AIBE 21 Alternative Dispute Resolution (ADR) & Arbitration Act PYQs

What is Alternative Dispute Resolution (ADR) & Arbitration Act?

The ADR & Arbitration Act contributes around 4 questions out of 100 in the AIBE 21 Exam 2026, making it a 4% weightage subject. It is considered a scoring area due to its concept-based and straightforward questions.

Alternative Dispute Resolution (ADR) refers to methods of settling disputes outside courts, such as arbitration, mediation, conciliation, and Lok Adalats. The Arbitration and Conciliation Act, 1996 provides the legal framework for arbitration and conciliation proceedings in India and is an important topic in the AIBE 2026 Syllabus.

Most Repeated Alternative Dispute Resolution (ADR) & Arbitration Act PYQs

These are the AIBE 2026 Most Repeated Alternative Dispute Resolution (ADR) & Arbitration Act PYQs for AIBE 2026 preparation:

1. Which of the following is not a method of Alternative Dispute Resolution (ADR)?

(a) Arbitration
(b) Mediation
(c) Conciliation
(d) Criminal Trial

Answer: (d) Criminal Trial

Solution: ADR refers to mechanisms for resolving disputes outside the traditional court system. Arbitration, mediation, and conciliation are recognized ADR methods. A criminal trial is a judicial proceeding conducted before a court and is not considered an ADR process.

2. The Arbitration and Conciliation Act, 1996 is based primarily on which international model?

(a) Geneva Convention
(b) UNCITRAL Model Law
(c) Rome Statute
(d) Vienna Convention on Treaties

Answer: (b) UNCITRAL Model Law

Solution: The Arbitration and Conciliation Act, 1996 was enacted largely on the basis of the UNCITRAL Model Law on International Commercial Arbitration. The objective was to modernize arbitration law in India and align it with internationally accepted standards.

3. An arbitral award under the Arbitration and Conciliation Act, 1996 is:

(a) Merely advisory
(b) Binding on the parties
(c) Subject to approval by Parliament
(d) Effective only after registration

Answer: (b) Binding on the parties

Solution: An arbitral award has the same effect as a decree of a civil court and is binding on the parties. Once the award is passed, parties are required to comply unless it is successfully challenged on limited statutory grounds.

4. Under the Arbitration and Conciliation Act, 1996, the parties are free to determine:

(a) Number of arbitrators
(b) Criminal liability
(c) Constitutional validity of statutes
(d) Punishment for offences

Answer: (a) Number of arbitrators

Solution: The Act recognises party autonomy as a core principle. Parties may agree on the number of arbitrators, provided the number is not even. This flexibility enables parties to design the arbitration process according to their requirements.

5. Which ADR mechanism involves a neutral third party facilitating negotiations without imposing a decision?

(a) Arbitration
(b) Mediation
(c) Litigation
(d) Appeal

Answer: (b) Mediation

Solution: In mediation, the mediator helps the disputing parties communicate and explore settlement options. The mediator does not issue a binding decision. The final resolution depends entirely on the mutual agreement of the parties.

6. A conciliator under the Arbitration and Conciliation Act, 1996 primarily aims to:

(a) Punish the parties
(b) Decide the dispute by award
(c) Assist parties in reaching an amicable settlement
(d) Conduct a criminal investigation

Answer: (c) Assist parties in reaching an amicable settlement

Solution: Conciliation is a non-adjudicatory process where the conciliator actively assists parties in achieving a mutually acceptable settlement. Unlike an arbitrator, a conciliator does not render a binding award.

7. Which principle is considered the foundation of modern arbitration law?

(a) Judicial Supremacy
(b) Party Autonomy
(c) Criminal Jurisdiction
(d) Parliamentary Sovereignty

Answer: (b) Party Autonomy

Solution: Party autonomy allows parties to choose arbitrators, procedural rules, seat of arbitration, and other aspects of dispute resolution. The Arbitration and Conciliation Act, 1996 strongly promotes this principle to ensure flexibility and efficiency.

8. Lok Adalats are organized under which legislation?

(a) Legal Services Authorities Act, 1987
(b) Indian Contract Act, 1872
(c) Arbitration and Conciliation Act, 1996
(d) Civil Procedure Code, 1908

Answer: (a) Legal Services Authorities Act, 1987

Solution: Lok Adalats are statutory ADR forums established under the Legal Services Authorities Act, 1987. They promote speedy and inexpensive justice by encouraging settlement of disputes through compromise and mutual agreement.

9. Which of the following disputes is generally capable of being settled through arbitration?

(a) Matrimonial status disputes
(b) Criminal offences
(c) Commercial contract disputes
(d) Citizenship disputes

Answer: (c) Commercial contract disputes

Solution: Commercial and contractual disputes are generally arbitrable because they involve private rights. Matters involving criminal offences, citizenship, and certain family status issues are usually reserved for courts and public authorities.

10. An arbitration agreement must generally be:

(a) Oral only
(b) Registered compulsorily
(c) In writing
(d) Approved by a Magistrate

Answer: (c) In writing

Solution: Section 7 of the Arbitration and Conciliation Act, 1996 requires an arbitration agreement to be in writing. The agreement may be contained in a contract, exchange of letters, emails, or other written communications evidencing the parties' consent.

Why Alternative Dispute Resolution (ADR) & Arbitration Act Matters in AIBE 21

• Contributes Around 4 Marks: ADR & Arbitration Act accounts for approximately 4 questions out of 100 in the AIBE 21 Exam 2026, making it an important scoring topic.

• Frequently Asked in AIBE: Concepts related to arbitration, mediation, conciliation, Lok Adalats, and arbitral awards have appeared repeatedly in previous AIBE 21 2026 examinations.

• Concept-Based Questions: Most questions are straightforward and focus on key provisions, definitions, and principles under the Arbitration and Conciliation Act, 1996.

• Practical Relevance for Advocates: ADR mechanisms play a significant role in modern legal practice, making this subject important not only for AIBE but also for professional legal careers.

• Easy-to-Score Section: With focused preparation and practice of AIBE Past Year Question Paper Analysis, candidates can secure quick and accurate marks in this section.