ARBITRATION

By group-7: Kalika Dhamani Madhvi Sharma Sapan Vardhani Ranu Shrimali Monica Mistry Jimmy Chabbra

PREAMBLE
An Act to consolidate and amend the law relating to domestic arbitration, international commercial arbitration and enforcement of foreign arbitral awards as also to define the law relating to conciliation and for matters connected therewith or incidental thereto.

ARBITRATION
[Sec.2(1)(a)]
Arbitration is one of the method of civil disputes between two or more persons by reference of the disputes to an independent and impartial third person, called Arbitrator, instead of litigating the matter in the usual way through the Courts. It saves time and expense. It also avoids unnecessary technicalities and at the same time ensures substantial justice within limits of law.
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ARBITRATION IS A DOMESTIC FORUM .It is a forum other than a Court of law for determination of disputes and differences, after hearing both the sides ,in a judicial manner.

OBJECTIVES OF THE ACT

The main objectives of the Act are as under: 1) To comprehensively cover international commercial arbitration and conciliation as also domestic arbitration and conciliation. 2) To make provision for an arbitral procedure which is fair,efficient and capable of meeting the needs of the specific arbitration. 3) To provide that the arbitral tribunal gives reason for its arbitral award. 4) To ensure that the arbitral tribunal remains within the limits of jurisdiction. 5) To minimise the supervisory role of courts in the arbitral process. 6) To permit an arbitral tribunal to use mediation, conciliation or other procedure during the arbitral proceeding to encourage settlement of disputes.

7) To provide that every final arbitral award is enforced in the same manner as if it were a decree of court. 8) To provide that a settlement agreement reached by the parties as a result of conciliation proceeding will have the same statue and effect as an arbitral award on agreed terms on the substance of the dispute rendered by an arbitral tribunal. 9) To provide that, for purposes of enforcement of foreign awards, every arbitral award made in a country to which one of the two international conventions relating to foreign arbitral award to which India is a party applies, will be treated as a foreign award.

ARBITRATION AGREEMENT
Arbitration agreement (sec.7)
Arbitration agreement means an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship whether contractual or not [sec.7(1)].A non-contractual legal relationship, for example, may arise from a tort.
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Essentials of arbitration agreement

It must be in writing[sec.7(3)] It must have all the essential elements of a valid contract It must be to refer a dispute, present or future, between the parties to arbitration. It may be in form of an arbitration clause in a contract or in form of a separate agreement.[sec.7(2)].
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ADVANTAGES OF ARBITRATION

Avoidance of publicity, for proceeding are held in private Simplicity of procedure, as proceeding are held more informally. Reduction of expenses in most cases. Saving of time, as proceeding are quicker than a trial in a court. Social efficacy, the award of the arbitrator being the decision by the consent of parties. Avoidance of delay and uncertainty involved in appeals.
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 Appointment of person having the required technical qualification as arbitrator, should the matter be of technical nature. Impartiality in presenting facts and figures, knowing that trade competitors are not present to gain knowledge to the detriment of the person giving the evidence.

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DISADVANTAGES OF ARBITRATION
The arbitrator may be incompetent or biased Injustice may result from the informality of the procedure.

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Who can refer?

The arbitration agreement is a contract therefore the parties must be competent to enter into a contract so that they can bound by the award of arbitrator. These are followings Minor Manager of joint Hindu family Agents Atomies and counsels Persons jointly interested
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partner Trustee insolvent

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Composition of Arbitral Tribunal

Number of Arbitrators[sec.10] Parties are free determine it, but if they fail then tribunal shall consist of a sole arbitrator. Appointment of arbitrator[sec.11] Ground for challenge[sec.12] An arbitrator may be challenged only ifCircumstance exit that give rise to justifiable doubts as to his independence or

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 Challenge procedure[sec.13] Here again parties are free to agree on a procedure for challenging an arbitrator, if not success then arbitral tribunal shall continue the proceeding. Failure or impossibility to act[sec.14] Termination of mandate means authorization to act given to an arbitrator Substitution of arbitrator[sec.15] A substitute arbitrator shall be appointed according to the rules that were applicable to appointment of the arbitrator being replaced
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CONDUCT OF ARBITRAL PROCEEDINGS

EQUAL TREATMENT OF PARTIES (Sec. 18)
The parties shall be treated with equality and each party shall be given a full opportunity to present his case.

