ARBITRATION AND ADVANCED

PROFESSIONAL PRACTICE

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 UNIT - 1
IMPORTANCE OF ARBITRATION AS AN ALTERNATIVE DISPUTE
RESOLUTION (ADR) MECHANISM
 ADR

 Importance of Arbitration

 Role of Arbitration in contract agreement

 Arbitration clause in any contract agreement

 Rate of architects in Arbitration

 Contract Act of 1872

 Limitation Act 1968

 Arbitration and Conciliation Act 1996 – terms and provisions

 Cost involved for Arbitration

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 ADR

Disputes arising in infrastructure projects can be

resolved either through litigation i.e. in court of law or
through Alternative Dispute Resolution (ADR) Mechanism.

Arbitration is a method for settling disputes privately,

but its decisions are enforceable by law.
An arbitrator is a private extraordinary judge between
the parties, chosen by mutual consent to sort out
controversies between them.

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 ADR
What is ADR
The term is often used to describe a wide variety of dispute
resolution mechanisms that are short of, or alternative to,
full-scale court processes.

Why ADR
With court congestion and excessive litigiousness drawing
increasing criticism, it is clear that lawyers in the future will
have to be trained to find fresh approaches to explore non-
litigation routes to resolve disputes.

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 ADR
 Litigation is expensive, time consuming and full of
complexities.
 ADR is a system whereby disputants resolve their
disputes with minimum outside help.
 The ADR procedure consists of four basic methods of
dealing with disputes which are:
1. Negotiation

2. Mediation

3. Conciliation

4. Arbitration

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 ADR
 ADR process aims at rendering justice in the form and content
that not only resolves the dispute but also brings back harmony in
the relationship of the parties.
 ADR techniques are extra-judicial in character; they can be used
to resolve any matter, under law, by agreement between the
parties.
 They have been employed to settle myriad subject categories of
disputes, especially civil, commercial, industrial, and family
disputes.
 ADR techniques offer only alternative options to litigation and
their desirability increases as they are instrumental in avoiding
vexation, expense, and delay.

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 Advantages of ADR ADR
 Private process of dispute settlement
 Expeditious
 Informal
 Inexpensive
 Lack of technicality
 Involve community participation
 Decision making process is controlled by the parties
 Leads to amicable results
 Relationship is secured
 Finality of result
 Confidentiality

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 ADR

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 ADR
What is Arbitration

 A private method of dispute resolution

 A consensual dispute resolution process
 To resolve their commercial or trade related disputes at venue
selected by the parties.
 Without recourse to court of law
 By reference to a neutral third party for its determination chosen
by the parties themselves
 With a binding end result which is internationally enforceable
 Avail interim reliefs if required and Confidentiality in the process.

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 ADR
Contrast with litigation
• A Private form of dispute settlement
• Arbitration offers a quicker, cheaper, and more streamlined
procedure than litigation.
• Parties choose arbitration as the method of dispute resolution
• Agreement to arbitrate
• Limited right of appeal
• The "internationalist" quality of the arbitral tribunal that makes
arbitration attractive --
with party-nominated arbitrators often chosen from the parties'
respective countries,
and the chairperson from yet a third country

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 ADR
CONTRAST

Arbitration
1. Private Adjudication
2. Totally binding
3. Adjudicatory
4. Has power to grant interim-
measures
5. Awards and agreements are
enforceable internationally
Mediation/Conciliation
1. Facilitative
2. Non-binding unless agreement
is reached between parties
3. Facilitative/Evaluative
4. No
5. No

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 ARBITRATION

Arbitration is a process in
which a dispute is submitted
to an impartial outsider who
makes a decision which is
usually binding on both the
parties.

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 ARBITRATION

 The arbitrator enforces his own point of view on the

contending parties and the opinions of the participants
are not given any predominance.

 Arbitration is a judicial process

 The award of the arbitrator is binding and rests on

equity and justice, i.e., there is no scope for compromise

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 ARBITRATION

Definitions:

In this part, unless the context otherwise require:

 "arbitration" means any arbitration whether or not
administered by permanent arbitral institution;

 "arbitration agreement." means an agreement

referred to in Section 7;

 "arbitral award" includes an interim award;

 "arbitral tribunal" means a sole arbitrator or a panel

of arbitrators.

