Q.1.

SYNOPSIS 3marks

1. INTRODUCTION
2. METHODS OF ADR
3. MERITS OF ADR
4. CONCLUSION
1. INTRODUCTION

Alternative dispute resolution is a modern concept which has been developed to

settle dispute amicably and speedily specifically relating to commercial
transaction/ contract. Introduction of ADR in modern judicial system is the need
for the hour to deal efficiently, economically and to further expeditious disposal
of cases.

Notably, due to various reasons the regular litigation has been awful on
accounts of lethargic, inadequately equipped judicial system. However the
reasons that why ADR is needed are as follows-

 Speedy disposal of dispute

 Economical settlement of dispute
 A time saving management
 Legal recognition
 Amicable settlemt of dispute

2. Methods of ADR

ADR has several methods. However, the principle of natural justice is to be

followed while adopting any method of ADR.

a) Arbitration
b) Negotiation
c) Mediation
d) Conciliation
e) Mini trial
3. MERITS OF ADR

a) ADR process can be initiated at any time, whenever disputing party takes
recourse to ADR.
b) It can provide more expeditious and less expensive settlement of dispute.
c) It promotes conducive and amicable mechanism
 d) ADR programmes are not rigid
e) No lawyers assistance is mandatory, it does not mean that role of lawyer
is diminished.
f) ADR concept reduces the work load of the regular courts of law.
g) ADR helps in confining dispute as a private matter.
h) ADR can be used to reduce the gravity of contentious issues between the
parties.

4. CONCLUSION

It has been witnessed that scope of alternative dispute resolution have been
considerably increased in the business field. Several developed and
developing countries have adopted it for resolving the international
commercial dispute. It should be noted that ADR is not an alternative to the
formal judicial system but only a supplement to it, its main objective is to
render amicable and speedy disposal of dispute.
Q.3. SYNOPSIS 3marks
1. INTRODUCTION
2. DEFINITION OF ARBITRATION
3. KINDS OF ARBITRATION
4. CONCLUSION

1. INTRODUCTION

The Indian law of arbitration is contained in the Arbitration

and Conciliation Act 1996 (Act). The Act is based on the
1985 UNCITRAL Model Law on International Commercial
Arbitration and the UNCITRAL Arbitration Rules 1976. The
Statement of Objects and Reasons of the Act recognises that
India’s economic reforms will become effective only if the
nation’s dispute resolution provisions are in tune with
international regime.
2. DEFINITION

SECTION 2(1)(a) of Arbitration and Conciliation Act, 1996 defines

“Arbitration” as meaning any arbitration matter or not administered
by a permanent arbitral institution. Thus, this definition recognised
that arbitration could be under a body like Indian Chambers of
Commerce or the International Chamber of Commerce. Arbitration
under the International chamber of commerce would be held
imminent cases, out of India.

3. KINDS OF ARBITRATION

There are seven kinds of arbitration

1. AD-HOC ARBITRATION- when a dispute or difference

arose between the parties in course of commercial transaction
and the same could not be settled friendly by negotiation in
form of conciliation or mediation, in such case ad-hoc
arbitration may be sought by the conflicting parties.
2. INSTITUTIONAL ARBITRATION- This kind of arbitration
is when there is a prior agreement between the parties in case of
 future differences or disputes arising between the parties during
commercial transactions, such differences or disputes will be
settleed by arbitration and it will be referred to the named
institution of which one or more of them are members.
3. CONTRACTUAL ARBITRATION- due to growth of
commercial activities rather commercial transactions in modern
time there are frequent occasions for differenced and
differences and disputes between the parties which is required
to be settled amicably. Thus, to seek early settlement of
differences and disputes without taking recourse to the court of
law, the parties involved in commercial transaction choose to
incorporate an arbitration clause as a part of the agreement to
refer their future or existing differences or disputes to a named
arbitrator/arbitrators to be appointed by a designated authority.
This is known as contractual arbitration.
4. STATUTORY ARBITRATION- it is mandatory arbitration
which is imposed on the parties by operation of law. In such a
case the parties have no optio as such bu to abide by the law if
the lad. It I apparent that statutory arbitration diffefes from the
abive three kinds of arbitration because-
 consent of the parties is not necessary,
 it is a compulsory arbitration,
 It is binding on the parties as the law of the land.
5. DOMESTIC ARBITRATION- the term DOMESTIC
ARBITRATION denotes arbitration which occurs in India.
This is when the subject-matter rather scope of the agreement,
the merits of the dispute and the procedure for the arbitration
are all governed by the Indian law or when the cause of action
for the dispute has arisen wholly in India or where the parties of
the commercial transaction are otherwise subject to Indian
jurisdiction.
6. INTERNATIONAL ARBITRATION- a foreign ingredient is
found in international arbitration when atleast one of the parties
involved is domiciled or residents outside India, subject-matter
of the differences or dispute is related to a place outside India,
such arbitration is treated as a international arbitration.
However, the law applicable to such arbitration proceedings
 may be the foreign law or may be the Indian law subject to
terms of the contract between the parties and the rules of
conflict of laws.
7. FOREIGN ARBITRATION- when the arbitration proceeding
is conducted in a place outside India, it is called foreign
arbitration. In such arbitration a foreign award is sought to be
enforced.
4. CONCLUSION
Arbitration is a method of dispute settlement using private entities
known as "arbitral tribunals".
Arbitral tribunals usually consist of either one or three arbitrators.
The primary role of an arbitral tribunal is to apply the law and
make a dispute decision by administering a so-called "arbitral
award".
Q.1. SYNOPSIS 7marks
1. Introduction
2. Need of ADR
3. Conclusion

