GD GOENKA UNIVERSITY

SCHOOL OF LAW

ROLE OF ALTERNATIVE DISPUTE RESOLUTION IN THE RESOLUTION OF

CONSUMER DISPUTES: ISSUES AND CHALLENGES

DISSERTATION SYNOPSIS

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD

OF THE DEGREE OF BACHELOR OF LAW BA.LLB. (HONS.)

Guided by: Submitted by:

Mrs. Vibha Bandhu Paras Mahalwal
Professor 190060401037
School of Law BA-LLB 2019-24
 SYNOPSIS

1. INTRODUCTION

India is one of the fastest growing countries in the world. In the last decade, the Indian legal
setup has witnessed some remarkable developments which includes the swiftly growing
movement of Alternative Dispute Resolution. In a nation with the largest population in the
world, the ever-increasing number of legal disputes does not come as a surprise. Especially since
the modern era of digitalization and globalization has driven people to be more aware of their
rights and liabilities. However, the rapidly rising number of litigations have been burdening the
courts for years and measures to curb this load are being constantly deliberated by the concerned
authorities. The torque in the Alternative Dispute Resolution movement has brought new hopes
and presented an apt solution for not only relieving the courts of such backlogs but also ensuring
efficient and effective dispensation of justice.

Any society that provides or serves goods and services to people is bound to be encountered with
consumer disputes be it in any nature or form. In any consumer dispute, usually the involvement
is of the consumer, the service provider, and the Consumer disputes redressal commission. The
main function of the Consumer Commissions is to effectively delve into the dispute, investigate
it by using its discretionary powers and thereafter impart justice on the basis of appreciating the
documentary evidence on record. The end result of the same is securing the interests of the
consumers who are subjected to unfair trade practices by the producers and service-providers.

‘Caveat Emptor’ or buyer beware is the cardinal principle in the consumer jurisprudence wherein
it is the responsibility of the consumer to be aware of the tits and bits of the product or services
they are availing and if proper due diligence has been complied by the consumer, then in case of
any discrepancy resulting into a dispute, the consumer commissions ensure to secure the interests
of such consumer.

However, abiding by the principles of natural justice and Audi alteram partem, along with
ensuring the rights and interests of the consumer, the role of the producer or service provider is
also analyzed in order to ensure justice and fairness. The rationale behind it is to prevent the

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misuse of benevolent provisions of the Consumer Protection Act, 2019 by the consumers to gain
their way by unnecessarily harassing the manufacturers or service-providers, for instance,
frivolous insurance litigations, medical negligence cases, etc.

The consumer laws of the land being comprehensive in nature serves as an effective and efficient
mechanism to redress consumer disputes, however, in contemporary times, various out of court
settlement methods have been introduced for the parties to a consumer dispute to settle the
disputes amongst themselves using Alternative dispute resolution. Such ADR tools include
mechanisms like Negotiation, Mediation, Arbitration, Conciliation, etc.

The Indian legislations offer a cost-effective mechanism via consumer commissions to resolve
the consumer disputes, however, the ADR mechanisms have been introduced with the intention
of preventing unrequired litigation with an aim to reduce the burden of Consumer commissions
in India. In contrast to the contemporaries of India so far as the consumer disputes are concerned,
ADR mechanisms have prevailed for a significant period of time in the contemporary countries
and adequate amount of ADR institutions have been set up in such countries to resolve consumer
disputes.

Therefore, the present study aims to elaborate and examine the role of ADR in resolving
consumer disputes with specific analyses of the challenges faced by India in contrast to its
contemporaries in enforcing ADR mechanisms. The study also highlights the need and
requirement of such mechanisms in India at present in the tone of whether such mechanisms are
a necessity considering the already well-established system of consumer commissions.

2. STATEMENT OF PROBLEM

The problem to be addressed in this research is analyzing the effectiveness and practical
requirement or necessity of ADR for the purpose of resolution of Consumer disputes in India in
light of the already well-established Consumer Commissions with a specific analysis of
challenges faced by India in contrast to its contemporaries in enforcing ADR tools in Consumer
laws.

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3. LITERATURE REVIEW

Brunet Edward, Craver Charles B. & Deason Ellen E. in their book “ALTERNATIVE DISPUTE
RESOLUTION: THE ADVOCATE’S PERSPECTIVE” have discussed the benefits and costs of
Alternative Dispute Resolution in an attempt to present a balanced, real-world view of disputing
mechanisms.

