What is Private Justice System
Private Justice System is a privatization of Civil Justice through the ADR Mechanisms. ADR Mechanism refers to private mechanisms of resolving disputes outside of the Court processes allowing parties to tailor their process in order to incorporate the needs of both parties. In other words, Private Justice System offers Private Dispute Resolution Services. ADR Mechanisms stands for Alternate Dispute Resolution, which is alternative to litigation, i.e. Public Justice System – State-based adjudication. The Civil Justice System involves resolution of disputes. Under this mechanism disputes are resolved out of the Court through settlement by applying various methods that include but are not limited to Arbitration, Conciliation, Mediation etc. This system offers informal, cost effective, efficient & affordable access to justice.
Under this system, the disputants can appoint their own Neutrals (Judge) i.e. Arbitrator, Conciliator & Mediator, choose their own place of proceedings and Procedural Rules to conduct the proceedings. They can also choose the jurisdiction & Law governing.
One of the methods i.e. Arbitration & Conciliation has the same legal binding and enforceable as applicable to a Court Decree. This is enforceable into over 166 countries across the globe.
It is less adversarial, informal, fast, cost effective & affordable access to Justice at the same time preserving public resources. The Private Justice System is driven by a wide spread ethos of efficiency based Civil Justice Reform as efficiency has become the underlined principle in many Justice Reform initiatives. This system is very useful for individuals, businesses & Governments.
In India, the following provisions of Statutes recognize and make the ADR mechanism legal.
- Section 89 of the Civil Procedure Code, 1908 provides that opportunity to the people, if it appears to court there exist elements of settlement outside the court then court formulate the terms of the possible settlement and refer the same for: Arbitration, Conciliation, Mediation or Lok Adalat.
- The Acts which deals with Alternative Dispute Resolution are Arbitration and Conciliation Act, 1996
The ADR Mechanisms have been well recognized and accepted by the courts. The Courts have now been encouraging the use of ADR in cases where compromise is possible. The effect of an Arbitration Award, which is similar to decision by a Court, has the same effect of a decree and is final, binding and non-challengeable. Similarly the settlement agreements reached through the process of Conciliation or Mediation is deemed to be a decree and is binding.