INTRODUCTION:

The concept of Pre-Packaged Insolvency Resolution Process (PPIRP), positioning it as a hybrid model that blends informal and formal procedures to rehabilitate financially stressed corporate debtors. The central idea revolves around a restructuring plan mutually agreed upon by the debtor and creditors before the initiation of insolvency proceedings. Notably, PPIRP's introduction in the Indian insolvency regime is lauded as a progressive step, particularly benefiting Micro, Small, and Medium Enterprises (MSMEs), crucial contributors to India's economy.

ENHANCING CORPORATE INSOLVENCY RESOLUTION:

Beginning with the background, the paper addresses India's challenge with Non-Performing Assets (NPAs) and the governmental response through the enactment of the Insolvency & Bankruptcy Code, 2016. A significant development is highlighted with the 2021 amendment introducing PPIRP as a more efficient means of resolving stressed corporate entities.

A COMPHRENSIVE ANALYSIS OF INDIA’S PRE-PACK INSOLVENCY RESOLUTION PROCESS (PPIRP) IN GLOBAL CONTEXT:

The global landscape is then explored, comparing PPIRP in India with analogous processes in the United Kingdom, the United States, Singapore, and France. This comparative analysis encompasses various facets, such as the consensual nature of the process, voting rights for creditors, and the pivotal role of the adjudicating authority.

A critical aspect of the discussion emphasizes the importance of adhering to international standards in evaluating the effectiveness of an insolvency regime. The paper identifies key features contributing to the success of a pre-pack insolvency system, including a clear trigger for initiating proceedings, expeditious liquidation of non-viable firms, support for the rehabilitation of viable firms, well-designed voting rights for creditors, a credible threat to debtors, and a nuanced distinction between fraudulent and honest defaulters.

The analysis further underscores the need for a delicate balance between proactive triggers and efficient resolution, advocating for lower thresholds that deter insolvency proceedings and encourage caution among firms facing financial stress. This argument gains significance in light of the Ministry of Corporate Affairs' decision to increase the threshold for initiating insolvency proceedings, a move prompted by the economic challenges posed by the COVID-19 pandemic.

Speedy liquidation of non-viable firms emerges as another crucial aspect, aligning with the paper's assertion that a well-functioning insolvency regime should swiftly liquidate assets when a firm reaches an irreparable state. The 2021 amendment sets a time limit of 120 days for completing PPIRP, allowing non-viable firms to undergo quick liquidation under the oversight of the Adjudicating Authority.

The Article contends that PPIRP offers viable firms an option to continue operations under the existing board of directors, with creditors overseeing commercial transactions. The mandated three-year resting period between two PPIRPs provides firms the necessary space to recover momentum and overcome financial distress. Notably, the option for initiating Corporate Insolvency Resolution Process (CIRP) after the termination of PPIRP further strengthens the overall insolvency framework.

The analysis underscores the importance of well-designed voting rights for creditors to prevent strategic misuse of the process. PPIRP, with its emphasis on transparency and the involvement of the Adjudicating Authority, mitigates the risks associated with creditors and debtors using the process strategically.

This article acknowledges the absence of specific provisions in Indian legislation distinguishing between fraudulent and honest defaulters. However, recent judgments and the trajectory towards incorporating group insolvencies in the Insolvency and Bankruptcy Code indicate a positive trend in addressing this issue.

CONCLUSION:

The Article positions the Indian pre-pack insolvency regime as a promising and carefully crafted framework, representing the genesis of a system with ample room for growth and evolution. Despite initial skepticism, the momentum behind the ordinance suggests its necessity in times of market downturns and financial stress. The paper anticipates that PPIRP will play a pivotal role in preventing valuable asset reduction through swift liquidation and facilitating the rehabilitation of viable firms, contributing to the overall health and resilience of the Indian economy.

Disclaimer: The above article is based on the personal interpretation of the related orders and laws. The readers are expected to take expert opinions before relying upon the article. For more information, please contact us.

