A PROJECT

ON
ARBITRATION AND JUDICIAL SETTLEMENT
SUBJECT: PUBLIC INTERNATIONAL LAW

SESSION: 2023-24

SUBMITTED ON: 30 SEPTEMBER 2023

SUBMITTEDBY: SUBMITTED TO:

Mr. Rahul Bansiwal Dr. Anita Jain

Roll No. 53 [Faculty Of Public
Class - VII Semester International Law]
Section - A

UNIVERSITY FIVE YEAR LAW COLLEGE

UNIVERSITY OF RAJASTHAN

JAIPUR
 ARBITRATION AND JUDICIAL SETTLEMENT

DECLARATION

I,Rahul Bansiwal, hereby declare that thr project titled “Arbitration and Judicial
Settlement” is based on the original research carried out by me under the guidance and
supervision of Dr. Anita Jain. The interpretations put forth are based on my reading and
understanding of the original text. The book, article and website etc. which have been relied
upon by me have been duly acknowledged at the respective place in the text.

For the present project which I am submitting to the university, no degree or diploma has been
conferred on me before, either in this or in any university.

DATE: SIGNATURE
30 September 2023 [Rahul Bansiwal]

Roll No. 53

Semester VII-A

Page 2 PUBLIC INTERNATIONAL LAW

 ARBITRATION AND JUDICIAL SETTLEMENT

CERTIFICATE

Dr. Anita Jain Date: 30 September 2023

Faculty of Public International Law

University Five Year Law College,

University of Rajasthan, Jaipur

This is to certify that Mr. Rahul Bansiwal student of VII Semester, SEC-A of University
Five Year Law College, University of Rajasthan has carried out the project entitled
“Arbitration and Judicial Settlement” under my supervision and guidance. It is an
investigation report of a minor project. The student has completed research work in my
stipulated time and according to the norms prescribed for the purpose.

SIGNATURE

[Dr. Anita Jain]

Page 3 PUBLIC INTERNATIONAL LAW

 ARBITRATION AND JUDICIAL SETTLEMENT

ACKNOWLEDGEMENT

The present study relates to a comprehensive analysis of “Arbitration and Judicial

Settlement” to give clear underrating of the subject in broader perspective.

I am heartily grateful to, Dr. Anita Jain, Faculty of Public International Law, University Five
Year Law College, University of Rajasthan, Jaipur, for having guided me through this long &
difficult journey that culminated in the present Project without whose co-operation, stimulating
inspiration, constant help, able guidance, innovative deliberations & continuous supervision
this work could not have seen the light of the day. Hence, I sincerely want to express my deep
sense of honor & gratitude towards him.

I shall be failing in my duty if I do not express my debt of gratitude to Dr. Akhil Kumar,
Director, University five-year law college, University of Rajasthan, Jaipur, for extending his
co-operation in the completion of this work.

I would also like to thank to all library staff & the remaining staff members of the Department
of Law, University of Rajasthan, Jaipur who have always extended an h& of co-operation
throughout the course of the research work.

SIGNATURE

[Rahul Bansiwal]

Page 4 PUBLIC INTERNATIONAL LAW

 ARBITRATION AND JUDICIAL SETTLEMENT

Table of Contents

Declaration ....................................................................................................................
Certificate ......................................................................................................................
Acknowledgement.......................................................................................................

Chapter I : Concept of Arbitration in International Law…….……..…….………..6

Chapter II : Role Of Judicial Settlement in International Law..………………..….8
Chapter III : Comparative Analysis….………….………………………...………10
Chapter IV: Conclusion……………...……………………………………..……..11
Bibliography………………………………………………………………….…...12

Page 5 PUBLIC INTERNATIONAL LAW

 ARBITRATION AND JUDICIAL SETTLEMENT

CHAPTER - I
CONCEPT OF ARBITRATION IN INTERNATIONAL LAW
Arbitration is the process of using the help, advice and recommendation of a third party called
arbitrator to settle disputes. The International Law Commission defines it as ‘a procedure for the
settlement of disputes between states by a binding award on the basis of law and as a result of a
voluntarily accepted undertaking’. Owing to its tendency to blend civil law procedure and
common law procedure, International arbitration is sometimes also referred to as a hybrid form
of international dispute resolution.

