ARBITRATION

Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute. In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court. CHARACTERISTICS OF ARBRITRATION

Arbitration is consensual

The parties choose the arbitrator(s) Arbitration is neutral Arbitration is a confidential procedure The decision of the arbitral tribunal is final and easy to enforce The Indian Council of Arbitration established in 1965 is the apex arbitral organisation at the national level.

 Its Rules of Arbitration have recently been revised based on the Arbitration and Conciliation Act, 1996. These Rules are of international standard and they provide a guarantee wished for by the trade for quick and just settlement of the dispute. The Council has entered into arbitration service agreements with important foreign arbitral institutions in more than 30 countries to administer abitrations under their rules if arbitration is held in India PANEL It maintains a panel of arbitrators consisting of: Retd. Judges, Advocates, Shipping Experts, Chartered accountants, Chartered Engineers, Businessmen, Foreign Nationals and Executives having specialization in more than 20 fields.

Difference between Arbitration and Court

Arbitration
By Agreement Freedom to Choose Your own Arbitrator Venue Language Procedure to be followed Time Frame for Delivery of Award Privacy is Maintained No Stigma Attached Speedier - Civil Procedure Code & Evidence Act do not apply Less Expensive Award is final and binding. Grounds for setting aside award have been reduced considerably. No Bitterness After Award

Court Proceedings
By Law No such freedom No Privacy Stigma is Attached Time Consuming - Civil Procedure Code & Evidence Act Strictly Apply Costly Judgements are appealable.

Bitterness may remain in loosing party.

Arbitrators Fee (Revised on 1st November, 2002)

The Arbitrators fee (for each arbitrator) will be fixed separately with regard to the amount in dispute in each case, as under and will be shared equally by both the parties. Upto Rs. 5,00,000/From Rs. 5,00,001/- to Rs. 10,00,000/From Rs. 10,00,001/- to Rs. 100,00,000/Rs. 20,000/Rs. 20,000/- plus Rs. 900/- per lac of the amount exceeding Rs. 5,00,000 Rs. 24,500/- plus Rs. 700/- per lac of the amount exceeding Rs. 10,00,000/-

From Rs. 100,00,001/- to Rs. 87,500/- plus Rs. 25000/- per Rs. 500,00,000/crore of the amount exceeding Rs. 100,00,000/From Rs. 500,00,001 to Rs. 1,87500 /- plus Rs. 15625/- per Rs. 100,000,000 crore of the amount exceeding Rs. 500,00,000/Over Rs. 100,000,000 Rs. 2,65,625/- plus Rs. 6250/- per crore of the amount exceeding Rs. 100,000,000/-

Advantages of Arbitration
Binding dispute settlement mechanism Arbitration affords the parties a choice of the law & a choice of the judges that they do want & more important to reject the law which and to reject the particular judge whom they do not want. Technical matter : appropriate special qualifications of the Arbitrator. Speedier than a court case saving in the costs unwanted publicity can be avoided Convenience of the parties as to time and place Arb. Can view subject at any reasonable time

Conduct of arbitrations by permanent institutions

the International Chamber of Commerce's International Court of Arbitration, World Intellectual Property Organization (WIPO) Arbitration Center, American Arbitration Association (AAA), China International Economic and Trade Arbitration Commission, Indian Council for Arbitration, or the

 International Center for Settlement of Investment Disputes (ICSD), International Chamber of Commerce (ICC), located in Paris. The American Arbitration Association (AAA) London Court of International Arbitration Arbitration Institute of the Stockholm Chamber of Commerce.

Appointment of an Arbitrator
Section -11: (1) person of any nationality (2) parties to agree on a procedure for appointment of Arb. Failing agreement as in above -- the two Arb shall appoint a third Arb who shall act as the presiding Arb---Umpire. 30 days Sec. 16--may rule on its own jurisdiction

Process of Arbitration

Very Simple under the Rules of Arbitration of IMC(Indian Merchants Chamber) Submit to IMC a written request for arbitration and send a statement of claim along with all supporting documents relating to the claim. IMC will send the claimant and the defendant a copy of Rules of Arbitration along with a list of Arbitrators on its panel and ask both the parties to appoint by mutual consent an Arbitrator from amongst the Panel of Arbitrators of IMC. Simultaneously the defendant will be asked to submit his defence statement with all the supporting documents on which he wants to rely. If the parties fail to appoint Arbitrator or Arbitrators by mutual consent, IMC proceeds to appoint an Arbitrator or Arbitrators

as the case may be depending upon terms of the contract between the parties or the amount of claim as the case may be. Fees payable towards Administration and Arbitrators are also collected in advance either fully or partially depending upon the circumstances. Before Arbitrator is appointed all preliminary work is completed by IMC. Hence once Arbitrator is appointed he straight away commences arbitration proceedings. Preliminary work like receiving statement of claim from Claimant, defence statement from defendant counter-claim if any reply to counter claim, documents on which parties want to rely, etc. is completed by IMC. Before commencing proceedings or even during proceedings Arbitrator also explores possibilities of settlement between the parties. If no settlement is reached then Depending upon amount of claim counter claim if any number of witness to be examined, crossexamination etc.attempt is made to finish proceedings within 6 months from the date of appointment of the Arbitrator with the cooperation from both the disputing parties. The Award given by the Arbitrator is final and binding on the parties and can be enforced like a decree of the court.

Content of Arb. Award

Sec. 31--- (1) shall be made in writing (2) signed by the Arb. Tribunal (3) shall state the reasons , unless (a) parties have agreed no reasons be given (b) award under agreed terms under Sec. 30 (4) state date and place (5) signed copy delivered to each party (6) interim award (7)(a) payment of money: include in the sum for which award is made ---interest to paid from date on which cause of action arose & the date on which award is made (b) provision of 18% interest from the date of award to the date of payment------unless the award otherwise directs. Award does not transfer a property : parties are directed to execute conveyance or other wise make a transfer of the property in dispute