The Ministry of Consumer Affairs, Food and Public Distribution Department of Consumer Affairs (hereinafter referred to as ‘DoCA’) on June 30th, 2023. ‘DoCA’ by exercising their power under sub-clause (1) of sub-section (2) of section 18 of The Consumer Protection Act, 2019 proposed the Guidelines for Prevention and Regulation of Dark Pattern, 2023 (hereinafter referred to as (‘the Guidelines’). Dark Pattern is a term which defined under section 2(1)(e) of the Annexure- A of the ‘the Guidelines’ as unfair or manipulative way to influence the consumers through various ways to make them choose what they don’t want to do or not in their best interests. In this the seller/supplier uses UI/UX (user interface/user experience) to mislead the consumer.

Following are the 10 specified ways defined by ‘DoCA’:

1. False Urgency: In this the seller/supplier uses a way of stating the urgency which means giving consumer the less time or making them scared to take this as soon as possible to make a purchase. In this the seller/supplier use ways like to showcase the false popularity of the concerned product.

1. Basket Sneaking: In this the seller/supplier adds additional items such as products, services, like charity or donation at the time of checkout without the consent of consumer. In this the extra amount is added to the total of product price in the name of charity/donation.

It is to be noted that the additional service which can be complementary provided by the seller/supplier will not come under the Basket sneaking.

1. Confirm shaming: In this the seller/supplier used trick through phrases, video, audio to create a fear in the mind of consumer to make a purchase of the concerned purchase. In the seller/supplier tries to play with Psychology of the consumer to make him/her think that it will be bad or immoral to not make the purchase item.

For ex: A Bus service provider uses a trick at the time of booking a seat to give insurance to the passengers, they generally use a phrase “I will stay unsecured for the whole journey”.

1. Forced action: In this the seller/supplier tries to sell the unintended product/ service to the consumer by forcing them to make a purchase the additional unintended product before buying the intended product.

For ex: Forcing consumers to download a separate different app before downloading the original intended app.

1. Subscription trap: In this seller/supplier make attempt to set the procedure of cancellation of any subscription model a difficult one or confusing one for the consumer or hiding the cancellation option in a way that it will be difficult for the consumer to find it and it also tries to play with the consumer psychology to make them frustrated and make them choose not to cancel the subscription.

1. Interface interference: In this seller/supplier try to manipulate the consumer by highlighting the unrelated information and make less visible the intended information to misdirect the consumer from taking a desired intended action.

For ex: Design the option ‘No’ less visible to a pop-up asking if they want to purchase a concerned product.

1. Bait and switch: In this the consumer deceptively gets the unintended product even after selecting for the intended product.

For ex: Showing the consumer a product which is cheap but when the consumer is about to pay for the same, then the product is no longer available or instead offer a similar product for a higher price.

1. Drip pricing: In this the seller/supplier revealed the price post-purchase or product/service advertised as free without disclosure of all the material facts or in certain cases the consumer is prevented from availing the service for which the consumer has already paid.

1. Disguised advertisement: In this seller/supplier posing or making the false advertisement or misleading the consumer by faking the product in the advertisement. In this the responsibility of making all the material facts disclosed lies with the seller/supplier.
2. Nagging: In this the seller/supplier asks the same things multiple times or asking the same thing in an interrupted and annoying way.

For ex: Websites asking consumers to download the concerned application again and again.

These Dark Pattern shall apply to all the sellers, advertisers and on all the platforms which are offering the goods/ services to the consumer. The main objective of these guidelines is to protect the consumer’s rights and safeguard them from any dark practices by regulating and identifying the patten used by the seller/supplier.

Conclusion

These guidelines issued by the ‘DoCA’ in consultation with the Advertising Standards Council Protection ACT, 2019 for the protection of consumers. But these guidelines are yet to be finalized by the ‘DoCA’ and the ministry should impose the fine on the seller/supplier if they come under any of above discussed guidelines.

Disclaimer: The above article is based on the personal interpretation of the related orders and laws. The readers are expected to take expert opinions before relying upon the article. For more information, please contact us.

INTRODUCTION:

The Insolvency and Bankruptcy Code (IBC) in India has undergone significant amendments to streamline the resolution process and protect the interests of all stakeholders involved. One crucial aspect of this process is the approval of a resolution plan under Section 31, which brings about a freeze on claims and binds various entities, including the corporate debtor (CD), employees, creditors, guarantors, and all stakeholders. In this article, we delve into the implications of frozen claims and binding resolutions under Section 31 of the IBC.