The International Court of Justice in the case of Qatar v. Bahrain, stated that the word arbitration
for the purpose of international law, usually refers to ‘the settlement of disputes between states
by judges of their own choice’.

An agreement was concluded between India and Pakistan to refer the Kutch dispute to an arbitral
tribunal. Consent of the parties is also obtained before a dispute comes into existence. There are
four main characteristics of arbitration:

 A tribunal is constructed to hear a particular case only and its composition is also majorly
determined by the parties to the dispute.

 An arbitral tribunal does not determine its own jurisdiction but has to decide the dispute
as submitted by the parties.

 It is required to make its award with reference to the rules adopted for that purpose or by
rules which are otherwise binding.

 The parties are known to have control over the procedure to be followed.

 Article 15 of the Hague Convention of 1899 provides:

“International arbitration has for its object the settlement of differences between States by
Judges of their own choice on the basis of a respect for law”. This definition emphasises two
elements –

1) Consent of parties to arbitration ; and

2) Settlement on the basis of respect for law.

Page 6 PUBLIC INTERNATIONAL LAW

 ARBITRATION AND JUDICIAL SETTLEMENT

International arbitration has become the principal method of resolving disputes between states,
individuals and corporations in almost every aspect of international trade, commerce and
investment. The established centres of arbitration report increasing activity, year on year; new
arbitration centres have been setup to catch this wave of business; states have modernised their
laws so as to be seen to be ‘arbitration friendly’; conferences and seminars proliferate and the
distinctive law and practice of international arbitration has become a subject of study.

The object of arbitration is to obtain the fair resolution of disputes by an impartial tribunal
without unnecessary delay or expense where the parties should be free to agree how their
disputes are resolved, subject only to such safeguards as are necessary in public interest.

 Permanent Court of Arbitration

The Permanent Court of Arbitration (PCA) handles alternative dispute resolution (ADR) and
fact-finding/inquiry-based services for a wide array of international actors. Headquartered in the
Peace Palace in The Hague, Netherlands, the PCA provides administrative support in
international arbitration and other ADR proceedings, and even financial assistance for those
seeking ADR services around the world.

Page 7 PUBLIC INTERNATIONAL LAW

 ARBITRATION AND JUDICIAL SETTLEMENT

CHAPTER - II
ROLE OF JUDICIAL SETTLEMENT IN INTERNATIONAL LAW

Judicial settlement is the process of solving a dispute by the ‘international tribunal’ in

accordance with the rules set by International Law. Here it is important to understand the
expression ‘international tribunal.’ A tribunal acquires an international status because of its
jurisdiction. At the present day, the International Court of Justice, although not the only tribunal
but it is indeed the most important tribunal around the globe. There are ad hoc tribunals and
mixed commissions also. It is important to note that the International Tribunal is different from
the Municipal Tribunal.

As the name suggests, International Tribunal applies International Law and similarly Municipal
Laws are applied by Municipal Tribunal. To what extent can International Laws be applied by
the Municipal tribunal depends entirely on the relationship between the fields of law. Arbitration
and settlement of disputes by International Law have become two very important modes of
settlement of disputes today.

 International Court of Justice

The headquarters of the International Court of Justice is situated in Hague, Netherlands. It was
founded on 26th June, 1945 San Francisco. Originally the purpose of Article 34, para 1 was to
exclude individuals from bringing claims against States before the Permanent Court of Justice.
However a proposal was made in 1929 to the Committee of jurists that Article 34 must be
amended. However, presently although they still do not have access to the Court in contentious
cases they can seek advisory opinion.