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 ARBITRATION

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 ARBITRATION

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 ARBITRATION
DUTIES OF ARBITRATOR
 To administer oath to the
parties and witness appearing
 To act judicially and
impartially
 To put necessary
interrogatories to any party to
the dispute
 To determine by and to whom the costs of reference and the award
shall be paid
 To award interest
 To fix amount, mode and time of payment

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 ARBITRATION

Advantages of Arbitration
 Choice of decision maker with expertise

 Speed

 Lower-cost

 Flexible

 Confidentiality

 Less formal than court

 Preservation of business relationships

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 ARBITRATION

Disadvantages of Arbitration
 Limited recourse

 Uneven playing field

 Lack of transparency

 Cost: parties pay for arbitrator and agency

 Limited rights of appeal, fewer means to

challenge award

 Lack of formal discovery

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 IMPORTANCE OF ARBITRATION

o Speed,
o Less expense,
o Privacy,
o Informality of proceedings,
o Continuity of good relations,
o Expertise of arbitrators,
o Flexibility in choice of
meeting place/location &
o Finality of decision is some of
the advantages of arbitration
over litigations.

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 ROLE OF ARBITRATION IN CONTRACT AGREEMENT

 All disputes shall be referred to and settled by the architect

who then states his/her decision in writing. Such decision may

be in the form of a final certificate or otherwise.

 The decision of the architect with respect to any of the

expected matters shall be final and without appeal.

 If the decision of the architect is not acceptable to either

party, a notice shall be given within 28 days after receiving the

notice of the decision.

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 ROLE OF ARBITRATION IN CONTRACT AGREEMENT
 The disputes or difference shall be referred to sole arbitrator

of a fellow of Indian Institute of Architect mutually agreed by

the parties.

 In case of disagreement, each party shall appoint one architect

(fellow of IIA) and both the arbitrators select an umpire. They

shall have the power to open up, review, and revise any

certificate, opinion, and decision requisition or notice expect

excepted matters.

 The arbitration shall be conducted as per the Act in force (The

Arbitration and Conciliation Act 1996).

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 ARBITRATION CLAUSE IN ANY CONTRACT AGREEMENT

 The parties are treated with equality and each shall be given

full opportunity to present his case.

 The parties are free to agree on the procedure to be adopted

by the arbitral tribunal.

 The parties are free to agree on place of arbitration and

language to he used.

 Arbitration proceedings commence from the date of receipt

of request for arbitration by the respondent.

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 ARBITRATION CLAUSE IN ANY CONTRACT AGREEMENT

 Claimant shall state the facts supporting his claims, issue

involved and remedy sought. The respondent shall give

defence in respect of these claims.

 Arbitration tribunal shall decide on oral

hearings/documentary evidence.

 Experts may be appointed by arbitration tribunal to

report on specific issues.

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 ARBITRATION CLAUSE IN ANY CONTRACT AGREEMENT

 Assistance of the court may be sought for taking evidence.

 Decision is by majority of tribunal members. (The tribunal

consists of small odd number of arbitrators).

 Award is in writing and duly signed by arbitrators.

 It is a reasoned award unless otherwise agreed to by parties.

 If award amount is not paid, it carries an interest of 18% per

annum from date of award to date of payment.

 Award is final and binding. It is enforced as if it were a

decree of a civil court.

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 RATE OF ARCHITECTS IN ARBITRATION

 The fees of the Arbitrator and expenses of the

arbitration shall be borne equally by the parties unless
the Sole Arbitrator otherwise directs in his award with
reasons.

 The lump sum fees of the Arbitrator shall be Rs. 40,000

per case for transportation contracts.

 If the sole Arbitrator completes award within 5 months

of accepting his appointment, he shall be paid Rs. 10,000
additionally as bonus.

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 RATE OF ARCHITECTS IN ARBITRATION

 Reasonable actual expenses for stenographer, etc. will

be reimbursed.

 Fees shall be paid stage wise i.e. 25% on acceptance,

25% on completion of the pleading/documentation, 25%
on completion of arguments and balance on receipt of
award by the parties.

