Law > Civil Laws > Alternate Dispute Resolution > Concept of ADR
Q1. State Salient features of Arbitration and Conciliation Act, 1996.
Following are some of the key features of the Arbitration and Conciliation Act, 1996 (Write only Three):
- Replacement of three old statutes: The Act is a consolidation of three laws of arbitration previously in force – viz, the Arbitration Act, 1940, the Arbitration (Protocol and Convention) Act, 1937, and the Foreign Awards (Recognition and Enforcement) Act, 1961 into one enactment. Though the three Acts have been consolidated the provisions regarding each of the acts have been kept distinct within the 1996 Act.
- Necessity of Arbitration Agreement: The Act emphasizes the importance of the Arbitration agreement without which arbitration proceedings cannot be instituted. The arbitration agreement is a clause in a contract or an agreement between parties stating that any dispute will be referred to arbitration proceedings. The Act mentions that the arbitration agreement or arbitration clause must contain the following information – the subject matter of dispute, the timing of dispute (past/present/future), number of arbitrators, qualifications of arbitrators, jurisdiction, and composition of the tribunal.
- Application to Domestic and International Arbitration: The Act provides the procedure not only for domestic arbitration but also includes International Commercial Arbitration. The 1996 Act is a law that relates to the enforcement of foreign Arbitration awards and ensures greater autonomy in the process of arbitration and puts a limit on the intervention of the judiciary.
- Procedural Advantage: Arbitral Tribunal has full powers to decide the procedure to be followed unless parties agree on the procedure to be followed. The Tribunal also has powers to determine the admissibility, relevance, materiality, and weight of any evidence. The place of arbitration will be decided by mutual agreement. However, if the parties do not agree to the place, the same will be decided by a tribunal. Similarly, language to be used in arbitral proceedings can be mutually agreed upon. Otherwise, Arbitral Tribunal can decide. The Act allows parties to choose the substantive law to be applied by the arbitration tribunal and this must also be mentioned in the arbitration agreement.
- Party Autonomy: The concept of party autonomy is the central theme of the Act. The expressions used in the Act – ‘unless otherwise agreed by the parties’, ‘with the agreement of parties’, `if the parties in dispute have expressly authorized’ etc., strengthens the idea of party autonomy.
- Minimal Interference by Judiciary: One of the major defects of earlier arbitration law was that the party could access court almost at every stage of arbitration – right from the appointment of an arbitrator to implementation of the final award. Thus, the defending party could approach the court at various stages and stall the proceedings. Now, the approach to court has been drastically curtailed. In some cases, if an objection is raised by the party, the decision on that objection can be given by Arbitral Tribunal itself. After the decision, the arbitration proceedings are continued and the aggrieved party can approach Court only after Arbitral Award is made.
- Arbitral Award: Decision of Arbitral Tribunal is termed as ‘Arbitral Award’. The arbitrator can decide the dispute ex aequo et bono (In justice and in good faith) if both the parties expressly authorized him to do so. The decision of the Arbitral Tribunal will be by majority. The arbitral award shall be in writing and signed by the members of the tribunal. The award should be dated and the place, where it is made, should be mentioned. Copy of award should be given to each party.
- Reasoned Award: The award must be in writing and signed by the members of the Arbitral Tribunal. It must state the reasons for the award unless the parties have agreed that no reason for the award is to be given. Previous to this Act reasoning of the award by the arbitrator was not mandatory.
- Enforceability of Award: Under this Act, every final arbitral award is enforceable as a decree of the court of law and not required to be made a “rule of court”.
- Over-Riding Effect of the Act: Section 5 of the Act clarifies that notwithstanding anything contained in any other law for the time being in force, in matters governed by the Act, the judicial authority can intervene only as provided in this Act and not under any other Act.
- Applicability of the Limitation Act: For this purpose, the date on which the aggrieved party requests another party to refer the matter to arbitration shall be considered. If on that date, the claim is barred under Limitation Act, the arbitration cannot continue. If the Arbitration award is set aside by Court, time spent in arbitration will be excluded for purpose of the Limitation Act.
- Aligning Procedure with the UNCITRAL Model Law: The Act has been enacted taking into account the United Nation’s Commission on International Trade Law (UNCITRAL) Model Law and UNCITRAL Conciliation Rules. This promotes unification and harmonization of International Tarde Law by harmonizing concepts of Arbitration and Conciliation of the legal system of the world.
- Clear Distinction Between Arbitration and Conciliation: The provisions that relate to the process of Arbitration are contained in Part I which includes Chapters I to IX, while the provisions that relate to the process of Conciliation are dealt with in Part III that includes section 61 to 81.
- Conciliation: Conciliation is the amicable settlement of disputes between the parties, with the help of a conciliator. Part III of the Act makes provision for conciliation proceedings. In conciliation proceedings, there is no agreement for arbitration. In fact, conciliation can be done even if there is an arbitration agreement. The conciliator only brings parties together and tries to solve the dispute using his good offices. The conciliator has no authority to give an award. He only helps parties in arriving at a mutually acceptable settlement. After such an agreement, they may draw and sign a written settlement agreement. However after the settlement agreement is signed by both the parties and the conciliator, it has the same status and effect as if it is an arbitral award.
