ADR In Commercial Matters: Repairing Trust Beyond Contractual Remedies
Anjali Agrawal, LL.M., National Law University Odisha
ABSTRACT
In the conventional commercial law, commercial disputes are often considered to be total violations of contracts that have to be settled in courts where one party is a winner, the other a loser. The reality of a legal battle is actually more expensive than the litigation expenses in the prevailing globalized economy. The trust, goodwill, and credibility that are built over years are the "Relational Capital" that suffers actual and occasionally irreversible harm. This article goes beyond the usual meaning of alternative dispute resolution (ADR) as a cost and time-effective alternative. It is being considered as a means of mending damaged business ties.
The article talks about how the contracts regulate not only on-and-off transactions but also business relations. The verdict of the litigation eliminates such co-operations by focusing merely on previous mistakes. On the other hand, ADR is future-oriented and does not just simply resolve conflicts amicably. The article is aimed at discussing various methods of regaining trust after a conflict, starting with negotiation, where parties find common values and choose to focus on effective communication without the interference of the third party. It proceeds to discuss mediation and conciliation as key methods of dispute resolution that are premised on the behavior of the disputing parties and the relationships between them and are supported by international documents such as the Singapore Convention and legal regulations such as the Mediation Act of 2023.
The article also mentions the hybrid arbitration model as a method of dispute resolution, which offers business relationships a combination of the freedom to settle and the assurance of a legally binding ruling. Long-term market health and sustainability require that ADRs have a capacity to repair and restore relationships and trust besides obeying the law. Rather than merely solving a case by case, the contemporary legal practice is now in the business of securing the network of business relationships so that the enemy of today becomes the friend of tomorrow.
Keywords: ADR, Relational Capital, Negotiation, Commercial Mediation, Mediation Act, 2023, Conciliation, Business Relationships, Settlement, Trust Restoration, Commercial Arbitration.