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 RATE OF ARCHITECTS IN ARBITRATION

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 RATE OF ARCHITECTS IN ARBITRATION

From Appendix B – Conditions of Engagement and Scale of

Professional Fees & Charges – The Indian Institute of Architects

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 ARBITRATION

Arbitration in India
 Indian council of arbitration (1965)

 Abide Arbitration and Conciliation Act, 1996

 Comprehensive legal framework

 95% arbitration is of type ad-hoc (commercial disputes)

 India No. 2 in arbitration cases reaching Singapore

centre

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 ARBITRATION

Arbitration in India
 Contract Act 1872

 Limitation Act 1965

 Arbitration and conciliation Act 1996

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 CONTRACT ACT 1872

Contract act 1872 – objective

 The objective of the Contract Act is to ensure that the rights

and obligations arising out of a contract are honoured and that

legal remedies are made available to an aggrieved party against

the party failing to honour his part of agreement

 The Indian Contract Act makes it obligatory that this is done

and compels the defaulters to honour their commitments

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 CONTRACT ACT 1872

Contract act 1872 – extent & commencement

 It extends to the whole of India except the State of Jammu

and Kashmir

 It came into force on the first day of September 1872

 The Sale of Goods was repealed from this Act in 1930 and

contracts relating to partnerships were repealed in 1932

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 CONTRACT ACT 1872

Contract act 1872 – present contract act

• Basic principles of contract (Sections 1 to 75)

• Sale of Goods (Sections 76 to 123) – REPEALED

• Indemnity and Guarantee (Sections 124 to 147)

• Bailment (Sections 148 to 181)

• Agency (Sections 182 to 238)

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 CONTRACT ACT 1872
Contract act 1872 – proposal

When one person signifies to another his willingness to do or to

abstain from doing anything, with a view to obtaining the assent
of the other to such act or abstinence, he is said to make a
proposal

Contract act 1872 – promise

 When the person to whom the proposal is made signifies his

assent thereto, the proposal is said to be accepted

 A proposal when accepted, becomes a PROMISE

 The person making the proposal is called the “Promisor” and

the person accepting the proposal is called the “Promisee”

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 CONTRACT ACT 1872
Contract act 1872 – consideration

When at the desire of the promisor, the promisee or any other

person has done or abstained from doing, or does or abstains
from doing, or promises to do or to abstain from doing something,
such act or abstinence of promise is called a consideration for the
promise

Contract act 1872 – agreement

Every promise and every set of promises, forming the

consideration of each other is an agreement

An agreement not enforceable by law is said to be “void”

Contract act 1872 – contract

An agreement enforceable by law is a contract

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 CONTRACT ACT 1872

Contract act 1872 – steps involved in contract

 Proposal and its communication

 Acceptance of proposal and its communication

 Agreement by mutual promises

 Contract

 Performance of contract

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 CONTRACT ACT 1872
Contract act 1872 – essential requirements of a valid contract

 Offer and its acceptance

 Free consent of both the parties

 Mutual and lawful consideration for agreement

 It should be enforceable by law. Hence, intention should be to

create legal relationship. Agreements of social or domestic nature
are not contracts

 Parties should be competent to contract

 Object should be lawful

 Certainty and possibility of performance

 Contract should not have been declared as void under Contract Act
or any other law

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 CONTRACT ACT 1872
Contract act 1872 – offer

 May be express or implied

 May be positive or negative

 Must intend to create legal relationship

 Terms of offer must be certain

 May be made to a specific person or class of persons

or to any one in the world at large

 Must be communicated to the offeree

 Must be made with a view to obtain assent

 May be conditional

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 CONTRACT ACT 1872

Contract act 1872 – termination of offer

 By notice of revocation

 By lapse of time

 By failure of the acceptor to fulfil a condition

precedent to acceptance

 By failure to accept according to the mode

prescribed

 By death or insanity of the offerer

 By rejection

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 CONTRACT ACT 1872
Contract act 1872 – essentials of a valid acceptance
 Acceptance must be absolute and unconditional

 Acceptance by usual mode as desired by the offeror

 Acceptance cannot precede the offer

 Acceptance may be express or implied

 Acceptance must be given within a reasonable time

 Acceptance must be by an ascertained person (offeree)

 Offer cannot be accepted after it was rejected unless it is renewed

 Silence does not imply acceptance

 Acceptance must be made before the lapse or revocation of the offer

 Acceptance of offer means acceptance of all terms attached to the offer

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 CONTRACT ACT 1872
Contract act 1872 – legal rules regarding consideration
 Consideration is required both for formation and discharge of an
agreement or contract

