All about arbitration by Nandani

 Arbitration

In this modern era , where time is considered money , corporate people must  inculcate the policy of ADR into their system as it is a limpid , remote and quick  process, they  don’t have to get involved in long judicial procedure, and their conflict can be sorted by the mutual understanding  their idea of conflict doesn’t not revolve in punishing the other party for the error from their side but to get a crystalline outcome for the same so that the work can continue with the same pace ,without any procrastination
ADR has different modes out of which one of it is Arbitration.

Arbitration – it is a process of solving dispute outside the court with the help of third party, it is basically a predetermined clause or agreement agreed upon by the parties before entering into any contract of agreement .
for example – A and B while entering into a partnership contract can state a clause that in case of any dispute in future , arbitration should be considered as a middle way to resolve the dispute and can also enter to a separate agreement for the same
the arbitrator(the third party) is decided by the mutual consent of both the parties , one or more person can be appointed as an arbitrator but it has to be in odd nos.
It is also known as arbitral tribunal .
Points that has to be kept in mind while stating a clause in the contract or a separate agreement are
1 - the geographical position of jurisdiction
2 - the no. of arbitrator
3 - the name of arbitrator
Also, in case a party is not satisfied by the arbitral award declared by the arbitrator , it can further appeal In the court , court what is within the limits of geographical position decided by the parties
Arbitration merely does not limit the
the final settlement decided by the arbitator is known as arbitral award.
In case of absence in mentioning of arbitrator while listing the clause or in case of failure of deciding the arbitrator only with the consent of both the parties ,an arbitrator can be decided by the court.
The arbitrator , can be of any nation as it is valid internationally.Mere existence of arbitration clause does not bar jurisdiction of civil courts, it means even if the contract has arbitration clause , the respondent if not satisfied with the award by arbitrator  can approach the court.
the arbitrator in his part , needs to give his consent to act as an arbitrator , should be impartial towards the party.
Those parties who have appointed him for dispute resolution they will be bound by the decision.
The arbitrators has to have no interest with both the parties , in a sense , he cannot be an ex employee or say cannot be related to the parties in any way as the arbitrator need to be impartial, in cases after the appointment of the arbitration , it itself reveals that he/she hold a situation of interest , the parties can decide mutually to consider the arbitrator or not , but in case he conceals his interest , he would immediately be disqualified from the position of arbitrator.
Dispute resolution with the help of arbitrator is an rational process, both the parties , claimant and respondant would be given a fair chance to be heard and present their cases in front of the arbitrator , the final decision would be made by the arbitrator which is called arbitral award.