Arbitration law

Ans: Para means parallel.The role of judiciary is to provide justice. There are provisions to provide justice which is parallel to judiciary and are known as para legal services. The main objective of legal services is an access to justice because the legal services are also costly to the economically weaker sections of society.  So, according to justice P.N. Bhagwati, law students can play an important role in providing legal services. The various law colleges and NGOs provide para-legal clinic to provide aid to economically weaker sections .  Like para-legal clinics, there are also legal literacy camp, legal aid camps,etc that provide para legal services.  Every one knows that law is a profession and not a business because the motive is not to earn profit.  Most law colleges organise legal aid camp to provide para legal services to economically weaker sections.

Ans: There was a requirement of international arbitration for the matters of international dispute and hence international commercial arbitration was introduced by UNCITRAL Model law on international commercial arbitration which was adopted in 1985. The Geneva Convention 1927 and New York Convention 1958 was also introduced for international commercial arbitration. The New York Convention was established as a result of dissatisfaction with the Geneva Protocol on Arbitration Clauses of 1923 and the Geneva Convention on the Execution of Foreign Arbitral Awards of 1927. The biggest difference between New York and Geneva Conventions is that they both serve different issues. Geneva convention is more inclined towards war & war crimes and thus protects the rights of civilians & war prisoners along with military personnel. New York convention on the other hand deals with arbitrage matters and has more of a role to play in resolving matters between states.

Ans: Lok Adalat is an alternative dispute resolution mechanism. The cases that are pending in courts or are at the pre-litigation stage are settled in Lok Adalat. The cases are settled through conciliation, and that is why Lok Adalats are one of the most significant components of the ADR system operating in India. Permanent Lok Adalat is a permanent body which was constituted to settle cases relating to Public Utility Services like transport, postal, telegraph, etc. A Chairman as well as two members are appointed for settling disputes through conciliation. Comparison between Lok Adalat and Permanent Lok Adalat:  Jurisdiction- The Lok Adalat has jurisdiction to attend any case that is pending before a court of law, and cases that are likely to be filed before the court of law. The Permanent Lok Adalat has jurisdiction to attend cases only relating to Public Utility Services such as transport, postal, telegraph sanitation, banking, education, dispensary, power, light, ...

Ans: Powers of the Lok Adalat or Permanent Lok Adalat : Section 22(1) of legal services authority act, 1987 makes provisions in relation to the powers of the Lok Adalat or Permanent Lok Adalat Lok , shall for the purposes of holding any determination under this act have the same powers as are vested in a civil court under the code  of civil Procedure, 1908 while trying a suit in respcct of the following matters, namely: a) summoning and enforcing the attendance of any witness and examining him on oath,: (b) the discovery and production of any document; (c) the reception of evidence on affidavits; (d) the requisioning of any public record or document or copy of such record or document from any court or office; and (e) such other matters as may be prescribed. According to Section 22(2) of legal services authority act, 1987, without prejudice to the generality of the powers mentioned above every Lok Adalat or Permanent Lok Adalat shall have the requisite powers to spec...

Ans: Rule 13 of National Legal Services Authority Rules, 1995 holds that a person shall not be qualified to be included in the Lok Adalat unless he is-    (a) a member of legal profession; or (b) a person of repute who is especially interested in the implementation of the Legal Services Schemes and Programmes; or (c) an eminent social worker who is engaged in the upliftrment of the weaker sections of the people, including the Scheduled Castes, the Scheduled Tibes, women, children, rural and urban labour. However, Section 19 of legal services authority act, 1987 further provides that the experience and qualifications of other persons as mentioned earlier for Lok Adalats other than those who are to be prescribed by the Central Government in consultation with Chief Justice of the Supreme Court 19(3) , shall be such as may be prescribed by the State Govcrnment in consultation with the Chief Justice of the High Court 19(4). According to section 19(2) of legal services ...

