Arbitration

In the recent times, Arbitration is a method of alternative dispute resolution (ADR) where disputes are settled outside of court by one or more neutral arbitrators. In India there were three enactments viz. the Arbitration Act ,1940, the Arbitration (Protocol and Convention) Act, 1937 and the Foreign Awards (Recognition and Enforcement) act,1961. The Arbitration Act, 1940 became outdated due to economic reforms which took place over the period of time  and there was need to this act shall be replaced by the new enactment , then Arbitration and Conciliation Act ,1996 was passed keeping in view new economic developments  . The Conciliation is also recognized an instrument for settlement of disputes.  It is often chosen as a fast, more flexible and cost -effective alternative to the Court Proceedings and the decision of the Arbitrator is called Arbitration award.  It evolves the principals of settlement of commercial disputes. Due to globalization and advancement of technology, United National Commission on International Trade law (UNCITRAL) some Model Law was recommended to the signatory countries or member nations of United Nations for the smooth process to decide dispute between the parties with minimal involvement of Court.

Under Arbitration proceedings, Court has very little preview. If there is arbitration clause among the parties then the Court will refer the matter for the Arbitration. Arbitration clause is an independent clause and any aggrieved party can approach the High Court for the appointment of arbitrator and in case of International Arbitration to the Supreme  Court.  Under Arbitration proceedings, the parties can choice arbitrator of their choice and parties can also decide the procedure to be followed to conduct arbitration proceedings.  Arbitration is legally binding on both sides and enforceable by the Court.

Arbitration can be International and Domestic Arbitration. Arbitration is often used for the resolution of commercial disputes particularly in the context of International Commercial transactions. International commercial arbitration is a private dispute resolution process in which parties from different countries choose to have their disputes decided by one or more arbitrators, without the involvement of the courts of a particular country.  For the smooth sailing of the process many enactments came into existence viz. The Indian International Arbitration Centre Act,2019, The Indian International Arbitration Centre (Transaction Of Business) Regulations ,2023, The Indian International Arbitration Centre ( Criteria For Admission To the Panel of Arbitration Centre ( Criteria for Admission to the Panel Of Arbitrators ) Regulations,2023, The India Interntional Arbitration Centre ( Conduct Of Arbitration) Regulations ,2023, Th Indian International Arbitration Centre ( Composition And Functions Of The Committees) Rules,2023.