Abstract:

Alternative Dispute Resolution (ADR) has become firmly established in current legal system and the processes are well-suited to and frequently used in insolvency proceedings in most of the jurisdictions. The reason for increasing acceptance of ADR in insolvency regime is that in many  cases  ADR  can  deliver  greater  benefits  in  insolvency  situations  than  formal  court procedures.  This  paper  looks  into  the  scope  and  the  use  of  ADR  in  the  insolvency proceedings in other jurisdictions and further focuses on introducing  ADR into insolvency proceedings  in  Malaysia.  The benefits  of  ADR  and  the  future  of  ADR  in  Insolvency situations are looked into and finally recommend introducing ADR to solve insolvency cases in Malaysia.