Q: What is an institutional arbitration ?

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 followed during the complete process of arbitration. 


An institutional arbitration is one in which a specialized institution with a permanent character intervenes and assumes the functions of aiding and administering the arbitral process, as provided by the rules of that institution.

 

Arbitration can be sub-divided into various kinds on the basis of jurisdiction as well as on the basis of the rules and procedure followed.

Institutional arbitration is more expensive than ad hoc arbitration.

The Arbitration can be Institutional Arbitration,  Statutory Arbitration, Foreign  Arbitration and Domestic Arbitration.

Indian Council of Arbitration is an example of institutional Arbitration.

When the arbitrator is not appointed by the parties, then the arbitrators are appointed by the recognised institution, and  it is called institutional arbitration. These institutions have a panel of experienced and expert arbitrators, among whom the arbitrators are appointed. The Indian Council of Arbitration is one such body that helps in the administration of arbitration by making arrangements for arbitration proceedings. Mainly, these institutions act as a bridge between the parties and the arbitrators.

 


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