UNDERSTANDING SECTION 31:

Section 31 of the IBC plays a vital role in the finalization and implementation of a resolution plan. Once a resolution plan receives approval, the claims outlined in the plan are effectively frozen. This means that the amounts specified in the resolution plan become binding on the corporate debtor and all other parties involved in the insolvency proceedings.

Binding Nature of Resolution Plans:

The binding nature of resolution plans serves to establish a clear and unambiguous framework for the restructuring and revival of a distressed company. The stakeholders, including creditors, guarantors, and employees, are obligated to adhere to the terms specified in the approved resolution plan. This legal requirement ensures a level of certainty and predictability in the post-resolution scenario.

Freezing of Claims:

The freezing of claims is a critical component of the resolution process under Section 31. It implies that the amounts mentioned in the approved resolution plan become sacrosanct, and no alterations can be made to them once the plan is sanctioned. This freeze extends to claims by creditors, employees, guarantors, and any other entities with a financial stake in the corporate debtor.

The Essar Steel case in the Supreme Court of India dealt with the interpretation of Section 31 of the Insolvency and Bankruptcy Code (IBC). The court ruled that once a resolution plan is approved by the Adjudicating Authority, it becomes binding on all stakeholders, and no past liabilities or claims can arise subsequently. This ruling emphasized the principle of extinguishment of past liability, allowing the successful resolution applicant to take over the business of the corporate debtor without being burdened by undecided claims.

The court held that the resolution applicant should be given a clean slate to run the business without facing unexpected and undecided claims that could create uncertainty regarding the amounts payable. The decision reinforced the idea that the resolution plan, once approved, should provide a conclusive resolution to the financial affairs of the corporate debtor. However, there was some uncertainty regarding the status of criminal and civil proceedings initiated by statutory authorities for alleged offenses or violations under applicable law by the corporate debtor before the commencement of insolvency. The court did not explicitly address this aspect in its judgment, leaving room for ambiguity.

In summary, while the Essar Steel case clarified the extinguishment of past liabilities under a resolution plan, it did not provide a clear stance on the fate of criminal and civil proceedings initiated by statutory authorities prior to insolvency. The case underscored the need for a resolution process that ensures a fresh start for the successful resolution applicant, but additional clarity may be required in the future regarding legal proceedings initiated before the insolvency process.

PROTECTION FOR CREDITORS:

One of the primary purposes of freezing claims is to protect the interests of creditors. By fixing the amounts owed to them as per the resolution plan, creditors are shielded from potential disputes or legal challenges that may arise after the resolution is implemented. This protection fosters a more conducive environment for the successful execution of the resolution plan.

CERTAINITY FOR EMPLOYEES:

Employees, being an integral part of the corporate structure, also benefit from the frozen claims provision. The approved resolution plan sets out the financial commitments and obligations towards employees, providing them with a degree of certainty about their entitlements. This assurance is vital for maintaining morale and ensuring a smoother transition during the post-resolution phase.

LEGAL IMPLICATION FOR GARANTORS:

• Guarantors, who have pledged their assets or provided personal guarantees for the corporate debtor's obligations, are bound by the resolution plan. The freezing of claims prevents guarantors from contesting or challenging the amounts specified in the plan, providing a clear legal framework for their liabilities.
• Section 31 also imposes restrictions on stakeholders from initiating or continuing any proceedings related to claims that are not part of the approved resolution plan. This restriction is designed to prevent any legal challenges that may disrupt the resolution process and hinder the revival of the corporate debtor.

ENSURING STAKEHOLDER’S COMPLIANCE:

To enforce the binding nature of resolution plans and the freeze on claims, regulatory authorities and insolvency professionals play a crucial role. Their oversight ensures that all parties involved comply with the terms outlined in the resolution plan, fostering an environment of accountability and adherence to the insolvency process.

CHALLENGES & CONCERNS:

While the freezing of claims and the binding nature of resolution plans provide a structured framework, challenges may still arise. Some stakeholders may be dissatisfied with the approved plan, leading to potential legal disputes. Striking a balance between protecting the interests of stakeholders and ensuring a swift resolution process remains a constant challenge.

