is called "Arbitration Agreement".

In simple words, it is a  the reference dispute or against the misconduct of an In order to facilitate the conduct of the concilia-
The term 'Arbitration' literally means "Settlement
written agreement entered into between parties to a dis- arbitrator. He (arbitrator) may resign voluntarily by giv- tion proceedings, the parties, or the conciliator with the
or determination of a dispute outside the court by a private
pute to refer the matter to pe settled by a third person ing notice to the parties to the dispute and thus, can with- consent of the parties, may arrange for administrative
individual". Parties to the dispute, without approaching
called arbitrator. draw from the arbitral proceedings assistance by a suitable institution or person.
the court of law may refer their matter to a person, whom
ARBITRATOR Section 12 of the Arbitration and Conciliation Act. Disclosure of Information (Section 70)
they trust or in whom they have good faith, to suggest
Meaning : Arbitration alon is a process by which a 1996 provides for the grounds, which the appointment When the conciliator receives factual information
an amicable solution. Such person, who acts as a me-
dispute between the parties is settled outside the court, of an arbitrator can be challenged by a party or parties concerning the dispute from a party, he shall disclose
diator between the disputants to settle the matter/dis-
by a third person. In other words, the parties to dispute with- to the dispute. Further, Section 13 prescribes or pro- the substance of that information to the other party in
pute is called "Arbitrator:.A written agreement to submit
out approaching the court of law may resort to refer their vides procedure to be followed for challenging the ap- order that the other party may have the opportunity to
a present or future disputes to arbitration, whether an
matter/dispute to 2 third person, whom they trust or in pointment of an arbitrator. present any explanation which he considers appropriate.
arbitrator is named therein or not is called "Arbitration
whom they have good faith to suggest an amicable Meaning `Conciliation' is a means for settlement of a Co-operation of parties with Conciliator (Section 71):
Agreement". The decision, which is binding on the par-
solution. Such person, who is impartial and acts as a dispute outside the Court of Law. The old Act (The Arbitra- The parties shall in good faith co-operative with the,
ties to the dispute is called * Award or Arbitration Award“.
mediator between the disputants to settle the matter is tion Act, 1940) made no provision for conciliation. conciliator and, in particular. shall endeavour to comply
ARBITRATION
called 'Arbitrator or Arbitral Tribunal'. Thus, the arbitrator Conciliation as a means of settlement is accorded statu- with requests by the conciliator to submit written
Arbitration : Meaning : The term 'Arbitration' means
must be a person, who is impartial and having good faith tory recognition by incorporating provisions in the materials, provide evidence and attend meetings.
determination or settlement of a dispute by the decision
in parties to the dispute. Arbitration and Conciliation Act, 1996. Suggestions by parties for settlement of dispute
of one or more persons called "Arbitrators or Arbitral
Appointment of Arbitrator : Section 11 of theArbitration Provisions relating to concilation : The provisions (Section 72):Each party may, on his own initiative or at the
Tribunal". Definition : the Arbitration and Conciliation Act,
and Conciliation Act, 1996 provides for the appointment relating to conciliation are enshrined/ embodied under invitation of the conciliator, submit to the conciliator
1996 defines 'Arbitration’ as follows "Arbitration" means
of Arbitrator/ Arbitrators. An arbitrator or arbitrators Sections 61 to 81 of the Arbitration and Conciliation Act, suggestions for the settlement of the dispute.
any arbitration, whether or not administered by permanent
is/ are appointed in pursuance of the arbitration agree- 1996 as stated hereunder: Settlement agreement (Section 73)
arbitral institutions. (The Act of 1996 recognizes
ment under the following means : Application and Scope (Section 61):1. When it appears to the conciliator that there exists
permanent arbitral institution such as the Indian Council of
1.Appointment by Parties. According to Section 61, this part (Part-IID) shall elements of a settlement which may be acceptablé
Arbitration. It is a national arbitration institution set up in
2.Appointment by Court. apply to conciliation of disputes arising out of legal rela- to the parties, he shal formulate the terms of a
Delhi by the Government of India.
