ARBITRATION

By group-7:
Kalika Dhamani
Madhvi Sharma
Sapan Vardhani
Ranu Shrimali
Monica Mistry
Jimmy Chabbra 1
 PREAMBLE
An Act to consolidate and amend the law
relating to domestic arbitration,
international commercial arbitration and
enforcement of foreign arbitral awards as
also to define the law relating to
conciliation and for matters connected
therewith or incidental thereto.

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 ARBITRATION
[Sec.2(1)(a)]

Arbitration is one of the method of civil

disputes between two or more persons by
reference of the disputes to an independent
and impartial third person, called
Arbitrator, instead of litigating the matter
in the usual way through the Courts.
It saves time and expense.
It also avoids unnecessary technicalities
and at the same time ensures “substantial
justice within limits of law”.
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  “ARBITRATION IS A DOMESTIC
FORUM”
 .It is a forum other than a Court of law for
determination of disputes and differences,
after hearing both the sides ,in a judicial
manner”.

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OBJECTIVES OF THE ACT
The main objectives of the Act are as under:
1) To comprehensively cover international commercial arbitration
and conciliation as also domestic arbitration and conciliation.
2) To make provision for an arbitral procedure which is fair,efficient
and capable of meeting the needs of the specific arbitration.
3) To provide that the arbitral tribunal gives reason for its arbitral
award.
4) To ensure that the arbitral tribunal remains within the limits of
jurisdiction.
5) To minimise the supervisory role of courts in the arbitral process.
6) To permit an arbitral tribunal to use mediation, conciliation or
other procedure during the arbitral proceeding to encourage
settlement of disputes.

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7) To provide that every final arbitral award is enforced in
the same manner as if it were a decree of court.
8) To provide that a settlement agreement reached by the
parties as a result of conciliation proceeding will have
the same statue and effect as an arbitral award on
agreed terms on the substance of the dispute rendered
by an arbitral tribunal.
9) To provide that, for purposes of enforcement of foreign
awards, every arbitral award made in a country to
which one of the two international conventions relating
to foreign arbitral award to which India is a party
applies, will be treated as a foreign award.

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ARBITRATION AGREEMENT
Arbitration agreement (sec.7)
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 [sec.7(1)].A non-contractual legal
relationship, for example, may arise from a
tort.
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Essentials of arbitration agreement

 It must be in writing[sec.7(3)]
 It must have all the essential elements of a
valid contract
 It must be to refer a dispute, present or future,
between the parties to arbitration.
 It may be in form of an arbitration clause in a
contract or in form of a separate agreement.
[sec.7(2)].
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ADVANTAGES OF ARBITRATION
 Avoidance of publicity, for proceeding are held in
private
 Simplicity of procedure, as proceeding are held
more informally.
 Reduction of expenses in most cases.
 Saving of time, as proceeding are quicker than a
trial in a court.
 Social efficacy, the award of the arbitrator being
the decision by the consent of parties.
 Avoidance of delay and uncertainty involved in
appeals.
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 Appointment of person having the required
technical qualification as arbitrator, should the
matter be of technical nature.
 Impartiality in presenting facts and figures,
knowing that trade competitors are not present
to gain knowledge to the detriment of the
person giving the evidence.

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DISADVANTAGES OF ARBITRATION

 The arbitrator may be incompetent or biased

 Injustice may result from the informality of the
procedure.

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Who can refer?
The arbitration agreement is a contract
therefore the parties must be competent to
enter into a contract so that they can bound
by the award of arbitrator.
These are followings
 Minor
 Manager of joint Hindu family
 Agents
 Atomies and counsels
 Persons jointly interested

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 partner
 Trustee
 insolvent

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Composition of Arbitral Tribunal
 Number of Arbitrators[sec.10]
Parties are free determine it, but if they fail
then tribunal shall consist of a sole arbitrator.
 Appointment of arbitrator[sec.11]
 Ground for challenge[sec.12]
An arbitrator may be challenged only if-
Circumstance exit that give rise to justifiable
doubts as to his independence or impartiality
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 Challenge procedure[sec.13]
Here again parties are free to agree on a
procedure for challenging an arbitrator, if
not success then arbitral tribunal shall
continue the proceeding.
 Failure or impossibility to act[sec.14]
Termination of mandate means
authorization to act given to an arbitrator
 Substitution of arbitrator[sec.15]
A substitute arbitrator shall be appointed
according to the rules that were
applicable to appointment of the
arbitrator being replaced
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 CONDUCT OF ARBITRAL PROCEEDINGS

EQUAL TREATMENT OF PARTIES (Sec. 18)

The parties shall be treated with equality and each party shall be given a
full opportunity to present his case.