 Consideration may be past, present and future

 Consideration may be either positive or negative

 Consideration must be done at the desire of the promisor

 Consideration may be furnished by the promisee or any other person

 Consideration must be lawful

 Consideration must be real and not illusory

 Consideration need not be adequate

 Consideration must not be the performance of existing duties

 Consideration must be of some value in the eyes of law

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 Contract act 1872 – contractual capacity CONTRACT ACT 1872
Every person is competent to contract who is of the age of the
majority according to the law to which he is subject and who is of a
sound mind, and is not disqualified from contracting by any law to
which he is subject

MENTAL DEFICIENCY
 Sound mind (he is capable of understanding it and of forming a rational
judgement as to its effects upon his interests)

 Mental incompetents

 Idiots, lunatics and insane persons

 Minor (<18 years)

 Drunkenness

LEGAL DISABILITY (Alien enemy, insolvent, imprisonment)

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 CONTRACT ACT 1872

Contract act 1872 – free consent

Agree upon the same thing in the same sense

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 CONTRACT ACT 1872

Contract act 1872 – object and public policy

 Not be forbidden by law

 Should not defeat provisions of any law

 Not be fraudulent

 Should not injure a person / property

 Should not be immoral

 Should not be opposed to public policy

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 CONTRACT ACT 1872

Contract act 1872 – void & voidable contract

 An agreement which is enforceable by law at the option of

one or more of the parties thereto, but not at the option of
the other or others, is a voidable contract

 A contract which ceases to be enforceable by law becomes a

void contract

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 CONTRACT ACT 1872
Contract act 1872 – types of contract – on the basis of
validity
 Valid contract: an agreement which has all the essential elements
of a contract is called a valid contract. A valid contract can be
enforced by law
 Void contract [Section 2(g)]: A void contract is a contract which
ceases to be enforceable by law. A contract when originally
entered into may be valid and binding on the parties. It may
subsequently become void. There are many judgments which have
stated that where any crime has been converted into a "source of
profit" or if any act to be done under any contract is opposed to
"public policy" under any contract, than that contract itself cannot
be enforced under the law

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 CONTRACT ACT 1872

 Voidable contract [Section 2(i)]: an agreement which is

enforceable by law at the option of one or more of the parties
thereto, but not at the option of other or others, is a voidable
contract. If the essential element of free consent is missing in a
contract, the law confers right on the aggrieved party either to
reject the contract or to accept it. However, the contract
continues to be good and enforceable unless it is repudiated by the
aggrieved party

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 CONTRACT ACT 1872

Contract act 1872 – types of contract – on the basis of validity

Illegal contract: A contract is illegal if it is forbidden by law;

or is of such nature that, if permitted, would defeat the
provisions of any law or is fraudulent; or involves or implies
injury to a person or property of another, or court regards it as
immoral or opposed to public policy. These agreements are
punishable by law. These are void-ab-initio [from the beginning]

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 CONTRACT ACT 1872

“All illegal agreements are void agreements but all void

agreements are not illegal”

Unenforceable contract: where a contract is good in

substance but because of some technical defect cannot be
enforced by law is called unenforceable contract. These
contracts are neither void nor voidable

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 CONTRACT ACT 1872

Contract act 1872 – types of contract – on the basis of

formation
Express contract: where the terms of the contract are
expressly agreed upon in words (written or spoken) at the
time of formation, the contract is said to be express contract
Implied contract: an implied contract is one which is inferred
from the acts or conduct of the parties or from the
circumstances of the cases. Where a proposal or acceptance is
made otherwise than in words, promise is said to be implied

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 CONTRACT ACT 1872

Quasi contract: A quasi contract is created by law. Thus,

quasi contracts are strictly not contracts as there is no
intention of parties to enter into a contract. It is legal
obligation which is imposed on a party who is required to
perform it. A quasi contract is based on the principle that a
person shall not be allowed to enrich himself at the expense of
another

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 CONTRACT ACT 1872
Contract act 1872 – types of contract – on the basis of
performance
Executed contract: an executed contract is one in which both
the parties have performed their respective obligation
Executory contract: an executory contract is one where one or
both the parties to the contract have still to perform their
obligations in future. Thus, a contract which is partially
performed or wholly unperformed is termed as executory
contract

