cases continues to rise, while the rate of contested case disposal remains low compared to uncontested ones-causing significant delays in justice delivery.1 ADR provides mechanisms to resolve disputes without formal trials. Methods like arbitration, mediation, conciliation, negotiation and Lok Adalat not only help reduce the number of cases reaching the courts but also enable the judiciary to focus on more complex matters. By making the dispute resolution process faster, cost-effective, and more efficient, ADR supports the integrity of the Indian judiciary and ensures that justice is accessible, timely, and fair for all.

Constitutional Provision:

• Article 39-A: of the Constitution of India provides that the State shall secure that the operation of the legal system promotes justice, on the basis of equal opportunity and shall in particular, provide free legal aid, by suitable legislations 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 14 also makes it obligatory for the State to ensure equality before law and a legal system which promotes justice on the basis of equal opportunity to all. Thus, access to justice, provision of legal aid for the poor and needy and dissemination of equal and speedy justice are the cherished goals of our Constitutional Republic.

Why Indian Judiciary is overburdened?

1. Shortage of appointment of judges: Currently, India has about 21 judges per million people, which is much lower than the 50 judges per million recommended by the backlog of cases. 2 It is making difficult for the judiciary to deliver timely justice.
2. Population explosion: India is currently the most populated country in the world. With a growing population comes greater responsibility for the judiciary to handle cases efficiently and promptly. This surge in population not only brings in a rising number of new cases but also adds pressure to clear the already existing backlog.
3. Less priority for disposal of old cases: Some cases in India have been pending for decades, which directly affects the citizen’s right to timely justice. This prolonged delay undermines public confidence and gradually erodes trust in the judicial system.
4. Court holidays: The Indian judiciary is currently burdened with over 5 crore pending cases across all levels of courts.3 In such a situation, it becomes crucial to prioritize timely case resolution through effective measures, rather than continuing with frequent court holidays timely case resolution through effective measures, rather than continuing with frequent court holidays.
5. Inadequate infrastructure: Many courts in Indian lack basic infrastructure, including adequate digital systems and staff support. This deficiency significantly delays the resolution of cases and hampers the overall efficiency of the judiciary.
6. Unawareness of ADR: ADR provides parties with the opportunity to resolve disputes without having to file formal legal cases. It is essential to raise public awareness about these mechanisms, and the Government of Indian should take active steps to promote and implement ADR initiatives more widely.
7. Lengthy procedures: The lengthy processes and slow delivery of judgments often result in the neglect of other pending cases. As a consequence, the number of undisposed cases in court far exceeds the number of cases they have been resolved.
8. Frequent adjournment: The lengthy processes and slow delivery of judgments often result in the neglect of other pending cases. As a consequence, the number often result in the neglect of other pending cases. As a consequence, the number of undisposed cases in court far exceeds the number of cases that have been resolved.

What is Alternative Dispute Resolution (ADR)?

The core objective of Alternative Dispute Resolution (ADR) is to offer a means of settling disputes outside the formal court system. ADR can be used not only to resolve existing conflicts but also to prevent potential disputes from arising. This method has been practiced in India since ancient times and continues to play a vital role in the justice system today.

ADR is supported by Articles 14 and 21 of the Indian Constitution, which uphold the principles of equality before the law, the rights to life, and personal liberty.4 Additionally, Section 89 of the Civil Procedure Code (CPC) empowers courts to refer disputes for resolution through ADR mechanisms, if it appears that a mutually acceptable settlement is possible.

ADR is commonly used to resolve civil, matrimonial, commercial, consumer, labour, motor accident and even certain compoundable criminal matters, offering an efficient and amicable alternative to lengthy courts procedures. Following are the types Alternative Dispute Resolution.

• Arbitration: The Arbitration and Conciliation Act,1996 governs arbitration in India.6 It allows disputes to be resolved outside the traditional court system through an unbiased third party known as the Arbitrator. The arbitrator listen to both the sides, reviews the evidence and makes a binding decision. The process is quicker, less formal and more cost-effective than traditional litigation.
  • Mediation: In mediation, an independent third party known as the Mediator, helps the disputing sides find common ground. It’s a peaceful and cooperative way of resolving conflicts, focused on the understanding and agreement. The process is voluntary and non-binding unless both the parties decide to sign an agreement. The Mediation Act, 2023 governs mediation in India.
  • Conciliation: Conciliation is a more informal method compared to mediation. A conciliator assists the parties in reaching a mutually agreeable solution to their dispute. The process is voluntary, non-binding and governed under the Arbitration and Conciliation Act, 1996.
  • Negotiation: It is informal and private discussion between the parties to reach a mutual agreement without the involvement of any third party.
  • Lok Adalat: Lok Adalat literally means ‘People’s Court’. It is informal setting where disputes are resolved with the help of a panel of legal experts and judges. The process is speedy, low-cost, voluntary and focuses on resolving conflicts without creating ill will between the parties involved.

