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Indian Arbitration Legal Framework

The Indian judicial framework includes the Supreme Court, High Courts, District Civil and Criminal Courts, and various tribunals. Arbitration is an alternative dispute resolution method where parties agree to have their dispute decided by a neutral third party rather than a court. Key aspects of arbitration include the arbitration agreement between parties, appointment of arbitrators, conduct of proceedings, arbitral awards, and limited court intervention. Fast track arbitration provides for expedited proceedings with a sole arbitrator and written arguments only.

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0% found this document useful (0 votes)
76 views9 pages

Indian Arbitration Legal Framework

The Indian judicial framework includes the Supreme Court, High Courts, District Civil and Criminal Courts, and various tribunals. Arbitration is an alternative dispute resolution method where parties agree to have their dispute decided by a neutral third party rather than a court. Key aspects of arbitration include the arbitration agreement between parties, appointment of arbitrators, conduct of proceedings, arbitral awards, and limited court intervention. Fast track arbitration provides for expedited proceedings with a sole arbitrator and written arguments only.

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scienceplex
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© © All Rights Reserved
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Arbitration

The Indian Judicial Framework


Supreme Court

Appellate
High Courts
Tribunals

District Civil
Tribunals
Courts

District
Criminal Courts
• Method of dispute resolution by referring the matter to
one or more persons who will adjudicate the matter Meaning and
• Parties are free to appoint as many, but can’t be an
even number (usually one to three)
Definition Of
• Commenced through an arbitration agreement (or clause) Arbitration
or mandated by courts
• The arbitral award is treated as if it were a court decision
• Some disputes cannot be arbitrated
• Insolvency
• Declaration of lunacy
• Appointment of a guardian to a minor
• Matters of succession
• Matters of a criminal nature
Courts do not interfere in arbitrations in
general. However, the following
interventions can be made
• Appointment of an arbitrator

Judicial • Removal of an arbitrator believed to be biased


• Interim measures and orders to safeguard the rights
Intervention and of parties

Choice of Law Parties in an International Commercial


Arbitration are free to chose the governing
law
• Governing law and the resultant award should be
compatible with the law of the country in which it is
to be executed/ enforced
• Must be in writing – oral
agreements cannot evidence intent
to arbitrate
• May apply to a present or a future
Arbitral dispute
• Must be a valid contract
Agreement • May be a clause as part of a larger
agreement
• May be incorporated by reference
to another document
Appointment of Arbitrator

Parties are generally free to determine the


process of appointment.
Arbitrator
Party 1
However, where parties cannot agree, each Third 1
party appoints one arbitrator and the two
arbitrators appoint a third Arbitrator Arbitrator
Party 2
2
Court may intervene if arbitrators are not
appointed in time

Appointment of arbitrators can be challenged


on the grounds of partiality or lack of
qualifications
Conduct of Arbitral Proceedings

• Parties are free to determine the arbitration process. However, there are some ground rules
• Equal treatment of parties
• Arbitral tribunal may admit evidence, appoint experts, accept written arguments and hear oral
arguments
• Tribunal may decide on place of arbitration if parties cannot agree
• Sufficient notice must be given to parties as to time and date of hearings
Arbitral Award

• An arbitral award is treated as if it is a decree by a court


• Must be in writing, signed by the arbitral tribunal and reasons of the decision must be included
(unless parties decide otherwise)
• Awards can be set aside or cancelled for a variety of reasons including
• Invalidity under the governing law
• The composition of the arbitral tribunal or the arbitration proceedings was not in accordance
with the agreement of parties
• Award is in conflict with Indian law or policy
• Application to set aside an award may be made to a District Court or a High Court
Fast Track Arbitration
• Sole arbitrator chosen by both parties
• Written arguments only, no oral arguments
• Arbitrator may call for additional documents/ evidence/
oral arguments if necessary
• Arbitral award to be made in under 6 months

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