KINDS OF ARBITRATION

Depending on the terms of arbitration agreement, the subject matter of the dispute in
arbitration, and the laws governing such arbitrations, rbitrations can be classified into
different types, such as
Ad-hoc Arbitration: The Ad-hoc Arbitration is agreed to and arranged by the parties
themselves without recourse to an arbitral institution. It is to get the justice, in the balance of
the un-settled part of their dispute only. It may be either International or Domestic arbitration
Domestic arbitration: The Domestic arbitration means, an arbitration which takes place in
India, wherein parties are Indians and the dispute is decided in
International Arbitration: An Arbitration, which may take place either within India or
outside India but, where there are ingredients of foreign origin in relation to the parties, or
the subject matter of the dispute. In this process, the dispute is decided in accordance with
substantive law in India or any other country, depending on the contract in this regard and
the rules of conflict of laws are termed as International Arbitration.
Institutional Arbitration: It means, an arbitration conducted by an arbitral institution in
accordance with the prescribed rules of the institution. In such kind of arbitration, there is
prior agreement between the parties that in case of future differences or disputes arising
between the parties during their commercial transactions, such differences or disputes will
be settled by arbitration as per clause provide in the agreement and in accordance with the
rules of that particular arbitral institution. The arbitrator or arbitrators, as the case may be is
appointed from the panel maintained by the institution either by disputants or by the
governing body of the institution. The Arbitration and Conciliation Act, 1996 gives recognition
and effect to the agreement of the parties to arbitrate according to institutional rules and
subject to institutional supervision. Some of the leading Indian institutions providing for
institutional arbitration are, The Indian Council of Arbitration (ICA), New Delhi, The
Federation of Indian Chamber of Commerce and Industries (FICCI), New Delhi and The
International Center for Alternative Dispute Resolution (ICADA). Some of the leading
international institutions are The International Chamber of Commerce (ICC), Paris, The
London Court of International Arbitration (LCIA), London and The American Arbitration
Association (AAA). The World Intellectual Property Organisation (WIPO) is an agency of the
United Nations, which is offering its services exclusively for the intellectual property disputes.
WIPO is based in Geneva.
Statutory Arbitration: It is mandatory form of arbitration, which is imposed on the parties by
operation of law. It is conducted in accordance with the provisions of an enactment, which
specifically provides for arbitration in respect of disputes arising on matters covered by the
concerned enactment byelaws or Rules made there under having the force of law. In such a
case, the parties have no option as such but to abide by the law of land. It is apparent that
statutory arbitration differs from the other types of arbitration for the reason that, the consent
of parties is not necessary, it is compulsory form Arbitration and it is binding on the Parties
as the law of land. As an example to it, Sections 24, 31 and 32 of the Defence of India Act,
1971 and Section 43(c) of The Indian Trusts Act, 1882 are the statutory provision, which
deals with statutory arbitration.
Foreign Arbitration: When arbitration proceedings are conducted in a place outside India
and the Award is required to be enforced in India, it is termed as Foreign Arbitration.
Fast Track Arbitration or Documents Only Arbitration: The
Documents only arbitration is not oral and is based only on the claim statement and
statement of defence, and a written reply by the claimant, if any. It also includes the
documents the document submitted by the parties with their statements along with a list of

reference to the documents or other evidences submitted by them. The written submission
may take the form of a letter to the tribunal from the party or his representative, or may be a
more formal document produced by lawyers. The parties may agree upon, or in default, the
tribunal may adopt the procedure to resolve the dispute only on the basis of the documents
submitted to the tribunal and without any oral hearing or cross-examination of the witnesses.
Look Sniff Arbitration: Institutions specialised in special types of disputes have their own
special rules to meet the specific requirements for the conduct of arbitration in their
specialised areas. Look Sniff Arbitration is a hybrid arbitration, and also known as quality
arbitration. It is a combination of the arbitral process and expert opinion. On the bases of the
evidence and inspection of goods or commodities that are subject matter of the dispute
placed before the arbitrator, who is selected based on his specialised knowledge, expertise
and experience in a particular area of trade or business, the arbitrator decides the dispute
and makes his award. The award may relate to the quality or price of the goods or both.
There is no formal hearing for taking evidence or hearing oral submissions. For example,
Rules of the London Court of International Arbitration (LCIA) permit the arbitrator, on his
own, to ascertain the quality of goods and their prevalent price.
Flip Flop Arbitration: This type of arbitration has its origin in a United States arbitration
case, which dealt with a baseball player. In such arbitration, the parties formulate their
respective cases beforehand. They then invite the arbitrator to choose one of the two. On
the evidences adduced by the parties, the arbitrator decides which submission is the correct
submission, and then makes an award in favour of that party. After both parties have
submitted their respective cases to the arbitrator, he makes an award either favoring the
claimant of the respondent. He cannot pick and choose from a partys case. If a party inflates
its claim, then it is possible that it will everything. This type of arbitration is also known as
pendulum arbitration.
International Commercial Arbitration: Section 2(1)(f) of the Arbitration and Conciliation
Act,1996 defines an 'International Commercial Arbitration' as the one in which at least one of
the parties is a resident of a country other than India, or a body corporate incorporated in
any country other than India, or a company or association or a body of individuals whose
central management and control is exercised in any country other than India. Arbitration with
the government of a foreign country is also considered to be an international commercial
arbitration.
Thus, the above classifications of the process under different heads reflects that, the
process of arbitration is flexible enough so that, it can be altered and modified according to
the dispute to its best form, by the disputed parties. Thus, it is a fact that the above
classification is not exhaustive. The best method or the form of arbitration is to be chosen by
the parties according to their requirement, which can help them fulfill the objective of an
amicable resolution of the dispute for the betterment of all.