ARBITRATION

• Introduction
• Arbitral & non arbitral disputes
• Duties of arbitrator
• Benefits & drawbacks
• Kinds of arbitration
• Arbitration in India
 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.

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
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 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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 Advantages and Disadvantages Arbitration

• ADVANATGES DISADVANTAGES
• Choice of decision maker
with expertise • Limited recourse
• Speed • Uneven playing field
• Lack of transparency
• Lower-cost • Cost: parties pay for arbitrator
• Flexible and agency
• Confidentiality • Limited rights of appeal, fewer
• Less formal than court means to challenge award
• Preservation of business • Lack of formal discovery
relationships
 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.
 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
 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.
 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 theirvery
important and fundamental rights.
Other Types of Arbitration
• Ad-hoc Arbitration

• Institutional Arbitration

• Statutory Arbitration

• Domestic or International Arbitration

• Foreign Arbitration
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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(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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 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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