Case2

Case2 is solved by applying IRAC Method:

Issues:
1. Whether the dispute can be solved by ADR or not?
2. Whether the dispute can be resolved by appointing an arbitrator or not?
3. Whether both parties are willing to settle the dispute through arbitration or not?

Rules: 1. The Code of Civil Procedure (Amendment) Act, 2003- Section: 89(B)
2. The Arbitration Act, 2001 (Act No.1 of 2001) - Section3.

Analysis:
In the case, we can see that the dispute arose between two parties - The Basic Builders and The
Pipeline Engineers and Associates Ltd. Their cost proposal and claim were pending and they
wanted a quick remedy. They also sat for a meeting but it was not successful. By their actions, it
is clear that they don’t want to go through the complexity of the judicial system. ADR can be
beneficial to this matter. Because ADR doesn’t belong to judicial system and this system solves a
dispute outside the courtroom. Five challenges of judicial system that can be overcome by
applying ADR:

1. Consuming huge time: To solve a dispute judicial system takes a lot of time.
2. Expensive Process: As it takes a lot of time, it takes a big amount of money. Like Cost
for lawyers, other procedural cost.
3. Complicated Process: It’s a complicated process. For example: sometimes because of
lack of awareness, a case cannot be framed properly and makes the whole system
complicated.
4. Corruption Issues: There is the highest corruption in judiciary. For example: to get
hearing earlier, one has to pay some extra money.
5. Administrative Complexity: the complex system of administration has become a great
challenge for judiciary system.

In the case, it is notified to apply arbitration (one type of ADR). According to the
Arbitration Act 2001:
1. Third party involves to solve the dispute. But unlike Mediation. The third party is called
arbitrator.
2. In the matter of arbitration, Dispute parties have to sign a contract. The contract contains
the way forward provided by arbitrator and the dispute parties have to follow those.
 3. Arbitrator provides binding decision. If parties don’t follow the ways, it will be breach of
contract.
4. Arbitrator doesn’t act like court. Arbitrator listen both parties and the both parties get
opportunity to discuss for getting effective solution.
To apply arbitration both parties should agree for this. In the case, both parties agreed for
arbitration. The ADR agreement between two parties was provided by BIAC. It’s an informal
ADR which was done privately. The Basic Builders first suggested for ADR (arbitration). It
was also specified that parties would be allowed to bring many witness and the parties would
split the cost of arbitrator.

Conclusion: By analysing the case, we can conclude by saying that The Basic Builders and The
Pipeline Engineers and Associates Ltd. had a contract but dispute arose mainly for the cost
proposals. They also sat for a discussion but it didn’t work. Because their points of view towards
the meeting were different. So they couldn’t get any remedy. A third party can facilitate them.
As it is a contract issue and they want a quick remedy, arbitration is appropriate system for them.
By applying this they can avoid the complex judicial system. It is an informal process and the
hearing dates depends on disputes parties. If they come for arbitration for solving dispute, the
arbitrator will provide them several options which will facilitate. Both parties will get
opportunity to pick option. By considering both parties benefits it will be the best option if The
Basic Builder gives The Pipeline Engineers and Associates Ltd. some compensation. By doing
this, the relation between the two parties won’t be deteriorated and The Basic Builders can work
with them. The Basic Builders doesn’t have to seek for new company for contract. On the other
hand, The Pipeline Engineers and Associates Ltd. will not get full compensation as they had a
little fault in damaging materials. . If one party thinks that the arbitrator is biased, they can
change the arbitrator. The Basic Builders or The Pipeline Engineers and Associates Ltd. no party
can violate the way forward of the contract they signed at the beginning of arbitration process. If
one does, it will be breach of contract.
The Basic Builders and The Pipeline Engineers and Associates Ltd. have to sign a contract that
they will follow which way forward their arbitrator provide. But there will be options in way
forward