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ArbitrationSubmitted to:-Er. Aman AhlawatAsst. ProfessorCivil Engg.DCRUST Murthal

Submitted by:-Rahul Goyat120010090394th yearCivil Engg.

Outline of Topics:Introduction Arbitral & non arbitral disputes

Duties of arbitratorBenefits & drawbacks Kinds of arbitrationArbitration 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.

BasicsThe 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 processThe award of the arbitrator is

binding and rests on equity and justice, i.e., there is no scope for compromise

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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 natureDisputes 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 mattersMatters relating to the guardianship of a

minor or lunatic.Any execution proceedings .

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DUTIES OF ARBITRATOR To administer oath to the parties and

witness appearingTo act judicially and impartiallyTo 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.

Advantages of ArbitrationChoice of decision maker with expertiseSpeedLower-costFlexibleConfidentialityLess formal than courtPreservation of business relationships

Disadvantages of ArbitrationLimited recourseUneven playing fieldLack of transparencyCost: parties pay for arbitrator and

agencyLimited rights of appeal, fewer means to

challenge awardLack of formal discovery

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Contd.

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Main Types of Arbitration

1)VOLUNTARY ARBITRATION2) COMPULSORY

ARBITRATION

VOLUNTARY ARBITRATIONVoluntary 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

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(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 indiaIndian council of arbitration (1965)Abide Arbitration and Conciliation Act, 1996Comprehensive legal framework95% arbitration is of type ad-hocIndia No. 2 in arbitration cases reaching

Singapore centreMumbai to have India's first International

Arbitration Centre soon

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THANK YOU