CONCLUSION:

Section 31 of the Insolvency and Bankruptcy Code serves as a cornerstone in the resolution process, providing a legal framework that freezes claims and binds stakeholders to the approved resolution plan. The binding nature of these resolutions offers a level of certainty and protection for creditors, employees, guarantors, and other entities involved in the insolvency proceedings. While challenges may persist, the overarching goal is the successful revival and restructuring of distressed companies, ultimately contributing to the overall health and stability of the economy.

Disclaimer: The above article is based on the personal interpretation of the related orders and laws. The readers are expected to take expert opinions before relying upon the article. For more information, please contact us.

In the present era of digitalization which makes our life easier and having various other advantages, also makes us more vulnerable to the online fraud. As many peoples had faced the financial fraud during the last few years, here is still a way to get your money back even after the deduction of money from your bank account.

You have to do the below actions immediately after the fraud happens to get back your money:

1. Reporting of Fraud to your Bank

If the victim informs the bank within a stipulated amount of time (3 days) of financial fraud, the onus falls on the bank to prove the customer has not been a victim of the fraud. Earlier the customer had to prove that he/she was the victim.

As per the RBI Circular, if the fraud is reported within 3 days, no liability lies with the victim. If it is reported within 3-7 days, the bank refunds the transaction amount or the maximum liability amount, whichever is lower. If reported after 7 days, depends on the bank's policy.

So it is important to remain vigilant and to report the fraud as soon as possible.

2. File a Complaint with Cyber Crime Authorities by seeking help of Advocates:

First of all, you are advised to file an Online complaint and report the fraud on National Cyber Crime Reporting Portal through the link https://cybercrime.gov.in/ maintained by the Indian Government and provide as much detail as possible, including transaction records, communication with the fraudster, and any other relevant information.

3. File a Police Complaint:

Thereafter it is advised to visit the local police station to file a formal complaint. Provide them with copies of all documentation related to the fraud, including bank statements, transaction records, and any communication with the fraudster. Ensure that you obtain a copy of the First Information Report (FIR) or complaint registration number for future reference.

4. Report to the Reserve Bank of India (RBI):

If the fraud involves a banking institution regulated by the RBI, you can report the incident to the RBI through their website or by contacting their helpline. The RBI may also provide guidance on further steps to take.

5. Seek Legal Assistance: Consider consulting with a lawyer specializing in cybercrime or consumer protection law for further guidance. They can advise you on your rights and legal options for pursuing compensation or restitution and for any legal assistance you may also contact us at support@pinnaclelawchambers.com

By Hritik Mehta

CS, LL.B., M.Com

Introduction:

In the complex tax regime followed by India since 2017, the Goods and Services Tax (GST) stands as a monumental reform aimed at streamlining the indirect taxation system. With its implementation in 2017, the GST brought about significant changes in the taxation structure, unifying various state and central taxes into a single, comprehensive tax with a motto of “One Nation One Tax”. However, like any substantial reform, the GST also brought challenges, particularly concerning dispute resolution and appellate processes. To address these, the GST Appellate Tribunal (GSTAT) was established in 2023, playing a crucial role in resolving disputes related to GST.

The GST Appellate Tribunal is constituted to adjudicate disputes arising under the GST laws by a specialized quasi-judicial body. It serves as the second appellate authority, providing an independent platform for resolving disagreements between taxpayers and tax authorities. The tribunal operates at both the national and state levels, ensuring accessibility and efficiency in dispute resolution across different jurisdictions.

Jurisdiction of GST Appellate Tribunal:

The GST Appellate Tribunal has jurisdiction over appeals against orders passed by the Appellate Authority for Advance Ruling (AAAR) and the Appellate Authority for Advance Ruling (AAR), as well as appeals against decisions of the GST authorities. It has the authority to hear and adjudicate on matters related to tax liability, input tax credit, classification of goods and services, registration, and penalties, among others.

The tribunal possesses wide-ranging powers akin to a civil court, including summoning and enforcing attendance of witnesses, compelling the discovery and production of documents, and issuing commissions for the examination of witnesses or documents. This enables it to conduct thorough and impartial hearings, ensuring that justice is served in accordance with the principles of natural justice.

