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Q.49
ADR & Arbitration Act Easy Knowledge-Based
Bare Act Arbitration and Conciliation Act, 1996 · General ADR principles

Which of the following is not an advantage of ADR?

A Faster than litigation
B More confidentiality
Always results in binding decision Answer
D Less expensive than court cases
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Explanation & Strategy

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Speed, cost-effectiveness, and confidentiality are genuine advantages of ADR over traditional litigation. However, 'always resulting in binding decisions' is incorrect because not all ADR methods are binding. Mediation and conciliation are fundamentally consensual — no binding outcome emerges unless both parties agree. Only arbitration produces binding awards (enforceable as decrees under S.36). Lok Adalat awards are binding but only with consent. This distinction is a frequently tested AIBE concept.

At a Glance
Subject ADR & Arbitration Act
Difficulty Easy
Act Arbitration and Conciliation Act, 1996
Section General ADR principles
Answer (C) Knowledge-Based
Paper AIBE XIX — December 2024
Progress in Paper
Q.49 100 questions

49% through paper

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