1.Appointment by Parties : The parties to the dis- tionship Whether contractual or not; and2. possible settlement and submit them to the parties
Types of Arbitratioń .: Arbitration, which is resorted to
pute may appoint a person an arbitrator by nam- This part shall not apply to certain disputes, which for their observations.
by parties for settlement of their dispute may'be classi-
ing him in the arbitration agreement may not be submitted to conciliation Status and effect of settlement agreement (Section 74):
fied as follows:1.Ad-hoc Arbitration : It is sought
The parties may agree to appoint a sole (one) Appointment of Conciliators (Section 64) : The The settlement agreement shall have the same sta-
or resorted to, when a dispute arose between the parties
arbitrator or more than one arbitrator. An arbitrator named parties to the dispute may agree to appoint a conciliator tus and effect as if it is arbitral award on agreed terms
to a business transaction.
by parties and so appointed can proceed with the arbitration themselves- or seek the assistance of an institution uit al award on agreed on the substance of the dispute
2.Contractual Arbitration : In view of tremendous
proceedings. If the parties do not name their specialized in arranging in conciliation proceedings for rendered by an arbitral tribunal under Section 30.
growth of economy and hike/increase in commer-
own arbitrator, they may mutually agree that arbitrator the appoint-merit of a conciliator. Confidentiality (Section 75):
cial transáctions, contractual Arbitration is resorted
or arbitrators may be appointed by a third designated Appointment of Conciliators (Section 64) : The Notwithstanding anything contained in any other
‣ to for a carly settlement of disputes without ap-
person. Where one of the parties fails to appoint, parties to the dispute may agree to appoint a conciliator law for the time being in force, the conciliator and the
proaching the court of law. The parties insert in
2.Appointment by Court : Sub-section (4) to (12) of themselves- or seek the assistance of an institution parties shall keep confidential all matters relating to the
their contract, an arbitration clause as an integral
Section 11 of the Arbitration and Conciliation Act, specialized in arranging in conciliation proceedings for conciliation proceedings.
part of their contract.
1996 confer on Court, power to appoint arbitrator the appoint-merit of a conciliator. A.Termination of conciliation proceedings (Section 76)
3.Institutional Arbitration : This type of Arbitra-
or arbitrators. The general rule, the power Commencement of Conciliation Proceedings (Section B.Resort to arbitral or judicial proceedings (Section 77).
tion is sought, where the parties in advance may
to appoint arbitrator is vested in the parties. An 62) Section 62 provides for the procedure for initiating C.Costs (Section 78)D.deposits section 79.
agree to refer in the event of their future dispute or
arbitration clause is inserted to that effect in the the conciliation. The party making proposal for concilia- Role of conciliator in other proceedings section 80.
difference to be settled by a named institution in
arbitration agreement. In case one party fails to tion is required to send invitation to the other party to Unless otherwise agreed by the parties a)
which one or more of them are members.
appoint the arbitrator on request or reference, the take recourse to concillation and identify the subject of the conciliator shall not act as an arbitrator or as a
ARBITRATION AGREEMENT
other party seeking arbitration may file an appli- dispute. The conciliation proceedings are deemed to have representative or counsel of a party in any arbitral
Meaning : The parties to a dispute, without approach-
cation to the civil court praying for appointment of commenced, Role of Conciliator (Section 67) The conciliator is or judicial proceedings in respect of a dispute that
ing the court of law may enter into an agreement to refer
an arbitrator or arbitrators.Removal of Arbitrator : ex-pected to do his best and strive hard in reaching an is the subject of the conciliation proceedings.
their matter/dispute to be settled by a third person/
The court is empowered to remove an arbitrator against an amicable settlement of the dispute between the pafties. b) The conciliator shall not be presented by the parties
persons, called arbitrator/ arbitrators. Such agreement
application of any party to Administrative Assistance (Section 68) as a witness in any arbitral or judicial proceedings.