• Final and binding resolution of civil disputes by Arbitrator, chosen by the parties. • The decision rendered in Arbitration proceedings is binding in nature as such it differs from mediation and other ADR methods. • Arbitration differs from the courts as it is private, based on an agreement/contractual process.
• Large back log of litigations in the courts. • To lessen the courts burden. • Facilitates parties to choose their own procedures.
• Flexibility • Cost savings • Time saving • Confidentiality • Scope of settlement • Enforceability
• Arbitration and Conciliation Act, 1996, sanctifies, arbitration and it’s procedure. • Section 89 of Civil procedure Code encourages parties to dispute to opt for Arbitration and other ADR mechanisms.
• On accepting the appointment, the arbitrator shall declare in writing to the parties concern that “there is no circumstances exist that give rise to justifiable doubts as to his independence or impartiality”. • As soon as appointment is made, the arbitrator shall arrange a preliminary meeting/first hearing.
• On claim statement being filed, arbitrator shall ensure that a copy is furnished to the other party. • On respondent raising objections as to jurisdiction, the Arbitrator, shall decide such objections as preliminarily issue. (Section 16). • If the jurisdiction is upheld, the respondent shall be given time to file their reply statement and if the reply statement is filed, time will be given to the claimant to file their rejoinder, if any. • Oral evidence of the parties on specific request (including Chief & Cross Examination). • Marking of documents. • Arguments • Award • Communication of Award as Certified Copies. • Retaining of original file with arbitrator until it is called for by courts.
• The arbitrator shall record the minutes of proceedings in each & every hearing. • If the parties appear, their signature is to be obtained in the minutes. • When one of the parties fail to appear, minutes of proceedings has to be communicated with due acknowledgement.
• Notice served on the parties with due acknowledgement would constitute sufficient service. • Returned postal covers with remarks ‘Refused’, ‘Unclaimed’ or ‘Not Claimed’ and ‘Intimation Delivered’ which would also constitute sufficient service. • After service of notice, if the respondent fails to appear, it is recommended to send another notice expressing the arbitrator’s intention to proceed exparte. • It is also recommended to serve notice through local News Papers, if the claimant could not serve the notice on the respondent by post (i.e., Left, Not Known, Left India ). • If the notice is returned as ‘expired’ or ‘Deceased’, it is for the claimant to proceed against the legal representatives of the deceased. • If the parties are represented by either Advocates or Representatives, they shall furnish either ‘vakalat’ or ‘letter of authorization’ signed by the concerned parties.
a) Objection as to jurisdiction b) Objection as to qualification of arbitrator c) Objection as to venue d) Taking enormous time to file reply/counter statement e) Request to furnish unnecessary documents f) Attempt to implead third parties
• On an application for interim order, the arbitrator has power to grant or deny the same.(Section 17).
• With the consent of parties, the arbitrator can encourage settlement at any time during the arbitral proceedings. • If any settlement in the form of memorandum of compromise, the arbitrator shall pass an “Award on Agreed Terms”. • If the matter is settled out of arbitration, the arbitrator can terminate the proceedings. (Section 30).