Determination Of Rules Of Procedures (Sec. 19)

The arbitral tribunal shall not be bound by the code of civil procedure, 1980 or the Indian Evidence Act 1972.This power of the arbitral tribunal includes the power to determine the admissibility ,relevance , materiality and weight of any evidence.

Place Of Arbitration (Sec. 20)

The parties are free to agree on the place of arbitration .The place of arbitration shall be determined by the arbitral tribunal . It has also the power , unless otherwise agreed by parties , to meet at any place it considers appropriate for consultation among its members, for hearing witnesses, experts or the parties or for inspection of documents , goods 16 or other property.

Commencement Of Arbitral Proceedings

Unless otherwise agreed by the parties , the arbitral proceedings in respect of a particular dispute commence on the date on which a request for that dispute to be referred to arbitration is received by the respondent.

Language(Sec. 22)
The parties are free to agree upon the language or languages to be used. Failing an agreement , the arbitral tribunal shall determine the languages to be used in proceedings.

Statement Of Defense(Sec.23)
The claimant shall state1.The facts supporting his claim 2.The points at issue 3.The relief or remedy sought The respondent shall also state his defense in respect of the above particulars.

Hearings and Written Procedures(Sec. 24)

The arbitral tribunal decides whether to hold oral hearings for the presentation of evidence or for oral arguments , whether the proceedings shall be conducted on the basis of documents and other materials.
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Default Of A Party (Sec. 25)

Unless otherwise agreed by the parties , where , without showing sufficient cause,1.The claimant fails to communicate his statement of claim 2.The respondent fails to communicate his statement of defense 3.A party fails to appear at an oral hearing or to produce documentary evidence

Experts Appointed By Arbitral Tribunal (Sec. 26)

Arbitral Tribunal may appoint one or more experts to report to it on specific issues to be determined by the arbitral tribunal

Court Assistance In Taking Evidence (Sec. 27)

The arbitral tribunal , or a party with the approval of the arbitral tribunal may apply to the court for assistance in taking evidence.

Rules Applicable To Substance Of Dispute (Sec. 28)

The arbitral tribunal shall decide the dispute submitted to arbitration in accordance with the substantive law for the time being in force in India.
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Decision Making By Panel Of Arbitrators (Sec. 29)

Unless otherwise agreed by the parties , in arbitral proceedings with more than one arbitrator , any decision of the arbitral tribunal shall be made by a majority of all its members.

Settlement (Sec. 30)

With the agreement of the parties , use mediation, conciliation, or other procedures at any time during the arbitral proceedings to encourage settlement.

Termination Of Proceedings (Sec. 32)

The arbitral proceedings shall be terminated by the final arbitral award or by an order of the arbitral tribunal where1.The parties agree on the termination of the proceedings 2.The arbitral tribunal finds that the continuation of the proceedings has for any other reason become unnecessary or impossible 3.The claimant withdraws hi claims, unless the respondent objects to the order and the tribunal recognizes a legitimate interest on his part in obtaining a final settlement of the dispute
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AWARD
Award means an arbitral award. Its a final judgment of the arbitral tribunal on all matters referred to it.

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ESSENTIALS OF A VALID AWARD

It must be made in writing. It must follow the agreement. It must be final & give a decision on all matters referred. It must be certain. It must be dated & signed. It must be legal.
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FORM AND CONTENTS OF ARBITRAL AWARD

Must be made in writing & duly signed(Sec.31(1)). The signatures of all the members of tribunal shall be sufficient(Sec.31(2)). Reasons for award(Sec.31(3). Date & place of arbitration(Sec.31(4)). Delivery of signed copy(Sec.31(5)).
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Make an interim award(Sec.31(6)). interest(Sec.31(7)).

The Costs of an arbitration shall be fixed by the arbitral tribunal(Sec.31(8)).

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FINALITY OF ARBITRAL AWARDS (Sec.35)

An arbitral award shall be final & binding on the parties and persons claiming under them respectively. CORRECTION INTERPRETATION SETTING ASIDE OF AN AWARD(Sec.34)

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CORRECTION AND INTERPRETATION OF AWARD;

Within 30 days from the receipt of arbitral award-

ADDITIONAL AWARD (Sec.33)

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SETTING ASIDE OF AN ARBITRAL AWARD (Sec.34)

Application:Grounds:-

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