•The object of Arbitration and

Conciliation Ordinance of 1996 is to

encourage the parties to settle their
disputes by means of Arbitration.
•The settlement of dispute arrived by the
parties is binding on the parties.
WHAT IS ARBITRATION?
•Arbitration is the oldest method of setting aside the
disputes among the parties by a third person in whom both
the parties have confidence and trust.
•Thus through arbitration the dispute among the parties will
be solved soon.
•If the parties approach the Court Of Law, lot of money,
years, time and energy will be wasted.
• The order passed by Court is appealable. In appeallant
court also money, years, time and energy will be wasted.
On the other hand, disputes referred to Arbitrational
Tribunal will be disposed off soon without incurring wastage
of money, time and energy.
OBJECTS OF ARBITRATION
•The objectives of the arbitration act is to solve
International disputes between Countries.
• National and commercial disputes among parties is also
solved by mediation, consulting the parties, discussing the
issues with the parties and also by conciliation.
•The Arbitrator gives reasons for passing the award,
keeping it in limits of its legal jurisdiction and award to be
in writing and signed with date and place.
•The award will be binding on both the parties.
•An Award passed in the dispute by two or more countries
is called “FOREIGN AWARD”
APPOINTMENT OF ARBITRATOR
For appointment of arbitrator an agreement has to be arrived
between the parties, to be written separately or drafted in the
agreement by the parties in business agreement or partnership
deed.
EXAMPLE: i) “X” agreed to sell 50 kg of basmati rice to “Y”
but supplies ordinary rice to “Y.” The dispute is referred to
arbitration because there is an agreement among the parties to
refer the dispute to arbitrator therefore the matter was referred to
arbitrator to solve the dispute
ii)In another case “A” agreed to supply
sugar to “B” at the price prevailing at the
time of delivery of sugar. As per agreement
if any dispute arises regarding the payment
of price of sugar, the matter will be referred
to ARBITRATOR if dispute arises after
agreement ie. Dispute arising in future.
ESSENTIALS OF
ARBITRATION AGREEMENT
•The arbitration agreement should be in writing and it will
be binding on both the parties.
•The agreement should be in writing with consent and
signed by both the parties. The document of arbitration
agreement could be in the form of exchange of telex, fax,
telegram etc which provides record of agreement.
•Arbitration agreement will be void if based on fraud,
misrepresentation, under influence or coercion.
•The agreement should be in writing, signed by both the
parties but it should be in writing or exchange of telex, fax,
telegram etc which provides record of agreement.
•The agreement should have a clause that the
dispute will be solved by arbitrator.
•The Arbitrator should give the reasons for
passing the award, keeping it in limits of its
jurisdiction and awarded to be in writing
and signed with date and place.
•The award will be binding on both the
parties.
The Judicial authority (court) can also refer the dispute to
ARBITRATOR if there is a prior agreement between the
parties for settlement of disputes by an arbitrator

The matter which could be referred to arbitrator are:

