Beruflich Dokumente
Kultur Dokumente
INTRODUCTION
• Arbitration is the mechanism to settle disputes between parties to a
contract, determined in a quasi-judicial manner
• The Arbitration and Conciliation Act 1996 provides legal frame work for
settlement of disputes by mutual settlement out side the court.
• Central Government may make rules for carrying out the provisions of this
act subjected to the approval of the Parliament.
• Arbitration is an arrangement agreed upon by the parties concerned to
refer the disputes to a third party for settlement.
• The arbitration tribunal can be a panel of arbitrators or a sole individual.
• Any written document or a clause in a contract for referring the dispute to
arbitration shall be an arbitration agreement.
• The parties to the contract will decide the constitution of arbitration
tribunal and mode of appointment as laid down in the contract agreement.
OBJECTIVES OF ARBITRATION
•To cover both international & domestic arbitration & conciliation
•To make provisions for an arbitral procedure which is fair, efficient and
capable of meeting the needs of the arbitration
•To permit an arbitral tribunal to use mediation & conciliation to encourage
settlement of disputes
•To provide that a settlement reached by the parties as a result of
conciliation proceedings will have the same status and affect as an arbitral
award
•To provide that the arbitral tribunal gives reasons for its arbitral award
•To provide that every arbitral award is enforced in the same manner as if it
were a decree of the court
PRINCIPAL CHARACTERISTICS
•Arbitration is consensual
•The parties are free to choose the arbitrator(s)
•Arbitration is neutral
•Arbitration is a confidential procedure
•The decision of the arbitral tribunal is final and easy to enforce
COST
• Fee for conciliation, cost of administration, fee payable to expert
opinion etc. are to be borne by the parties equally unless parties agree
to pay in other ratio.
• Conciliator may also be asked to deposit the probable cost in advance in
equal share by the parties concerned