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