Arbitration (ADR)

 ADR (Alternative Dispute Resolution System)

            Dispute Resolution is a process of deciding a dispute or a conflict that has arisen between transacting parties. ADR is an alternative to the formal legal system and is also an alternative to litigation. ADR Procedures are usually less cost and more expeditions. ADR mechanism provides scientifically develop technic to Indian judiciary. Which helps in producing the burden on the courts. ADR provides various modes of settlements including,

• Arbitration
• Consolidation
• Mediation
• Negotiation and
• Lok Adalat

Arbitration:

Adjudicatory process in the nature of adversely proceeding where in the parties submit their disputes to a neutral third-party arbitrator for a decision. Arbitration is a contract-based form of binding dispute resolution. It is purely on the basis of parties agreement as if disputes arises it may be referred to arbitration. There are four requirements for arbitration,

• Arbitration agreement
• Dispute
• Reference to a third party for its determination
• An award by third party

 

Consolidation:

            Consolidation of multiple disputes into a single arbitration proceeding is considered progress with respect to the efficiency of the arbitration process. Consolidation is a procedural mechanism allowing for two or more claims to be united into one single procedures concerning all related parties and disputes.

Mediation:

            Mediation is a process in which the mediator and external person neutral to the dispute works with the parties to find a solution which as acceptable to all them. The basic motive of motivation of mediation is to provide the parties with an opportunity to negotiate, converse and explore options aided by a neutral third party to ex hostile determine to settlement is possible. Mediation is a negotiation carried out with the assistance with the third party.

Negotiation:

            It is a process of dispute resolution between parties to mutual understanding and country where there is no involvement of the third party. Negotiation is a contempt early form of dispute resolution. This is the part of ADR System of resolving disputes out of whole.

Lok Adalat:

            Lok Adalat is one of the alternative dispute resolution redressal mechanism, it is a forum where disputes and cases pending in the court of law or at prelitigation stage or settled or compromised amicably. The decision awarded is demit to deal a decree of a civil court and is final and binding on all parties. The nature of cases referred to Lok Adalat are,

• Any cases pending before any court.
• Any dispute which has not been brought before any court and is likely to the filed before the court.

Arbitration in short:

            Arbitration is a process of bringing business dispute before disinterest third party for resolution. The third party on arbitration hears the evidence brought by both sides and makes a decision to arbitrate a matter is to bring it before an arbitrator. Arbitrator is used in place of litigation in the hope of settling a dispute without the cost and time of going to court at the end of arbitration process, the arbitrator made the decision, which was binding on both parties.

Principle Characteristics of Arbitration:

• Arbitration is consensual.
• Parties choose the arbitrators.
• Arbitration is neutral.
• Decision of the arbitral tribunal is final and binding on parties and easy to enforce.

There are some Arbitral disputes,

• Insurance
• Contract (Including employment contracts)
• Property
• Business/Partnership disputes
• Family disputes (Except divorce matters)
• Construction
• Commercial recoveries

Types of Arbitration:

Domestic Arbitration:

            Both the parties must be Indians and the conflict has to be decided accordance with the substantive law of India. The term domestic arbitration has not defined in the arbitration and conciliation act of 1996.

International Arbitration:

            When arbitration happens within India or outside India containing elements which are foreign in origin in relation to the parties or the subject of the dispute, it is called international arbitration. The contract in the cases is related to respective parties. This law applicable can be Indian and foreign according to the circumstances.

International Commercial Arbitration:

            International arbitration is considered to be commercial if it related to disputes arising out of legal relationships irrespective of their contractual nature and are considered as commercial under the law in force in India.

Conclusion:

            The arbitration agreement by the parties on submitting the disputes to the arbitration center shall mean the agreement of the parties with these rules (with all amendments, in effect at the movement of submission of the request for arbitration, prior to the arbitral proceedings), which is considered to be an integral part of the arbitration agreement.

By, 

Ms. Thaslim. A
athaslim3@gmail.com