Empirical Study on Pending Cases and Success Rates of ADR in India

Introduction

India’s judiciary is burdened with one of the largest case backlogs in the world, with over 52 million cases pending across all levels of courts as of 2023.¹ This chronic delay undermines the constitutional guarantee of access to justice under Article 21 of the Constitution of India. Against this backdrop, Alternative Dispute Resolution (ADR) mechanisms including mediation, arbitration, conciliation, and Lok Adalats have emerged as vital tools for reducing pendency and ensuring timely resolution of disputes.

This research provides a data-driven assessment of ADR in India, focusing on pending cases, the number of disputes referred to ADR mechanisms annually, their settlement or success rates, and their impact on reducing judicial backlog. It further examines the challenges and reforms necessary to enhance the effectiveness of ADR in India.

ADR in India: Legal Framework

ADR in India has a statutory foundation in:

• Section 89 of the Code of Civil Procedure, 1908 (CPC): empowers courts to refer disputes to arbitration, conciliation, mediation, or Lok Adalats.²

• Arbitration and Conciliation Act, 1996: governing arbitration (Part I & II) and conciliation (Part III), modeled on the UNCITRAL Model Law (1985).³

• Legal Services Authorities Act, 1987: institutionalizes Lok Adalats for speedy settlement of disputes.⁴

• Mediation Act, 2023: India’s first standalone law on mediation, recognizing both institutional and online mediation, and making mediated settlements enforceable.⁵

Empirical Data on ADR Mechanisms in India

ADR Mechanism	Cases Referred (approx., annually)	Success Rate	Impact on Backlog
Mediation (Court-annexed)	~1.1 million cases (Delhi, Bangalore, etc. combined)	55–60% settlement rate (Delhi HC Mediation Centre)⁶	Significant in family & civil disputes
Lok Adalats	~7.5 million cases in one National Lok Adalat (Nov 2022)⁷	65–70% settlement rate	Cleared 7.5 million cases in a single day
Arbitration	Few thousand cases annually (institutional + ad hoc)	30–40% settle before award; awards often challenged⁸	Limited due to court intervention
Conciliation	Few hundred reported annually	~50% settlement rate	Moderate impact; underutilized

Case Studies of ADR Effectiveness

1. Mediation in Family and Civil Disputes

The Delhi High Court Mediation and Conciliation Centre (Samadhan) reported a 55–60% settlement rate across referred disputes.⁶ In family disputes, mediation reduces emotional trauma and preserves relationships while clearing pendency.

2. Lok Adalats

Lok Adalats remain the most effective ADR mechanism in terms of volume, settling over 7.5 million cases in a single day during the National Lok Adalat in November 2022.⁷ These include motor accident claims, cheque bounce cases, and petty civil disputes.

3. Arbitration

Although arbitration is the preferred mechanism for high-value commercial disputes, its effectiveness in India is mixed. Many arbitral awards are challenged under Section 34 of the Arbitration and Conciliation Act, 1996, leading to delays. In ONGC v. Saw Pipes Ltd. (2003), the Supreme Court expanded the ground of “public policy,” causing frequent judicial intervention.⁹ Post the 2015 amendment, the scope of public policy has been narrowed, but concerns persist.

4. Conciliation

Conciliation remains underutilised, despite statutory recognition in Part III of the Arbitration Act. Unlike mediation, conciliation agreements are enforceable as arbitral awards (Section 74). Its limited use indicates lack of awareness among litigants and lawyers.

Impact on Judicial Backlog

The cumulative impact of ADR on pendency reduction is significant. In 2022 alone, Lok Adalats disposed of nearly 11 million cases nationwide through state and national sittings.¹⁰ Similarly, mediation centres attached to High Courts and District Courts are increasingly diverting cases from litigation. Yet, arbitration’s potential remains restricted due to delays in enforcement.

According to NITI Aayog’s 2020 report, effective integration of ODR (Online Dispute Resolution) and mediation could potentially reduce pendency in civil and commercial disputes by 30–40% over the next decade.¹¹

Challenges to ADR in India

Despite its promise, ADR in India faces systemic challenges:

1. Judicial Interference in Arbitration: Excessive challenges to awards undermine efficiency.

2. Lack of Awareness: Litigants and lawyers often resist mediation and conciliation.

3. Quality of Mediators and Arbitrators: Need for professional training and accreditation.

4. Enforceability Concerns: Delays in enforcement of arbitral awards weaken confidence.

5. Urban-Rural Divide: ADR centres are concentrated in urban areas, limiting rural access.

Recommendations

1. Strengthening Institutional Arbitration: Empowering institutions like the MCIA to reduce reliance on ad hoc arbitration.

2. Mandatory Pre-Litigation Mediation: As provided in the Mediation Act, 2023, should be implemented with safeguards.

3. ODR Integration: Leveraging technology for scalable resolution of consumer and small-value disputes.

4. Mediator and Arbitrator Accreditation: Standardised training and ethics guidelines to professionalise ADR.

5. Awareness Campaigns: Encouraging litigants and lawyers to adopt ADR through judicial and government outreach.

Conclusion

ADR mechanisms in India have demonstrated substantial success in reducing pendency and delivering timely justice, particularly through mediation and Lok Adalats. However, arbitration and conciliation remain underperforming due to structural inefficiencies, judicial intervention, and lack of awareness.

Empirical evidence shows that ADR can significantly ease India’s judicial backlog, but realizing its full potential requires institutional strengthening, legislative reforms, and cultural change within the legal profession. As India positions itself as a global hub for dispute resolution, investing in ADR is not merely a policy choice, it is a constitutional imperative to ensure access to timely and affordable justice.

References

1. National Judicial Data Grid (NJDG), Pendency Dashboard, 2023.

2. Code of Civil Procedure, 1908, Section 89.

3. Arbitration and Conciliation Act, 1996.

4. Legal Services Authorities Act, 1987.

5. Mediation Act, 2023 (India).

6. Delhi High Court Mediation and Conciliation Centre, Annual Report (2022).

7. National Legal Services Authority (NALSA), Press Release on National Lok Adalat, Nov 2022.

8. NITI Aayog, Strengthening Arbitration and its Enforcement in India, 2017.

9. ONGC v. Saw Pipes Ltd., (2003) 5 SCC 705.

10. NALSA, Annual Report on Lok Adalats, 2022.

11. NITI Aayog, ODR: The Future of Dispute Resolution in India, 2020.