VOLUNTARY

ARBITRATIO
N
 INTRODUCTION TO VOLUNTARY
ARBITRATION
Benefits of Arbitration as mode of Alternative Dispute Resolution
->Collaborative Process -> Quasi-Adjudicatory Machinery
-> More Flexible -> Reduce Cost of Litigation
-> Speedy Justice -> Procedural Flexibility

Arbitration as a method of dispute resolution mechanism is much more inclined towards

benefits which are not available in other forums.

Voluntary Arbitration? - voluntary in nature i.e both the parties, Employer and Employee
mutually agree to go for this system of dispute resolution.

it promotes collective bargaining between the employer and the employee which the core
principle of Labour welfare legislations. It also helps creating mutual trust between both the
parties .

When Industrial Disputes Act, 1947 was enacted, initially there was no such provision of
Voluntary Arbitration under the ID Act and it was later inserted by an amendment in the year
 SECTION 10A OF ID ACT 1947 / SECTION 42
OF IR CODE 2020
Employer and
Industrial Workmen Agree
Dispute Existing to Refer the
or Apprehended Dispute to
Reference at Any Arbitration
Reference to
Time Before the Arbitrators
Dispute has been including Presiding
referred under Officiers of LC/ T/
(Ommitted10
Section1 under IR T/
to LC/ (Omitted under IR
Code) Code) NT
NT
CONDITIONS UNDER SECTION 10A ID ACT

SUBJECT
PARTIES
MATTER
Employer and
Industrial
Workmen
Disputes
TIME PERIOD
Any Time before the Dispute
has been referred to LC/ T/
(Ommitted under IR Code)
NT
 ESSENTIALS OF VALID ARBITRATION
AGREEMENT
Written Consent of
Agreemen
t 01 the

Prescribed 04 Arbitrator
Copy of
Format 02 Agreement
and
Manner
05 Sent to Govt.
and CO
Signature of Publication of
both the 03 06 Agreement by the
Parties Government
(Ommitted under IR Code)
 REQUIREMENTS OF ARBITRAL AWARD
Submit it to
Signed by the
Arbitrator Governmen
(s) t
Publication
Enforceable after
within 30 days
expiry of 30 days
of Receipt of
from date of
Award
Publication
submitted
 ADDITIONAL PROVISIONS UNDER SECTION
10A
Section 10A Section
(3A) 10A (4A)
Emplyer & Order staying
Workmen not Ongoing Strike
parties to the and Lock-Out in
Agreement but are Connection to
Concerned with such Industrial
the Dispute Dispute
referred Section 10A (5)
- Exclusion
Clause
 IS VOLUNTARY ARBITRATION STATUTORY
OR NOT ?
Can Award Passed under Section 10A be
? Challenged under Article 226 or Judicially
Reviewed under Article 136 of Indian
Constitution ?
H A.T.K.M H Rohtas Industries
C Employees’ C Staff Union vs.
Association vs. Mus
State of Bihar,
Aliar Industries,
1962 (Patna HC)
1961 (Kerala HC) Engineering
S
C Mazdoor Sabha
vs. Hind Cycles
Ltd., 1962