Q.1 What do you mean by Lok Adalat?

The settlement made by Lok Adalat is

one of the effective Alternate Dispute Resolution (ADR) system. Comment.

Introduction:

The term Lok Adalat literally means “People’s Court.” It is a forum where
disputes/cases pending in the court of law or at pre-litigation stage are
settled/compromised amicably. Lok Adalats are an important part of India’s
legal system, aimed at providing speedy, cost-effective, and informal justice,
particularly to the weaker sections of society. They operate under the Legal
Services Authorities Act, 1987.

Meaning and Nature of Lok Adalat:

Lok Adalat is a statutory forum created to provide alternate dispute resolution

(ADR). It is based on the principles of Gandhian philosophy and aims to ensure
access to justice for all. The system promotes compromise and mutual
settlement between parties.

Types of Lok Adalats:

1. Permanent Lok Adalat – For public utility services like transport, postal,
telegraph etc.
2. National Lok Adalat – Held at regular intervals across the country.
3. Mega Lok Adalat – Organized on a single day at all courts across a state.
4. Mobile Lok Adalat – Travelling Lok Adalats for rural and remote areas.

Legal Status and Powers:

 Lok Adalats have been given statutory status under the Legal Services
Authorities Act, 1987.
 Awards made by a Lok Adalat are deemed to be decrees of a civil court
and are final and binding on all parties.
 No appeal lies against the award, which ensures finality.
 Courts must transfer cases to Lok Adalat if there is a possibility of
settlement.

Effectiveness as an ADR Mechanism:

Lok Adalat is widely regarded as an effective form of ADR due to the following
reasons:

1. Speedy Justice – Cases are resolved in a single day without procedural

formalities.
 2. Cost-Effective – No court fees are charged, and any fees paid are
refunded if the case is resolved.
3. Finality of Decision – The award is binding and enforceable, with no
further litigation.
4. Flexibility and Informality – No strict procedural or evidentiary rules
apply.
5. Promotion of Social Justice – Especially beneficial for weaker sections
and rural communities.
6. Reduces Burden on Courts – Helps in reducing pendency of cases in
courts.

Limitations:

Despite its success, Lok Adalat has some limitations:

 It cannot decide cases where no settlement is possible.

 Both parties must agree to the settlement; there is no adjudication on
merits.
 Not suitable for cases involving serious criminal offences.

Judicial Recognition:

The judiciary has recognized the importance of Lok Adalats in promoting

access to justice. In State of Punjab v. Jalour Singh (2008), the Supreme Court
observed that the role of Lok Adalat is conciliatory and not adjudicatory.

Conclusion:

In conclusion, Lok Adalat plays a crucial role in the Indian judicial system as an
effective ADR mechanism. It ensures justice is not denied due to delay or
financial constraints. While it cannot replace the formal court system, it
complements it by resolving suitable cases efficiently and harmoniously. Thus,
the settlements made by Lok Adalat are indeed an effective form of alternative
dispute resolution, contributing significantly to the cause of distributive justice
in India.
Q-2 Discuss the meaning and field of 'Alternate Dispute Resolution System'.
What is the importance of this now a days?

Alternate Dispute Resolution System (ADR) – Meaning, Field &

Importance

Meaning:

Alternate Dispute Resolution (ADR) refers to a range of mechanisms outside

the traditional judicial process that are used to resolve disputes between parties.
ADR aims to provide faster, less expensive, and more amicable solutions
compared to regular court litigation. It is a collective term for processes such as
Arbitration, Mediation, Conciliation, and Negotiation.

ADR is based on principles of voluntariness, confidentiality, flexibility, and

party autonomy, promoting a less adversarial and more cooperative approach
to dispute resolution.

Types / Fields of ADR:

1. Arbitration:
A neutral third party (arbitrator) hears the dispute and makes a binding
decision. It is governed in India by the Arbitration and Conciliation Act,
1996.
2. Mediation:
A mediator facilitates discussion between parties to help them reach a
mutually acceptable solution. The mediator does not impose a decision.
3. Conciliation:
Similar to mediation but more active, where the conciliator can suggest
solutions. It is also governed under the Arbitration and Conciliation Act,
1996.
4. Negotiation:
A voluntary process where parties communicate directly to resolve the
dispute without any third-party involvement.
5. Lok Adalats:
Statutory bodies under the Legal Services Authorities Act, 1987 that
resolve disputes through compromise and settlement. Decisions are
binding and enforceable.
6. Mini-Trial
A private, voluntary process where parties present their case before a
neutral advisor who gives an opinion to facilitate settlement.
7. Judicial Statement
A judicial statement refers to a declaration or remark made by a judge
during the course of a legal proceeding. It can include observations,
 interpretations, or comments on the case or law, even if they are not part
of the formal judgment (called obiter dicta).
8. Fast Track Arbitration
Fast track arbitration is a simplified and expedited arbitration process
designed to resolve disputes more quickly than standard arbitration.

Q- 3 Write notes on:

1. Final offer Arbitration
2. Multi door Court house
3. Medola
4. Online dispute resolution
5. Family settlements

1. Final Offer Arbitration

 Definition: A form of arbitration where the arbitrator must choose

between the final offers submitted by the disputing parties, without
modifying or splitting the offers.

 Purpose: Encourages parties to make reasonable offers to avoid losing

entirely.

 Key Features:

o Also known as "Baseball Arbitration."

o Helps reduce lengthy negotiations and encourages settlement.

o Arbitrator picks either party’s final offer in full.

o Used often in labor disputes and commercial contracts.

2. Multi-Door Courthouse

 Definition: A dispute resolution center that offers multiple methods (or

"doors") of resolving disputes under one roof, such as mediation,
arbitration, conciliation, negotiation, and traditional litigation.