1 INTRODUCTION
Alternative Dispute Resolution is a mechanism which acts as a
substitute for litigation . It arose from the idea of the overfull
hands of the courts to deliver justice to all. ADR provides for a
winning at both ends situation . Parties with issues that can be
cleared out, without suffering through the trials of court , are at an
advantage by the mechanism of ADR. It is an attempt to bring
about resolution of disputes between parties, minimize costs and
reduce the burden of the courts.
2. NEED OF ADR
The system of dispensing justice in India has come under great
stress for several reasons mainly because of the huge pendency of
cases in courts. In India, the number of cases filed in the courts has
shown a tremendous increase in recent years resulting in pendency
and delays underlining the need for alternative dispute resolution
methods.
(a) Weight of Pendency
The need for finding alternatives arises due to the working of the
present system of administration of justice, which is crumbling
under the weight of the pending cases. It is estimated that the
number of cases pending all over the country, in all categories of
courts, is a staggering 2. 5 crores. Out of these, 36 lakhs cases are
pending in high courts alone, virtually clogging the justice system.
(b) State Fighting the Citizen
Interestingly, the government is the biggest litigant in the country.
According to a rough estimate, around 70 per cent of all cases are
either agitated by the State, or appealed by it. The State fights
cases against citizens at the cost of citizens. Moreover, the officers
neither allow the cases to get resolved, nor withdraw the same, as
they have vested interest in pendency. Very often the state refuses
to refrain from filing an appeal from the judgments even after they
are confirmed by second appellate Court in favour of the citizen.
(c) Adjournments
Unnecessary adjournments also extend the life of a litigation. The
process of adjournment, on frivolous grounds, is one of the major
reasons for increase in delay. While there is a very good
understanding between the courts and advocates, the same does
not exist between the clients and the courts-1n the process, the
interests of litigants suffers, and judiciary fails to render justice to
the aggrieved.
(d) Concentration of Work
Another serious Problem is the concentration of work with a few
senior advocates who may wield influence over the outcome of
adjudication. The Ministry of Law and Justice together with
Supreme Court should curb this practice and reduce the pendency
of litigation to help restore the confidence of people in the
judiciary.
3. CONCLUSION
ADR is that it is more flexible and avoids seeking recourse to the
courts. In conciliation/mediation, parties are free to withdraw at
any stage of time. It has been seen that resolution of disputes is
quicker and cheaper through ADR. The parties involved in ADR
do not develop strained relations; rather they maintain the
continued relationship between themselves.
 Q.4 SYNOPSIS 7marks
1. INTRODUCTION
2. MEANING OF ARBITRATOR
3. APPOINTMENT OF ARBITRATOR
4. CONCLUSION

1. INTRODUCTION

Alternative Dispute Resolution is a mechanism which acts as a substitute for

litigation. Arbitration is a procedure in which a dispute is submitted, by
agreement of the parties, to one or more arbitrators who make a binding
decision on the dispute. In choosing arbitration, the parties opt for a private
dispute resolution procedure instead of going to court.

2. MEANING OF ARBITRATOR

An arbitrator is a nominated independent third party who should be

experienced in handling the arbitration process. Their role is similar to that of a
judge, in that they will listen to both sides and come to a decision. However
they will also encourage collaborative communication, as opposed to an
adversarial approach. Although no specific qualifications are necessary to act as
an arbitrator, some legal experience is useful, as is industry knowledge if the
dispute involves technical matters.

