Understanding Arbitration
Arbitration is form of ADR, whereby a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute. In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court. Arbitration is a proceeding in which a dispute is resolved by an impartial adjudicator whose decision the parties to the dispute have agreed, or legislation has decreed, will be final and binding. There are limited rights of review and appeal of arbitration awards. The essential features of Arbitration are:
Arbitration is Consensual
Arbitration is neutral
Arbitration is a confidential process
Parties choose their arbitrator(s)
Arbitration is faster than litigation
The award of the arbitrator is final and easy to enforce
IAAC provides for both domestic as well as international arbitration. The parties can choose their venue of arbitration and the arbitration shall be held with the aid of VIA at such a place. The arbitration shall be held by retired judges, persons with expertise in particular matters, senior advocates and advocates, as per the needs of the parties.
How it works?
The process of arbitration begins with the arising of the dispute. Once the dispute arises, the following steps in the arbitration process are followed:
The Arbitration and Conciliation Act states that an award may be enforced as if it were an Indian court decree. And, in case of non compliance the parties can proceed with an action for enforcement or challenge the award.