 Concept: Developed by Professor Frank E.A. Sander, aims to provide

parties with the most suitable dispute resolution mechanism for their
specific case.

 Advantages:
o Saves time and cost.

o Offers flexible, appropriate dispute resolution methods.

o Reduces burden on courts.

o Enhances access to justice.

3. Mediation

 Definition: A voluntary, non-binding, confidential process where a

neutral third party (mediator) assists disputing parties in reaching a
mutually acceptable solution.

 Key Features:

o Mediator does not impose a decision.

o Focus on interests, not positions.

o Promotes cooperation and communication.

o Cost-effective and quicker than litigation.

 Legal Position: Increasingly encouraged by courts to settle disputes

amicably before trial.

4. Online Dispute Resolution (ODR)

 Definition: The use of technology and internet-based platforms to

facilitate dispute resolution processes such as negotiation, mediation, and
arbitration.

 Importance:

o Useful for cross-border disputes and e-commerce conflicts.

o Saves time and cost by avoiding physical presence.

o Provides accessibility and convenience.

 Types of ODR: Automated negotiation, video conferencing mediation,

online arbitration portals.

 Challenges: Ensuring confidentiality, fairness, and technological

accessibility.

5. Family Settlements

 Definition: An agreement reached among family members to resolve

disputes, often related to inheritance, property, or maintenance, outside of
court.
 Features:

o Aim to maintain family harmony.

o Can be oral or written.

o Legally binding if supported by consideration and proper

documentation.

o Courts encourage family settlements to avoid prolonged litigation.

 Legal Provisions: Under Indian law, family settlements have significant
judicial support and can bar future disputes if properly executed.
Importance of ADR in Contemporary Times:

1. Reduces Burden on Courts:

The Indian judiciary is overburdened with a massive backlog of cases.
ADR provides an effective alternative to clear this pendency.

2. Cost-Effective and Time-Saving:

Traditional litigation is expensive and time-consuming. ADR methods are
comparatively faster and more economical.

3. Confidentiality:
ADR proceedings are private and confidential, which helps in maintaining
business reputations and personal relationships

4. Flexibility:
ADR procedures are informal and more flexible than court procedures,
allowing parties to choose procedures and rules.

5. Party Autonomy:
Parties have more control over the process, including the choice of
decision-makers and the manner of proceedings.

6. Promotes Harmony:
ADR methods like mediation and conciliation help in preserving
relationships and promoting harmony between disputing parties.

7. Recognition in Law and Policy:

ADR is encouraged by the judiciary (as per Section 89 of CPC) and
through various schemes like National Legal Services Authority (NALSA),
and initiatives by the government promoting institutional arbitration and
Lok Adalats.

8. Global Acceptance:
With globalization and cross-border trade, ADR (especially arbitration) is
widely used in international commercial disputes. India is also aiming to
become a global arbitration hub.

Judicial Recognition and Promotion:

The Supreme Court and High Courts have repeatedly emphasized the
importance of ADR. In Afcons Infrastructure Ltd. v. Cherian Varkey
Construction Co., the Supreme Court stressed the mandatory duty of courts to
refer disputes to ADR under Section 89 CPC where possible.

Conclusion:
In the modern legal framework, ADR serves as an indispensable mechanism for
achieving timely and effective justice. It aligns with the constitutional mandate
of providing access to justice under Article 39A of the Constitution of India.
ADR not only complements the judicial system but also strengthens it by
offering alternative routes that are often more appropriate, efficient, and
acceptable to disputing parties.

Q-3 Meaning of Alternate Dispute Resolution System and its Objective and
Advantages. Write a Note on Development of A.D.R. System.

Meaning of Alternate Dispute Resolution System (ADR)

Alternate Dispute Resolution (ADR) refers to the various methods of

resolving legal disputes outside the formal court system. Instead of going
through lengthy and costly court procedures, parties can settle their disputes
through ADR mechanisms such as:

 Arbitration

 Conciliation

 Mediation

 Negotiation

 Lok Adalats

These methods are less formal, faster, and usually more cost-effective than
traditional litigation. ADR is especially useful in civil, commercial, family, and
labor disputes.

2. Objectives and Advantages of Alternate Dispute Resolution System

Objectives of ADR:
 Reduce burden on courts: To decrease the workload on courts by
resolving disputes outside the judicial process.
 Quick resolution: To ensure faster settlement of disputes compared to
traditional litigation.
 Cost-effective: To provide a low-cost method of dispute resolution.
 Promote peaceful settlement: To encourage amicable solutions and
preserve relationships between parties.
 Access to justice: To make justice accessible to people who may find
court proceedings complex or expensive.
 Advantages of ADR:

1. Speedy Justice: ADR resolves disputes faster than regular court

procedures.
2. Lower Cost: It is cheaper than litigation as it involves fewer formalities
and less paperwork.
3. Confidentiality: ADR proceedings are private, and details are not made
public.
4. Flexibility: Procedures are more flexible than strict court rules.
5. Voluntary Participation: Parties participate willingly and have control
over the outcome.
6. Preserves Relationships: ADR is less adversarial, which helps maintain
personal or business relationships.
7. Expertise of Arbitrators: In arbitration, parties can appoint experts in
the relevant field to decide the dispute.

Development of Alternate Dispute Resolution (ADR) System

The development of the Alternate Dispute Resolution (ADR) system in India

has evolved over time due to the increasing backlog of cases in courts and the
need for faster, cost-effective, and amicable dispute settlement mechanisms.