Arbitrator means a person or persons to whom a particular matter or issue in

dispute is referred with the view to settle on the basis of submission made by
the conflicting parties. An arbitrator is neither more nor less than a private judge
of a private court (called an arbitral tribunal) who gives a private judgment
( called an award) . he is a judge in that a dispute is submitted to him, he is not a
mere investigator but a person before whom material is placed by the parties,
being either or both of evidence and submissions, he gives a decision in
accordance with his duty to hold the scales fairly between the disputants in
accordance with some recognized system of law and the rules of natural justice.
 3. APPOINTMENT OF ARBITRATOR

SECTION-10 NUMBER OF ARBITRATORS.—

(1) The parties are free to determine the number of arbitrators,

provided that such number shall not be an even number.

(2) Failing the determination referred to in sub-section (1), the arbitral tribunal
shall consist of a sole arbitrator

SECTION- 11 APPOINTMENT OF ARBITRATORS. —

1) A person of any nationality may be an arbitrator, unless otherwise agreed

by the parties.

2)  Subject to sub-section (6), the parties are free to agree on a procedure

for appointing the arbitrator or arbitrators.

3) Failing any agreement referred to in sub-section (2), in an arbitration

with three arbitrators, each party shall appoint one arbitrator, and the two
appointed arbitrators shall appoint the third arbitrator who shall act as the
presiding arbitrator.

4)  If the appointment procedure in sub-section (3) applies and—

a) a party fails to appoint an arbitrator within thirty days from the
receipt of a request to do so from the other party; or
b) the two appointed arbitrators fail to agree on the third arbitrator
within thirty days from the date of their appointment, the
appointment shall be made, upon request of a party, by the Chief
Justice or any person or institution designated by him.

5) Failing any agreement referred to in sub-section (2), in an arbitration

with a sole arbitrator, if the parties fail to agree on the arbitrator within
thirty days from receipt of a request by one party from the other party to
so agree the appointment shall be made, upon request of a party, by the
Chief Justice or any person or institution designated by him. Arbitration
is a method of dispute settlement using private entities known as "arbitral
tribunals".

6) Arbitral tribunals usually consist of either one or three arbitrators. The

primary role of an arbitral tribunal is to apply the law and make a dispute
 decision by administering a so-called "arbitral award". Where, under an
appointment procedure agreed upon by the parties,—
a) party fails to act as required under that procedure; or
b) he parties, or the two appointed arbitrators, fail to reach an
agreement expected of them under that procedure; or
c) a person, including an institution, fails to perform any function
entrusted to him or it under that procedure, a party may request the Chief Justice
or any person or institution designated by him to take the necessary measure,
unless the agreement on the appointment procedure provides other means for
securing the appointment.
7) A decision on a matter entrusted by sub-section (4) or sub-section (5) or
sub-section (6) to the Chief Justice or the person or institution designated by
him is final.

8) The Chief Justice or the person or institution designated by him, in

appointing an arbitrator, shall have due regard to—
(a) any qualifications required of the arbitrator by the agreement of
the parties; and
(b) other considerations as are likely to secure the appointment of
an independent and impartial arbitrator.

9) In the case of appointment of sole or third arbitrator in an international

commercial arbitration, the Chief Justice of India or the person or institution
designated by him may appoint an arbitrator of a nationality other than the
nationalities of the parties where the parties belong to different nationalities.

10) The Chief Justice may make such scheme 1 as he may deem

appropriate for dealing with matters entrusted by sub-section (4) or sub-section
(5) or sub-section (6) to him.

11) Where more than one request has been made under sub-section (4)
or sub-section (5) or sub-section (6) to the Chief Justices of different High
Courts or their designates, the Chief Justice or his designate to whom the
request has been first made under the relevant sub-section shall alone be
competent to decide on the request.

12)  (a) Where the matters referred to in sub-sections (4), (5), (6), (7),
(8) and (10) arise in an international commercial arbitration, the reference to
‘‘Chief Justice'' in those sub-sections shall be construed as a reference to the
‘‘Chief Justice of India''.
(b) Where the matters referred to in sub-sections (4), (5), (6), (7),
(8) and (10) arise in any other arbitration, the reference to “Chief Justice” in
those sub-sections shall be construed as a reference to the Chief Justice of the
High Court within whose local limits the principal Civil Court referred to in
clause (e) of sub-section (1) of section 2 is situate and, where the High Court
itself is the Court referred to in that clause, to the Chief Justice of that High
Court.

4. CONCLUSION

Arbitration is an evolving practice. Its confidentiality has positive

implications
for its users, but perhaps it needs to be balanced against other conflicting
interests.
This balance can only be achieved on a case by case basis. As such,
confidentiality
and privacy shall continue to capture the attention of researchers: it is a complex
area where social and legal concepts and ideas overlap and integrate to satisfy
some
of the endless needs of the modern society.