Arbitration

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Outline of Topics:
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
Arbitral Disputes
 Property
 Insurance
 Contract (including employment contracts)
 Business / partnership disputes
 Family disputes (except divorce matters)
 Construction
 Commercial recoveries
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 .
 DUTIESOFARBITRATOR
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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Contd.

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Advantages of Arbitration
Choice of decision maker with expertise
Speed
Lower-cost
Flexible
Confidentiality
Less formal than court
Preservation of business relationships
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
Main Types of Arbitration

1)VOLUNTARY
ARBITRATION
2)COMPULSORY
ARBITRATION 13
 VOLUNTARYARBITRATION
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 their very 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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THANK YOU

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