•Breach of contract
•Validity of marriage and payment of maintenance amount to
wife by husband
•Separation between husband and wife.
•Referral by manager of Hindu undivided joint family, agents,
attorneys or counsels
•The matters which could not be referred to
arbitrator are:
•Restitution of conjugal rights, divorce, validity of
WILL, insolvency, charitable trust, guardianship
of minor and lunatic person
•Matter relating to criminal cases and
proceedings
•Referral by lunatic or minor
 SELECTION OF ARBITRATOR
•The decision of arbitrator will be binding on both the
parties. The parties have right to select arbitrator of
their choice
•the arbitrator should be appointed in odd number like
1, 3, 5
•Each party will select one arbitrator and third
arbitrator will be selected by both arbitrators.
•The arbitrator can be removed if he is not having
required qualification. After his removal new arbitrator
will be appointed.
•If during the proceedings one of the parties dies, his
legal heir will be brought on record to continue the
proceedings before arbitrator and order passed by
Arbitration tribunal will be binding on the legal heirs of
the deceased.
•The arbitrator should give full
opportunity to both the parties to
present their case.
•Arbitrational tribunal will not be bound
by civil procedure code or evidence act
ADVANTAGES OF ARBITRATION
•The dispute among parties is solved privately,
amicably, and in less time with less expenditure.
•No appeal arises from the award passed by the
arbitrational tribunal.
•The appointed arbitrator will be qualified person
having knowledge to solve the dispute
•In judicial trial in Court takes more time and lot of
money and time is consumed with lot of paper work
and the judge may not be well versed with the subject
of dispute.
 AWARD
•Award is the final judgment of the arbitratoral tribunal on
matters referred and will be binding on the parties. as
Court Judgment.
•The award must be in writing, signed by arbitrators,
having date and place of disposal.
•After passing of award with in 30 days from the date of
passing of award, request can be made to the
arbitrational tribunal to correct the award if it has clerical
or typographical error.
The award can be set aside if by court -
•If one of the parties furnishes proof that the award is in-valid
as per law.
• The party was not given fair chance to represent his case
properly
•The arbitrator is biased against one of the parties.
•No reason given for passing the award
•The facts are suppressed by one of the party.
• Basing the award on the bases of personal knowledge
of arbitrator
CONCILIATION
• The object of Arbitration and Conciliation
Ordinance of 1996 is to encourage the
parties to settle their disputes by means of
arbitration, mediation or conciliation.
• The settlement of dispute arrived by the
parties is binding on parties as of arbitration
award and will have the same status and
effect.
• The conciliation ordinance shall apply to
conciliation of disputes among parties arising out
of legal relationship ie contractual or other
disputes.
• The conciliation ordinance shall not apply to law in
force and also to non agreement of parties for
conciliation and also by virtue of certain law.
• Due to this obstruction the disputes cannot be
submitted for conciliation
 PROCEDURE FOR
CONCILIATION
• For conciliation among the parties, one of the
party should send an invitation to the other
partying in writing identifying the subject of
dispute to be conciled.
• If the other party accepts the invitation for
conciliation, the proceedings will commence.
• If the other party rejects the invitation for
conciliation, the proceedings for conciliation will
not commence.
• If the party sending the invitation to
the other party for conciliation does
not receive any reply within 30 days
from the date of sending the
invitation from the other party, it
will be presumed that the other
party has rejected the invitation
 CONCILIATORS AND
THEIR APPOINTMENTS
• There shall be one conciliator unless the
parties want two or three conciliators.
• If the party decides to have three
conciliators, then each party will nominate
one conciliator of his own choice and the
third conciliator will be selected jointly by
both the selected conciliators and the
third conciliator will be presiding the
proceedings.
• For appointment of conciliators, the
parties may obtain the assistance of
suitable person or an institution to name
the conciliator who should be qualified,
independent and impartial.
• The conciliation proceedings will not be
bounded by civil procedure code or
evidence act
 SUBMITION OF
STATEMENT BY PARTIES
• After appointment of conciliator, each party will
submit his case, issues and written statement to
the conciliator in respect of the dispute and a
copy of all the documents submitted to be given
to the other party.
• Each party will be given opportunity to submit
further documents and additional grounds of his
case to the conciliator and a copy of the
submitted documents should be given to the
other party.
ROLE OF CONCILATOR
• The conciliator will assist the party in
independent and fair manner to reach an
amicable settlement of dispute by
considering all the circumstances of
dispute and the wishes and requests of
the parties and will also consider previous
dispute among the parties if any.
• The conciliator may make his proposals
and suggestions for settlement of dispute
 PLACE FOR
CONCILIATION
• The conciliator may invite both the parties at a
place or call each party separately as per
circumstances request and submission made by
each party.
• The conciliator will inform each party about the
contention of the other party for settlement of
dispute.
• The proceedings of conciliation should not be
disclosed by the parties or conciliator to
outsiders unless it is necessary to do so
 AGREEMENT FOR
SETTLEMENT
• If the conciliator comes to the conclusion
that the agreement for settlement is
acceptable to both the parties then the
terms for settlement for solving the
disputes between the parties will be
delivered to the parties.
• If both the parties agree to the
agreement of settlement of dispute, then
each party should give it in writing to the
conciliator signed by him.
• The conciliator, after receiving the
agreement of settlement of dispute in
writing by both the parties will provide
each party a copy of agreement of
settlement of dispute arrived by the
parties duly signed by both the parties and
also signed by conciliator.
• This settlement agreement will have the
same effect as of arbitration award.
• After the settlement of agreement by the
parties, the conciliator will sign a written
declaration of settlement of dispute among the
parties and the conciliator will fix the cost to be
paid by the party or parties and order for
depositing the cost.
• If the cost is not deposited by the party or
parties within three months from the date of
order, the conciliator will suspend and cancel the
proceedings and the order of conciliation passed
him.
THE END

DONE AND LECTURED

BY-
SALMA JAHAN