The Indian Judicial system is often criticized for its lengthy procedure and backlog of pending cases. In most cases, parties wait for years to resolve disputes get relief, results in financial loss, uncertainty and mental stress. Due to these challenges, Alternative Dispute Resolution is gaining significant in the contemporary times it provides speedy justice, low cost and confidential motive to decide case out of traditional court means.
Arbitration is method of resolving disputes of the parties by appointing a neutral third party or panel of third party called Arbitrator. The Arbitrator listens to argument of both parties in conflict and based on that a unbiased decision provided to the concerned parties. The decision given by arbitrator is called Award. Tribunals was incorporated in constitution of India 42nd Amendment in Article 426A and 326B. Arbitration is commonly used in commercial, business and contractual dispute because it provides a more flexible and private dispute resolution mechanism traditional method of court takes a lot of time in producing judgment as there are a lot of pending cases as litigation is high cost efficiency as lawyers are included whereas in Alternate Dispute Resolution parties can choose their Arbitrator according to specialised field like construction, matrimonial, commercial, etc. In ADR there is a scope of choosing Arbitrator especially for trade and companies. It’s better because where court takes 5-10 years in producing judgement tribunals provide award within month or an year, it is also low cost and protect the interest and disputes of parties.
Due to increasing delays in court Arbitration has become a preferred mechanism for corporation and businesses to get speedy justice and efficient dispute resolution. The National lok Adalat held on 14th March 2026 observes 3.28 crore cases taken up with 2.84 crore cases resolved in a single day, shoes massive scale of providing speedy justice to aggrieved party. Hence in conclusion for civil matter and commercial disputes ADR mechanism is better for criminal case which requires strict statutory provisions, precedents investigation litigation is best. The primary benefit of litigation is that the passed judgement by court can be challenged again but in ADR the decision is generally binding and has a little scope of re challenge as court judgement has various level of appeals. ADR is not replacement of court ; it is alternative system that complements judicial system.
