Arbitration: Ten Interesting Aspects

Arbitration is a mode of Alternative Dispute Resolution (“ADR”) envisaged in the Arbitration and Conciliation Act, 1996 (“the Act”) which has emerged as the preferred mechanism for dispute resolution in the present era. The Black’s Law Dictionary, Fourth Edition, defines the term Arbitration as “the submission for determination of disputed matter to private unofficial persons selected in the manner provided by law or agreement.” Based on the aforementioned definition, Arbitration refers to a mechanism wherein parties to an agreement, being a valid Arbitration agreement, submit their dispute concerning the principal agreement to an unofficial private person appointed in the manner provided by law or the agreement. Arbitration inculcates critical aspects of dispute resolution such as reduced costs, enhanced party autonomy, efficacious remedy, increased chances of settlement, minimal court intervention, finality of awards and so on. Thus, Arbitration is perceived as one of the most uncomplicated, economical and party-friendly mode of ADR. The Arbitration Law in India has constantly evolved since its conception in 1940. The predecessor to the Act was the Arbitration Act, 1940, which was repeal after the introduction of the Act. The Act currently in force has been modelled on the United Nations Commission on International Trade Law (“UNCITRAL”) Model Law on International Commercial Arbitration, 1985. Prominent aspects of Arbitration encompassed within the Act include Arbitration agreements, composition of Arbitral Tribunal, jurisdiction of Tribunals, conduct of Arbitral proceedings, Awards, enforcement of both domestic and Foreign Awards, setting aside of Arbitral Awards and similar other provisions. The Act conceives for a judicial-intervention free dispute resolution through Arbitration, with minimal provisions for judicial overreach and enabling the judiciary to interfere only when the Arbitral proceedings are conducted in gross violation of the principles of natural justice, or when the parties’ rights are significantly hampered. Pursuant to such limited powers of judicial intervention, Indian Courts have laid down various judicial precedents in tune with the legislative intent behind the Act, i.e., to ensure that the Arbitral proceedings are conducted in a just, fair and effective manner. Such decisions, which shed light on the legal viewpoint concerning Arbitral proceedings, are crucial for different parties involved in an Arbitration proceeding, from the parties to the dispute, the Arbitrator(s), the witnesses, and so on. This White Paper seeks to analyse the prominent decisions of various Courts in India ruling on different aspects of Arbitration and the conduct of Arbitral proceedings in India.