It is another methodology to fix a conflict, dispute, and claim outside the courtroom. It involves a third-party neutral helping the conflicting parties work out their differences. The parties can use conciliation, mediation, negotiation, and arbitration to solve it.
Alternative Dispute Resolution generally follows failed efforts between the client and their insurer to resolve any differences between themselves and when an impasse has been reached. The study aims to ascertain whether contract law can be confined to a paper document or needs a more complex approach involving extra-legal elements such as these; we believe that ADR is useful only if it results in tangible resolution of disputes with an acceptable outcome obtained.
In India, a system of Alternative Dispute Resolution (ADR) has been implemented to dispose-off disputes speedily, keeping in view the time-consuming legal process and the huge pending litigation before the courts, which has reached staggering proportions.