Ans:  According to section 19(2) of legal services authorities act, 1987, every Lok Adalat organised for an area shall consist of such number of— (a) serving or retired judicial officers; and (b) other persons, of the area as may be specified by the State Authority or the District Authority or the Supreme Court Legal Services Committee or the High Court Legal Services Committee, or as the case may be, the Taluk Legal Services Committee, organising such Lok Adalat. Functions of Taluk legal services committee:    The Functions of the Taluk Legal Services Committee include organizing the taluk’s legal services activities, coordinating Lok Adalats within the taluk, and performing any other tasks that the District Authority may assign, according to Section 11(B) of the Legal Services Authority Act of 1987.

Ans:  According to section 19(1) of Legal Services Authority Act, 1987, the following authorities can establish lok adalat: Every State Authority or District Authority or the Supreme Court Legal Services Committee or Every  High Court Legal Services Committee or Taluk Legal Services Committee may organise Lok Adalats at such places of India for the purpose of exercising jurisdiction in these areas. Thus, under section 19(1) of legal services authority act,   the Supreme Court Legal Services Committee, the High Court Legal Services Committee, the State Legal Services Authority, the District Legal Services Authority, and the Taluk Legal Services Committee have been entrusted with the responsibility of organizing all Lok-Adalats in India. The High Court Legal Services Committee (HCLSC) has been constituted under Section 8A of the Legal Services Authorities Act, 1987 for providing fee and competent Legal Services to the weaker sections of the Society in the cases w...

Ans: The establishment of Lok Adalats under the Legal Services Authority Act, 1987 is one of the alternative means of dispute resolution or redressal. The preamble of the said Act shows that the Lak Adalats constituted to provide expeditious, economical and competent legal services to the Weaker sections of the society to perform the constitutional obligations on behalf of the State and even the commercial disputes may be adjudicated by the Lok Adalats. The main purpose of lok adalat is to terminate the pending cases of court. The lok adalat is constituted for ordinary people. The lok adalat is for civil cases. The purpose of alternative dispute resolution is to settle the case with compromise. Suppose the two parties are demanding different amount in cases and one party demands the settlement at 70 percent amount and the another party demands the settlement at 30 percent amount, the lok adalat will try to make settlement at 50 percent amount.  If the parties comprom...

Ans:  The Arbitration Act, 1940, did not deal with enforcement of foreign awards and therefore, a separate law. Foreign Awards (Recognition and Enforcement) Act, 1961 was enacted for the enforcement of awards under the Geneva Convention, 1927 and New York Conventions to which India was a signatory and only those countries that were designated by India can render foreign award. However, the working of this legislation was also found to be unsatisfactory due to judicial intervention. In 1977, the functioning of the 1940 Act was questioned and examined by the Law Commission of India on grounds of delay and hardship caused due to clogs that affect smooth arbitral proceedings. Ans:  In 1940, the Arbitration Act, 1940 was enacted by consolidating all the provisions related to arbitration, which remained enforceable till 1996. This act was only provisioned in relation to domestic arbitration and there was no provision for settlement of international disputes by arbitr...

Ans: Award is the final and ending point of the dispute before the arbitral proceedings . It is equal to the judgement or decree of civil court .  Award is the final decree or final judgement of Arbitration Tribunal.   Chapter 6 of Arbitration and Conciliation Act,  1996 explains the provisions about ' Making of Arbitration Award and Termination of Proceedings ' .  This chapter contains sections 28 to 33.  Chapter 7 contains only one section  I.e., section 34 , explains about the provisions regarding ' Recourse against Arbitral Award/ Setting Aside Arbitral Award' in certain circumstances.   Chapter 8 contains two sections namely 35 and 36 , explains the provisions about the finality and enforcement of Arbitral Awards.   Chapter 9 contains only one section i.e section 37 narrates the provisions regarding 'Appeals'.  The Arbitration Act of 1940, which was abolished, provided three ways to challenge an award: modification, remiss...