Determination Of Rules Of Procedures (Sec. 19)

The arbitral tribunal shall not be bound by the code of civil procedure,
1980 or the Indian Evidence Act 1972.This power of the arbitral tribunal
includes the power to determine the admissibility ,relevance , materiality
and weight of any evidence.

Place Of Arbitration (Sec. 20)

The parties are free to agree on the place of arbitration .The place of
arbitration shall be determined by the arbitral tribunal . It has also the
power , unless otherwise agreed by parties , to meet at any place it
considers appropriate for consultation among its members, for hearing
witnesses, experts or the parties or for inspection of documents , goods 16
or other property.
Commencement Of Arbitral Proceedings
Unless otherwise agreed by the parties , the arbitral proceedings in respect of a
particular dispute commence on the date on which a request for that dispute to be
referred to arbitration is received by the respondent.

Language(Sec. 22)
The parties are free to agree upon the language or languages to be used. Failing an
agreement , the arbitral tribunal shall determine the languages to be used in
proceedings.

Statement Of Defense(Sec.23)
The claimant shall state-
1.The facts supporting his claim
2.The points at issue
3.The relief or remedy sought
The respondent shall also state his defense in respect of the above particulars.

Hearings and Written Procedures(Sec. 24)

The arbitral tribunal decides whether to hold oral hearings for the presentation of
evidence or for oral arguments , whether the proceedings shall be conducted on the
basis of documents and other materials.
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Default Of A Party (Sec. 25)
Unless otherwise agreed by the parties , where , without showing sufficient
cause,-
1.The claimant fails to communicate his statement of claim
2.The respondent fails to communicate his statement of defense
3.A party fails to appear at an oral hearing or to produce documentary evidence

Experts Appointed By Arbitral Tribunal (Sec. 26)

Arbitral Tribunal may appoint one or more experts to report to it on specific
issues to be determined by the arbitral tribunal

Court Assistance In Taking Evidence (Sec. 27)

The arbitral tribunal , or a party with the approval of the arbitral tribunal may
apply to the court for assistance in taking evidence.

Rules Applicable To Substance Of Dispute (Sec. 28)

The arbitral tribunal shall decide the dispute submitted to arbitration in
accordance with the substantive law for the time being in force in India.
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Decision Making By Panel Of Arbitrators (Sec. 29)
Unless otherwise agreed by the parties , in arbitral proceedings with more than
one arbitrator , any decision of the arbitral tribunal shall be made by a majority
of all its members.

Settlement (Sec. 30)

With the agreement of the parties , use mediation, conciliation, or other
procedures at any time during the arbitral proceedings to encourage
settlement.

Termination Of Proceedings (Sec. 32)

The arbitral proceedings shall be terminated by the final arbitral award or by an
order of the arbitral tribunal where-
1.The parties agree on the termination of the proceedings
2.The arbitral tribunal finds that the continuation of the proceedings has for any
other reason become unnecessary or impossible
3.The claimant withdraws hi claims, unless the respondent objects to the order
and the tribunal recognizes a legitimate interest on his part in obtaining a final
settlement of the dispute
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AWARD

Award means an arbitral award. It’s a final

judgment of the arbitral tribunal on all
matters referred to it.

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ESSENTIALS OF A
VALID AWARD
 It must be made in writing.
 It must follow the agreement.
 It must be final & give a decision on all
matters referred.
 It must be certain.
 It must be dated & signed.
 It must be legal.

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FORM AND CONTENTS OF
ARBITRAL AWARD
 Must be made in writing & duly
signed(Sec.31(1)).
 The signatures of all the members of
tribunal shall be sufficient(Sec.31(2)).
 Reasons for award(Sec.31(3).
 Date & place of arbitration(Sec.31(4)).
 Delivery of signed copy(Sec.31(5)).

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 Make an interim award(Sec.31(6)).

interest(Sec.31(7)).

 The Costs of an arbitration shall be fixed

by the arbitral tribunal(Sec.31(8)).

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FINALITY OF ARBITRAL AWARDS
(Sec.35)
 An arbitral award shall be final & binding
on the parties and persons claiming under
them respectively.
 CORRECTION
 INTERPRETATION
 SETTING ASIDE OF AN AWARD(Sec.34)

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CORRECTION AND INTERPRETATION
OF AWARD;
Within 30 days from the receipt of arbitral
award-

ADDITIONAL AWARD (Sec.33)

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SETTING ASIDE OF AN ARBITRAL
AWARD (Sec.34)
Application:-

Grounds:-

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