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 CONTRACT ACT 1872

Unilateral contract: A unilateral contract is one in which only

one party has to perform his obligation at the time of the
formation of the contract, the other party having fulfilled his
obligation at the time of the contract or before the contract
comes into existence
Bilateral contract: A bilateral contract is one in which the
obligation on both the parties to the contract is outstanding at
the time of the formation of the contract. Bilateral contracts
are also known as contracts with executory consideration

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 CONTRACT ACT 1872
Contract act 1872 – performance

 Section 37, para 1, of the contract act lays down that, “the
parties to a contract must either perform, or offer to perform,
their respective promises, unless such performance is dispensed
with or excused under the provisions of this act, or of any other
law”

 The offer to perform the contract is called tender

 Offer to perform or tender may be called attempted performance

 A tender, to be legally valid, must fulfil the following conditions

 It must be unconditional

 A tender money, must be in legal tender money, not by any foreign

money, or by promissory note or cheque

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 CONTRACT ACT 1872
 The tender must be made at a proper time and place

 The person to whom a tender is made must be given a reasonable

opportunity of ascertaining that the person by whom it is made is able
and willing there and then, to do the whole of what he is bound by his
promise to do

 If the offer is an offer to deliver anything to the promisee, the promisee

must have a reasonable opportunity of seeing that the thing offered is
the thing which the promisor is bound by his promise to deliver

 When there are several promisees, an offer, to any one of them is a valid
tender

 Must be in proper form

 Must be willing and ready to fulfil the obligations

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 Contract act 1872 – performance made by whom? CONTRACT ACT 1872
Personal performance : in cases involving personal skill, taste, or credit, the
promisor must himself perform the contract
Performance by representative : in all other cases the promisor or his
representatives may employ a competent person to perform it
Performance by a third person : when a promise accepts performance of the
promisee from a third person, he cannot afterwards enforce it against the
promisor
Death of promisor
Contracts involving personal skill or volition, come to an end when the
promisor dies. His heirs or legal representatives are not bound to perform
such contract
In cases not involving personal skill or volition, the legal representatives of
a deceased promisor are bound to perform the contract. Liability of the
legal representatives is limited to the assets obtained from the deceased

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 CONTRACT ACT 1872
Contract act 1872 – persons entitled to demand
performance

 Promisee

 Legal representative

 Third party (eg. Trust : A & B enter into a contract in

favor of C; C can demand performance)

 Joint promisees

Contract act 1872 – time for performance

 When no time is specified – Reasonable time

 When time is specified – it has to be followed

 On application for performance by promisee

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 CONTRACT ACT 1872

Contract act 1872 – place for performance

 Applies to delivery of goods

 Applies to payment of money

Contract act 1872 – performance of reciprocal promises

 Mutual and dependent

 Mutual and independent

 Mutual and concurrent

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 CONTRACT ACT 1872

Contract act 1872 – contracts that need not be performed

 When a new contract is substituted

 A person rescinds it (who has the option of „voidable‟)

 Promisee neglects or refuses to afford the promisor

circumstance for performance

 Impossibility or illegality

 If one person has right to rescind a contract

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 CONTRACT ACT 1872
Contract act 1872 – discharge of contract by new agreement
 Substitution

 Of old contract by new contract

 Of a party to the contract by a new one

 Alteration (change in terms of contract

 Rescission (by mutual consent/non- performance/voidable)

 Waiver (abandonment of a right which a person is entitled to)

 Remission (promisee may give up a part of his claim at his own will)

 Whole / in part

 Extend the time of performance

 Accept any other satisfaction than performance

 Merger (superior right and inferior right coincide and meet in one and the
same person) eg. Person buys the land which he has taken for lease before