Ans:  There are two acts i.e., Arbitration Act, 1937 that finds its genesis from the Geneva Protocol, 1923 as well as Geneva Convention, 1927 and similarly, the foreign awards (Recognition and Enforcement) Act, 1961 finds its root in New York Convention, 1958. In accordance with Section 44 of the Arbitration and Conciliation Act, 1996, a foreign award is defined as, “an arbitral award on differences that are related to the matters which are deemed commercial under the Indian law”. The two requirements for an award to be a foreign award are, firstly, it should resolve the discrepancies which result from a commercial legal relationship or a relationship that is considered commercial under the Indian law. Secondly, the country that is issuing the award must be a country that has been designated by the Indian Government as a country in which the New York Convention is made applicable. Hence only such arbitral awards are considered and implemented as fo...

Ans: Following are the importance or advantages of ADR System:  1. Non restriction of time. 2. Less costly . 3. Resolution possible privately.  4. Quick settlement . 5. Flexible. 6. Freedom of parties . 7. Can  be used without lawyer. 8. Reduction of work load . 9. Parties can choose the specialists. SIP FFN WSC

Ans:  1. Arbitration: Arbitration is a procedure in which a dispute is submitted,  by the agreement of the parties,  to one or more arbitrators who make a binding decision. 2. Pre-trial Mediation: Pre-trial Mediation is a Meeting that occurs before a trial action begins. Pre-trial hearings aim to resolve some of the legal issues before the trial begins. 3. Mediation : Mediation is an ADR process where a neutral third party i.e., mediator tries to settle disputes with the consent of both the parties. 4. Negotiation: Negotiation is a method in which discussions between the parties are initiated without the intervention of any third party with the object of arriving at a negotiated settlement of the disputes. 5. Conciliation : Conciliation is a process whereby the parties to a dispute use a Conciliator,  who meets with the parties separately in order to resolve their differences. 6. Conciliation under CPC: Section 89 has been inserted in Civil Procedure C...

Ans: Evolution of ADR: The concept of Evolution of Alternative Dispute Resolution has been originated from following practices of justice: 1. Panchayat( Article 40, part 9 , Lord Rippon ) 2. Gathering or Family Council 3. Adhikrita ( Courts appointed by the King) and Nripa ( King)  4. Marathas Period- Panchayat System 5. Muslim Period: Hedaya. Hedaya means advice Judge was known as Kazi.  Any method of resolving disputes without litigation (outside the courtroom) is Known as Alternative Dispute Resolution System (ADRS).

A ns: The Arbitration & Conciliation Amendment Act Of 2015 brought with it a new provision that dealt with the concept of Fast Track Arbitration. Fast Track Arbitration is the process in arbitration whereby the arbitration procedure is mandated to be wrapped up within six months. Section 29B limits the preceding time for fast track arbitration to a period of six months . Among the other kinds of arbitration, this is the most efficient way of dispute resolution through arbitration. The things are usually summed up in documents to speed up things in arbitration.  The lack of importance given to oral proceedings in favour of written submissions not only fastens the process of arbitration but also ensures maximum clarity of subject matter between the parties and the arbitrator. Expert determination: Expert determination has a great role in fast track Arbitration.   Expert determination is a private process involving an independent technical expert. They m...

Ans: The arbitration which is for some specific disputes only is specialized Arbitration.  The rules of chamber of commerce are applied only on the members of chambers of commerce.  

Ans:  As opposed to the institutional arbitration and ad hoc arbitration proceedings, statutory arbitration proceeding is a mandatory arbitration thrusted on the parties by operation of law . In statutory arbitration, the parties have no other option but to obey the law of land. Apparently, statutory arbitration differs from the institutional arbitration as well as ad hoc arbitration because statutory arbitration is a mandatory arbitration that lacks consent of parties and  is binding on the parties as law of the land. Thus, there are some laws or statutes which specify dispute resolution through arbitration only. Generally, arbitration is an alternative method for the parties to the dispute by which they agree to settle the disputes that have arisen or may arise in the future through this process, that is, the arbitration process depends on the will of the parties. In statutory arbitration, adoption of the arbitration process is an obligation and is not dependent...

Ans:  Contractual Arbitration is when parties to a contract agree to resolve future disputes via binding arbitration rather than in court or otherwise.   Contractual Arbitration can be either Ad-Hoc Arbitration and/or Institutional Arbitration.   A contract is an official document in which several terms are agreed upon by the parties. Sometimes, parties to a contract or who are in contract would include an arbitration clause in the contract which clarifies referring any dispute to arbitration before moving  towards the courts. 