Historical Background:

 Traditional Methods: India has a long tradition of resolving disputes

through informal community-based systems like Panchayats and family
councils which encouraged negotiation and reconciliation.
 British Era: Formal courts were introduced, but the traditional mechanisms
still played a role in rural areas.

Modern Development:

1. Constitutional Mandate: Article 39-A of the Indian Constitution (added

by the 42nd Amendment Act, 1976) directs the state to provide free legal
aid and ensure that justice is not denied due to economic or other
disabilities. This encouraged exploring ADR as a means to access justice.
2. Judicial Recognition: The Supreme Court and various High Courts have
actively promoted ADR methods to reduce the backlog of cases and
promote speedy justice.
3. Legislative Steps:
 Arbitration and Conciliation Act, 1996: A landmark legislation that
codified arbitration and conciliation, aligning Indian law with
international standards.
  Legal Services Authorities Act, 1987: This act established Lok
Adalats (people's courts) to facilitate dispute resolution at grassroots
levels.
 Commercial Courts Act, 2015: Encourages ADR mechanisms in
commercial disputes.
4. Growth of ADR Institutions: Various ADR centers and institutions have
been established by the government and private sector to promote mediation,
arbitration, and conciliation.
5. Judicial Directions: Courts routinely refer cases to mediation or
arbitration under their powers to ease judicial burden.
International Influence:
India has adopted ADR practices inspired by developed countries to
encourage foreign investments and commercial dispute resolution.

Summary:

The ADR system in India has grown from traditional informal dispute
resolution methods to a structured, legal, and institutional framework supported
by the Constitution, legislation, and judicial activism, all aimed at making
justice accessible, affordable, and speedy.

Q-4 Discuss the jurisdiction and power of Lok Adalat.

Jurisdiction and Power of Lok Adalat

Lok Adalat is a statutory forum in India aimed at providing an alternative

dispute resolution mechanism, primarily focusing on speedy and amicable
settlement of disputes. It operates under the Legal Services Authorities Act,
1987.

1. Jurisdiction of Lok Adalat

 Types of Cases:

o Civil cases including matrimonial disputes, partition suits, money

recovery cases, motor accident claims, labor disputes, public utility
bills, etc.

o Compoundable criminal cases — those offences which are

compoundable under the law (e.g., minor assault, defamation, etc.).
  Stage of Cases:

o Lok Adalats can take up cases pending in regular courts at any

stage of the proceeding.

o They can also take up cases which are pre-litigation, i.e., disputes
that have not yet been filed in court but can be settled before
litigation begins.

 Consent of Parties:

o Jurisdiction depends heavily on mutual consent of the parties.

Both parties must agree to settle the dispute in the Lok Adalat.

o If the parties do not agree, the Lok Adalat cannot proceed with the
case.

 No jurisdiction in Non-Compoundable Cases:

o Lok Adalats cannot take up non-compoundable criminal

offences, i.e., serious crimes where settlement is not legally
permissible.

2. Power of Lok Adalat

 Settlement and Award:

o Lok Adalat attempts to bring the parties to a mutually agreeable

settlement through conciliation and negotiation.

o Upon settlement, the Lok Adalat passes an award (decision) which

is final and binding on both parties.

 Status of Award:

o The award of Lok Adalat is deemed to be a decree of a civil court

and is enforceable as such.

o It is not appealable in any court, except through filing a fresh suit

if a party is dissatisfied (because the decision is by consent).

 No Power to Decide on Merits:

o Lok Adalats do not decide the case on merits if parties fail to

agree.
 o If no settlement is reached, the case is either referred back to the
court or parties are free to pursue litigation.

 No Court Fees:

o No court fees are payable in Lok Adalat, and if fees were paid in
the regular court, they are refunded if the matter is settled in Lok
Adalat.

 Execution:

o Since the award is a decree of a civil court, it can be executed

through regular legal means.

3. Summary of Key Features

Aspect Description

Jurisdiction Civil cases, compoundable criminal cases, pre-litigation and

pending cases
Consent Mandatory for Lok Adalat to proceed
Power Can award a settlement binding on parties
Appeal No appeal against award
Based on mutual settlement, no adjudication on merits if no
Decision Basis
settlement
Court Fees Not charged; fees refunded if case settled here
Enforcement Award is executable like a civil court decree

Important Case Law

 Kumari Shrilekha Vidyarthi vs. State of U.P. (1991): Supreme Court

held that the award of Lok Adalat is final and binding and has the status
of a civil court decree.
 Dinesh Bhatia vs. State of UP (1996): Emphasized that Lok Adalat is a
mechanism for conciliation and not for deciding on merits.

Q- 5 What do you mean by 'Foreign Award' under Geneva Convention? What

are the conditions of enforcement of an award?

Foreign Award under Geneva Convention:

A Foreign Award refers to an arbitral award made in a country other than
the country where enforcement is sought. The term primarily comes under the
Geneva Protocol on Arbitration Clauses, 1923 and the Geneva Convention
on the Execution of Foreign Arbitral Awards, 1927. These Geneva
Conventions were early international treaties aimed at promoting the
recognition and enforcement of arbitration agreements and arbitral awards
across member countries.

In simple terms, a Foreign Award is an arbitration decision given in one

country that is to be recognized and enforced in another country.