4. OBJECTIVES
i. To analyze the effectiveness of ADR in resolving consumer disputes in India.
ii. To highlight the issues and challenges in the enforcement of ADR mechanisms in
resolution of Consumer disputes and to make suggestions to overcome such gray areas.
iii. To examine the practical necessity of ADR in India so far, the Consumer disputes are
concerned.
5. HYPOTHESIS

The adoption of alternative dispute resolution mechanisms so far as the Consumer disputes are
concerned is premature in nature.

6. RESEARCH METHODOLOGY

The entire research is purely doctrinal. It is descriptive and analytical by nature. The research is
based on primary and secondary sources. Relevant material from primary sources is collected
from statutory provisions of the relevant legislation and court decisions. In case of secondary
sources, material is collected from scholarly commentaries, articles, research reports,
government documents etc.

7. RATIONALE OF THE STUDY

The Indian legal jurisprudence has a well-setup mechanism when it comes to Consumer disputes
to safeguard the interests of both the Consumers as well as the producers and service-providers.
The Consumer commission set up provides for districts, states as well as national level
commissions to ensure speedy justice and fairness throughout and the Consumer Protection Act,
2019, as amended, itself provides for fast-track dispute resolution. Therefore, the intervention of

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ADR is not practically necessitated or required in the majority of the Consumer dispute cases
and thus seems a bit premature in nature.

8. TENTATIVE CHAPTERISATION:

Chapter 1: Introduction

This chapter provides an overview of the research and includes the background and purpose of
the study. It deals with the specific issues to be addressed by the present study along with
hypothesis and research methodology commissioned for the research work.

Chapter 2: Realm of Consumer Disputes in India.

This chapter narrates the nature of Consumer disputes recognizable as per the Consumer
Protection Act, 2019 and the variety of disputes in existence ranging from insurance cases to
cases as a result of medical malpractice. The chapter also throws light on how such consumer
disputes have been resolved till date by stating emphasis on resolution by out of court settlement
mechanisms.

Chapter 3: An overview of Alternate Dispute Resolution

Starting from understanding ADR to different forms and mechanisms of ADR, this chapter
focuses on the existing legal framework surrounding ADR in India and its applicability and
extent of enforcement in India. There exist various conventions at the international level
including the UNCITRAL model law that India has adapted as per the social requirements of
India. Apart from that, numerous legislations, and reports of the Parliament namely Civil
Procedure Code 1908, law commission reports and the special legislations also deal with the
same. This chapter includes the provisions pertaining to the same without any manipulation.

Chapter 4: Alternative Dispute Resolution in Consumer Disputes: A Global Context

This chapter illustrates the establishment of ADR mechanisms to resolve consumer disputes
worldwide by taking note of various ADR institutions especially set up in western countries of
the world. The Chapter also focuses on the reliance on and reference to ADR by the judiciaries
of such countries to resolve a substantial amount of consumer cases by using ADR.

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Chapter 5: Alternative Dispute Resolution and the Indian Consumer jurisprudence.

This chapter includes the analytical part of the research. It evaluates the actual position and
effectiveness of the ADR set-up in India to resolve consumer disputes apart from civil and
commercial disputes. The Chapter points out the scope left by the Indian judiciary for ADR to
strive in resolving consumer disputes and the actual necessity of such ADR mechanisms
considering the well-established Consumer Commissions created specifically for the purpose of
resolving consumer disputes at the district, state, and national levels.

Within the above-captioned chapter, the analysis will also lay down the actual challenges faced
by India, in the enforcement of ADR so far, the consumer disputes are concerned, apart from the
advantages that ADR has to offer.

Chapter 6: Conclusion and suggestions

This chapter presents the conclusions, recommendations and suggestions followed by

Bibliography of the research.

9. BIBLIOGRAPHY:

Books:

Edward Brunet, Charles B. Craver & Ellen E. Deason, “ALTERNATIVE DISPUTE

RESOLUTION: THE ADVOCATE’S PERSPECTIVE,” Carolina Academic Press, 2016.

Statutes:

The Code of Civil Procedure, 1908

Constitution of India, 1949

Arbitration and Conciliation Act, 1996

Consumer Protection Act, 2019

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The Judicial system of India is an overburdened system which faces a pendency of
huge number of already pending cases. In order to provide relief and to reduce the
burden on the Judicial System, the concept of Alternative Dispute Resolution was
introduced.

In simple words, ADR refers to a mechanism which provides an alternative way of

resolving disputes without approaching and overburdening the courts. ADR is
generally preferred over the courts by the parties to the dispute as it provides
amicable resolution of disputes between the parties.

This mechanism can be an efficient dispute resolution machinery as it is

comparatively less time consuming and is light on the pocket.

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