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 CONTRACT ACT 1872

Contract act 1872 – discharge of contract by operation of law

 Insolvency

 Merger

 Death

 Lapse of time

 Material alteration/unauthorized alteration

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 CONTRACT ACT 1872

Contract act 1872 – discharge of contract by impossibility

 Destruction of object necessary for performance

 Change of law

 Personal incapacity

 Non-existence or non-occurrence of an event necessary for

performance

 Outbreak of war

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 Contract act 1872 – breach CONTRACT ACT 1872
 If a party breaks his obligations which the contract imposes; contract is no
longer binding on the other person
 Actual breach of contract
• At the time when the performance is due
 One party fails or refuses to perform his obligation
• During the performance of the contract
 Express repudiation (by word or act refuses to continue to perform
his obligation)
 Implied repudiation (makes by his own act the complete performance
of the contract impossible)
 Anticipatory breach of contract (done before the time for performance
arrives)
• By renunciation (express repudiation) [ denial/rejection]
• By creating some impossibility (implied repudiation)

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 CONTRACT ACT 1872

Contract act 1872 – remedies in case of breach

 Suit for damages (dealt by Indian Contract Act)

 Dealt by Specific Relief Act, 1963

 Bring an action for specific performance

 Suit for injunction

 Claim for quantum meruit

 Restitution [restoration of something lost or

stolen]

 Suit for cancellation or rescission

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 CONTRACT ACT 1872
Contract act 1872 – remedies for breach of contract
 Suit for damages (loss or damage suffered by breach of contract)

 Ordinary or general damages (damages which arise on a breach; parties

know it at the time of entering into contract; eg. Difference in contract
price and market price)

 Special damages (breach of contract under some special circumstances)

 Exemplary damages (shows the court‟s strong disapproval of the

conduct of the defendant in committing the wrong; eg. Refusal to honor
a cheque in spite of having funds)

 Nominal damages (breach involved is of technical nature, so some

nominal damages (1 rupee) may be awarded)

 Remote damages (not to be given for any remote and indirect loss or
damage sustained by reason of the breach)

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 CONTRACT ACT 1872
Contract act 1872 – remedies for breach of contract

 Rules regarding determination of amount of damages

Restoration of parties to a position where they would

have been if the contract had been performed and not
where they would have been if they never made the
contract

 Damages are recoverable in 2 cases

When they arise naturally in the usual course of things

from such breach

Loss or damage which the parties knew, when they made

the contract is likely to result from the breach of it

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 CONTRACT ACT 1872
Contract act 1872 – suit for injunction

 Preventive relief

 This is an order of the court restraining the wrong

doer from doing or continuing the wrongful act
complained of

 Usually granted to enforce negative stipulations in

cases where damages are not adequate relief

Contract act 1872 – suit for quantum meruit

 Quantum Meruit means as much as is earned

 Right to Quantum Meruit : right to claim the

compensation for the work already done

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 LIMITATION ACT 1963
Limitation act 1963 – preamble

An act to consolidate and amend the law for the limitation of

suits and other proceedings and for purposes connected
therewith

limitation act 1963 – object

To fix or prescribe period for barring legal actions

Section 2 (j) of the limitation act, 1963, „period of limitation‟

means the period of limitation prescribed for any suit, appeal or
application by the schedule and „prescribed period‟ means the
period of limitation computed in accordance with the provisions
of the act.

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 LIMITATION ACT 1963

limitation act 1963 – contents

 Limitation act of 1963 contains
 First division deals with suits (Articles 1 – 113)
 Second division deals with appeals (Articles 114 – 117)
 Third division deals with applications (Articles 118 – 137)

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 LIMITATION ACT 1963
Description of Suit Period of Time from which
Limitation period begins to
run

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 LIMITATION ACT 1963 - CASE

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 LIMITATION ACT 1963 - CASE

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 A & C Act
Objective of A & C Act 1996

 To comprehensively cover international commercial

arbitration and conciliation as also domestic
arbitration and conciliation;

 To minimize the supervisory role of courts in the

arbitral process;

 To provide that every final arbitral award is enforced

in the same manner as if it was a decree of court

 To ensure that Indian law is harmonized with the

international legal framework

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 A & C Act
Salient Features of the Arbitration and, Conciliation Act, 1996
The Arbitration and Conciliation Act, 1996 contained the following salient
features:

1. A Comprehensive Statute - The Arbitration and Conciliation Act, 1996,

is fully related to the domestic, international and inter-state
arbitrations and understanding point of view. This Act provides
importance of enforcement of international arbitral awards and also
conciliation matters as well. The Comprehensive nature of this Act is
the result of the United Nations Commission on International
Commercial Arbitration, 1985 because the Geneva Assembly of the
United Nations had emphasized and also recommended uniform model
law on arbitration among the countries.

