Q: What is statutory arbitration ?

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 on the will.
In any statutory arbitration act, there is a provision for the arbitration process, from the resolution of future disputes to the appointment of arbitrators and fee determination. 

For instance: There is a provision for the settlement of disputes arising under the Industrial Disputes Act, 1947, which is the settlement of disputes in Industrial Tribunal. Therefore, the disputes arising under this industrial disputes act, 1947, will be settled by the Industrial Tribunal, which is a statutory arbitration.

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