Arbitration

Session 20
 • Arbitration is an alternate means of settling the
dispute, beside approaching the court.
• Every commercial contract has the arbitration
clause.
• The arbitration agreement may be part of a main
contract or made separately.
Introduction • It must be in writing to be binding for the parties.
• Going to court is not the most effective always:
• Court case resolution takes long time.
• Court proceedings are always adversarial.
• Court proceedings are open to public.
Arbitration and Conciliation Act, 1996.
• United Nations Commission on International Trade Law (UNCITRAL) created a
model act in 1996, and India is signatory to it.
• India adopted a new law on arbitration under the Arbitration and Conciliation
Act, 1996.
• India is signatory to International convention on the recognition and enforcement
of the arbitral awards, New York (June 10, 1958).
• The act provides for domestic arbitration as well as the enforcement of a foreign
arbitration award against an Indian party in India.
• If the arbitration clause exists in the court, then the court may refer the case to
the arbitrator.
• Number of arbitrator default is 1, or an odd number if decided between the
parties (arbital tribunal).
 • Section 18: Equal treatment of the parties
• Section 19: Determination of the rules of
procedure
• Section 20: Place of arbitration
• Section 21: Start of arbitral proceedings
Important • Section 22: language

Sections • Section 23: statements of claim and defence

• Section 24: Hearing and written proceedings
• Section 25: Default of a party
• Section 26: Expert appointed by the arbitral
tribunal
• Section 27: Court assistance in taking evidence