Who can file the Appeal before the GST Appellate Tribunal:

The right to file an appeal with the GST Appellate Tribunal is available to various parties involved in GST-related matters which are as follows:

1. Registered Taxpayers;
2. Tax Authorities;
3. Others:

1. Input Service Distributors (ISD);
2. Casual Taxable Persons
3. Non-resident Taxable Persons
4. Any other aggrieved person.

Appeal against the orders passed by GST Appellate Tribunal:

Any order passed by the Goods and Services Tax (GST) Appellate Tribunal (GSTAT) in India can be challenged before the relevant High Court having jurisdiction over the matter within a period of 180 days from the date of order, However the High Courts has powers to condone the delay.

By Hritik Mehta

CS, LL.B., M.Com

On 7th February 2024, the Uttarakhand Legislative Assembly passed the Uniform Civil Code. The Uniform Civil Code aims to bring uniform laws for matters relating to succession, divorce, inheritance, marriage, etc. These were earlier governed through personal laws.

The concept of a uniform civil code is mentioned in Article 44 which states that “the State should endeavor to secure the citizen a Uniform Civil Code throughout the territory of India”. However, the drafters of the Constitution left the establishment of a uniform civil code to the discretion of the Government.

Key Features of Uttarakhand’s Uniform Civil Code

The main objective of the Uniform Civil Code is to replace the distinct personal laws of every religion which governs matters relating to marriage, adoption, inheritance, etc. as guided by Article 44 of the Constitution of India.

The Uniform Civil Code applies to the whole of the State of Uttarakhand and also applies to residents of Uttarakhand who reside outside the territories of Uttarakhand. However, the Code is not applicable on members of the Scheduled Tribes.

The salient features of the Code are:

 Marriage

The Uniform Civil Code abolished the concept of Iddat (a waiting period observed by Muslim women after divorce or death of their husband before remarrying), bigamy (marrying someone when already legally married) and polygamy (having numerous spouses) and has created a uniform age of marriage for both men (21 years of age) and women (18 years of age). The Code has also highlighted a list of prohibited relationships for both marriage and live-in relationships given under Schedule 1 of the Code.

All marriages must be mandatorily registered within sixty days of commencement to the registering authority as given in the Code. Providing false information on the registration of marriage is a punishable offence with imprisonment up to three months or a fine not exceeding Rs. 25,000. Non-registration of marriage is also liable for a fine of up to Rs. 10,000.

According to the Code, a marriage cannot be dissolved without judicial intervention. If either party attempts to dissolve a marriage without a court order, he/she is liable to be punished with imprisonment up to three years. Furthermore, if a marriage is performed outside the conditions elucidated in the Code, the offender is liable to pay a fine of up to Rs. 50,000 or imprisonment up to six months.

The Code has also attempted to aid speedy judicial process by requiring that a decree be issued within sixty days of filing a divorce petition in court. 

The Code also allows for maintenance to be paid to both men and women.  

Live-In Relationship

The Uniform Civil Code has defined a live-in relationship as a relationship in the “nature of marriage” between a man and a woman. The Code requires for a mandatory registration of live-in relationships through a “statement of live-in relationship” within one month of entering into the relationship. Failing to register a live-in relationship within the time period can result in a criminal offence with imprisonment up to three months or a fine not exceeding Rs. 10,000. 

According to the Code, a live-in relationship can be terminated by either party through submission of a “statement of termination”. 

Children Born out of Wedlock

The Uniform Civil Code has also eliminated the concept of illegitimate child which is a reform brought about by the Code. Currently, a guardian-child relationship is regulated by both general and personal laws. Although the Indian judiciary has tried to improve the status of illegitimate children by providing them with certain rights such as inheritance and maintenance, children born out of wedlock are still discriminated against and are not granted equal rights with respect to legitimate children.

Under Uttarakhand’s Uniform Civil Code, children born out of wedlock as well as children born in live-in relationships are legitimate.

Property and Inheritance

Uttarakhand’s Uniform Civil Procedure Code has eliminated the concept of coparcenary property which has been referenced under Hindu personal laws.