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 A & C Act
2. An Explanatory Code - The old Act of 1940 had no scope for international
arbitration whereas this Act of 1996 is an explanatory and a complete code
in itself, rather an exhaustive Code. For the first time a procedure for
Arbitral Tribunals is provided in this statute, it also gives status of
tribunal to the Arbitrators or Board of Arbitrations or statutory
Arbitrations.

3. Curtailment of the Courts‟ Powers - The Act has limited the powers of
court rather restricted the exercise of judicial power, in other words
confined the extent of judicial intervention as provided under Section 5 of
the Act –„Notwithstanding anything contained in any other law for the time
being in force, in matters governed by this part; no judicial authority shall
intervene except where so provided in this part.‟ Finality of arbitral awards
under Section 35 is subject to this part according to which an arbitral
award shall be final and binding on the parties and persons claiming under
them respectively.

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 A & C Act
Thus, the Act itself provides finality of arbitral awards and its
enforcement (Section 36) without intervention of the Court.
4. Procedure for Conduct of Arbitration and Awards in detail – Chapter V of
the Arbitration and Conciliation Act, 1996 from Section 18 to Section 27
provides detailed procedure, practice whether in hearings or statements of
claim and defence. The Arbitral Tribunals are empowered to settle any
objections raised in respect of jurisdiction or scope of authority of the
arbitrators.

5. Precised Powers of the Court - The Act of 1996 has précised the powers of
the court by taking assistance only in certain specific matters. The Court's
assistance can be sought in taking evidence only with the prior approval of
the arbitral tribunals, as under Section 27(1): „The arbitral tribunal or a
party with the approval of the arbitral tribunal, may apply to the court for
assistance in taking evidence.‟

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 A & C Act
In the matter of jurisdiction Section 42 of the Act of 1996 states
that: „Notwithstanding anything contained elsewhere in this part or
in any other law for the time being in force, where with respect to
an. arbitration agreement any application under this part has been
made in a court, that court alone shall have jurisdiction over the
arbitral proceedings and all subsequent applications arising out of
that agreement and the arbitral proceedings shall be made in that
court and in no other court.‟
6. Powers of the Arbitrators enhanced - In comparison with the old Act, the
new Act has enhanced the powers of the arbitrators in respect of
jurisdiction of Arbitral Tribunals and also improved the competency of the
arbitrators to rule. Chapter IV, Section 16 and Section 17 of the Act 1996
provide these measures.

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 A & C Act
7. A new form of Conciliation - Part III of the Act, 1996 deals with new
internationalized conciliation approach and explains the application and scope
of conciliation. The Act under Section 63 intends to prescribe number of
conciliators and in case of more than one conciliator, it should be by the
agreement of the parties. Section 63(2) States: „Where there is more than
one conciliator, they ought, as a general rule, to act jointly.‟ Thus, the new Act
contains object of conciliation' more wide, and much emphasis has been
provided on mutual rather consented conciliation in every respect.

8. International applicability - Under the old Act of 1940, there was no provision
for applicability of any interim award made by the Foreign Arbitral Tribunal
i.e., an Arbitral Tribunal Constituted by the ICC Court Arbitration at London.
But, the new Act of 1996, has provisions for applicability of Foreign Arbitral
Tribunal's awards.

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 Delhi HC Arbitration Centre Costs involved IN ARBITRATION

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 MADRAS HC Arbitration Centre Costs involved IN ARBITRATION

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 MADRAS HC Arbitration Centre Costs involved IN ARBITRATION

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 MADRAS HC Arbitration Centre Costs involved IN ARBITRATION

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 MADRAS HC Arbitration Centre Costs involved IN ARBITRATION

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 Indian Council Of Arbitration Costs involved IN ARBITRATION

In addition to the above the ICA will be entitled to receive a Special Fee of Rs.2, 500/-
per hearing for providing facilities of hearing rooms, for arbitration hearings and
secretarial assistance etc. at the arbitration hearing.

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 Costs involved IN ARBITRATION

Costs involved in arbitration

 You may also refer to the following website to know more about the
costs involved in arbitration with another governing body..

 http://www.arbitrationindia.org/pdf/arbitration_fee.pdf

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 End of the Unit…….

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