Arbitration & its types
- 1. Arbitration Submitted to:- Er. Aman Ahlawat Asst. Professor Civil Engg. DCRUST Murthal Submitted by:- Rahul Goyat 12001009039 4th year Civil Engg. 1
- 2. Outline of Topics: Introduction Arbitral & non arbitral disputes Duties of arbitrator Benefits & drawbacks Kinds of arbitration Arbitration in india
- 3. 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.
- 4. 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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- 6. Arbitral Disputes Property Insurance Contract (including employment contracts) Business / partnership disputes Family disputes (except divorce matters) Construction Commercial recoveries
- 7. 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 .
- 8. 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 8
- 9. Contd. 9
- 10. Advantages of Arbitration Choice of decision maker with expertise Speed Lower-cost Flexible Confidentiality Less formal than court Preservation of business relationships
- 11. 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
- 12. Contd. 12
- 13. Main Types of Arbitration 1) VOLUNTARY ARBITRATION 2) COMPULSORY ARBITRATION 13
- 14. 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.
- 15. 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
- 16. 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.
- 17. 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.
- 18. Other Types of Arbitration Ad-hoc Arbitration Institutional Arbitration Statutory Arbitration Domestic or International Arbitration Foreign Arbitration
- 19. (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. 19
- 20. (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. 20
- 21. 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 21
- 22. THANK YOU 22