ARBITRATION:

By
sathiya.k
II-MBA
Meaning of
ARBITRATION
The hearing and determination of a dispute
by an impartial referee agreed to by both
parties (often used to settle disputes between
labor and management)
A process in which a disagreement
between two or more parties is resolved by
impartial individuals, called arbitrators, in
order to avoid costly and lengthy litigation.
Advantages of Arbitration:

The parties and their attorneys can select

their arbitrator, (they cannot select their
judge).
Attorneys are present to help.
Arbitrators often work faster than a judge to
decide disputes.
Appointments are scheduled with the
arbitrator at the mutual convenience of all
concerned; no other cases compete for
attention.
 Arbitration meetings tend to be less formal
than court, so parties may feel more
comfortable and confident to speak.
The parties, not the court calendar, decide
when and how much time the arbitrator
spends on their case.
Disadvantages of Arbitration:

Parties pay by the hour for the arbitrators time.

The couple gives up their power to decide and
leaves their fate in the hands of a third party
stranger.
The arbitrators authority is determined by the
contract that the parties sign. Parties must
carefully review exactly what issues are to be
decided by the arbitrator.
The arbitrators settlement is final and generally
cannot be appealed.
voluntary arbitration
voluntary arbitration, the parties to the
dispute can and do themselves refer
voluntarily any dispute to arbitration before it
is referred for adjudication
QUALIFICATIONS

a. Minimum of 10 years of senior-level

business or professional experience or legal
practice.
b. Educational degree(s) and/or professional
license(s) appropriate to your field of
expertise.
c. Honors, awards and citations indicating
leadership in your field.
d. Training or experience in arbitration and/or
other forms of dispute resolution.
e. Membership in a professional
association(s).
f. Other relevant experience or
accomplishments (e.g. published articles).
The powers of an arbitrator :
1. To refer the matters of law or the award for
the opinion of the court.
2. To order for the specific performance of a
contract or to make an interim award.
3. To administer oaths to the parties and the
witness appearing before him and to regulate
the course of hearing.
4. To consider any or all evidence offered by
parties where the Arbitrator believes those
evidence are necessary for the settlement of
the dispute.
5. To put necessary interrogatories to the
relevant parties and to appoint experts for his
guidance in the question of a scientific or a
technical nature.
6. To continue the Arbitration hearing to a
subsequent date
Duties of an arbitrator
1. Arbitrator must act impartially
2. He has a duty to be physically and mentally
capable of conducting the Arbitration
proceeding.
3. The arbitrator must not receive any
evidence from one side in the absence of
other side.
4. An independent behavior is expected from
an arbitrator throughout the process.
5. Arbitrator has a duty to observe the rules of
evidence based on principles of natural
justice.
6. The arbitrator is entitled to precede ex-parte
if it is clear that the party to whom notice has
been given does not appear before him within
the reasonable time.
Procedure for investigation

Fair hearing which demands that an

opportunity should be given to both the
parties to be heard and cross- examined.
Principal of natural justice requires that a
partly should have due notice of proceedings
and it must know what are the issues involved
and what part it has to play
The party should be free to give any evidence
which is relevant to the enquiry and on which
it relies for its arguments. The evidence given
one party should be taken in the presence of
the other party so that the other party may
rebut and place counter evidence, if
necessary.
Submission of award:
The award is in line with the terms of reference
and that it does not go beyond its jurisdiction
It must be precise and definite, that is, it must
be clear , unambiguous and without any,
vagueness, and that it is not in any way
capable of being misunderstood .
It should be capable enforce or implemented in
other words, it should not contain directives or
provision which apparently seem impossible of
enforcement.
The award should contain a date or a specific
period for its implementation.
The award should not violate any provision of
any existing law or settlement legally arrived
at, or one which is binding on parties.
The award should contain sufficient
justification or reasons for the settlement
arrived at by the arbitrator.
THANK YOU