As per the Hindu Succession Act of 1956, a property can be held as a coparcenary property or as a self-acquired property. A coparcenary or ancestral property can be held by four generations of Hindus who are known as coparceners.  The property must be divided in order for a coparcener to get his share of the property. This concept has been removed as per the Uniform Civil Code which has created a uniform method of succession to all persons irrespective of religion.

Conclusion

Uttarakhand’s Uniform Civil Code is a step towards incorporation of Article 44 of the Constitution of India and creating a secular code for regulating all matters relating to marriage, divorce, succession, etc.

In a fast-changing global world, old conceptions of relationships are being reshaped. As more and more people want to live in committed relationships without being married legally, living relationships—also referred to as cohabitation or domestic partnerships as held in the case of Indra Sharma vs V.K. Sharma,—are becoming more widespread. In companionship, it's important to be aware of your legal rights and obligations in these kinds of relationships.

In Badri Prasad v Dy. Director of Consolidation, the Supreme Court held live-in relationships valid between consenting adults of marriageable age and sound mind is legal under Indian law.  Further, in the case of Payal Sharma v Nari Niketan, the court held that the live-in relationship is not to be considered illegal or an offense under any law of India.

There is legal ambiguity around living relationships in several places. Legal frameworks governing cohabiting partners' relationships are typically uncertain, in contrast to marriage, which carries with it a full set of rights and duties. As a result, partners must understand their legal rights and take proactive measures to safeguard themselves.

Rights under Live-in Relationship

Right to Maintenance:

According to section 125 of the Code of Criminal Procedure, 1973 deals with the right to maintenance. The deprived partner in a live-in relationship is now covered by the same regulations. The definition of "wife" was changed by an amendment to Section 125, based on the Malimath Committee Report's recommendations. women who are in live-in relationships or who have been deserted by their partners, acquire the legal status of wife.

In the case of Chanmuniya v. Virendra Kumar Singh Kushwaha and another, IT WAS held that the term "wife" should be broadly interpreted to include couples living together as husband and wife for a significant period, without strict proof of marriage, for maintenance under Section 125 CrPC. the Supreme Court in the case of D.Velusamy vs D.Patchaiammal, imposed specific requirements on a live-in couple for them to be deemed a couple in the sense of marriage. The couple must be of a legal age to marry and are qualified to enter into a legal marriage.  The association must be voluntarily cohabited and They hold themselves out to society as being akin to spouses.

Right of Inheritance of Property:

In a live-in relationship, partners do not automatically inherit each other's property. However, couples who have lived together for a reasonable period of time can inherit each other's property through a will or as a gift. However, a live-in partner cannot acquire their partner's ancestral property. This was held in the case of Vidhyadhari vs. Sukhrana Bai.

The 2015 case of Dhanulal v. Ganeshram defined a woman's right to inherit property upon the death of her live-in partner as after the cohabitation for a considerable period will be considered marriage by the court and so the partner in the live-in relationship has the right to Inherit the property.

Rights and Custody of Children Born Out of Live-in Relationships:

In S.P.S Balasubramanyam v. Suruttayan, the Supreme Court for the first time considered the question of the legitimacy of children born from live-in relationships. It was held that when a man and woman are living under the same roof and cohabiting for a reasonable period of time, the children born to them will not be illegitimate.  The court discussing the legitimacy of the child has held that regardless of the legitimacy of the relationship of the parents, the status of the child must not be concluded as illegitimate and the child has the same rights as those born in valid marriages. Further, to clarify the status of the child the court in the case of the Supreme Court in Bharata Matha v. R. Vijaya Renganathan held that "children born out of the live-in relationship are legitimate and upheld their inheritance right in the property.

According to the Hindu Minority and Guardianship Act of 1956, the father is considered the natural guardian of legitimate minor children. However, in case the father is incapable of acting as the guardian, the mother assumes the role of the guardian. The Act also contains a provision, Section 6(6), which states that the mother has custodial rights over children born out of illegitimate relationships.

Custodial rights in cases of live-in relationships present a challenge due to the absence of specific legislation addressing this issue. When couples separate, custodial disputes may arise. Courts may handle these cases either as those of a married couple's child or as those of an unmarried single mother, as there is no dedicated legislation for live-in relationships.

