Monday, 24 January 2022

Kinds of Arbitration

               KINDS OF ARBITRATION 

In this article we can see about the different kinds of Arbitration and some of the cases decided there. For the past two articles I am researching about Arbitration and I found that it is very interesting and willing to continue on that. Generally there are four basic kinds of Arbitration, they are Ad hoc or Temporary arbitration, Business or Contractual , Institutional arbitration and Legal Arbitration. 

Ad hoc Arbitration: 

First Ad hoc arbitration, this is the common type of arbitration in India. This means that the parties discuss and decide to appoint an Arbitrator who is a third party to settle  the problems between them. This will only require minimum costs and money. Here there is no difficult procedures are followed as such in the Court campus. The also says that the parties or the tribunal willing to get opinion or assistance from the other parties or institutions. The parties can decide the number of Arbitrators that should be appointed. If they are unable to do that then one arbitrator would be part of the tribunal after being appointed by the Chief Justice of the Supreme Court or the Chief Justice of the High Court. 

Business or Contractual Arbitration: 

Now there is so much increase in the business activities in India, there are also millions of start up that has been recently development. There will be definitely some legal problems for most of them. They all can’t reach the Court and get an immediate solution. Hence they will automatically end up in Arbitration. It has become necessary to settle the disputes arising out of business dealings quickly with least expenses and in confidential manner. 

Institutional Arbitration: 

Institutional Arbitration is a kind that is usually dealt in big industries or the places where huge money transactions are made. Here in this types the parties entering in the agreement can specify in their arbitrational as mentioned above, choose their arbitrational institution and these arbitrational institutions themselves may be the arbitrators or appoint arbitrators on their behalf. More than one arbitrators can be appointed by the institution if the parties wish and parties cannot appoint their own arbitrators. They can select from only the list provided by this arbitrational institution. 

Statutory or Legal Arbitrations: 

Various statutes and enactments provide for compulsory Arbitration. Which means the arbitration procedures in these cases are mandatory and they cannot go through the court proceedings. Some of them are Indian Trust Act, Enactments relating to Life and General Insurance, Defence of India Act, Railway Act etc., The choice of the arbitrators is left to the disputing parties and since Arbitration is compulsory, the disputing parties have to come to unanimity in the choice of Arbitrators. 

Amarchand Vs. Ambika Jute Mills AIR 1966, SC 1036

In this case, Supreme Court held that Arbitration means judging of the dispute between parties or groups of people by third party who is not involved in dispute and whose decisions are binding on both the parties. 

Arbitration nowadays is considered as an important alternative redressal process and as legal professionals we have a great future in it. 

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