Ans: Arbitration is a type of alternative dispute resolution, wherein the disputants resolve their disputes outside the court. The dispute will be decided by one or more persons who are known as the arbitrators. Arbitrators are either appointed by the parties or by the Indian Council of Arbitration. An institutional arbitration is one that is administered by an institution agreed upon by the parties as well as conducted in conformity with that institution's arbitration rules. Institutional arbitration may be referred to as administered arbitration. In this form, an institution is appointed for administering the complete process of arbitration. The arbitration agreement renders the appointment of an arbitration institution in case of any dispute. If any dispute arises, the parties will be required to make a written submission to the institution. The arbitration institution then appoints the arbitrator or a panel of arbitrators. The rules of the institution will be fo...

Ans: The legal maxim ad hoc means for temporary purpose. It means to get made or done suddenly for particular purpose. There are two types of arbitration i.e institutional arbitration and an ad hoc arbitration.  The institutional arbitration is permanent arbitration whereas ad hoc arbitration is temporary arbitration. An ad hoc arbitration is more flexible than institutional arbitration.   When a dispute or difference arose between the parties in course of commercial transaction and the same could not be settled friendly by negotiation in form of conciliation or mediation, in such case,  ad-hoc arbitration may be sought by the conflicting  parties. An ad hoc arbitration is the arbitration where the parties do not select an institution to administer their arbitration. The ad hoc arbitration offers parties an opportunity to conduct the arbitration in conformity with their wish, permitting more flexibility as well as freedom, but less support. Judicial in...

Ans:   When there is a dispute between two parties sharing a legal relationship and both of them are residing or located in India, such a resolution of dispute through arbitration is termed as domestic arbitration. In such cases, there is least confusion regarding applicable laws for deciding the matters. The arbitration lawyers in India assist with representation of parties before the arbitration tribunal.  The Arbitration and Conciliation act, 1996 mentions the term domestic arbitration in its preamble and the term 'domestic award' in section 2(7) read with section 2(2) of the said act.   International Arbitration:  A rbitration is international if it implicates international commercial interest. The majority of international arbitration users favour institutional rather than ad hoc arbitration. However, when deciding which institution to select, there are several to choose from, but little guidance to assist in the selection p...

Ans: Foreign awards are granted in foreign countries for any dispute referred to arbitration in international cases and are enforceable in India under the Act. It is divided into two chapters under the Act: The New York Convention The Geneva Convention    When both of the parties are foreigners they have mutually agreed to follow rules of a foreign land through arbitration while dealing with legal disputes, it is called foreign arbitration. In such cases, regardless of whether the arbitration takes place in India or or in the other country, foreign arbitration laws are followed. In such arbitration, a "foreign award" is sought to be enforced. For India, when an arbitration proceeding is conducted in a place outside India, it is called foreign arbitration.  Section 44: Foreign award for geneva convention. Foreign award is given in international commercial arbitration.  Section 2(1)(f) and Artilcle 51(d): International Arbitration. 

Ans: The are mainly nine  kinds of Arbitration:  1. Domestic Arbitration  2. International Arbitration  3. Ad hoc Arbitration  4. Institutional Arbitration  5. Specialized Arbitration  6. Contractual Arbitration  7. Statutory Arbitration.  8. Fast track Arbitration  All types of arbitration i.e., Domestic Arbitration,  International Arbitration,  Foreign Arbitration,  Ad hoc Arbitration,  Institutional Arbitration,  Contractual Arbitration,  Statutory Arbitration and Fast Track Arbitration have the following features:  1. Finality : challenged in court in some specific conditions.  2. International recognition:  Without Bilateral treaty,  the arbitration has an international recognition. 3. Neutrality: Arbitrator us appointed with the consent of the parties.  4. Specialized, competence and personal follow up. 5.  Flexibility: Rules are flexible in Arbitration.  6. Provisio...

