Under the act, provisions were also made to set up an Alternative Dispute Resolution (ADR) Cell through industrial bodies or otherwise to speed up the process of resolving disputes out of court through decentralisation.

In pursuant of this, Federation of Karnataka Chamber of Commerce & Industries (Fkcci) has established an ADR Cell in Bangalore. Speaking to Deccan Herald, Fkcci President J Crasta said “This is the first ADR Cell in the whole of South India and that mainly problems related to payments and other commercial disputes will be entertained and no personal dispute will be taken up by the cell.” The cell is being set up  at Fkcci under the provisions of Arbitration & Conciliation Act, 1996 for providing out of court settlement of issues between the parties to the dispute, Fkcci said adding the cell will provide arbitration, mediation and conciliation (see box) to the parties enabling them to resolve issues at a much quicker pace.

Further, the chamber will set up a panel comprising senior industrialists and legal experts including retired judges, one among who would arbitrate the dispute and give a judgement that is binding. Fkcci said it will soon sign a memorandum of understanding (MoU) with the National Law School of India University, Bangalore to assist the chamber with the functioning.

More ADR cells planned

Also similar cells may come up in Tier II & III cities like Gulbarga and Hubli-Dharwad, in a phased manner. Incidentally, ADR Cells also exist in Federation of Chambers of Indian Commerce & Industries (Ficci) Bombay, Gujarat, Punjab, Haryana, and the Delhi Chambers of Commerce & Industry.

Currently, eventhough there are provisions, other associations in the State like Bangalore Chambers of Industries & Commerce (Bcic) and Karnataka Small Scale Industries Association (Kassia) are yet to consider the option.

The guidelines

* Arbitration :  Hearing & determination of a dispute by an impartial referee agreed to by both parties
* Mediation : Negotiation  to resolve differences that would be conducted by some impartial  party.
* Conciliation:  The act of placating and overcoming distrust and animosity