Arbitration in India-by Vedant Karia at LexCliq

 Arbitration in India-by Vedant Karia at LexCliq

Arbitration is a good alternative to litigation. Parties pick a forum other than a court of law to resolve disputes. The aim of arbitration is to relieve the burden of the court and give a quick resolution for the parties. Nani Palkhivala noted the many benefits of arbitration.

“If the law is to be an efficient and useful servant of a changing society, it must be modified and parts of it replaced,” stated Nani Palkhiwala. A court of law is like a crumbling fortress. When repairing it no longer costs, it is advisable to build a new, compact home with modern lines.

Arbitration is a more efficient forum than the courts. Arbitration cases are resolved in a year, however, court cases can take years to resolve depending on the complexity of the case.

Arbitration is often favored by the parties since it gives them control over the proceedings.

Third-party dispute resolution is part of the ancient Indian ethos. However, the use of the judiciary to resolve conflicts dates back to the British colonial era in India. Despite our country's long tradition of alternative conflict resolution, the Indian Arbitration Act, 1940 was the first to formally recognize domestic arbitration.

Dr. V. Nageswara Rao, retired Osmania University law professor, delivered an overview of conciliation proceedings under the Arbitration and Conciliation Act, 1996. He added that referring disagreements to a third party has been part of the Indian “volksgeist” or body of practices since ancient times.

There are two sorts of arbitration proceedings. Arbitration between two Indians. a firm, or an organization, or a collection of individuals whose central management and control are exerted in any country other than India, or a foreign government.

 Lok Adalat

The Legal Services Authority Act, 1987 governs Lok Adalat. AKA the people's court. A Lok Adalat seeks to reach a compromise between the parties. The Lok Adalat has no court fees and no rigorous procedural procedures. Lok Adalat is usually presided over by retired judges or attorneys who make decisions. The parties cannot challenge the Lok Adalat settlement.

Arbitration

The Arbitration & Conciliation Act, 1996 governs arbitration. Parties to the arbitration agreement and the court have the power to appoint the arbitral tribunal. Part 1 and Part II of the Arbitration & Conciliation Act, 1996 apply to the arbitration. The arbitral award will be binding on both parties and enforceable in court, much like a court decree.

Conciliation

Parties send their disagreements to a conciliator for resolution. The conciliator is chosen by the parties or by the court. The Arbitration & Conciliation Act, 1996, Part III, governs conciliation. During conciliation, the conciliator is not bound by the Code of Civil Procedure or the Evidence Act. The conciliator assists parties in reaching an ultimate settlement by drafting settlement agreements.

Mediation

In mediation, the mediator must identify the issues between the parties, clarify any ambiguities, and assist the parties in settling. The mediator's role is to lead the settlement process rather than impose his views on the parties. The Mediation Rules, 2009 govern mediation. The mediator is chosen by the parties or by the court. Unlike a conciliator or an arbitrator, a mediator is more passive in the resolution of a conflict.

A court of law, like an old fortress, is continuously in need of repair. When repairing it no longer costs, it is advisable to build a new, compact home with modern lines. The law of arbitration is always growing and improving to give individuals an effective body to resolve their disputes quickly and efficiently while relieving the judiciary of its responsibility.

Vedant Karia