Disadvantages Of Arbitration Essay

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Before the new Arbitration & Conciliation Act came into existence arbitration was contained in three enactments. The new act consolidated and amended the law relating to domestic arbitration, international commercial arbitration and enforcement of foreign arbitral awards and also defines the law relating to conciliation. The Arbitration & Conciliation Bill, 1996, was passed by both houses of Parliament and received the President’s assent on 16th August, 1996 and became The ARBITRATION & CONCILIATION ACT, 1996.

1.2 Arbitration-Pros and Cons
The purpose of arbitration is to reduce costs and delays associated with litigation. The privacy of proceedings is often seen as an additional benefit to arbitration, as well as the balancing effect it has upon the potential inequality of arms between parties. The decreased formality of the procedure may also be preferred by
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It is a procedure where two parties to a contract having a dispute and having a written arbitration agreement can appoint either a single or sole arbitrator. Failing to agree upon a single name each party nominates its own nominee, who is called joint arbitrator. These joint arbitrators, in turn appoint a third arbitrator. The three arbitrators constitute the Arbitral Tribunal. The Arbitral Tribunal follows the procedure as per the law and after parties have finished their respective submission, makes its reasoned award on the claims and counter claims referred to it.

INSTITUTIONAL ARBITRATION:
If parties so decide they can refer their disputes to an institution like the Indian Council of Arbitration. The institution thereafter assists the parties in appointment of arbitrators and in conducting the entire arbitral proceedings as per its rules. The award given by the Arbitral Tribunal is final and binding on the parties.

STATUTORY

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