Alternative Dispute Resolution (ADR) is a concept that is, in general, used to refer to informal dispute resolution process in which the parties involved in disputes resolve their disputes with the assistance of a third party. The resolution process is less formal and often more consensual that is done in the court processes. ADR is seen as offering wide opportunities to resolve disputes more quickly or more satisfactorily to the parties than conventional litigation. It offers an alternative system for procedural flexibility, a broad range of remedial options, a focus on individualized justice and an adequate relief from the hardship created by the substantive and procedural law of formal adjudication. ADR performs convenient and useful works that cannot be done, or cannot easily be done, through formal adjudication. The system of ADR stands in this breach created by the merger of Law and Equity. ADR is considered to be an effective process in which a dispute is settled in the active presence and involvement of a neutral agent. In its ideal form, ADR is perceived not only as resolving the dispute but also as placing back the relationship of the parties status quo ante the conflict.