How to Handle a Legal Dispute Without Going to Court India
Introduction
Indian legal system is a holistic system designed to adjudicate upon various disputes involving complex legal procedures and high costs. These complexities have led various businesses and individuals to seek alternative methods of dispute resolution without taking recourse to the courts and the judicial system through a process known as ‘Alternative Dispute Resolution’ or ADR which offers quicker, reasonable and cost effective solutions to numerous legal disputes with an adaptive approach.
In the recent past, the concept of Alternative Dispute Resolution (ADR) has become a popularly common and efficient way to resolve disputes in India outside the conventional court setup and offered various advantages over the traditional litigation system.
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Types of Disputes in India
Before discussing the methods of resolving disputes outside the court system, it is essential to understand the types of disputes that can be settled through this system which are as follows:
Civil Legal Disputes – these types of disputes involve issues pertaining to law of contracts, partnerships, consumer matters and business transactions. Depending upon the present law in force, such types of disputes can be resolved effectively without going to courts.
Criminal Disputes – These disputes arise from offenses committed against the state, such as theft or assault, and are prosecuted by the relevant state authorities. Unlike civil disputes, criminal matters cannot be settled outside the court system.
Ways of resolving disputes outside the Court System
There are numerous ways through which civil, commercial or other permissible disputes can be resolved outside the court system which are as follows:
Mediation – Mediation refers to a process of appointment of an impartial and neutral third party who aids in facilitation of discussion between the parties in order to enable them to reach a mutually acceptable agreement where the mediator shall not be permitted to make the decision on behalf of the parties but merely enable them to frame the same through communication. The advantage of such a type of process is that it enables the parties to reach a consensus faster and flexibly with comparatively lesser cost and have greater control over the process of decision making as compared to litigation.
Arbitration – Arbitration refers to a formal process of dispute resolution governed in India by the Arbitration and Conciliation Act 1996. Under this process, the parties agree to submit their dispute to a neutrally appointed arbitrator who acts as a third party in an adjudicatory capacity and pass a binding decision. The major benefit of this type of process is that the result obtained by the parties is legally enforceable while the terms and conditions are mutually decided by the parties through their consensus allowing greater privacy and efficiency.
Negotiation – Negotiation refers to the process of direct communication between the parties or their appointed attorneys to reach an agreement and resolve the dispute without resorting to the tedious procedural norms of the courts. This type of process enables the parties to reach a consensus between the parties collaboratively without hampering business relations and foster creative solutions between the parties which may also enable the parties to carry on business without straining any relation between the parties.
Online Dispute Resolution – Also known as ODR, this type of mechanism is a newly introduced framework in India which utilizes the technology to resolve disputes between the parties without requiring their physical presence. For instance, SEBI’s ODR Portal for investor – company disputes is a notable example for such portals which enables the process of dispute resolution without undertaking recourse to the judicial system and provides a convenient and cost-effective solution especially for remote areas.
Role of Legal Professionals in dispute resolution outside courts
The legal professionals play a crucial role in facilitating the process of alternative dispute resolution by preparing the parties for the above – mentioned processes along with completing the statutorily mandated legal formalities and offer professional support to the parties during the appointment of mediators, negotiators or arbitrators and executing the settlements consensually reached by the parties. Additionally, the parties in civil or commercial disputes are also able to focus upon their business interests in an unhampered manner without indulging in the technical legal processes.
Experienced law firms can help the parties in settling their disputes outside courts by guiding them throughout their ADR processes, prepare customized strategies to resolve disputes swiftly and economically, handle cross – border disputes and ensure that the process is carried on with utmost ease and professionalism. King Stubb & Kasiva has successfully assisted numerous clients in arbitral proceedings under the Arbitration & Conciliation Act, 1996, in National and International cases seated in India.
Conclusion
The practice of handling legal disputes outside courts has been gaining pace in India, with an increased emphasis of the parties to avoid litigation and resort to alternative dispute resolution practices.
One of the major benefits across ADR methods is that the parties are able to save their time and resources without compromising their business relations along with saving huge amounts of time, resources and obtain a binding decision which may be enforced in the courts of law in the future. Additionally, such procedures not only benefit the parties but also the legal system which can focus and channelise their resources and manpower towards numerous other matters, offering a choice to businesses and individuals to mutually resolve their disputes amicably.
Law firms play a vital role in such processes by assisting the parties in drafting Arbitration Clause in the contracts and ensuring proper jurisdiction clause, advising on the selection of an arbitrator, assisting and representing the clients in the proceedings, ensuring the enforcement of arbitral awards and various other processes.
King Stubb & Kasiva,
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