Introduction
Justice Warren Burger, the former CJI of American Supreme court had observed: “the harsh truth is that we may be on our way to a society overrun by hordes of lawyers, hungry as locusts, and bridges to judges in number never before contemplated. The notion that ordinary people want black-robed judges, well-dressed lawyers, fine paneled court rooms as the setting to resolve their disputes, is not correct. People with legal problems like people with pain, want relief and they want it as quickly and inexpensively as possible”. Consumer disputes, which involve everything from subpar goods to inadequate services, form an unavoidable part of business dealings in any market. Efficient and equitable resolution of disputes is pivotal for promoting consumer trust and upholding fair trade practices in India, given the country’s diversified socio-economic structure and expanding consumer market. In addition to causing serious harm to companies, this drawn-out procedure erodes public confidence in the effectiveness of a nation’s judicial system.
Despite the existence of consumer protection laws in India, businesses and consumers find it costly, time-consuming and challenging to resolve these types of disputes through traditional litigation system.
The primary goal of this research is to assess how well Alternative Dispute Resolution (ADR) methods work to expedite the settlement of consumer disputes and clear the backlog of cases. To that end, this paper will closely examine numerous provisions found in the ‘Arbitration and Conciliation Act, 1996’, which ultimately serves as the foundation for Indian Arbitration practices. The study also identifies the domains in the current legislative framework which needs improvement by critically assessing its advantages and disadvantages.
Additionally, a comparative examination of ADR mechanisms in other nations acknowledged for possessing strong dispute settlement mechanisms would provide a valuable data for this research. To learn about different procedures, best practices, and institutional structures that support effective consumer dispute resolution, the Brazil, China, Mexico and United Kingdom’s mechanisms will be specifically examined. The study evaluates models from various countries to identify answers and useful implications that could be applied in Indian setting.
This study will also assess the need for an efficient consumer dispute resolution process in India, in addition to closely examining global methodology and legislative frameworks. The ultimate objective of the study is to offer specific recommendations for enhancing India’s ADR procedures so that businesses and consumers can be better served. In addition to enhancing access to justice, this would also increase public faith in the judicial system.