Government \continues to promote alternate dispute resolution (ADR) mechanisms including arbitration and mediation in the country, as these mechanisms are less adversarial and are capable of providing a better substitute to the conventional methods of resolving disputes. The Government is further taking policy and legislative interventions, to strengthen these mechanisms and make them more efficacious and expeditious.

The major initiatives, steps and measures taken by the Central Government over the years in this regard include with respect to the Arbitration and Conciliation Act, 1996 which has been progressively amended in the years 2015, 2019 and 2020 to keep pace with current developments in the arbitration landscape and to enable arbitration as a viable dispute resolution mechanism. The amendments are aimed at ensuring timely conclusion of arbitration proceedings, neutrality of arbitrators, minimizing judicial intervention in the arbitral process, efficacious enforcement of arbitral awards and promotion of institutional arbitration

The Commercial Courts Act, 2015 was also amended in the year 2018 to provide inter-alia for Pre-Institution Mediation and Settlement (PIMS) mechanism. Under this mechanism, where a commercial dispute of specified value does not contemplate any urgent interim relief, the parties have to first exhaust the mandatory remedy of PIMS before approaching the Court. This is aimed at providing an opportunity to the parties to resolve the commercial disputes through mediation.

The India International Arbitration Centre Act, 2019, was enacted to provide for the establishment of the India International Arbitration Centre for the purpose of creating an independent, autonomous and world class body for facilitating institutional arbitration and to declare the Centre to be an institution of national importance. The Centre has since been established and aims to inspire confidence amongst parties, both domestic and international, by providing a neutral dispute resolution platform for resolution of commercial disputes through arbitration.

The Mediation Act, 2023, lays down the legislative framework for mediation to be adopted by disputing parties, especially under the aegis of institutional mediation. The Mediation Act, 2023 is also expected to be a pivotal legislative intervention towards providing standalone law on mediation and enabling the growth of a culture of amicable settlement of disputes out of court.

Lok Adalats are organised across the country as per the provisions of the Legal Services Authorities Act, 1987 read with the National Legal Services Authority (Lok Adalats) Regulations, 2009 for the subject matters as prescribed under the said Act and Regulations in the Courts and Tribunals as defined under Section 2 (aaa) of the said Act. In Lok Adalats, the disputes or cases pending in the court or at pre-litigation stage are attempted to be settled amicably. The Lok Adalat has been given statutory status under the Legal Services Authorities Act, 1987, recognizing its efficacy as an expeditious, less costly and speedier system of administration of justice. The award made by Lok Adalat is deemed to be a decree of a civil court and is final and binding on all parties and no appeal lies against the Award before any court.

This information was given by the MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF LAW AND JUSTICE; AND MINISTER OF STATE IN THE MINISTRY OF PARLIAMENTARY AFFAIRS Shri Arjun Ram Meghwal in Lok Sabha today.

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Samrat