Alternative Dispute Resolution (ADR) in Motor Accident Claims Tribunal (MACT): An Empirical Analysis

Lok Adalats are forums for alternative dispute resolution (ADR) that are set up across the nation to handle matters expeditiously and at a lower cost. The Legal Services Authorities Act of 1987 granted it statutory recognition. The main purpose of the study is to link economic theory with MACT cases, resolved under the ADR system. Additionally, the study determines the relationship between Lok Adalat and solved MACT cases in the state of Gujarat. For the purpose of the study, the data for the years 2015–2019 has been collected from the websites of the Gujarat High Court, the Supreme Court, the annual reports of the state legal service authority, books, articles, and other authentic sources. The findings reveal that there is a positive relationship between the number of Lok Adalats conducted and the number of cases disposed of in Gujarat State. Furthermore, it is observed that there is a negative correlation between the number of lok adalats and the compensation amounts of MACT cases. The study is also finding a connection between bargain theory and efficiency theory and MACT cases’ compensation. The MACT cases settlement negotiation-focused bargain theory and efficiency theory’s capacity to effectively allocate resources, align incentives, manage risks, advance social welfare, expedite legal proceedings, and promote economic resilience and growth are closely related, as evidenced by the compensation of various heads of MACT cases.