Settlement Agreements In ADR Mechanisms In India: A Critical Analysis

Srishti Yadav, Amity University, Noida

ABSTRACT

Alternate dispute resolution (ADR) refers to the kind of dispute resolution processes through which the disagreeing parties reach a settlement without involving the use of litigation. Since ADR has received much acceptance both from the legal professionals as well as the general public, it is increasingly being used a method to settle disputes. The governments, especially in the low-income countries should promote ADR as a reliable option of solving disputes. India has been one such country where the growth of ADR can be witnessed since the 1990’s. India is a signatory to the Singapore Convention or the Convention on international settlement agreements resulting from mediation which deals with the enforcement of settlement reached through cross border mediation.1 Several initiatives are being taken by the Indian government in the recent years to promote ADR; for example, the amendments in the Commercial Courts Act, 2015 and the 1996 Arbitration Act. In this context of encouragement of ADR mechanisms by India on both the foreign and domestic fronts, it becomes important to understand the importance of settlement agreements in ADR. The articles deals with the pertinent question of the importance and enforcement of settlement agreements in ADR; thereby throwing light upon the relevant provisions of the Arbitration and Conciliation Act, 1996 and Order XXIII Rule 3 of the Code of Civil Procedure, 1908. It also deals with the question of privately mediated settlement agreements in India.

Keywords: ADR, consent decree, settlement, Order XXIII Rule 3 of CPC, mediation, section 30 of the Arbitration Act.