Alternative Dispute Resolution is a generic term used to describe a range of procedures designed to provide ways to resolve a dispute as an alternative to court procedures. The Alternative Dispute Resolution (ADR) mechanisms are largely out-of-court settlements aimed at settling disputes in an amicable manner, which are free from strict procedural formalities and cost-effective.
Access to justice, in its widest sense of the effective resolution of disputes whether through court-based litigation or alternative dispute resolution processes, is an essential aspect of ensuring the realization of fundamental rights. Therefore, there is a great importance of ADR in present days which is mentioned below:
1. Settlement of disputes via ADR is usually much quicker than through the formal court system.
2. A more appropriate conclusion may be drawn as a specialist from or within a matter of the dispute is hired to suggest a reasonable solution that will be mutually acceptable to the parties.
3. Privacy of the parties is well managed since ADR is conducted in private.
4. It creates a win-win situation among the disputant parties.
5. It minimizes the cost and saves the labor and time of the parties, state, and court.
It is an appropriate measure to resolve multi-party disputes as well.
6. The process is determined and controlled by the parties to the dispute which makes the procedure more flexible.
7. Confidentiality and preservation of relationships and reputation of the disputing parties.
8. The enforceability of the agreement concluded is easy because the conclusion is drawn by the parties themselves voluntarily.