SHIKHAR MAINS 2022- DAY 40 Model Answer English

Q1. भारत में सहकारिता सामाजिक और आर्थिक परिवर्तनों की ध्वजवाहक हो सकती है। संवैधानिक प्रावधानों और संबंधित चुनौतियों पर चर्चा कीजिये।

Cooperatives in India can be flag bearer of social and economic changes. Discuss the constitutional provisions and associated challenges.

Approach:

·        Briefly start with the importance of cooperatives in the context of India.

·        Mention how the cooperatives are flag bearers of socio-economic change with the example of multiple sectors.

·        Highlight the constitutional provisions related to cooperatives in India.

·        Challenges faced by cooperatives in India.

·        Conclude suitably with the approach of how these challenges can be addressed holistically.

Answer:

India has basically an agrarian economy with 72% of its total population residing in rural areas. The rural people need a lot of services in daily life which are met by village co-operative societies. The village cooperative societies provide strategic inputs for the agricultural sector, consumer societies meet their consumption requirements at concessional rates; marketing societies help the farmer to get remunerative prices and co- operative processing units help in value additions to the raw products etc. 

Contribution of cooperatives in India:

·        In fertilizer production and distribution, the Indian Farmers Fertilizer Cooperative (IFFCO) commands over 35 percent of the market.

·        In the production of sugar, the cooperative share of the market is over 58 percent and, in the marketing, and distribution of cotton, they have a share of around 60 percent. The cooperative sector accounts for 55 percent of the looms in the hand-weaving sector.

·        Cooperatives process, market and distribute 50 percent of edible oils.

·        Dairy cooperatives operating under the leadership of the National Dairy Development Board and through 15 state cooperative milk-marketing federations have now become the largest producer of milk in the world. 

Considering the eminent importance of the same, there has been following provisions related to the cooperatives in India:

Article 43B:

·        DPSP (Part IV) focusing on the promotion of cooperative societies.

The Constitution (97th Amendment) Act, 2011:

·        It provides constitutional status and protection to the co-operative societies.

·        Added Part IXB for cooperative working in India right after Part IXA.

Article 19(1)(c) under Part III of the Constitution:

·        The word cooperatives were added.

·        Right to form cooperatives,’ enabling citizens to form cooperatives.

Mention of cooperative societies in the state list under the 7th schedule. 

Despite the availability of multiple provisions, there are several reasons that are adduced to the painful failure of the cooperative movement in the Indian context. These are:

·        Fund and resources crunch: The cooperatives have resource constraints as their owned funds hardly make a sizable portfolio of the working capital.

·        Demand-Supply mismatch: The cooperatives have been viewing the problem of agricultural credit from the view point of “supply”. The “demand” aspect is neglected.

·        Lacking local origin: Co-operative movement in India lacks spontaneity in the sense that it has not been emanated from the people themselves. They usually do not come forward to organise co-operatives on their own accord.

·        Lack of diversification: Primary Agricultural Cooperative Societies are disbursing credit only and have not yet emerged as true multipurpose institutions.

·        Lack of coordination: Coordination is the key to success of any organization. The best example for this is AMUL which works best because of coordination. The same is lacking across the country.

·        Vested interests: Conflicting of personal interests with the interest of the cooperatives now this affects the performance of the cooperatives.

·        Regional disparity: The cooperatives in distant areas such as northeast, West Bengal, Bihar, Orissa are not as well developed as the ones in Maharashtra and Gujarat. Owing to this friction, it affects the working of cooperatives.

·        Political interference: The Politicians use the sugar cooperatives as their personal property and also, they use it to their political advantage. 

The new Ministry of Cooperation is supposed to oversee the Central Registrar of Cooperative Societies to regulate and control Multi-State Cooperative Societies (MSCSs). One of the basic principles of collective action is to let the people decide the rules of the game without being influenced or captured by third-party. One of the suggestions is that there should be higher representation of marginal and small farmers in the membership profile of cooperative marketing societies operating in India. The need of the hour is to overcome this problem and extend as many facilities to farmer members as possible.

Q2. वैकल्पिक विवाद निवारण (ADR) से आप क्या समझते हैं? विभिन्न प्रकार के एडीआर तंत्रों की चर्चा करते हुए इसके लाभों की भी व्याख्या कीजिये।

What do you understand by Alternative Dispute Resolution? While discussing the various types of ADR mechanism also explain its benefits.

Approach:

·        In introduction, define ADR mechanism, also provide constitutional provisions related to it.

