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Arbitration is a sort of Alternative Dispute Resolution. Alternative Dispute Resolution methods enjoy significant pros such as lower costs, higher confidentiality, greater flexibility of process, greater likelihood of settlement, choice of forum, choice of solutions etc. Having said that one among the foremost popular widely recognised and practised sorts of ADR is Arbitration. Banks, Builders and many major Corporates opt for Arbitration Proceedings in this age and therefore, to counter them you need the Best Lawyer for Arbitration Case.
In the past, there were no rights and no laws as people weren’t educated and didn’t have any knowledge regarding arbitration. But afterwards, when people started getting civilized, the rights of individuals were considered which also gave birth to conflicts. In such cases, one party approached a 3rd person whom they trust and resolve the matter with their suggestions. an equivalent principle applies in today’s era also, because the need for globalization and commercial market is increasing, more disputes are being seen between the parties associated with their contracts and agreement held between them which brings us back to a mutually decided individual that will dissolve their disputes and in legal term, referred to as an “Arbitrator” or “Mediator”. They’re the people that are assigned the work to dissolve commercial disputes between the parties being an independent person, without approaching the court and saving their money and time.
Arbitration is a method of resolving disputes outside of the traditional court system in India. In arbitration, a neutral third party, known as an arbitrator, is appointed to hear evidence and make a binding decision in the dispute. The decision of the arbitrator is legally binding on the parties and is enforceable in the same manner as a court order.
Arbitration in India is governed by the Arbitration and Conciliation Act, 1996, which sets out the legal framework for the resolution of disputes through arbitration. The act provides for the appointment of arbitrators, the conduct of arbitration proceedings, and the enforcement of arbitral awards.
Arbitration can be either ad hoc, where the parties agree on the appointment of an arbitrator, or institutional, where the parties agree to use the services of a specific arbitration institution. The most common institutional arbitration in India is the Indian Council of Arbitration (ICA).
Arbitration has several advantages over traditional court proceedings, including faster resolution, greater privacy, and lower costs. Additionally, the arbitrator has expertise in the subject matter of the dispute, which can result in a more informed decision.
Arbitration is particularly useful in commercial disputes where the parties want to resolve their dispute quickly and efficiently. It is also commonly used in disputes relating to construction contracts, intellectual property, and employment disputes.
Arbitration is taken into account as an alternative dispute resolution procedure under which mediation and conciliation also are included. Based on UN Commission on trade and law (UNCITRAL) model law India enacted the Arbitration and Conciliation Act, 1996 further amended in 2015 which deals with domestic and international commercial arbitration in India. The amended Act especially emphasizes minimizing the role of judiciary court in arbitration proceedings and further to think about every arbitration order or award as a decree because it has been considered in civil procedure code. The Act is categorized in two, Part I deals with significant provisions which affect domestic and International commercial arbitration procedure to be conducted in India regardless of nationality and Part II mentions enforcement of foreign arbitration award.