Conditions for Enforcement of a Foreign Award under the Geneva

Convention:

The Geneva Convention sets out certain conditions under which a foreign
arbitral award can be enforced in the territory of another contracting state. These
include:

1. Existence of a valid arbitration agreement:

The parties must have agreed to arbitration in a lawful arbitration
agreement or clause.
2. The award must be final and binding:
The arbitral award should be final and conclusive, not subject to appeal in
the country of origin.
3. Proper notification and representation:
The party against whom enforcement is sought must have been given
proper notice of the arbitration proceedings and the opportunity to present
their case.
4. The award should not be contrary to public policy:
The enforcement can be refused if the award is against the public policy
or fundamental legal principles of the country where enforcement is
sought.
5. No fraud or corruption involved:
The award should not be obtained by fraud, corruption, or misconduct.
6. The award must be authentic and properly documented:
The original or certified copy of the award and the arbitration agreement
must be produced.
7. Compliance with procedural requirements:
Enforcement procedures as required by the local laws and the Convention
must be followed.

Summary:
 Foreign Award: An arbitral award made in one country, sought to be
enforced in another.
 Enforcement conditions under Geneva Convention include valid
arbitration agreement, finality of award, proper notice, no public policy
violation, and compliance with formalities.
Q-6 Trace the history of 'Legal Aid' citing law pertaining to 'Legal Aid'.

History of Legal Aid

Legal Aid refers to the provision of free legal services to people who cannot
afford to pay for legal representation and access to the court system. The
concept of legal aid is deeply rooted in the idea of access to justice as a
fundamental right.

Ancient and Early Origins

 In ancient societies, there was some form of assistance or patronage

where kings or rulers would appoint advocates to represent poor litigants.
 In English common law history, informal systems existed where some
lawyers provided services without fees in exceptional cases.

19th Century Developments

 The formal idea of legal aid began in the 19th century in Europe.
 The Legal Aid and Advice Act 1949 (UK) is often cited as the modern
legal aid system's foundation. It was a pioneering statute providing
government-funded legal assistance to those unable to afford it.

Legal Aid in India

 The idea of legal aid in India traces back to the Constitution of India
(1950), which emphasized justice for all and recognized the right to legal
aid.
 The Bhagwati Committee Report (1973) was a landmark moment,
highlighting the importance of legal aid and making detailed
recommendations for state-funded legal services.

Laws Pertaining to Legal Aid

1. Constitution of India, 1950

 Article 39A: Directs the State to provide free legal aid to ensure that
opportunities for securing justice are not denied to any citizen by reason
of economic or other disabilities.
 This article forms the constitutional basis for legal aid in India.

2. Legal Services Authorities Act, 1987

 This is the primary legislation governing legal aid in India.

  The Act established State Legal Services Authorities (SLSA) and the
National Legal Services Authority (NALSA) to provide free legal
services to eligible persons.
 It also frames procedures for legal aid, Lok Adalats (people’s courts for
speedy justice), and awareness programs.
 The Act defines the categories of persons entitled to legal aid, including
SC/ST, women, children, disabled persons, and those with low income.

3. Supreme Court Judgments

 The judiciary has expanded and clarified the scope of legal aid:
o Hussainara Khatoon v. Home Secretary (1979): The Supreme
Court held that the right to free legal aid is integral to the right to a
fair trial under Article 21.
o Maneka Gandhi v. Union of India (1978): Reinforced the
importance of legal aid in due process.
o State of Punjab v. Ram Lubhaya Bagga (1998): Held that legal
aid is a fundamental right.

Q-8 Explain:
1. Who is a Conciliator? How is he appointed? 2. Discuss the conciliation
settlement agreement. 3. Role of Conciliator and communication between
conciliator and parties 4. Discuss the procedure of termination of Conciliation
proceedings.

1. Who is a Conciliator? How is he appointed?

Conciliator:

 A Conciliator is a neutral third party appointed to assist disputing parties

in reaching a mutually acceptable settlement.

 The conciliator facilitates communication, clarifies issues, and suggests

solutions but does not impose a decision.

 The role is to bring about an amicable settlement through voluntary

agreement.

Appointment of Conciliator:

 Under the Industrial Disputes Act, 1947 (Section 65B and 65C), the
Conciliator is appointed by the Conciliation Officer or by the
Government.
  The government may appoint a conciliator either suo motu or on a request
by one of the parties.

 Sometimes, parties may also mutually agree on a conciliator.

 The appointment is usually in writing and the conciliator is independent

and impartial.

2. Discuss the Conciliation Settlement Agreement

 A Conciliation Settlement Agreement is a written document signed by
both disputing parties when they reach a settlement through conciliation.

 It records the terms and conditions agreed upon by the parties.

 Once signed, the agreement is binding on the parties and is enforceable

like a contract.

 The agreement should be clear, definite, and signed voluntarily by all

parties.

 If the settlement agreement pertains to an industrial dispute, it can be filed

before the labor court or industrial tribunal for enforcement.

 The agreement marks the successful conclusion of conciliation

proceedings.

3. Role of Conciliator and Communication between Conciliator and Parties

Role of Conciliator:

 Acts as a neutral facilitator to help parties understand each other's

viewpoints.

 Encourages parties to negotiate and arrive at a mutually agreeable

solution.

 Does not impose any decision but may suggest or propose possible
solutions.

 Maintains confidentiality and impartiality throughout the process.

 Helps in clarifying issues, reducing misunderstandings, and improving

communication.
  Prepares reports on the progress and outcome of conciliation.

Communication:

 Communication is typically direct or through meetings.

 The conciliator meets the parties either separately or jointly.

 Maintains an open and informal dialogue to build trust.

 Ensures both parties have an opportunity to express their views freely.

 Uses active listening and negotiation skills to facilitate dialogue.

 The conciliator also keeps the communication confidential, sharing only

what is necessary with the parties involved.

4. Discuss the Procedure of Termination of Conciliation Proceedings

Conciliation proceedings can be terminated under the following circumstances:

1. Settlement Reached:

o When parties sign a conciliation settlement agreement, the

proceedings terminate successfully.

