Gist:

Arbitration is a form of Alternative Dispute Resolution. It is a method to resolve disputes outside the courts It is a less formal process than a court procedure and it is relatively cheaper as well. An Arbitral Award has the same binding effect and it is enforced under the Code of Civil Procedure in the same manner as a decree of a Court.

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INTRODUCTION:

Since arbitration is cost effective and a faster way of settling disputes and has become a preferred alternative to the courts. Hence, it is necessary for all entrepreneurs, managers, students, academicians, in addition to judges and lawyers to understand it.

REGISTERING FOR ARBITRATION THROUGH INDIAN COUNCIL OF ARBITRATION:

A written application to the registrar, requesting for arbitration, has to be initiated by the parties. As deemed fit by the Registrar, they may accept or may reject the request on reasonable grounds. Such grounds will be subject to judicial scrutiny.

Additional requests with the application request:

• The full addresses and names and of the parties to the dispute.
• A Statement of the claim of the case and necessary facts supporting the claim points at issue and relief or remedies sought with other important details of the claimant’s case.
• The original or certified copies of the arbitration agreement, any contract or agreement out of or in connection with which the dispute has arisen and such other documents and information relevant or relied upon.
• The registration fee is INR 1000.
• If the arbitration has been ordered by the court then, a certified copy of the order of such court.

ARBITRATION AGREEMENT:

The Act renders definition of Arbitration Agreement (Section 7). The essential ingredients of an arbitration agreement are as under:

1. Agreement by the parties to submit to arbitration all or certain disputes
2. Dispute must have arisen in respect of a defined legal relationship (may or may not be contractual)
3. Agreement can be

 (i) In form of arbitration clause or

 (ii) A separate agreement

• Agreement must be in writing
• Signed by both the parties

ARBITRAL AWARD:

According to the Act, an Arbitral Award:

1. Shall be in writing;
2. Shall be signed by members of Arbitral Tribunal;
3. Shall state the reasons on which the Award is based;
4. Date and place of arbitration;

Additional Award- 

The Act also makes provision for Additional Award;

It states that unless otherwise agreed by the Parties, a party with notice to the other party may request the Tribunal for passing an Additional Award as to the claims presented in the Arbitral proceedings but erroneously omitted from the Arbitral Award.

ENFORCEMENT OF ARBITRAL AWARD:

Section 36 of the Act provides that if the time for making application to set aside an award under Section 34 has expired or the application has been refused then the Award shall be enforced under the Code of Civil Procedure in the same manner as a decree of a Court.

SETTING ASIDE OF ARBITRAL AWARD:

Section 34 of the Act provides for setting aside of an Arbitral Award by the Court. The Act provides a comprehensive list of circumstances under which an Arbitral Award can be set aside by the Court and they are:

1. The party is under some incapacity;
2. Arbitration agreement between the parties is not valid;
3. Lack of notice of appointment of arbitrator or of holding of arbitral proceeding;
4. Arbitral award deals with a dispute not contemplated by or not falling within the terms of the submission to arbitration or it contains decisions on matters beyond the scope of submission of arbitration;
5. Composition of arbitral tribunal or arbitral procedure was not in accordance with the agreement of the parties;
6. The Court finds that the subject matter of the dispute is not capable of settlement by arbitration under the Law;
7. The Award is in conflict with the Public Policy