How ADR supports the Indian Judiciary?

1. Reduces the filing of new cases: ADR helps to prevent disputes before they need the courtroom by resolving it as early as possible.
2. Solves disputes without the need of formal trials: ADR solves disputes formally as well as informally without the need of formal trials. For example, Negotiation.
3. Builds public trust: ADR offers efficient and effective solution; ADR helps build confidence in Indian Judiciary system by showing that justice can time accessible and fair.
4. Ensure speedy hearing: ADR provides speedy hearing as traditional trials can be time consuming and delayed.
5. Lowers legal costs: The cost of legal paper work is low. As ADR involves less documentation and more mutual understanding between the parties.
6. Eases the burden on Indian courts: ADR supports Indian Judiciary by resolving the cases outside the courts and help legal courts to focus on complex cases.
7. Supports the balance and efficiency: ADR helps by contributing to the efficient distribution of cases and balancing an ideal cases judge-to-case ratio in the Indian Judiciary.

Legal framework supporting ADR in India.

Various legal measures are taken by the Government of India to promote Alternative Dispute Resolution. The examples are as follow:

• Section 89 of the Civil Procedure Code, 1908: This section empowers courts to refer disputes for settlement through Alternative Dispute Resolution mechanisms such as arbitration, conciliation, mediation or judicial settlement if the court perceives a possibility of resolution. The objective is to reduce the burden on the judiciary and facilitate faster dispute resolution.
  • Arbitration and Conciliation Act, 1996: The act governs both arbitration and conciliation in India. It provides a legal framework for domestic and international commercial arbitration and for the enforcement of foreign arbitral awards. The act also includes provisions for conciliation, encouraging amicable settlement without court intervention.
  • S.9 of the Family Courts Act, 1984: Mandates the family court to assist and persuade the parties at the first instance, to arrive at a settlement.
  • Order 23, Rule 3, Code of Civil Procedure-1908 Mandates the courts to record a full adjustment or compromise and pass a decree in terms of such compromise or adjustment. But the compromise decree has to be recorded as a whole so as to gather the intention of the parties.
  • The Mediation Act, 2023: The Mediation Act promotes mediation as a structured form of dispute resolution mechanism. It includes provisions for institutional mediation, enforcement of mediated settlement agreements, community mediation and online mediation. The act seeks to make mediation a widely accepted and cost-effective process.

Case Law

Case: Nikita Gupta v. Yadunandan Gupta (Transfer Petition (Civil) No. 2081 of 2024)

• Date of Order: January 15, 2025
• Court: Three-Judge Bench of the Supreme Court of India
• Referral to Mediation: The Court referred the matter to the Supreme Court Mediation Centre, directing multiple mediation sessions to explore a settlement
• Mediation Sessions: Conducted on January 31, February 11, February 18, March 1 (both physical/virtual), with final settlement signed on March 21, 2025
• Outcome: Parties reached a mutual consent settlement involving a one-time payment of ₹6,00,000 by the husband toward permanent alimony, maintenance, Stridhan, and other claims. They agreed to withdraw all future civil and criminal litigation and file jointly for divorce under Article 142 of the Constitution and provisions of the Hindu Marriage Act. The settlement was used to support the decree of divorce by mutual consent.

   Conclusion

• ADR is not a substitute but a strong support system to the overburdened Indian judiciary, helping resolve millions of disputes without entering the courtroom.
• It aligns with constitutional principles of equality and access to justice under Articles 14 and 39-A.
• ADR mechanisms like arbitration, mediation, conciliation, negotiation, and Lok Adalats are not only cost-effective and time-saving, but also promote harmonious dispute resolution.
• The Mediation Act, 2023 is a landmark reform that gives a comprehensive legal framework to mediation and strengthens India’s commitment to modern ADR practices.
• The Supreme Court judgment in Nikita Gupta v. Yadunandan Gupta (2025) is a recent example of the judiciary mandating mediation even in sensitive family law matters—showcasing confidence in ADR.
• The Government and judiciary must now invest in awareness, infrastructure, training of mediators, and digital platforms to fully realize the benefits of ADR mechanisms.
• With proper implementation, ADR has the potential to ensure “justice for all” in a manner that is accessible, efficient, and fair, thus reshaping the Indian judicial system in the 21st century.