2. Failure to Reach Settlement:

o If the conciliator finds that no settlement is possible after

reasonable efforts, the conciliator declares failure.

o The conciliator submits a report of failure to the appropriate

authority (e.g., Conciliation Officer or Government).

3. Withdrawal by Parties:

o If any party withdraws from conciliation, proceedings may be

terminated.

4. Time Limit Exceeded:

o There may be a prescribed time limit for conciliation (e.g., 30

days).

o If the time expires without a settlement, proceedings end.

 5. Parties Resort to Other Dispute Resolution:

o If parties opt for arbitration, litigation, or any other mode,

conciliation may be terminated.

6. Voluntary Termination by Conciliator:

o If the conciliator feels the proceedings are futile or the parties are
not cooperating, the conciliator may terminate the process.

7. Government or Authority Directive:

o The government or concerned authority may terminate proceedings

at any stage.

After termination:

 The conciliator submits a report on the outcome to the concerned

authority.

 Parties are free to pursue other remedies like litigation or arbitration.

Q-7 Difference between Arbitration and Conciliation.

Difference Between Arbitration and Conciliation

A process where disputing A process where a conciliator
parties appoint an arbitrator helps parties to reach a
Definition
who gives a binding mutually acceptable
decision. settlement.
More formal and judicial-
Nature of Process Informal and amicable.
like.
Conciliator acts as a
Role of Third Arbitrator acts like a private
mediator/facilitator without
Party judge, making decisions.
imposing decisions.
Award/decision given by No binding award; only a
Outcome arbitrator, binding on settlement agreement if parties
parties. agree.
Fixed procedure, often
Flexible, informal, and without
Procedure governed by arbitration
strict procedural rules.
laws or agreement.
Parties have less control Parties have full control;
Control Over
once arbitrator makes conciliator only facilitates
Outcome
decision. negotiations.
Award can be challenged No award to challenge; parties
Appeal/Challenge only on limited grounds in may simply not accept the
courts. settlement.
Usually for disputes where Used to maintain relationships
Use parties want a final binding and encourage settlements
decision. without conflict.

Summary:
 Arbitration is like a private court where the arbitrator decides the
dispute.

 Conciliation is more like assisted negotiation where the conciliator helps

the parties find common ground.
Q-9 Rule making power of high court and central government in respect of
arbitration law.
Rule-Making Power in Arbitration Law
The rule-making power under the Arbitration and Conciliation Act, 1996
(which governs arbitration law in India) is primarily vested in the Central
Government and the High Courts with respect to procedural aspects.
1. Rule-Making Power of the Central Government
 Section 85 of the Arbitration and Conciliation Act, 1996 gives the
Central Government the power to make rules for the effective
implementation of the Act.
 These rules mainly cover:
o Procedure of arbitration,
o Fees and allowances of arbitrators,
o Other administrative aspects related to arbitration and conciliation.
 The Central Government can notify rules that apply uniformly across
India.
2. Rule-Making Power of the High Courts
 Section 34(2) and Section 37 of the Arbitration and Conciliation Act
provide limited scope for High Courts, but mainly the High Courts have
rule-making powers for court procedures in arbitration matters.
 Under Section 34(2), the High Court has the power to make rules related
to:
o Filing,
o Hearing,
o Disposal of applications under the Act.
 Many High Courts have framed Arbitration Rules or Civil Court Rules
to regulate arbitration-related proceedings before the court. These rules
regulate procedural matters such as:
o Application for setting aside arbitral awards,
o Appeals,
o Interim measures.

Practical Relevance
 The Central Government rules provide the general framework and
procedural guidelines for arbitration across the country.
 The High Courts’ rules provide detailed procedural regulations when
arbitration-related matters come before the courts, ensuring efficient
handling of challenges, appeals, and enforcement related to arbitration
awards.
Q-10 What are powers of State Government to make rules under the Legal
Services Authorities Act 1987?

Powers of State Government to Make Rules under the Legal Services

Authorities Act, 1987

Under Section 39 of the Legal Services Authorities Act, 1987, the State
Government is empowered to make rules to carry out the purposes of the Act.
These rules help in the effective implementation and administration of legal
services at the state level.

Key points:

1. Rule-Making Authority:
The State Government may, by notification in the official Gazette, make
rules for the purpose of carrying out the provisions of the Act within the
state.
2. Scope of Rule-Making:
The rules may cover various matters including but not limited to:
o The procedure for constituting State Legal Services Authorities.
o Appointment, powers, and duties of officers and employees.
o Regulation of legal aid clinics, Lok Adalats, and legal literacy
programs.
o Implementation of schemes for legal services to weaker sections.
o Any other matter which is required for the effective implementation
of the Act.
3. Consistency with Central Rules:
While making rules, the State Government should ensure consistency
with the central rules framed by the Central Government under the Act to
maintain uniformity.
4. Notification and Publication:
Rules come into effect only after publication in the official Gazette.

Summary:
The State Government has the statutory power under Section 39 of the Legal
Services Authorities Act, 1987, to make rules for effective implementation of
legal services and legal aid at the state level, including constitution and
functioning of State Legal Services Authorities, legal aid schemes, Lok Adalats,
and related activities.
Q-11 How Arbitration tribunal can help of court in taking evidence
under section 27 of Arbitration and Conciliation Act 1996?

Section 27 of the Arbitration and Conciliation Act, 1996 empowers the court
to act as a facilitator in the arbitration process by assisting the Arbitral
Tribunal in the collection of evidence.
Key points:
1. Role of the Court under Section 27:
o The court may assist the arbitral tribunal by compelling the
attendance of witnesses, examining them on oath, and
producing documents or other evidence.

o This power of the court is similar to its powers under the Code of
Civil Procedure (CPC) related to examination of witnesses and
production of evidence.

