Arbitration in India

Arbitration in India

( Simply Explained )

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Arbitration Law in India is governed by the Arbitration and Conciliation Act, 1996 which has been amended from time to time and lastly amended by The Arbitration and Conciliation (Amendment) Act, 2019 No. 33 of 2019.  

Arbitration in India or we can also say Arbitration Cases in India are increasing and receiving more importance as compared to the conventional and traditional civil cases or suit being filed since ages by the Lawyers in India before the various courts of Law. As India is a progressing country and so there are several International Companies and Multinational Companies coming to India for their trade, business and commerce, therefore there are number of Commercial Contracts, Agreements, Merger & Acquisition, etc with several other Legal formalities being executed by these eminent companies herein the country.

Specifically, Arbitration in layman’s language or the dictionary meaning of the Arbitration is the use of an arbitrator to settle the dispute, if we go more simple we can say settlement of dispute through an arbitrator, one who is a third party and is not involved in the dispute and the settlement is done outside the court.

As per the Act the important provisions are contained in Part I & Part II.

PART – I of the Act accommodates the provisions for domestic and international commercial Arbitration in India.

PART – II of the Act accommodates the provisions for enforcement of foreign awards.

Advantages of Arbitration

Ø  Proceedings are done outside court of law.

Ø  Court intervention is minimised.

Ø  Time life is fixed for expeditious disposal.

Ø  Arbitration ensures the neutrality of arbitrator and enforcement of awards.

Ø  Arbitration Law encourages more foreign investments in a country as it  projects having a sound legal framework through Arbitration and ease of doing business.

Ø  Arbitration Law also facilitate effective conduct of international and domestic arbitrations raised under various agreements.

Procedure of Arbitration in India

There are few requirements for proceeding in Arbitration before the Arbitral Tribunal in any matter which are as follows :

• Arbitration Clause - There must be a clause in an agreement specifically mentioning that in case of any dispute arising between the parties that will resolve through the process of arbitration.

• Arbitration Notice – Once a dispute has arisen between the parties and any of the party has opted to follow the procedure of arbitration, then the party against whom the default has been committed will forward an arbitration notice to the other party invoking arbitration clause to proceed with the steps agreed between the parties as contained in the agreement.
• Appointment of Arbitrator- After receiving the notice by other party both the parties will appoint the arbitrators in the manner as specified in the arbitration agreement or arbitration clause.
• Statement of Claim - A Statement of Claim is to be prepared by the Party who is the Claimant or any Lawyer for Arbitration Cases containing the events which lead to the dispute between the parties with the compensation claimed from the party who has committed default on its part, before the Arbitral Tribunal.
• Statement of Defence/Written Statement – After the filing of Statement of Claim by the Claimant and serving the copy of Statement of Claim to the Other Party / Opposite Party the Arbitral Tribunal provides time to the Other Party who can file a Statement of Defence/Written Statement in reply to the Statement of Claim and can also file a Counter Claim if it has any against the Claimant along with reply to the statement of claim through top arbitration Lawyers in Lucknow.
• List of Witnesses – Both the parties have to provide the list of witness to the Arbitral Tribunal which the parties deem fit and proper for their case who were involved in the matter in dispute. This list of witness can be prepared with the help of Arbitration Lawyers of D.S.Chaube & Associates.
• Evidence – After the completion of the above mentioned steps the Evidence of both the parties is to be filed which can be in form of an affidavit by each party before the Arbitral Tribunal with the help of Arbitration Lawyers of D.S.Chaube & Associates.
• Issues – Major issues concerned with the dispute are summarily framed by the Arbitral Tribunal informing both the parties about the same.  
• Cross Examination – Thereafter, as per the list of Witness the Cross Examination is done by the each party’s Arbitration Lawyer with the other party if the Arbitral Tribunal deems fit and necessary or as agreed between the parties.    
• Hearing of Parties -  The Arbitral Tribunal will hear both the parties with their evidences at an independent place which may be fixed with the consent of parties.  
• Award - After hearing the parties, the arbitral tribunal has to pass the award / decision. The award of the tribunal is binding on the parties. However, an appeal against the arbitral award can be filed before the Commercial Court by an Arbitration Lawyer or an Advocate for Arbitration Cases.
• Execution of Award - Once the award has been passed by the Arbitral Tribunal it has to be executed by the party against whom the award has been passed. If the party against whom the awards has been passed does not executes/complies with the award the Claimant can file for execution or enforcement of award with the help of a good Arbitration Lawyer.

It is relevant to mention here that Arbitration process in India does not follow the typical procedure of the Civil Procedure Code and it is on the discretion of the Arbitral Tribunal.

Powers of Arbitrator

• To make specific awards.
• To take assistance for any other person.
• To rule on its own jurisdiction.
• To determine the procedures to be adopted in the Arbitration proceeding.
• To decide on the official language of the proceedings.
• To appoint an expert in the matter.
• To seek the court’s assistance.
• To terminate proceedings in several cases.
• To impose interest and deposits.

There are more other powers which have been provided to the arbitrator under the Civil Procedure Code like the powers of Civil Court.