KNC501/KNC601 Constitution of India, Law and Engineering

Chapter 10: Arbitration: As an alternative to resolving disputes in the normal courts

Unit 1

Unit 2

Unit 3

Unit 4

Unit 5

Appendix

Arbitration

What is Arbitration?

Arbitration is a form of Alternative Dispute Resolution (ADR)

  • The concept of arbitration means resolution of disputes between the parties at the earliest point of time without getting into the procedural technicalities associated with the functioning of a civil court.
  • The dictionary meaning of Arbitration is hearing and determining a dispute between the parties by a person or persons chosen by the parties.
  • In an English judgement named Collins v. Collins, 1858 28 LJ Ch 184: 53 ER 916 the court gave a wide definition to the concept of Arbitration which reads as follows:
    An arbitration is a reference to the decisions of one or more persons either with or without an umpire, a particular matter in difference between the parties. It was further observed by the court that proceedings are structured for dispute resolution wherein executives of the parties to the dispute meets in presence of a neutral advisor and on hearing both the sides and considering the facts and merits of the dispute, an attempt is made for voluntary settlement.

 

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.

OR

Arbitration is a private process where disputing parties agree that one or several individuals can make a decision about the dispute after receiving evidence and hearing arguments.

When arbitration is binding, the decision is final, can be enforced by a court, and can only be appealed on very narrow grounds.

Use

Cost- Arbitration is the most formal alternative to litigation. In this process, the disputing parties present their case to a neutral third party, who renders a decision. Arbitration is widely used to resolve disputes in both the private and public sector.

Is arbitration is better than court:

Arbitration often is less costly than court litigation, primarily due to the compressed schedule for the completion of discovery and trial.

The judge is assigned by the court without input from the parties. Thus, arbitration affords the parties the ability to select the decider, whereas court litigation does not.

Author – Dilip Kumar Rawat

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