2. Procedure:

o When the arbitral tribunal requires evidence to be collected or

witnesses to be examined, it may request the court to intervene.

o The court can then issue summons, enforce the attendance of

witnesses, and ensure production of documents.

o The court conducts the examination of witnesses and collects

evidence, which is then forwarded to the arbitral tribunal.

3. Purpose:

o This provision helps in overcoming the limitation that the arbitral

tribunal does not have coercive powers like a court.

o It facilitates effective evidence gathering ensuring that the

arbitration process is not stalled due to inability to collect evidence.

4. Nature of Assistance:

o The court only assists and does not replace the tribunal.

o The evidence collected by the court under this section is used by the
tribunal to decide the dispute.

5. Practical Importance:
 o Helps maintain the informal and speedy nature of arbitration by
leveraging the court's authority.

o Prevents the arbitral process from being rendered ineffective due to

non-cooperation of parties or witnesses in evidence production.
Summary:
Section 27 bridges the gap between arbitration and judicial procedures by
allowing courts to assist arbitral tribunals in compelling evidence and witness
attendance. This ensures that arbitral tribunals have the necessary support to
collect evidence, thereby making arbitration more effective and efficient.
Q- 12 write a detailed note on;
1. Definition of Arbitration,
2. Scope, objective and importance of arbitration
3. Arbitration Agreement
4. Composition of Arbitral Tribunal and jurisdiction of Arbitral Tribunals
5. Conduct of Arbitral Proceedings and making of Arbitral Award
6. Termination of proceedings and resource against Arbitral award
7. Finality and enforcement of Arbitral Awards and Appeal and Revision.

1. Definition of Arbitration

Arbitration is a method of dispute resolution where parties agree to submit

their disagreement to one or more impartial third parties, known as arbitrators,
instead of going to court. The arbitrator(s) hear the evidence and arguments,
then make a decision, called an award, which is usually binding on the parties.

Arbitration is often chosen as an alternative to litigation because it tends to be

faster, less formal, and more flexible. It is widely used in commercial disputes,
international trade, labor disputes, and many other areas.

Key points in definition:

 Private process: Not part of the public court system.

 Voluntary: Parties agree to arbitrate.

 Binding: The decision (award) is final and enforceable.

 Neutral: Arbitrator(s) act as impartial judges.

 Flexible: Procedures can be tailored by the parties.

2. Scope, Objective, and Importance of Arbitration

Scope:

 Arbitration covers a wide range of disputes, particularly commercial and

contractual disagreements.

 It can be domestic or international.

 It includes issues like construction, trade, investment, employment, and

consumer disputes.
  Arbitration may cover complex technical or legal matters that require
expertise.

Objective:

 To provide a speedy and efficient resolution of disputes.

 To reduce the burden on courts and avoid lengthy litigation.

 To allow parties to select an expert arbitrator knowledgeable in the

subject matter.

 To maintain confidentiality of sensitive disputes.

 To promote amicable settlement and preserve business relationships by

avoiding hostile courtroom confrontations.

Importance:

 Arbitration offers finality and certainty, as awards are usually binding and
enforceable.

 It is cost-effective compared to prolonged court battles.

 The process is flexible and adaptable to the needs of the parties.

 It ensures neutrality, particularly in international disputes, preventing

home court advantage.

 Arbitration helps in maintaining privacy—important in commercial and

personal matters.

 It fosters international trade by providing a trusted dispute resolution

mechanism recognized worldwide (e.g., under the New York
Convention).

3. Arbitration Agreement

An arbitration agreement is a contract or clause in a contract where parties

agree to resolve disputes through arbitration rather than litigation.
Characteristics:
 It must be in writing—either a separate agreement or a clause in the main
contract.
 It specifies the scope of disputes to be referred to arbitration.
  It outlines the procedural aspects such as the number of arbitrators,
language, place of arbitration, and rules governing the arbitration.
 The agreement binds the parties to arbitration, limiting their right to take
disputes to court.
Types:
 Submission Agreement: Entered into after a dispute arises.
 Arbitration Clause: Part of the original contract, agreeing in advance to
arbitrate future disputes.
Importance:
It ensures that parties have consented to arbitration.

 Helps prevent jurisdictional conflicts.

 Provides clarity on how disputes will be handled.
 Facilitates smoother enforcement of arbitral awards.

4. Composition of Arbitral Tribunal and Jurisdiction of Arbitral Tribunals

Composition of Arbitral Tribunal:

 The Arbitral Tribunal is the decision-making body in arbitration,

consisting of one or more arbitrators.

 The number of arbitrators is generally agreed upon by the parties.

Commonly, there is a sole arbitrator or a panel of three arbitrators.

 Appointment:

o If the parties have agreed on the number and method of

appointment, the tribunal is constituted accordingly.

o In the absence of such agreement, arbitration rules or a supervising

court may appoint arbitrators.

 The arbitrators must be impartial and independent.

 Arbitrators are often experts in the subject matter or law relevant to the
dispute.

Jurisdiction of Arbitral Tribunals:

 Jurisdiction refers to the tribunal’s power to hear and decide disputes.

 Tribunals have jurisdiction only if the parties have agreed to arbitration

and defined the scope.
  Jurisdiction typically arises from an arbitration agreement, which can
be a clause in a contract or a separate agreement.

 Tribunals have the power to rule on their own jurisdiction (kompetenz-

kompetenz principle), including:

o Existence and validity of the arbitration agreement.

o Scope of the arbitration agreement.

 Courts may intervene on jurisdiction only in limited circumstances,

usually to refer parties to arbitration or to support the arbitral process.

