3. Introduction
Arbitration is a process in which a dispute is
submitted to an impartial outsider who makes a
decision which is usually binding on both the
parties.
4. Basics
The arbitrator enforces his own point of
view on the contending parties and the
opinions of the participants are not given
any predominance.
Arbitration is a judicial process
The award of the arbitrator is binding
and rests on equity and justice, i.e., there
is no scope for compromise
7. Non Arbitral Disputes
Matters of criminal nature
Disputes relating to matrimonial relations
Testamentary matters relating to the validity of a
will
Relating to trusts for public purposes of charitable
or religious nature
Insolvency matters
Matters relating to the guardianship of a minor or
lunatic.
Any execution proceedings .
8. DUTIES OF ARBITRATOR
To administer oath to the parties and witness
appearing
To act judicially and impartially
To put necessary interrogatories to any party to
the dispute
To determine by and to whom the costs of
reference and the award shall be paid
To award interest
To fix amount, mode and time of payment
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10. Advantages of Arbitration
Choice of decision maker with expertise
Speed
Lower-cost
Flexible
Confidentiality
Less formal than court
Preservation of business relationships
11. Disadvantages of Arbitration
Limited recourse
Uneven playing field
Lack of transparency
Cost: parties pay for arbitrator and agency
Limited rights of appeal, fewer means to
challenge award
Lack of formal discovery
13. Main Types of Arbitration
1) VOLUNTARY ARBITRATION
2) COMPULSORY ARBITRATION
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14. VOLUNTARY ARBITRATION
Voluntary arbitration
implies that the two
contending parties, unable to
compose their differences by
themselves agree to submit the
conflict/dispute to an impartial
authority, whose decision they
are ready to accept.
15. Essentials of voluntary arbitration
The voluntary submission of dispute to an
arbitrator
The subsequent attendance of witnesses and
investigations
The enforcement of an award may not be
necessary and binding
Voluntary arbitration may be specially needed
for disputes arising under agreements
/contracts
16. Compulsory Arbitration
Compulsory arbitration, is one where
the parties are required to accept arbitration
without any willingness on their part.
When one of the parties to an industrial dispute feels
aggrieved by an act of the other, it may apply to the
appropriate government to refer the dispute to an
adjudication machinery.
17. Essentials of Compulsory Arbitration
the country is passing through grave
economic crisis
industries of strategic importance are
involved
parties are ill balanced
Compulsory arbitration leaves no scope for
strikes and lockouts; it deprives both the
parties of their very important and
fundamental rights.
18. Other Types of Arbitration
Ad-hoc Arbitration
Institutional Arbitration
Statutory Arbitration
Domestic or International Arbitration
Foreign Arbitration
19. (1) Ad-hoc Arbitration:- When a dispute or
difference arises between the parties in course of
commercial transactions.This arbitration is agreed
to get justice for the balance of the un-settled part of
the dispute only.
(2) Institutional Arbitration: There is
prior agreement between the parties that in case of
future differences or disputes arising between the
parties during their commercial transactions, such
differences or disputes will be settled by arbitration
as per clause provide in the agreement.
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20. (3) Statutory Arbitration: It is mandatory
arbitration which is imposed on the parties by operation
of law. In such a case the parties have no option as such
but to abide by the law of land.
(4) Domestic or International
Arbitration: Arbitration which occurs in India and
have all the parties within India is termed as Domestic
Arbitration. An Arbitration in which any party belongs to
other than India and the dispute is to be settled in India is
termed as International Arbitration.
(5) Foreign Arbitration: When arbitration
proceedings are conducted in a place outside India and
the Award is required to be enforced in India, it is termed
as Foreign Arbitration.
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21. Arbitration in india
Indian council of arbitration (1965)
Abide Arbitration and Conciliation Act, 1996
Comprehensive legal framework
95% arbitration is of type ad-hoc
India No. 2 in arbitration cases reaching Singapore
centre
Mumbai to have India's first International Arbitration
Centre soon
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