Reimagining ADR In India: District-Level Arbitration, MSME Disputes, And The Path To Accessible Justice
Srushti Krishnamurthy Garg, B.B.A. LL.B., School of Law, SVKM's NMIMS, Bengaluru
ABSTRACT
Due to the mounting pressure on India’s judicial system, it has become imperative for the nation to embrace Alternative Dispute Resolution methods such as, arbitration, mediation and conciliation and negotiation. As per the Arbitration and Conciliation Act of 1996, the main purpose of alternative dispute resolution is to facilitate quick, economical, and amicable dispute resolutions that favor the parties involved. Given the current business environment in India and its rising economic performance due to MSMEs, arbitration has played a pivotal role.
Nevertheless, the efficacy of the ADR system is compromised by several inherent weaknesses within the existing system, such as its heavy reliance on an urban infrastructure, prohibitive cost factors, complicated procedures, and inadequate reach. The legislative provision under the Micro, Small and Medium Enterprises Development Act, 2006 continues to suffer from delays and restricted scope.
Therefore, the objective of this study is to investigate the structural and institutional weaknesses in the ADR framework in India and the possibility of decentralizing arbitration to the district level. This study seeks to explore whether decentralization will be effective in addressing the access issue and making the process efficient. This study will also explore the possibility of utilizing technology such as ODR in resolving disputes involving MSMEs.
Keywords: ADR, MSME Disputes, Decentralization, District Arbitration, Access to Justice, Legal Infrastructure