5. Conduct of Arbitral Proceedings and Making of Arbitral Award

Conduct of Arbitral Proceedings:

 Arbitration procedures are generally more flexible and less formal than
court proceedings.

 The tribunal has broad discretion over procedure, including:

o Time and place of hearings.

o Rules of evidence and admissibility.

o Language of proceedings.

 Parties are usually allowed equal opportunity to present their case, submit
evidence, and respond.

 Arbitration rules (e.g., ICC, UNCITRAL) or the parties’ agreement often

guide procedural aspects.

 The tribunal may hold hearings or decide based on documents alone.

 Interim measures or provisional relief may be granted by the tribunal

during proceedings.

Making of Arbitral Award:

 The award is the final decision resolving the dispute.

 Requirements for the award:

o It must be in writing and signed by the arbitrators.

 o It must state the reasons (unless the parties waive this).

o It must deal with all issues submitted.

 The award may include:

o Findings of fact and law.

o Remedies such as damages, specific performance, or declaratory

relief.

 The tribunal aims to issue the award within the agreed or prescribed time
frame.

 Awards are binding on the parties.

6. Termination of Proceedings and Recourse Against Arbitral Award

Termination of Proceedings:

 Arbitration proceedings terminate when:

o The arbitral award is rendered.

o Parties settle and notify the tribunal.

o The tribunal declares the proceedings terminated for other reasons

(e.g., withdrawal).

 Once terminated, the tribunal’s authority generally ceases, except for

actions necessary to correct or clarify the award.

Recourse Against Arbitral Award:

 Although arbitration awards are generally final, limited recourse is

available:

o Setting aside the award (annulment) in the seat country based on

grounds such as:

 Invalid arbitration agreement.

 Procedural irregularities.

 Arbitrator bias or misconduct.

  Award beyond the scope of submission.

o Appeals are typically not available unless agreed by parties or

provided by law.

 Grounds for challenging the award are narrowly construed to uphold

arbitration’s finality.

 Some jurisdictions permit limited revision or review under exceptional

circumstances.

7. Finality and Enforcement of Arbitral Awards and Appeal and Revision

Finality of Arbitral Awards:

 Arbitral awards are intended to be final and binding on the parties.

 This finality is a core advantage of arbitration over litigation.

 Parties usually waive the right to appeal or re-litigate issues.

Enforcement of Arbitral Awards:

 Enforcement is governed by national laws and international treaties,

notably the 1958 New York Convention.

 Awards made in one country are generally enforceable in another

contracting country with minimal review.

 Courts may refuse enforcement only on limited grounds such as:

o Incapacity of parties.

o Invalid arbitration agreement.

o Violation of public policy.

o Non-arbitrability of the dispute.

 The enforcement process resembles that of a court judgment.

Appeal and Revision:

 Appeals against arbitral awards are generally not available unless

explicitly allowed.
 Some national laws allow limited judicial review or revision for serious
procedural or jurisdictional defects.

 Arbitration’s efficiency is preserved by limiting judicial intervention to

extraordinary cases.

 Parties may agree on appeal mechanisms within arbitration rules or

contracts but these are exceptions.
Q-13 Discuss the provisions regarding appointment of Arbitrators under the
Arbitration and Conciliation Act 1996.

Provisions Regarding Appointment of Arbitrators under the Arbitration

and Conciliation Act, 1996

Introduction:
The appointment of arbitrators is a crucial step in arbitration proceedings, as it
ensures impartial and competent persons resolve the dispute. The Arbitration
and Conciliation Act, 1996 provides detailed provisions on the appointment of
arbitrators, ensuring fairness and party autonomy.
1. Party Autonomy in Appointment (Section 10)
 The parties to an arbitration agreement are free to agree on the number
of arbitrators and the procedure for their appointment.
 They may choose a sole arbitrator or a panel of arbitrators.
 The agreement may specify the method and time-frame for
appointment.
2. Appointment by Parties (Section 11)
 If the parties have not agreed on the procedure or the procedure fails, the
Chief Justice of the High Court or their designate steps in to appoint
the arbitrator(s).
 Parties can request appointment by the court if:
o No arbitrator has been appointed within 30 days of the request.
o The agreed procedure is not followed.
 The court ensures impartiality and independence while appointing
arbitrators.
3. Number of Arbitrators (Section 10)
 Parties may agree on one or more arbitrators.
 If no agreement exists, or the agreement is silent, the default is a sole
arbitrator.
4. Default Appointment Procedure (Section 11)
 When parties fail to appoint an arbitrator as per their agreement, or no
agreement exists, the court intervenes.
 The application to the court for appointment must be made within 30
days of the failure.
 The court-appointed arbitrator must be impartial and independent.
 The court follows the 'model arbitration rules' of the Supreme Court
or High Courts.
5. Grounds for Challenging Appointment (Section 12)
 An arbitrator can be challenged if there are justifiable doubts about
impartiality or independence.
 The parties can object to the arbitrator’s appointment on such grounds
before or during proceedings.
6. Appointment of Presiding Arbitrator in Multi-Arbitrator Panel (Section
12(5))
 If a panel is appointed, the arbitrators choose a presiding arbitrator.
 If they fail to do so within 15 days, the court may appoint the presiding
arbitrator upon request.
7. Special Provisions
 Institutional Arbitration: If parties agree on institutional arbitration
(e.g., ICC, SIAC), the institution appoints arbitrators per its rules.
 Emergency Arbitrators: The Act does not explicitly provide for
emergency arbitrators, but parties can incorporate such provisions by
agreement.
Conclusion:
The Arbitration and Conciliation Act, 1996 balances party autonomy and
judicial supervision in the appointment of arbitrators. It provides mechanisms
to ensure arbitrators are appointed fairly, impartially, and timely, which is
essential for effective arbitration proceedings.

