Arbitration (short notes)

 Arbitration

The Arbitration and Conciliation Act, 1996 contains the law relating to arbitration. This Act came into force on January 25th 1996. This act gives the provisions for International Commercial arbitration, domestic arbitration and also enforcement of foreign Arbitral awards. It is based on the UN model law so as to equate with the law adopted by the United Nations Commission on International Trade Law (UNCITRAL).It is a statutory body set by parliament to settle the disputes arising among traders outside the court. The person who solves the issue of business people is called as Arbitrator.

How arbitration is conducted?

An arbitrator can be appointed

·       By the disputing parties themselves.

·       By an institution of arbitrators.

·       By the court.

There is no described qualification for arbitrators. Appointment of an arbitrator for an issue is completed when it is accepted. Even number of arbitrators shall not be appointed.

Rules:

1.    Equality

The person who is appointed to settle the disputed must be lawful. He must not be biased. Arbitrator must hear the opinions of both the disputing parties. With regards of the evidence he must conclude his decision. He must give equal time for the two parties in arguments.

2.    Procedural rules

Both the arbitrator and disputing parties should follow the arbitration proceedings defined by the parliament. They must not violate any rules. Arbitration must be conducted properly according to the norms given by government.

3.    Place

The place where arbitration is conducted may be fixed by the arbitrator / disputing parties.

4.    Language

The language spoken throughout the verdict may also fixed by either arbitrator or disputing parties. But the language which they selected must be known to all or a translator must be appointed.

5.    Claim and defence

The person who files for arbitration is called claimer. Claimer will write his claims and file his information to arbitrator, and a copy of the statement is send to defended asking him to reply the statement filed.

6.    Hearing

 Hearing will be in oral. But the event happened and matter discussed will be written in report for future examinations.

7.    Notice

Notice is the proceedings of arbitration given to each party before the commencement of arbitration.

8.    Communication

Communication of the entire proceeding will be filed by both the parties.

9.    Default

Default means when any one of the party is present and the other is absent for arbitration, then the arbitrator may has the power to terminate the case. And he can also pass order on favor of the present party. For example: if X is claimer and Y is defended, when X is present and Y is absent for hearing, and then they will pass the order and award in favor of X. Y is also asked to pay a compensation of upto Rs.5,00,000.

10.           Experts

The arbitrator may not be wise in everything, so he can appoint an authorized expert in particular field for certain examination, evidence collection, observation etc. Example of experts ( civil engineer, doctor, scientist, hacker, auditor)

11.           Court assistance

Arbitration always won’t stick with evidence, so they may fail to observe the truthfulness of statements. When the arbitrators are in confused status they can hire court assistance for certain purpose.

12.           Settlement

Arbitrator must encourage the parties in compromise. He can also give award to any one party whose statement is fair and correct. In most the cases, they try to compromise both the disputing parties.

13.           Termination

When the final award is given to correct person in a specified form, and signed by the arbitrator the arbitration comes to the conclusion.