MODULE 7

ARBITRATION AND CONCILIATION

 Arbitration is a well-established and widely used

means to end disputes. It is one of several kinds of
Alternative Dispute Resolution, which provide
parties to a controversy with a choice other than
litigation(legal action).
Unlike litigation, arbitration takes place out of court.
The two sides select an impartial third party, known
as an arbitrator; agree in advance to comply with the
arbitrator's words; and then participate in a hearing
at which both sides can present evidence and
testimony. The arbitrator's decision is usually final,
and courts rarely reexamine it.

Arbitration is QUASI JUDICIAL METHOD (artificial

judicial method) of settling disputes of a CIVIL NATURE
The decision (award)of the is in the nature of judgment . E.g.
The Indian village Panchayats and Panchas offer the services
of arbitration .
Definition of arbitration : Under the Indian Arbitration Act
(IAA) of 1940 it has been defined as Settlement of
disputes and differences related to Civil Matters ( e.g. Money
or Property or Breach of contract ) between one party and
another in a Quasi Judicial manner, by the decision of one or
more persons called Arbitrators appointed by the contended
parties, without having recourse to a court of law

WHAT MAY BE REFFERED TO ARBITRATION :

a) Any matters affecting the private rights of the
parties, which can be subject matter of a Civil suit may
be referred to arbitration .E.g. right too hold the office of
a pujari in a temple .
b) All matters of a Civil nature i.e. disputes about
property or money disputes arising out of Breach of
contract or Question law .
c) Matters relating to personal rights between the
parties d) Disputes regarding compliment and dignity .
e) Disputes between an insolvent and his creditors can
be referred to arbitration by the official Assignee or
Receiver, through the insolvency proceedings cannot so
referred .
f) Cases which involve both questions of fact and of
law.

WHAT CANNOT BE REFERRED TO ARBITRATION :

a) Matters of criminal nature are the concern of the
community and must be decided by a court of law .
b) Disputes relating to matrimonial relations like a suit for
divorce or restitution of conjugal rights .
c) Lunacy proceedings in the nature of inquisition are a
subject matter only for a court of law .
d) Question relating to trusts for public purposes of
charitable or religious nature .
f) Insolvency matters, i.e. adjudging a person as an
insolvent .
g) Matters relating to the guardianship of a minor or lunatic.

MODES OF ARBITRATION :
There are three different modes of
submitting a dispute to arbitration :
A) Arbitration without the intervention of
the court .
B) Arbitration with the intervention of
the court when there is no suit pending .
C) Arbitration with the intervention of
the court where a suit is pending .

A) ARBITRATION WITHOUT THE

INTERVENTION OF THE COURT :
a) The appointment of arbitrators
who may be appointed as an arbitrator
. b) Appointment of an arbitrator by
the parties . The parties may appoint
an arbitrator in the following ways :
1) An arbitrator may be named in the
arbitration agreement, or
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