Arbitration is a quasi-judicial proceeding, wherein the parties in dispute appoint an arbitrator by agreement to adjudicate the said dispute and to that extent it differs from court proceedings.
The key objectives of the Arbitration and Conciliation is:
- Reducing Court intervention;
- Providing for speedy disposal of the disputes;
- Amicable, swift and cost-efficient settlement of disputes;
- Ensuring that arbitration proceedings are conducted in a just, fair and effective manner;
- Comprehensively dealing with international commercial arbitration and conciliation as also domestic arbitration and conciliation;
- Facilitating arbitrator to resort to mediation, conciliation or other procedure during the arbitral proceedings to encourage settlement of disputes;
- Provide that every arbitral award is enforced in the same manner as if it were a decree of the court.
The Aegis Legal is the pioneer in the Arbitration practice in India and has been engaged in various top-notch arbitration cases across the country. Aegis Legal has separate team for Arbitration Practice including domestic arbitration & International Arbitration, under the leadership of Mr A K Singh renowned Arbitration lawyer in India.
Arbitration is a procedure in which 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 adjudicatory, as opposed to advisory, because of the fact that the arbitrator (usually a retired judge or attorney) renders a decision at the end of an arbitration hearing, and that decision is final and binding, subject only to a very limited court review. Arbitration is sometimes referred to as "non-binding" if the parties agree to make it so, but that is really a misnomer.
Arbitration proceedings are specially made to lighten up the burden of the traditional judicial system. Moreover, it saves time and resources of the included parties as well as of the courts.
In commercial dispute between the parties if the parties decide to resolve the disagreement between them by the process of the arbitration then accordingly the arbitral tribunal is set up. This tribunal consists of one or two arbitrators as per the requirement of each matter and those arbitrators resolve and adjudicate the dispute and then ultimately grant arbitral award. The arrangements of the composition of the arbitrators are laid down under section 10 of the Arbitration and Conciliation Act, 1996.
Arbitration is often the first choice of the parties for quick redressal of their disagreements. It helps both the parties to get a way out of the lengthy process of court litigation. Section 7 of the Arbitration and Conciliation Act, 1996 outlines the arbitration agreement. It defines the arbitration agreement between the parties to submit certain disputes, whether they have already arisen of may arise in the later stage between the parties.
The Arbitration and Conciliation Act provides a set of powers to the arbitrators which are as follows:
- Power to rule on jurisdiction and validity of the arbitration agreement.
- Administer an oath to parties and witnesses involved in the arbitration.
- Pas interim measures under section 17 of the Act.
- Decide on the admissibility and influence of the evidence presented.
- Power to proceed ex-parte under section 25 of the Act.
- Power to appoint experts under section 26 of the Act.
- Support settlement even through other methods such as conciliation are available.
- Deliver a reasoned and just award and a duty to interrupt or correct the award under section 33 of the Act.
The arbitrators, in exercising these powers, are required to adhere to the principles of natural justice. They must give both parties notice of hearing and equal opportunity to present their respective cases. The awards should be based purely on material and evidences provided by both the parties.
Different forms of arbitration can be broadly categorized based on jurisdiction and procedural approaches. Different types of arbitration are domestic and international arbitration.
Domestic arbitration occurs when both parties involved in the dispute are Indian, and the arbitration proceedings take place in India. While the Arbitration and Conciliation Act, 1996, does not explicitly define domestic arbitration, it is implicitly governed by Section 2(2).
Key characteristics include:
- The proceedings are conducted within Indian Territory.
- Indian procedural and substantive laws apply.
- Parties agree to resolve disputes arising within India.
Domestic arbitration is commonly used for resolving disputes in business contracts, employment agreements, and property disputes within India.
International arbitration involves disputes that transcend national boundaries.
This type of arbitration occurs outside the domestic territory due to:
- A contractual clause specifying arbitration in a foreign country.
- Foreign elements in the dispute, such as parties from different nations or transactions conducted internationally.
The applicable law—Indian or foreign—depends on the circumstances leading to the arbitration. International arbitration provides flexibility for parties to choose a neutral venue and governing laws, making it ideal for cross-border transactions and multinational agreements.
International Commercial Arbitration (ICA)
According to Section 2(1) (f) of the Arbitration and Conciliation Act, International Commercial Arbitration arises from a dispute involving a commercial contract where at least one party is:
- A foreign national or entity.
- Residing or headquartered in a foreign country.
- Managed by foreign individuals.
Under Indian law, ICA applies when:
- The arbitration takes place in India.
- At least one party is a foreign entity.
The Aegis Legal has placed itself among one of the best arbitration law firm- lawyers in Delhi India. Aegis legal is the pioneer in the Arbitration practice in India and has been engaged in various top-notch arbitration cases across the country. Aegis Legal has separate team for Arbitration Practice including domestic arbitration & International Arbitration, under the leadership of Mr A K Singh renowned Arbitration lawyer in India.