Q-14 What type of cases can be decided by the lok adalat?

Types of Cases Decided by Lok Adalat

Lok Adalat, established under the Legal Services Authorities Act, 1987, is a
forum for amicable settlement of disputes through compromise. It deals with
both pending cases in courts and pre-litigation matters.
Types of Cases Lok Adalat Can Decide:
1. Civil Cases:
o Disputes relating to property, partition, contract, and recovery of
money.
o Matrimonial disputes like divorce by mutual consent, maintenance,
and custody.
2. Compoundable Criminal Cases:
o Offences such as hurt, criminal trespass, defamation, and criminal
intimidation, which are legally permitted to be settled out of court.
 3. Motor Accident Claims:
o Compensation cases under the Motor Vehicles Act, often involving
insurance claims.
4. Labour Disputes:
o Disputes related to wages, wrongful termination, or benefits.
5. Public Utility Services Disputes:
o Cases concerning electricity bills, water charges, or telephone bills
(not involving non-compoundable offences).
6. Revenue Cases:
o Disputes related to land, taxes, or government dues.

Note:
Lok Adalat cannot decide non-compoundable criminal cases (e.g., murder,
rape). Its decisions are binding, final, and enforceable like a civil court decree,
with no appeal allowed.
Thus, Lok Adalat promotes quick, cost-effective, and amicable dispute
resolution.

Q-15 Effect of Death and Insolvency of a Party to an Arbitration Agreement

under the Arbitration and Conciliation Act, 1996 for your LLB CCSU 4th-
semester exam:

Effect of Death and Insolvency of a Party to an Arbitration Agreement

The Arbitration and Conciliation Act, 1996 recognizes the possibility of the
death or insolvency of a party during the course of arbitration and provides
provisions to deal with such situations. The objective is to ensure that arbitration
proceedings can continue without unnecessary disruption, provided the claim or
dispute survives.

1. Effect of Death of a Party

 Section 32(1) of the Act specifically deals with the death of a party.
 Arbitration proceedings do not automatically terminate on the death of
a party.
 The legal representatives or heirs of the deceased party may be
substituted as a party in place of the deceased.
 This substitution is permissible only if the claim survives the death of the
party.
 The arbitral tribunal or the court must be informed about the death, and
the legal representatives should make an application for substitution.
  If the tribunal is satisfied that the claim survives, the proceedings continue
with the legal representatives.
 If the claim does not survive, the arbitration may be terminated.

2. Effect of Insolvency of a Party

 The insolvency of a party is also addressed under Section 32(1).
 Insolvency proceedings do not automatically terminate arbitration.
 The official receiver, trustee, or insolvency representative appointed
under the insolvency laws steps into the place of the insolvent party.
 The arbitration continues against or by the insolvency representative.
 The tribunal may allow the insolvency representative to continue
arbitration proceedings on behalf of the insolvent party’s estate.
 This ensures that the rights and liabilities of the insolvent party relating to
the dispute are effectively dealt with in arbitration.

3. Legal Rationale and Purpose

 Arbitration is a contractual remedy and the rights and obligations often
survive the death or insolvency of a party.
 Continuation of arbitration ensures finality and effectiveness of dispute
resolution.
 The provisions promote justice and fairness by allowing successors or
legal representatives to assert or defend claims.

4. Judicial Interpretations
 Courts have consistently upheld that death or insolvency does not
terminate arbitration if the claim survives.

5. Procedure to be Followed
 The party asserting death or insolvency should inform the arbitral
tribunal or the court.
 Application for substitution of legal representatives or insolvency official
should be made.
 The tribunal will verify and decide whether to continue or terminate
arbitration based on survival of claim.

Conclusion:
The Arbitration and Conciliation Act, 1996 provides clear provisions to ensure
that the death or insolvency of a party does not disrupt arbitration unnecessarily.
Arbitration continues with legal representatives or insolvency officials stepping
into the place of the original party, provided the claim survives. This helps
maintain the continuity, finality, and effectiveness of arbitration as a dispute
resolution mechanism.
Q-16. What is new york convention awards?

The New York Convention awards refer to arbitral awards that are
recognized and enforceable under the 1958 Convention on the Recognition
and Enforcement of Foreign Arbitral Awards, commonly known as the New
York Convention.
What is the New York Convention?

 It’s an international treaty adopted in 1958.

 It provides a framework for recognizing and enforcing foreign

arbitration awards in member countries.

 It is one of the most important instruments in international arbitration.

 Over 160 countries have ratified it, making it globally significant.

What are New York Convention Awards?

 These are arbitral awards (decisions) made by an arbitral tribunal in one

country.

 The awards are “foreign” when the parties or arbitration have a

connection with different countries.

 Under the Convention, such awards can be enforced in any member

country without needing to re-litigate the entire case.
Key Features of the New York Convention Awards

1. Recognition & Enforcement:

Courts in contracting states must recognize and enforce the arbitral
awards made in other contracting states, subject to limited exceptions.

2. Limited Grounds for Refusal:

Enforcement can only be refused on narrow grounds such as:

o Invalid arbitration agreement.

o Lack of proper notice to a party.

o Award deals with matters beyond the arbitration agreement.

o Public policy violation.

o Arbitrator impartiality issues.

 3. Simplified Procedure:
Avoids lengthy court proceedings; enforcement is streamlined.
Why is it important?

 It gives international commercial arbitration credibility and

effectiveness.

 Ensures that parties can rely on arbitral awards being enforced across
borders.
 Promotes cross-border trade and investment by providing a reliable
dispute resolution mechanism.