ARBIT RATION :
Arbitration is outside the court settlement of a dispute by one or more (odd
number) persons who are appointed as arbitrators by both the parties. According
to Section 2(1)(a) of the Arbitration and Conciliation Act, 1996 “Arbitration means
any arbitration whether or not administered by permanent arbitral institution”. In
other words, any form of arbitration irrespective of its nature has been
RECOGNISED statutorily in India by bringing such arbitration under the ambit of
the Arbitration and Conciliation Act, 1996. It consists of a simplified trial, with
simplified rules of evidence and with no discovery. Arbitration hearings are ARBITRAL DISPUTES: NON-ARBITRAL DISPUTES:
usually not a matter of public record. The arbitral award is binding on the parties ❑ CRIMINAL MATTERS
❑ INSURANCE ❑ MATRIMONIAL MATTERS
just like a court decree or order. ❑ CONTACT ❑ TESTAMENTARY MATTERS
➢ Voluntary arbitration is a process of settling ❑ BUSINESS DISPUTES ❑ CHARITABLE ISSUES
disputes by submitting the issue to an ❑ FAMILY DISPUTES ❑ RELIGIOUS MATTERS
independent and neutral third party for a ❑ CONSTRUCTION
final and binding decision, which is mainly
❑ INSOLVENCY MATTERS
❑ COMMERCIAL RECOVERIES ❑ MINORITY ISSUES
said to be an ‘award’ or ‘decision’.
❑ PROPERTY ❑ GUARDIANSHIP MATTERS
➢ Voluntary arbitration takes place when two
❑ PARTNERSHIP DISPUTES ❑ EXECUTION PROCEEDINGS
parties voluntarily or mutually agree to submit
their issue to a third party. It is normally done by
parties entering into a formal, written agreement.
DUTIES OF ARBITRATOR: OTHER TYPES OF
❑ TO ADMINISTER OATH TO THE ARBITRATION:
➢ Compulsory arbitration is an arbitration required PARTIES AND WITNESS APPEARING.
or forced by law on parties involved in a dispute. ❑ TO ACT JUDICIALLY AND IMPARTIALLY.
In such arbitration, the parties are compelled to ❑ AD-HOC ARBITRATION.
❑ TO PUT NECESSARY INTERROGATORIES TO ❑ INSTITUTINAL ARBITRATION.
submit their case for arbitration even if they do ANY PARTY TO THE DISPUTE.
not will to do so. It is a non-binding, adversarial ❑ STATUTORY ARBITRATION.
dispute resolution process in which one or more
❑ TO DETERMINE BY AND TOWHOM THE ❑ DOMESTIC OR INTERNATIONAL.
arbitrators hear arguments, weigh evidence and COSTS OF REFERENCE AND THE
❑ FOREIGN ARBITRATION.
Essentials of an Arbitration issue a non-binding judgment on the merits after AWARD SHALL BE PAID.
Agreement: an expedited hearing. In such arbitration,
arbitrators address only the disputed legal issues
❑ TO AWARD INTEREST.
❑ TO FIX AMOUNT, MODE AND TIME OF
and apply legal standards. PAYMENT.
1.The agreement must state that the ADVANTAGES: DISADVANTAGES:
decision of the tribunal will be ❑ CHOICE OF DECISION MAKER ❑ LIMITED RECOURSE.
binding upon by both the parties. ARBITRATIONS IN INDIA: WITH EXPERTISE. ❑ UNEVEN PLAYING FIELD.
2.That the jurisdiction of the ❑ SPEED. ❑ LACK OF TRANSPARENCY.
❑ LOWER-COST. ❑ COST: PARTIES PAY FOR
tribunal on the rights of the parties ❑ FLEXIBLE. ARBITRATOR AND AGENCIES.
✓ INDIAN COUNCIL OF ARBITRATION (1965).
should be decided by both the parties ✓ ABIDE ARBITRATION AND CONCILIATION ACT (1996). ❑ CONFIDENTIALLY. ❑ LIMITED RIGHTS OF APPEAL,
consensually or from an order ✓ COMPREHENSIVE LEGAL FRAMEWORK. ❑ LESS FORMAL THAN COURT. FEWER MEANS TO CHALLENGE
obtained by the Court which states ❑ PRESERVATION OF BUSINESS AWARD.
✓ 95% ARBITRATION IS OF TYPE AD-HOC.
RELATIONSHIPS. ❑ LACK OF FORMAL DISCOVERY.
that the proceeding shall be made ✓ INDIA NO.2 IN ARBITRATION CASES REACHING
through arbitration. SINGAPORE CENTRE.
3.The tribunal has the right to ✓ MUMBAI TO HAVE INDIAS’ FIRST INTERNATIONAL
determine the rights of the parties ARBITRATION CENTRE.
by being fair and just.
4.The agreement that the parties
will refer to the tribunal must be
10.
enforceable by law.
5.The agreement must state that any ADARSH KUMAR SINGH
decision made by the tribunal on the BARCH III YEAR VI SEM
dispute must be formulated prior to 201331003001
the time when the reference is made. PROFESSIONAL PRACTICES
ASSIGNMENT
