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Arbitration Laws in India

Courtesy/By: Harshita Kumari  |  07 May 2023     Views:8628

Arbitration is a form of dispute resolution that involves the use of an independent third party, known as an arbitrator, to settle disputes between two or more parties. Arbitration has become increasingly popular in India to resolve disputes due to its speed, confidentiality, and flexibility. In this article, we will explore the arbitration laws in India and how they work.

Arbitration Laws in India:

The legal framework for arbitration in India is governed by the Arbitration and Conciliation Act, of 1996 (the "Act"). The Act was enacted to provide a legal framework for the settlement of disputes through arbitration and promote international commercial arbitration and alternative dispute resolution.

The Act provides for two types of arbitration in India: domestic arbitration and international commercial arbitration. Domestic arbitration refers to arbitration between parties who are both based in India, while international commercial arbitration refers to arbitration between parties where at least one of the parties is based outside India.

Arbitration agreements:

An arbitration agreement is an agreement between two or more parties to submit their disputes to arbitration. The agreement can be in the form of a separate agreement or a clause in a contract. The Act provides that any dispute that arises between the parties to an arbitration agreement can be referred to arbitration.

Arbitration proceedings:

The arbitration proceedings in India are conducted by the rules set out in the Act. The parties can agree on the procedure to be followed in the arbitration proceedings. In the absence of such an agreement, the arbitrator can conduct the proceedings in a manner that he deems appropriate.

The Act also provides for the appointment of arbitrators. If the parties fail to agree on an arbitrator's appointment, the court can make the appointment. The Act also provides for the grounds for challenging an arbitrator's appointment.

The arbitrator's award:

Once the arbitration proceedings are completed, the arbitrator will make an award. The award is binding on the parties and can be enforced through a court of law. The Act also provides for the setting aside of an award if it is found to be in contravention of the public policy of India.

Conclusion:

Arbitration is an important alternative dispute resolution mechanism in India. The Arbitration and Conciliation Act, of 1996 provides a legal framework for the settlement of disputes through arbitration and has contributed to the growth of arbitration in India. The Act has been amended from time to time to keep up with the changing needs of the business community and to promote India as a hub for international commercial arbitration. With its speed, confidentiality, and flexibility, arbitration is a viable alternative to litigation and should be considered by parties involved in commercial disputes.


Courtesy/By: Harshita Kumari  |  07 May 2023     Views:8628

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