INTRODUCTION
The judiciary system is failing to give a speedy decisions to the parties. Approximately 2 crore cases were pending in India. Assume that without taking present cases and deals with past cases, it will take 7 years to clear the cases. So, to solve this issue, the arbitration is involved in this system to solve the cases.
And also delaying the case is also dangerous to the party. Judicial system taking a very long time to resolve the case. Especially in civil suit, sometimes it may take 15-20 years to solve the case. Due to this delay, physical, mental, and financial harassment of party will takes place. So, due to this consequences, arbitration is established to control, the delaying of the cases and it is solved the case, within 1 year.
ARBITRATION
Arbitration is a process, i.e. to resolve the dispute between two parties. Parties can select the arbitrator to resolve the dispute, that arbitrator [one who mediates to solve the dispute] must be neutral to the parties. Once the decision is taken by arbitrator, there is no appeals, it’s a binding decision. Arbitration process is taken outside of the court.
PROCESS
- Adversal
- Litigation
- Arbitration
- Non- adversal
- Conciliation
- Mediation
LITIGATION
Through legal proceedings , it can be solved.
ARBITATION
It is a process of private dispute resolution.
CONCILIATION
It is a process of mediating between two parties.
MEDIATION
It is a process, that parties together select the impartial and neutral person to resolve the dispute.
TYPES OF ARBITRATION
- Domestic arbitration
It is a form of ADR [Alternative Dispute Resolution]. Where the Arbitrator is from own country [or] home town and parties are also from same. where one or more persons are there to hear the case, that takes place in one Jurisdiction. The award was binded and enforceable in Court.
- Institutional arbitration
These are conducted in agreement with to institutional Arbitration rules an supervise with responsibility in various aspects i.e. Administrative, financial, record, reputation of institution, e.t.c. relating to constituting the Arbitral tribunal.
- International arbitration
In this process of arbitration, parties are from different countries that includes Arbitrator. There are multiple arbitrative associations that operate under Newyork convention or another convention.
- International commercial arbitration
In this, Arbitration process can be takes place in India [or] foreign [outside of the country] or subject matter [or] parties of the arbitration are belong to the outside of the country. International commercial arbitration has it’s own rules on exercise of the matter.
- Adhoc arbitration
In Adhoc arbitration, parties do not select to administrate the arbitration process. It provides the opportunity for the parties to conduct the arbitration as their wish, it has more freedom, but less support.
- Fast track arbitration
This process is full arbitration process, constrict into a short period for faster resolution to the dispute.
PROCEDURE OF ARBITRATION IN STAGES
Arbitration Agreement
While drafting of a contract, lawyer must be careful to make an point clear. In the future, if any disputes arises between the parties then they can resolve by using this arbitration clause. If there is no clause in agreement, then parties can make the arbitration agreement with their mutual consent to resolve the dispute. Number of arbitrators can be selected by the parties, but in odd number not in even number. When the parties did not select the arbitrators within a month then the arbitration tribunal will appoint a arbitrators.
ARBITRATION NOTICE
In this, dispute begins from the date. When the respondent received the legal notice. Until the completion of fixed period mentioned in the notice, parties have to give reply to the notice.
SELECTION OF ARBITRATOR
Parties can appoint an arbitrator with mutual consent, if not then, according to section 11 of Arbitration and Conciliation act 1996, parties move to court and plead to appoint an arbitrator for resolution of a dispute.
PRELIMINARAY HEARING
In this meeting, issues are discussed, information exchange takes place between parties. On next hearing, the arbitrator issue a written document to parties i.e. called as scheduled order.
SWITCHED [CHANGED] INFORMATION AND PREPARATION
Parties share all details regarding to the issue. If any problem arises, arbitrator handle the challenges over it.
HEARINGS
Parties provide proof and written [or] spoken statement before the arbitrator.
POST HEARING SUBMISSIONS
If it is needed, then the parties have to submit additional information regarding to the dispute to the arbitrator.
AWARD STEP
After completion of all hearings, arbitrator determines, no more evidence is needed. Hearing is closed and date is fixed to issue an award.
ARBITRAL AWARD
It is an final order given by an arbitrator. It can be in monetary relief to the party by another party [or] it can be in non- financial award i.e. like stopping such kind of business practices and employment [or] business incentives e.t.c. it can be anything i.e. from one party to another party through arbitration.
There are two types of awards they are;
- Interim award
It is an temporary award, i.e. given by tribunal during the proceedings of this process.
2. Final award
It is an order [or] judgement given by arbitrator after the process of arbitration. Arbitrator give reasons upon his decisions. After arbitrator announced his judgement [final award]. It shall be signed by parties and arbitrator [or] arbitrators. until the completion of 90 days, another party have any objections, they can challenge the party in whose favour the award is passed. And it is not in enforce till, the completion of period.
CHALLENGE IN COURT
Another party is challenging the award of the party in whose favour he award is given. Award favoured person has to wait until 90 days. Section 34 of arbitration and conciliation act 1996, states that the court can set aside the arbitral award under
- The another party has under incapacity [so, it cannot agree the award].
- This process is not valid, it is void under law.
- There is no acceptance of this party to select the arbitrator
If it is satisfies then the award is expunged. If it doesn’t satisfies the court, then the arbitrator’s decision is final and give the award in favour of one party [i.e. given by arbitrator].
REFERENCES
https://www.myadvo.in/blog/steps-of-arbitration-in-india/amp/
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