For Arbitration
For Arbitration
For Arbitration
If one of the party does not appoint an arbitrator within 30 days, or if two appointed
arbitrators do not appoint third arbitrator within 30 days, the party can request Chief
Justice to appoint an arbitrator. [section 11(4)].
The Chief Justice can authorise any person or institution to appoint an arbitrator. [Some
High Courts have authorised District Judge to appoint an arbitrator].
The Arbitral Tribunal should treat the parties equally and each party should be
given full opportunity to present his case. [section 18].
The Arbitral Tribunal is not bound by Code of Civil Procedure, 1908 or Indian
Evidence Act, 1872. [section 19(1)].
Law of limitation applicable –
Limitation Act, 1963 is applicable. For this purpose, date on which the
aggrieved party requests other party to refer the matter to arbitration shall be
considered.
If on that date, the claim is barred under Limitation Act, the arbitration cannot
continue. [section 43(2)].
However, if both parties and the Arbitral Tribunal agree, the settlement
can be recorded in the form of an arbitral award on agreed terms. Such
Arbitral Award shall have the same force as any other Arbitral Award.
[section 30].
Arbitral Award –
Decision of Arbitral Tribunal is termed as 'Arbitral Award'. Arbitrator can
decide the dispute ex aequo et bono (In justice and in good faith) if both
the parties expressly authorise him to do so. [section 28(2)].
It must state the reasons for the award unless the parties have agreed
that no reason for the award is to be given. [section 31(3)].
If the parties refuse to pay the costs, the Arbitral Tribunal may refuse to
deliver its award. In such case, any party can approach Court.
The Court will ask for deposit from the parties and on such deposit, the
award will be delivered by the Tribunal. Then Court will decide the costs
of arbitration and shall pay the same to Arbitrators. Balance, if any, will be
refunded to the party. [section 39].
Conciliation - Part III of the Act makes provision for conciliation
proceedings. Conciliation is the amicable settlement of disputes between
the parties, with the help of a conciliator.
In conciliation proceedings, there is no agreement for arbitration. In fact,
conciliation can be done even if there is arbitration agreement.
The conciliator only brings parties together and tries to solve the dispute
using his good offices. The conciliator has no authority to give any award.
He only helps parties in arriving at a mutually accepted settlement. After
such agreement they may draw and sign a written settlement agreement.
It will be signed by the conciliator.
(a) New York convention award (made after 11th October, 1960)
(b) Geneva convention award - made after 28th July, 1924, but before the concerned
Government signed the New York convention. Since most of the countries have signed
New York convention, normally, New York convention awards are enforceable in India.
Party which intends to enforce a foreign award has to produce the arbitral award and
agreement of arbitration [original or its certified copy] to the district court having
jurisdiction over the subject matter of the award. [section47].
the foreign award is enforceable through court as if it is a decree of the court. [section
49].
If the court declines to enforce the arbitral award, appeal can be made to the court
where appeal normally lies from the district court. However, no further appeal can be
made (except appeal to Supreme Court) - (section 50).