Alternative dispute in India is not new, but existed from immemorial time. In very early time, it was in the form of Nyaya Panchayats, where five people (panchas) heard the case at a choppal of the village and gave the best judgments. During the period of British rule this institution lost its importance and developed a regular system of the Courts. But, there are several hurdles and barriers in the way of getting justice by common man in the Courts due to cost factor. The time consumed in litigation is yet another factor since there is no speedy amelioration of grievances. The above mentioned factors are not only wrecking the judicial system but also swiftly shaking the confidence of the people and the image of Courts as dispensers of justice. The need for ADR to the formal legal system has engaged the attention of the legal fraternity, comprising judges, lawyers and law researchers for several decades now. This has for long been seen as integral to the process of judicial reform and as signifying the ‘access to justice’ approach. Right of ‘access to justice’ is the most basic human right. Law relating to arbitration in India was governed by the Arbitration Act, 1889, which was substituted by the by the Arbitration Act, 1940. In 1996, once again it was substituted by the Arbitration and Conciliation Act, 1996, to include provisions relating to conciliation and international commercial arbitration. Lok Adalat as an ADR has got legal recognition under the Legal Aid Services Authorities Act, 1987. At present the countries like China, America, England, Canada and many of the Asian-African countries have shifted their judicial delivery system to the fabric of ADR. Now, emphasis is laid down on resolving the international disputes pertaining to trade and commerce through the system of ADR. To encourage the device of arbitration in settling disputes related to trade, commerce and investment, Asian-African Legal Consultative Organization have signed agreements with a number of Afro-Asian countries for adopting ADR mechanics. In this Article I have analyzed the development and scope of the ADR in India and Asian-African Legal Consultative Organization. I have also given some important suggestions for improvement of the ADR system in India.
