ARBITRATION

IN INDIAN
CONTEXT

Industrial Relations

CONTENTS

Meaning of Arbitration
Advantages of Arbitration
Disadvantages of Arbitration
Types of Arbitration
Reference to Arbitration
Qualification of Arbitrators
National Arbitration Promotion Board
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MEANING
Arbitration is the means of securing an award
on a conflict issue by reference to a third
party. It is a process in which a dispute is
submitted to an impartial outsider who
makes a decision which is usually binding
on both the parties.

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ADVANTAGES

Settlement of the Dispute

Flexible
Informal and less expensive
Builds healthy relations
Arbitrators acquire familiarity
Relatively expeditious

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DISADVANTAGES

Deprives right to go on strike

Judgment is arbitrary and ill-advised
Less dependence on negotiation
Delay to arrive at award
Frequent arbitration is not a sign of healthy
relations
Arbitrators are often biased
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TYPES
There are mainly two types of arbitration :
1. Voluntary arbitration
2. Compulsory arbitration

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VOLUNTARY ARBITRATION

Meaning
Essential Elements :
1. Voluntary submission of disputes to an
arbitrator
2. Subsequent attendance of witnesses and
investigation
3. Specifically needed for disputes arising
under agreements
4. Enforcement of award may not be necessary
and binding

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COMPULSORY ARBITRATION

Meaning
Parties are forced to arbitration when :
- Fail to arrive at settlement by voluntary method.
- Industries of strategic importance are involved.

- When there is a national emergency which requires that the wheels

of production should not be obstructed by frequent work stoppages.
- Country is passing through grave economic crises.
- There is a grave public dissatisfaction with the existing industrial
relation.

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REFERENCE TO ARBITRATION

An industrial disputes exists or is apprehended in an establishment.

The employer and the workers agree in writing to refer the dispute to
arbitration.

The agreement is in the prescribed form and signed by the parties to

it in the prescribed manner.

Agreement must be accompanied by the consent of the arbitrator and

arbitrators.

Dispute must be referred to arbitration at any time before it is referred

to labor court or tribunal or national tribunal.

Copy of agreement is forwarded to the Govt. and conciliation officer.

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QUALIFICATION OF
ARBITRATORS

Understand complexities
Knowledgeable
High integrity
Maintain harmonious relations
Acceptable

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NATIONAL ARBITRATION
PROMOTION BOARD

Review the position periodically.

Examine the factors inhibiting a wider acceptance of this procedure

and suggest measures to make it popular.

Evolve principles, norms, and procedures for the guidance of

arbitrators and parties.

Compile and maintain up to date panels of suitable arbitrators for

different area and industries and to lay down their fees.

Advise parties to accept arbitration to resolve conflicts so that

litigation in courts may be avoided.

Look in to the causes for delay and expedite arbitration proceedings.

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