·        Then briefly explain different types of ADR mechanism.

·        Further list its benefits.

·        Conclude with highlighting the role of ADR mechanism in clearing the backlog of cases.

Answer:

Alternative Dispute Redressal Mechanism-

Alternative Dispute Resolution (ADR) is a method of resolving disputes and disagreements between parties by negotiating and discussing a mutually acceptable settlement. It is an attempt to create a mechanism that is different from the usual techniques of resolving disputes.

The Alternative Dispute Resolution mechanism aims to assist in the resolution of business disputes and other disputes in which no discussion process or mutually acceptable solution has been initiated.

In India, Alternative Dispute Resolution is enshrined in Article 14 (Equality before the law) and Article 21 (Right to life and personal liberty) of the Indian Constitution. The ADR can also achieve the Directive Principles of State Policy (DPSP) of equal justice and free legal aid guaranteed by Article 39-A of the Indian Constitution. It can help courts reduce the burden of litigation even while providing a well-rounded and gratifying experience for the parties involved.

Types of ADR mechanism-

Alternative Dispute Resolution is usually divided into the following categories:

Arbitration:

·        Under this type of Alternative Dispute Resolution procedure. Both parties involved in the dispute, choose the person who will hear and resolve their dispute through a consensus.

·        The case is brought before an arbitral tribunal, which renders a judgment on the case that is mostly binding on the parties.

·        It is less formal than a trial, and testimony requirements are frequently eased.

·        In most cases, there is no right of appeal against an arbitrator's judgement.

·        There is relatively limited scope for judicial intervention in the arbitration procedure, except for some interim procedures.

·        The Arbitration and Conciliation (Amendment) Act 2021 - to make the arbitration procedure more investor-friendly, cost-effective, and appropriate for quick case resolution.

·        Permanent Court of Arbitration (PCA)- The First International Peace Conference, held in The Hague, the Netherlands, in 1899, established the Permanent Court of Arbitration. The objective is “to facilitate the arbitration of international disputes”.

Conciliation:

·        A non-binding procedure in which the parties to a disagreement are assisted by an impartial third party, the Conciliator, in finding a mutually satisfactory agreed settlement of the dispute.

·        The Conciliator is an active participant in the conciliation process, participating in discussions, negotiations, and reaching an acceptable settlement.

·        The parties have the option of accepting or rejecting the conciliator's recommendations.

·        However, if both parties accept the conciliator's settlement agreement, it will be final and binding on both parties.

Mediation:

·        A neutral person known as a "mediator" assists the parties in attempting to obtain a mutually acceptable resolution of the disagreement through mediation.

·        The third-party does not make any decisions for the parties; instead, it serves as a facilitator who helps them improve their interaction.

·        The parties retain control of the outcome in mediation.

Negotiations:

·        It is the most frequently utilized alternative dispute resolution method.

·        A non-binding procedure in which the parties commence negotiations without the involvement of a third party with the objective of obtaining a negotiated settlement of the issue.

·        Negotiation occurs in a variety of settings, including business, non-profit organizations, government branches, legal proceedings, international relations, and personal circumstances such as marriage, divorce, parenting, and everyday life.

Judicial Settlements Inclusive of Lok Adalats:

·        The Legal Services Authorities Act of 1987 paved the way for the development of the Lok Adalat system of dispute resolution in order to speed up the process. Disputes in the pre-litigation stage could be resolved amicably at Lok Adalats.

·        It is a component of the Alternative Dispute Resolution (ADR) system that provides informal, minimal, and expeditious justice to the general public.

Advantages Of ADR Mechanism:

·        Dispute settlement is frequently done in private, which helps to retain confidentiality.

·        It is more feasible, cost-effective, and efficient.

·        Procedural flexibility saves time and money while removing the stress of a traditional trial.

·        The mechanism usually leads to innovative ideas, long-term results, increased satisfaction, and enhanced relationships.

·        The potential of having specialist competence in the form of an arbitrator, mediator, conciliator, or neutral adviser available on the tribunal.

·        It also gives more direct control over the outcome. Personal relationships may be spared as well. 

ADR has proven successful in clearing the backlog of cases in various levels of the judiciary- Lok Adalats alone have disposed more than 50 lakh cases every year on average in the last three years. But there seems to be a lack of awareness about the availability of these mechanisms. The National and State Legal Services Authorities should disseminate more information regarding these, so they become the first option explored by potential litigants.