    The genesis of the arbitration law. Other ADRs and international perspective. . Functions of arbitration tribunal and enforceability of award. Types of arbitration and disputes.

Ronald Bernstein defines Arbitration as under: “where two or more persons agree that a dispute between them shall be decided in a legally binding way by one or more impartial persons in a judicial manner . Such arbitrations are called statutory arbitrations. the agreement is called an arbitration agreement or a submission to arbitration.  . that is.”  Sometimes the submission instead of being voluntary is imposed by statute . upon evidence put before him or them .

e. . for determination of the same. Arbitration is the reference of dispute or difference between two or parties to a person chosen by the parties or appointed under statutory authority. In a broad sense it is substitution of the ordinary judicial machinery by a mutually chosen tribunal i. an arbitrator.

 Arbitration" but its literally recognized meaning is that "settlement" of differences or disputes by mutual understanding or agreement by the parties where the rights and liabilities of the parties are determined in judicial point of view which are binding to them. such settlement may be before the arbitral tribunal but not by the court of law. .

judge. often at the arbitrator's office. or business person. In our country. one of the parties to the contract must file a request for Arbitration and pay the required fee to an Arbitration Institution referred to in the agreement that provides Arbitration services. an award passed by an arbitration tribunal has the force of a decree. the arbitrator reaches a decision and usually later sends the parties a written reasoned opinion (an award). After the evidence has been presented. there will be a hearing. In case of any dispute.   . Thus. The first stage in arbitration is the formulation of the arbitration agreement whereby the parties agree to submit their present or future differences to arbitration. The arbitrator may be an attorney. After the parties have defined their dispute. Often the Arbitration Institution will suggest an arbitrator or arbitrators to which the parties must agree. where the parties present evidence and witnesses in a fairly informal manner without the formal rules of evidence used in court litigation. it can be executed in the same manner in which a court decree can be executed.

is that it is the arbitrator who decides the case and not the ordinary civil courts established by the state. Arbitration. arbitration is well embedded in commercial practices and social life.    As a concept and as a process. When two persons agree to have a dispute settled through arbitration. The arbitrator need only proceed in a manner conforming to justice. what they really mean is that the actual resolution of the dispute will rest with a third person called the arbitrator. The essence of arbitration. . is more informal. therefore. equity and good conscience. on the other hand. The Courts of law are put into a straight jacket as it has to follow fixed procedure and fixed rules of evidence.

many disputes arising out of construction contract etc. . the entire procedure can be conducted without the intervention of expert lawyers. where the dispute concerns a technical matter. Further.   One of the major advantages of arbitration is that an expert arbitral tribunal can be selected considering the field of dispute. Thus many disputes as to quality in commodity trades. with major gains in speed and economy. properly conducted arbitrations give acceptable results with speed and thoroughness at relatively lesser costs. more informal and cheaper than conventional judicial procedure and provides a forum more convenient to the parties who can choose the time and place for conducting arbitration and the procedure. . can be settled through arbitration in a speedy manner at lesser cost and more quickly than through courts. The popularity of arbitration as a mode of settling disputes is due to the fact that "the arbitration is regarded as speedier. so much so. As there is no right of appeal in Courts. the decision gains finality saving further time and costs. To summarise. the parties can select an arbitrator who possesses appropriate special qualifications or skills in the trade".

  (1) Ad-hoc Arbitration: When a dispute or difference arises between the parties in course of commercial transaction and the same could not be settled friendly by negotiation in form of conciliation or mediation. such differences or disputes will be settled by arbitration as per clause provide in the agreement. . (2) Institutional Arbitration: This kind of arbitration there is prior agreement between the parties that in case of future differences or disputes arising between the parties during their commercial transactions. This arbitration is agreed to get justice for the balance of the un-settled part of the dispute only. in such case ad-hoc arbitration may be sought by the conflicting parties.

(4) Domestic or International Arbitration: Arbitration which occurs in India and have all the parties within India is termed as Domestic Arbitration.. (ii) It is compulsory Arbitration. (5) Foreign Arbitration: When arbitration proceedings are conducted in a place outside India and the Award is required to be enforced in India. (iii) It is binding on the Parties as the law of land.   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. it is termed as Foreign 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. It is apparent that statutory arbitration differs from the above 2 types of arbitration because (i) The consent of parties is not necessary.

(b)An exchange of letters . or (c)An exchange of statements of claim and defence in which the existence of the agreement is alleged by one party and not denied by the other. „arbitration agreement‟ means an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship whether contractual or not. (3) An arbitration agreement shall be in writing. (2) An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement.Section 7: (1) In this part. . (5)The reference in a contract to a document containing an arbitration clause constitutes an arbitration agreement if the contract is in writing and the reference is such as to make that arbitration clause part of the contract. telegrams or other means of telecommunication which provide a record of the agreement.(a)A document signed by the parties. (4) An arbitration agreement is in writing if it is contained in. telex.

 Arbitration Agreement: Section 7 of Arbitration & Conciliation Act. telegrams or other means of telecommunication which provide a record of the agreement or an exchange of statements of claim and defence in which the existence of the agreement is alleged by one party and not denied by the other. whether contractual or not. telex. Agreement shall be considered in writing if it is contained in a document signed by the parties or an exchange of letters. 1996 says that it means an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship. It may be in the form of a clause in a contract or in the form of a separate agreement and should be in writing.  All arbitral decisions are considered to be Final and Binding .

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