The Permanent Court of International Justice is known to be the predecessor of the ICJ. Which
means before the creation of the International Court of Justice, disputes of the parties were to be
settled by the Permanent Court of International Justice. Its jurisdiction depends entirely on the
willingness of the parties involved. This along with arbitration is commonly known as the
judicial way of settling a dispute. Consent of the parties is a prerequisite for the cases to be heard
in the ICJ. While the judges of the court are appointed by the General Assembly and the Security

Page 8 PUBLIC INTERNATIONAL LAW

 ARBITRATION AND JUDICIAL SETTLEMENT

Council of the United Nations, the arbitrators are appointed by the parties themselves. There are
three ways by which the International Court of Justice resolves the cases are that brought before
it:
1) Parties can settle their dispute by themselves and cases can be withdrawn by the state or
the court can give the verdict.
2) International Court of Justice uses International Laws are it’s guiding light.

3) Writing by experts is also referred to.

Page 9 PUBLIC INTERNATIONAL LAW

 ARBITRATION AND JUDICIAL SETTLEMENT

CHAPTER - III
COMPARATIVE ANALYSIS
Arbitration and Judicial process are the most accepted means for maritime boundary disputes
settlement till now. Most of the disputes have been settled through these processes.Adjudication
via judicial settlement and arbitration are two mechanisms of dispute settlement available in
international law. The distinction between the two may seem rudimentary. Primarily, arbitration
is the hearing and determination of a disputed case by a third party and not the court . Arbitration
and judicial settlement differ on some general grounds.

 DIFFERENCE BETWEEN ARBITRATION & JUDICIAL SETTLEMENT

 Members of the Arbitral tribunal are appointed by the parties but judges have already
been appointed in Courts or Tribunals.

 The parties have to spend extra expenditure for arbitrators but in judicial process United
Nations bears all the expenditures.

 The decision of Arbitration may be advisory or binding but the decisions of the Court are
always binding

 The proceeding of Arbitration is run by the agreement between the parties. On the other
hand, proceeding of the court is controlled by the well established rules of the court or
tribunal.

 Arbitration is a confidential and more flexible process but judicial settlement is a public
and rigid process.

 In case of judicial settlement, the parties to the dispute are not in control of the process or
decision of court or tribunal like arbitration so that the outcome is in uncertainty.

Page 10 PUBLIC INTERNATIONAL LAW

 ARBITRATION AND JUDICIAL SETTLEMENT

CHAPTER - IV
CONCLUSION
In a nutshell, it is important to understand that in the long march of man from cave to computer
and his journey from age of stones to the modern world, the central idea has always been that of
order and security. We have to keep in our mind that international peace would not be
established until the nations as separate entities and their citizens are not willing to dispose of the
conflict. As the propagation of a conflict between nations are numerous times more enormous
than the conflict between people and the result of its expansion is also numerous moments bigger
than the expansion of a conflict between people. Therefore, individual nations ought to resolve
all the conflicts by utilizing amicable and peaceful means. This method would be assisted to
maintain international peace and security when various complexities, both factual and legal,
expand the number of conflicts too.

Efforts and attempts have always been made so that any form of chaos is minimized and peace is
promoted. Law has proved itself to be that element which binds the members of the society. It is
fair to say that international law has always considered its fundamental purpose to be the
maintenance of peace. Peaceful as well as compulsive means are used under International Law
for the peaceful settlement of disputes.

Page 11 PUBLIC INTERNATIONAL LAW

 ARBITRATION AND JUDICIAL SETTLEMENT

BIBLIOGRAPHY
 BOOK REFERENCES
1. International Law & Human Rights, Dr. S. K. Kapoor ,Central Law Agency, 22nd Edition ,
2021

 WEB SOURCES
1. https://blog.ipleaders.in/settlement-of-disputes-in-international-law/#Judicial_Settlement

2. https://www.scirp.org/journal/paperinformation.aspx?paperid=83037

3. https://www.legalservicesindia.com/article/660/Arbitration-&-Public-International-
Law.html#

4. https://lawbhoomi.com/modes-of-peaceful-settlement-of-dispute-in-international-law/

Page 12 PUBLIC INTERNATIONAL LAW