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Arbitrati

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What is Arbitration?
Definition of Arbitration

Arbitration is a legal
technique for resolution
of Dispute, outside the
courts wherein parties to
a dispute refer it to one
or more person (the
"arbitrators", "arbiters" or
"arbitral tribunal"), by
whose decision (the
"award") they agree to be
bound.
Terminologies

• A person chosen to judge and decide a disputed issue.


• Another word → A Referee
Arbiter

• Arbitration is a method of dispute resolution out of the court.


The parties to a conflict agree to be bound by a decision made
by an arbiter, an independent third party or a panel of arbiters.
Arbitration The arbitration may be voluntary as well as statutory

• A private, neutral person chosen to arbitrate a


disagreement, as opposed to a court of law.
Arbitrator
Terminologies….contd..
• Unless the context otherwise requires, includes a
counterclaimant, and related expressions shall be
Claimant construed accordingly

• Any difference
Dispute

• After considering the parties’ submissions, the arbitrator


issues a final and binding ‘award’
Award
Arbitrations have the following in common
• Parties involved must be willing to use the same process

• An independent third party(Arbitrator) considers both sides in a


dispute

• The decision is made by Arbitrator, not the people involved

• An Arbitrator is impartial. Decision is made on the basis of written


information & proofs available

• The process is final and legally binding i.e. , decision is legally


binding on both sides, so it is not possible to go to court if you are
unhappy with the decision.
Why arbitration is preferred against Court
Case?
• Less Time Consuming

• Less complicated

• Cost effective

• No hurdles of the strict rules of procedure


or law of evidence, yet legal binding

• It can be completed within 3-6 months,


when the same can take years or decades
in courts.

• Unbiased decisions as panel can be of 3


or 5 Arbitrators
Process Of Arbitration
Arbitration Process @ Wipro
Matters it can be Matters cannot be
referred referred
• Arbitration is used widely for • Matrimonial matters, like
domestic & international divorce or maintenance;
disputes
• Insolvency matters, like
• disputes between major declaring a person as an
corporations insolvent;

• employment rights disputes, • Criminal offences;


and consumer disputes.
• Dissolution or winding up of a
company.
Pre Arbitration Act 1996 After Arbitration Act 1996
1.Multiple Acts • Enforcement of a domestic
o The Arbitration Act 1940 award as also foreign award
o The Arbitration(Protocol & under the self same Act.
Convention) Act 1937 led to
delays rendering arbitrations
inefficient and unattractive.
o The Foreign Awards
(Recognition & Enforcement)
Act 1961
2.Panchayat
Advantages
When the dispute is highly technical,
arbitrators with an appropriate degree of
expertise can be appointed (as one cannot
"choose the judge" in litigation)

 Faster than litigation in court

Cheaper and more flexible for businesses

Proceedings and an arbitral award are


generally non-public, and can be made
confidential

Easier to enforce in other nations than court


judgments (New York Convention 1958)

Very limited avenues for appeal of an


arbitral award
Disadvantages
•Some the parties are required to pay for
the arbitrators additional legal cost

•Very limited avenues for appeal, which


means that an erroneous decision cannot
be easily overturned

• Multiple arbitrators on the panel 


juggling their schedules for passing an
awards delays in hearings

•In some legal systems, arbitral awards


have fewer enforcement remedies than
judgments; although in USA, arbitration
awards are enforced in the same manner
as court judgments and have the same
effect
Cont……
• Recovery may be more limited in arbitration

• Arbitrators are generally unable to enforce interlocutory measures


against a party, making it easier for a party to take steps to avoid
enforcement of an award, such as the relocation of assets offshore
Education of an Arbitrator
An arbitrator should be any one judicial entity
having professional competence, the citizenship
notwithstanding.

An arbitrator must have capacity as agreed by the


parties.

An arbitrator must be impartial and independent


with regard to the parties and the matter in
dispute.

An arbitrator may not be a person sentenced to a


non suspended prison sentence, while the
consequences of the sentence are having effect.
What is the role of IIAM(Indian
Inst of Arbitration)?

Provides an atmosphere &


infrastructure assistance to the parties
to select the arbitrator

Conduct the arbitration in a


professional, neutral & fair manner
How much does it Cost?

IIAM has a scheduled fee structure


enlisting the applicable arbitrator and
administrative fees.

The party bringing the case is


responsible for paying a nominal
filing fee.

Cheaper than court


How long does an arbitration
take?

Length of an arbitration depends on


factors involved as

types of claims being brought,

the number of parties involved,

the ability to work with the


schedules of the parties and their
advocates.
Can a party recover its fees if it wins in
arbitration?

The winning party can


request and be awarded
the fees and costs it
expended in the
arbitration.

 The Act provides for


such a relief.
Can Arbitration be done Online ?

 Some providers offer an


internet-based arbitration
service for money and consumer
claims.

 The Association of British Travel


Agents (ABTA) make their
arbitration service available
online, so that all documents
can be submitted by email.

 This facility is mainly availed in


USA, UK, Australia.
Cases filed v/s Settled
Industrial Distribution
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