Community Arbitration for India: Localising Justice in Neighbourhood

Authored by - Arsh Anand (Student, Law College Dehradun, faculty of Uttaranchal University)

Background

The legal fraternity is focused on the promotion and fosterage of the Alternative Dispute Resolution as apparatus for relieving the burden of Indian judiciary. The eyes of the globe are over India as a plausible-prospective landscape for foreign-seated jurisdiction for domestic and international commercial arbitration in India. The recent trends have witnessed expert panels suggesting over strengthening the institutional arbitration in India. Meanwhile, an underrated form of ADR, which can be taken into practice is ‘Community Arbitration’ for resolving disputes by community associations. The concept barbarian to the Indian law is in practice in the corners of globe for more than two-decade and has proven to be a success in dispute resolution.

Community Arbitration

Community arbitrations are dispute-resolution mechanism for different communities, wherein trained community members (or, arbitrators) facilitate and adjudicate the dispute between the parties. Here, community means a group of people sharing a common space, identity or institution or any common environment under the same umbrella, who may be guided and bided by the statute to resolve dispute at the very primary or local stage of conflict. The perks of dispute resolution within a community are the higher trust (with local arbitrators), faster resolution (due to field expertise), compliance ensured (due to community norms) and easy accessibility to public at large. Apart from these, the most significant trait which sets it apart from other forms of mechanism is collective dispute resolution, addressing large-kindred grievances for a particular class of disputes.

Most effectively these communities can be classified into: Industrial community (divided on the basis of industries, profession or business), Contractual community (who have relations based on a legal-commercial contract), Institutional community (wherein the big corporates can establish internal arbitral system to get the dispute resolved), Consumer community (for consumers consuming a class of products or having common type of issues) or any other community which share any common interest or may have potential to share the common interest.

On the surface, it may appear like India already have matter-specific dispute resolution system but in the absence of a strong confined statute, it becomes unapproachable to public at large. Per contra, a meticulously outlined-statutory framework for community arbitration would not only simplify the process but will also foster social harmony, reducing the burden of courts.

Katarungang Pambarangay- Philippines

For instance, Katarungang Pambarangay (often called Barangay Justice System) of Philippines is a significant example of conflict resolution at local community levels. The code itself outlines its scope limited to civil disputes among community members, minor criminal offenses punishable not more than one year or fine of ₱5,000, commercial disagreements and matter relevant for amicable settlement of disputes, in order to maintain peace in the community.[1]

Nevertheless, India has such local dispute resolution institutions like Gram Sabhas, Panchayats, Ward Committees for ground level matters, the absence of a concrete enacted statute which can put obligation negates the very purpose of such established institutions. For such enforcements, the legislature needs to enact or amend the current ADR statutes (i.e. Mediation Act, 2023 and Arbitration and Conciliation Act, 1996), inclusive of introducing local arbitration panels guided by the independent laws and authorising binding awards out of such adjudication for ensuring local autonomy.

Community Arbitration- Florida

Another relevant example of community arbitration is Juvenile Arbitration Program of Florida, which set forth clear information on what nature of juvenile matters can be dealt under this program. This includes: violation of local ordinances and minors committing third-degree felonies or petty crimes, addressing the problem of unfriendly neighbourhood for the people in parallel to assurance of no juvenile court record and handling with a complete informal manner.[2] Adding up, S. 985.16 of the 2015 Florida Statutes in itself is a complete framework clause for “Community Arbitration” including purpose, scope, limitations, eligibility and procedure for appointment of community arbitrators, procedure for hearing, disposition of matter, review and funding.[3]

Though India has similar concept of Community Mediation under the Mediation Act, 2023, it lacks authority to issue binding decisions. Another analogous concept is Lok Adalats under Legal Services Authority Act, 1987, they’re not equivalently relevant or efficient because of their scope, limited only to settlements not arbitration and a decision can be passed only after voluntary compromise and the awards are enforceable only when there is a settlement.

Challenges

Even though the idea of community arbitration sounds fascinating and effective, the on-ground application is equivalently difficult, as the practical workflow raises concern over: imbalance of power (between the parties), uncalled influence by top level authorities or local leaders possessing risk of transparency and sustainability as such communities would be needing funds, proper training and most importantly strong institutional framework too.

Conclusion

Community Arbitration is indeed a powerful mechanism in itself for a local or community centric approach sustaining strong relationship between individuals but it needs the legislative, monetary and functional support from the top tier administration, to make it a success. Only a full-fledged plan to carry it out- from a legislative vision to on-ground execution, anticipating the possible challenges and prospective approach to tackle such challenges would ensure fulfilment of the objective. This system of dispute resolution would not only foster social harmony but also reduce the overburdened courts, by pitching a strengthened conflict resolution system.

[1] Local Government Code of 1991, Rep. Act No. 7160, ch. VII (Oct. 10, 1991) (Phil.).

[2] Sixth Judicial Circuit of Florida, Administrative Order No. 2004-058 PA/PI-CIR (Aug. 2004)

[3] Fla. Stat. § 985.16 (2015) (U.S.).