Escolar Documentos
Profissional Documentos
Cultura Documentos
Act, 1996.
By
Prof. Neha Sajnani
Alternate Dispute Resolution
• It saves time and expenses. It also avoids unnecessary technicalities and at the
same time ensures “substantial justice within limits of the law”.
• As per Section 2 (a) of the Arbitration and Conciliation Act 1996, “Arbitration”
means any arbitration, whether or not administered by an arbitrator appointed
specially for the settlement of a particular dispute or by some permanent
arbitral institution.
Arbitration Agreement
• Section 7 states, “Arbitration agreement means an agreement by the parties to
submit to arbitration all or certain disputes, which have arisen or which may
arise between them, in respect of a defined legal relationship, whether
contractual or not.”
• The Supreme Court in Hindustan Petroleum Corporation Ltd. V M/s Pink City
Midway Petroleum, has held that the jurisdiction of Civil Court is barred after
an application under Section 8 of the Act is made for arbitration.
Matters which may and which cannot be referred
to Arbitration (Section 9 of the Civil Procedure
Code, 1908
• All matters in dispute between parties relating to private rights or
obligations, which Civil Courts may take cognizance of, may be
referred to arbitration.
• However, a matter shall not be referred to arbitration if it is
forbidden by a Statute or is opposed to public policy.
Matters which may be referred to Arbitration
• It may be noted that a plea that the Arbitral Tribunal does not have jurisdiction
shall be raised not later than the submission of the statement of defense.
• However, a party shall not be precluded from raising such a plea merely
because he has appointed, or participated in the appointment of an arbitrator
Procedure for Arbitral/Arbitration Proceedings
• S.23 to S.27 of The Arbitration & Conciliation Act, 1996 lays down the procedure to
be followed in arbitral/arbitration proceedings. The procedure involves the following
steps
1. Statements of Claim & Defence: The claimant has to submit his claim, consisting of
facts supporting the claim, points at issue and the relief or remedy sought – within
the period agreed by the parties, or determined by the Arbitral Tribunal.
Likewise, the respondent has to state the defence in respect of the claims of the
claimant
2. Hearing & Written Proceedings: It is open to parties to agree for holding oral
hearings for presentation of evidence and for oral arguments, or, alternatively, for
conducting proceedings on the basis of documents such as affidavits.
In the absence of any such agreement, a decision in this regard may be taken by
the Arbitral Tribunal
• If the parties reach to a settlement, the Arbitral Award will be given by the
Arbitral Tribunal. The Arbitral Award, on agreed terms, will have the same
status and effect as any other Arbitral Award on the merits of the dispute.
Award
• Award means an arbitral award. It is a final judgement of the
arbitral tribunal on all matters referred to it. It is in fact a final
adjudication by a tribunal of the parties own choice. It is binding in
the same manner as the decision of a Court.
• An arbitral award includes an interim award.
• Essentials of a valid award:
1. It must be made in writing. It may be in such language as agreed
upon.
2. It must follow the agreement and not purport to decide matters
not within the agreement.
3. It must be final and give a decision on all matters referred.
4. It must be certain i.e. it should be clear and possible to perform.
Contd………
• 5. It must be dated and signed by the arbitrators and in the presence of parties.
• 6. It must be legal and must be in conformity with the powers contained in the
reference.
• Further, appeal shall also lie to the Competent Courts only against the following
orders of the Court: