The Evolution of Alternative Dispute Resolution Mechanism in India: Its Relationship with Civil Procedure Code and Micro Small, and Medium Enterprises Growth

ADR methods offer an easy solution by providing an efficient and convenient way to resolve disputes. As alternative dispute resolution (ADR) becomes more popular, it will not only reduce the load on the courts but also promote a more just and effective legal system, which would ultimately help society become more peaceful. This is a good indicator of time and money savings, and how frequently various ADR programs occur such as in court is highly dependent on the nature and structure of those processes. ADR in the commercial sector shows that mediation has grown in recent years, revealing insights that offer significant benefits for Indian litigation. Apart from the legal perspective, ADR mechanisms are equally beneficial for economic affairs. It creates tremendous cost-saving and time-saving effects, moreover, making greater benefits to the overall economy, and they address a wider range of considerations for the growth of MSMEs. They establish an environment conducive to the business by reducing the blocks in litigation, and cash flows, and finally building trust among the stakeholders. This research paper examines the relationship between Alternative Dispute Resolution (ADR) mechanisms and the legal aspects particularly the Civil Procedure Code (CPC) to examine whether ADR mechanisms such as mediation and arbitration are supported in the system. It identifies specific CPC provisions governing mediation and arbitration and assesses their impact on the validity and effectiveness of ADR outcomes. This study focuses on the CPC's role in facilitating or preventing these ADR processes' adaptation, use, practice, and implementation. Furthermore, this article also explores the role of the ADR mechanism in the growth and sustainability of micro small, and medium enterprises (MSMEs).