Alternative Dispute Resolution (ADR) refers to a group of methods used to resolve disputes outside the traditional court system. It provides parties with alternative mechanisms for settling conflicts in a faster, less formal, less expensive, and often more cooperative manner than litigation. ADR has gained significant importance in modern legal systems because courts frequently face delays, procedural complexities, and heavy caseloads. By encouraging negotiated settlements and private resolution of disputes, ADR contributes to efficient administration of justice while preserving relationships between the parties. It is widely used in commercial, civil, family, labour, consumer, and international disputes. The concept of ADR is based on the principle that not every dispute requires adjudication by a court. Parties should have the opportunity to resolve their differences through dialogue, negotiation, or neutral third-party assistance. ADR emphasizes flexibility, party autonomy, confidentiality, and mutual satisfaction. Instead of focusing solely on legal rights and liabilities, ADR often considers the underlying interests and needs of the parties. In India, ADR has received statutory recognition through the Arbitration and Conciliation Act, 1996, which incorporates principles based on the UNCITRAL Model Law. Section 89 of the Code of Civil Procedure, 1908, also empowers courts to refer disputes to ADR methods such as arbitration, conciliation, mediation, and Lok Adalats whenever settlement appears possible. The Legal Services Authorities Act, 1987, further promotes dispute resolution through Lok Adalats. The judiciary has consistently encouraged ADR to reduce the burden on courts and promote access to justice. The major objectives of ADR include reducing litigation costs, ensuring speedy disposal of disputes, maintaining confidentiality, preserving business and personal relationships, promoting voluntary compliance with settlements, and increasing public confidence in the justice delivery system. ADR is particularly beneficial where parties have continuing relationships, such as business partners, employers and employees, family members, neighbours, or contractual parties. Among the various ADR mechanisms, arbitration and mediation are the most widely recognized and frequently used methods. Although both aim to resolve disputes outside courts, they differ significantly in procedure, role of the neutral third party, and the binding nature of the outcome. Arbitration is a process in which disputing parties agree to submit their dispute to one or more impartial persons known as arbitrators. The arbitrator hears both sides, examines evidence and legal arguments, and finally delivers a decision known as an arbitral award. The award is generally binding upon the parties and enforceable in the same manner as a court decree, subject to limited grounds for challenge provided by law. Arbitration is primarily based on the consent of the parties. Such consent is usually expressed through an arbitration agreement contained in a contract or entered into after the dispute arises. The agreement specifies that disputes arising between the parties will be resolved through arbitration rather than litigation. The parties are generally free to determine the number of arbitrators, the place of arbitration, the language of proceedings, the applicable procedural rules, and the governing law. The arbitration process generally begins with the existence of an arbitration agreement. When a dispute arises, one party invokes the arbitration clause and initiates proceedings. Arbitrators are appointed either by mutual agreement or according to the procedure specified in the agreement or the applicable law. Preliminary meetings may be conducted to determine procedural matters