Conclusion

In conclusion, partners must be aware of their legal rights and duties as live-in relationships become more common and accepted. Legal frameworks may not be as simple as those of marriage, but recent court decisions have shed light on crucial issues including maintenance, inheritance rights, and the validity of children born in these types of relationships. However, because there is no specific statute, issues persist, particularly about custodial rights. Therefore, it is essential to take the necessary legal steps to safeguard your rights. Ultimately, managing the rights and obligations in cohabitation requires knowledge, legal clarity, and mutual understanding.

"Navigating Disputes: The Choice Between Courts and Alternative Dispute Resolution (ADR)"

In a world marked by diverse transactions and interactions, disputes are inevitable. When conflicts arise, individuals and entities are often faced with the decision of how best to resolve them. Usually there are two ways to go about it

• Traditional court proceedings, the process is long and tedious, has a lot of steps. It is a involves a lot of time, and a lot of precision as well, and,
• Alternative Dispute Resolution (ADR), as the name suggests these are alternative methods which can be used in place of the traditional court’s process. There are mainly four methods for resolution of disputes by ADR.

Both  these methods  have their own pros and cons, discussing them in detail can  help us understand why ADR is favoured among those looking  for speedy resolution.

THE COURTROOM CHRONICLES

The aspects and characteristics of traditional court proceedings in the resolution of disputes, how the court goes about in taking up a dispute, what all pre-requisites have to be fulfilled before a case is registered and the proceedings start taking place. All of these combined result in successful proceedings. Lot of minute details have to be taken care off. The few of which are discussed below:

1. Legal Adjudication:

 Courts provide a structured and formal legal environment where disputes can be adjudicated by a judge or jury. This formal process ensures that decisions are made based on established legal principles, statutes, and precedents. Each and every thing is verified and is decided upon on the basis of laws and legal principles.

2. Public Accountability:

 Court proceedings are transparent and open to the public. This transparency fosters accountability and ensures that justice is not only done but is seen to be done. It contributes to the rule of law and sets a precedent for future cases. The proceedings can be attended by anyone whosoever wishes too, hence making the judges a lot more accountable as they have to reason each and everything they decide.

3. Binding Decisions:

Court judgments are legally binding, providing a level of certainty for the parties involved. The enforcement power of the court ensures that the decision is carried out, compelling the losing party to comply with the ruling. The decision given by courts is a legal obligation applicable on both the parties.

Advantage of The ADR:

Alternative Dispute Resolution (ADR) methods offer various advantages that make them an attractive alternative to traditional courtroom proceedings. They are not only hassle free but also are much easier and more convenient in comparison to the traditional courts. ADR methods provide fast dispute resolution which is effective and much cheaper in comparison to traditional way of resolving disputes.

1. Speed and Efficiency:

 ADR methods, such as mediation, arbitration, or conciliation are often quicker than court proceedings. The informality of these processes allows for a more streamlined resolution, saving both time and resources of both the parties.

2. Cost-Effectiveness:

Courts can be expensive with legal fees, filing costs, and lengthy proceedings. ADR methods, on the other hand, tend to be more cost-effective. The parties can agree on a neutral mediator or arbitrator, cutting down on legal expenses.

3. Preservation of Relationships:

 ADR emphasizes collaboration and communication. Unlike court battles that can strain relationships, ADR fosters an environment where parties can work together to find mutually beneficial solutions, preserving relationships for future engagements.

4. Flexibility and Informality:

 ADR processes allow for greater flexibility and informality. Parties have more control over the process and can tailor it to their specific needs. This can be particularly beneficial in complex business disputes where creative solutions are often required.

CONCLUSION

The decision to go to court or opt for ADR depends on various factors, including the nature of the dispute, the urgency of resolution, and the parties involved. In some cases, a combination of both approaches might be the most effective strategy.

In conclusion, while courts offer a robust and time-tested method of dispute resolution, ADR methods present an attractive alternative. The key lies in understanding the nuances of each approach and choosing the one that aligns with the specific needs and circumstances of the parties involved. Whether it's the traditional path of the courtroom or the more modern avenues of ADR, the ultimate goal remains the same – achieving a fair and just resolution to disputes.

By: Priya Sharma