Ans: The sources of arbitration are International Conventions, National Customs and Judicial Decisions.  In international conventions, there are two types of conventions i.e., Multilateral Conventions and Bilateral  Conventions.  Multilatetal Convention: Geneva Protocol, 1923 and Geneva Convention,  1927. New York Convention on Foreign Arbitration Award( Recognition and Enforcement),  1958 are the examples of international convention. Foreign award ( Recognition and Enforcement act) , 1961.  National customs:  1. Father of panchayati Raj :  Lord Rippon  2.  Panchayati Raj in constitution: Part 9 and Article 40.  3. Article 51(d) of indian constitution mentions International Arbitration whereas Article 51 is  promotion of international peace and security section 2(1)(f) of arbitration and conciliation act deals with international commercial arbitration.  

Ans: The meaning of Arbitrium est judicium boni viri secundum is that an award is the judgement of a good man ,according to justice.  Or  In accordance with justice, an award is the judgement of good man. It is clear that award is nothing but judgement of good man. AEJBVS:  1. Aribitrium est judicium 2. Boni  3. Viri Secundum Arbitration east judiciary  Boney Kapoor  War Secundrabad.  Points to remember:  1. The judgement of arbitrator is an award. An award is the judgement of good man , according to justice.  Arbitrium est judicium  Boni viri secundum (Boni veer secundum) There are two types of award domestic award and foreign award. Domestic award is mentioned under part 1(section 2 to section 43) of Arbitration and Conciliation Act,  1996 whereas Enforcement of foreign award is mentioned under part 2( Section 44 to section 60) of arbitration and conciliation act,  1996.  Part 3( section 61 to section 81 ) of arbitration...

Ans:  According to Wharton, an arbitration is the determination of a matter in dispute by the judgement of one or more persons, called arbitrators,  who in case of difference usually call in an umpire to decide between them . So in accordance with Wharton, an arbitration is the determination of a matter in dispute by the judgement of one or more persons, called arbitrators,  who in case of difference or in case of dispute usually call in an umpire or arbitrator  to decide between them . Note: Wharton us war+ ton. Keywords:  Call in : to call someone . In 1940, the Arbitration Act, 1940 was enacted by consolidating all the provisions related to arbitration, which remained enforceable till 1996. This act was only provisioned in relation to domestic arbitration and there was no provision for settlement of international disputes by arbitration under Arbitration Act,  1940. Growing international trade had given rise to many disputes, so there was a requirement f...

Ans: According to section 2(1)(a) of arbitration and conciliation act, 1996, an arbitration means any arbitration whether or not administered by permanent arbitral institution.   According to section 2(1)(a) of arbitration and conciliation act,  1996, the arbitration means any kind of arbitration whether adminstered by permanent arbitral institution like Indian council of arbitration or not administered by permanent arbitral institution like Indian council of arbitration.  Note: Section 2(1)(b) of Arbitration and Conciliation Act,  1996 defines about the Arbitration Agreement and its definition is given in section 7 and section 8 of Arbitration and conciliation act, mentions about the power to refer parties to arbitration where there is an arbitration agreement. The Act is divided into four parts: Part I (Section 2-43) – Applies to the place of arbitration in India. The award granted is treated as a domestic award.  Part II (Section 44-60) – Enforcement of ...

Ans:  An arbitration is not defined in arbitration act , 1940 but it is defined under arbitration and conciliation act, 1996.  The arbitration and conciliation act comprises of four parts , 86 sections and 3 schedules.  An arbitration is a process of determination of disputes by the decision of one or more persons called the arbitrator. The definition of Arbitration is given under Section 2(1)(a) of Arbitration and Conciliation Act,  1996.  According to section 2(1)(a) of arbitration and conciliation act,  1996,  arbitration ” means any arbitration whether or not administered by permanent arbitral institution. The ICA was established in 1965 as a specialized arbitral body at the national level under the initiatives of the Government of India and apex business organizations FICCI. FICCI is Federation of Indian Chambers of Commerce & Industry.  The main objective of ICA is to promote amicable, quick and inexpensive settlement of commercial dispu...