Arbitration
Definition
It is a method of settling the disputes and differences between two or more
parties whereby they appoint one or more persons to adjudicate upon the said
disputes and differences that have arisen or that may hereafter arise and agree to
abide by the decision of the said one or more persons nominated for the purpose
of adjudication
or
an arbitration is the reference of a dispute or difference between not less than two
parties for determination after hearing both sides in a judicial manner, by a person
or persons other than court of competent jurisdiction.( Halsbury)
Thus the arbitration aims at the establishment of a domestic tribunal by the
parties to adjudicate upon the disputes and differences and the Arbitration Act,
1940, helps the parties to enforce that decision.Advantages
Experts with integrity appointed as arbitrators.
Decisions will be fair and refined.
Shorter time.
Savings in cost.
Time, date and place of meetings — convenient to a
Privacy in hearing.
The arbitrator can view the subject at any time.
Finality of award.Arbitrator
Joint arbitrator.
Sole arbitrator.Power and duties
wi it arbitration.
in one month - an umpi
in four months.
To award wi
To examine the person and witnesses.
To seek the opinion of courts on law points.
Enlargement of time.
To decide the cost of reference and award.
To correct the mistakes of clerical nature in the award.
To decide ~ measurements and valuation of work.
‘To decide — withholding of the final certificate by the architect.
To decide — determination of contract by the contractor.
‘The powers of the arbitrators come to an end after theQualifications of the arbitrator
An expert in the branch of arbitration.
Honest, disinterested and independent of the parties.
No bias mind.
Cannot be a witness and an arbitrator in the same dispute.rator or umpire by the court for
misconduct, fraud and by mutual consent of the parties.Cost of arbitrationUmpire in arbitrationAward
. With the four months ( 2 months for an umpire ) or
within the enlarged time limit.
. In writing — no specific form.Typical award
(1) WE DO HEREBY AWARD that the plaintiffs do pay to the Defendants a sum of Rs.
(Rupees).
(2) WE DO HEREBY FURTHER AWARD that the plaintiffs to pay to the Defendants
interest at the rate % (per cent) per annum o the amount of Rs./- (Rupees) from
the day of 19 till the date of payment.
(3) WE DO HEREBY FURTHER AWARD that the Plaintiffs do bear and pay to the
Defendants a sum of Rs. /- (Rupees) being the amount of the Defendants’ cost of
the Arbitration proceedings.
(4) WE DO HEREBY FURTHER AWARD that the Plaintiffs do bear and pay its own cost of
the Arbitration proceedings.
(5) WE DO HEREBY LASTLY AWARD that the Plaintiffs do bear and pay sum of Rs. /-
(Rupees) as the Arbitrators’ fees and costs.Filing of an Award
A solicitor is usually appointed by the arbitrators to do the work of filing of the award in the
Court on their behalf. The award is required to be filed in a sealed cover containing the
following:-
1) Award in original or a signed copy thereof.
2) Depositions and documents produced and proved before them.
3) Acopy of notice about the award.
4) Affidavit about the service of the notice of award and about the attestation of their
signatures,
5) Opinion pronounced by the court on a special case submitted by the arbitrator or the
umpire.
The above papers are required to be submitted with a forwarding letter addressed to the
registrar with a request for filing of the award in the court.
In addition to the above, the arbitrators or the umpire have to file another affidavit in the
court along with the award setting —
1) The date on which the award was signed.
2) All depositions and documents proved before them have been forwarded to the court along
with the award.
No documents which came in possession during the course of arbitration proceedings have
been retained with them.CASE STUDY -1
JOINT ARBITRATION
Work : Cathedral at Kohima, Nagaland
Before the authority of :
Ar. $.K.Chopra Arbitrator
Flat No.9, Shankar Market
Connaught Circus
New Delhi - 110 004
Prof. A. Mohammed Haris
DEAN
Faculty of Architecture and Planning
Anna University
Chennai - 600 025IN THE MATTER OF ARBITRATION BETWEEN
les Pvt. Ltd. Claimants
E - 304, East of Kailash
New Delhi - 110 065
The Bishop of Nagaland Respondents
Dimapur — 767 112
NagalandCASE STUDY - Il
SOLE ARBITRATION
Work : Projects of TANTEA at Nilgiris
Before the authority of :
Prof. A. Mohammed Haris Sole Arbitrator
DEAN
Faculty of Architecture and Planning
Anna University
Chennai — 600 025IN THE MATTER OF SOLE ARBITRATION BETWEEN
MUKESH & ASSOCIATES Claimants
(Architects & Engineers)
SALEM
Versus
TAMILNADU TEA PLANTATION Respondents
CORPORATION LIMITED