Q2. State any three differences between Arbitration & Conciliation Act
Arbitration | Conciliation |
Arbitration is a procedure in which parties submit present or future disputes, to one or more arbitrators (arbitral tribunal) who make a binding decision on the dispute. | Conciliation is a process of persuading parties to reach settlement in existing and ongoing conflict with the help of third impartial party called conciliator with the to preserve the relationship they have with each other. |
The third impartial party is called arbitrator. | The third impartial party is called conciliator |
An arbitrator has the power to enforce his decision. | A conciliator do not have the power to enforce his decision. |
Pre-agreement is required for starting arbitration process. | There is no need of pre-agreement for starting the process of conciliation but acceptance to the process by both parties is necessary. |
Arbitration is available for existing and future disputes. | Conciliation is available only for the existing disputes. |
Sections 1 – 61 of the Arbitration and Conciliation Act, 1996 deals with the process of arbitration. | Sections 62 – 81 of the Arbitration and Conciliation Act, 1996 deals with the process of conciliation. |
The ultimate decision to agree on the settlement remains with the parties.he parties are bound by the decision of the arbitrator. | The ultimate decision to agree on the settlement remains with the parties. |
Q3. What does Arbitration agreement mean?
According to Section 7(1) of the Arbitration and Conciliation Act, 1996, the “Arbitration Agreement” means an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arisen between them in respect of a defined legal relationship, whether contractual or not. Thus, the existence of a dispute is a pre-requisite to invoke arbitration and such a dispute must be covered by the arbitration clause to enable arbitrator to assume jurisdiction. An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement.
A valid arbitration agreement is the founding stone of the arbitration procedure. It is a written agreement between the parties to submit their existing or future disputes or differences to arbitration. The jurisdiction of the arbitral tribunal emanates from the agreement between the parties. By agreeing to arbitration, the parties voluntarily opt-out of the right to have their disputes settled through adjudication by a civil court.
Q4. What is settlement agreement?
When the conciliator sees the possibility of settlement of dispute, the settlement process takes place under section 73 of The Arbitration and Conciliation Act, 1996. Generally, decision of the conciliation proceedings is not binding on the parties but if the parties resort to settlement of award under this section then the settlement agreement becomes binding on the parties. Parties have the option of either drawing up the terms settlement agreement by themselves or take the assistance of conciliator and at last the agreement is signed by both the parties and authenticated by the conciliator. Such agreement reached is called settlement agreement or conciliation agreement. As per section 74 of The Arbitration and Conciliation Act, 1996, the settlement agreement drawn under section 73 is kept in par with arbitral award in the arbitration proceedings under section 30 of The Arbitration and Conciliation Act, 1996 and it is binding like arbitral award.
Q5. What is status of award of Lok-Adalat?
The word “Lok Adalat” means ‘People’s Court. The Legal Services Authority Act makes provisions in relation to the establishment, powers and functions etc. of the Lok Adalat. The object of establishment of Lok Adalat is to settle the disputes quickly by counselling and discussions, etc. Its basis is to provide quick justice with the mutual and free consent of the parties.
The Lok Adalat will have similar powers of a Civil Court and is governed under the Code of Civil Procedure. Every award of Lok Adalat shall be deemed as a decree of civil court. Every award of Lok Adalat shall be final and binding on all the parties to the disputed parties. No appeal shall lie from the award of Lok Adalat. It focusses on the compromise between the parties, if compromise is reached an award is made and it is binding on all the parties of the dispute. The evidence act and procedures law are not strictly followed, while assessing the merits of the case.
Q6. Write short note on New York Convention.
The Convention on the Recognition and Enforcement of Foreign Arbitral Awards, done in New York, 10 June 1958 (the New York Convention), is described as the most successful treaty in private international law. It is adhered to by more than 160 nations. Sections 44 to 52 of the Arbitration and Conciliation (Amendment) Act, 2015 deals with foreign awards passed under the New York Convention.
In its simplest terms, the Convention incorporated two radical principles which, at that time, revolutionised the resolution of disputes with international elements, namely, enforcement of arbitration agreements and enforcement of foreign arbitral awards. Whilst the former provision upholds the principle of party autonomy by requiring national courts to refer the parties to arbitration, the latter incorporates a system of recognition of foreign arbitral awards in States bound by the Convention subject to limited exceptions. Furthermore, the Convention establishes a minimum legal framework, but it permits national courts to enforce arbitral awards under higher standards than those included in its provisions.
Two pre-requisites for enforcement of foreign awards under the New York Convention. These are:
- The country must be a signatory to the New York Convention.
- The award shall be made in the territory of another contracting state which is a reciprocating territory and notified as such by the Central Government.
Q7. When award can be set aside?
Section 34 of the Arbitration and Conciliation Act 1996 deals with the setting aside of the arbitral award. In order to set aside an arbitral award, individual needs to file an application in court. The court in general accepts an application of challenge only if it comes under the ambit of Sec. 34 only. The effect of the order setting aside the arbitral award is that where only a part of the reward is set aside, the rest of the award is final and binding on parties and can be enforced under the Code of Civil Procedure.
Grounds of Setting Aside of Arbitration Award:
The following are the grounds on which an award can be set aside:
- Incapacity of a party.
- Unlawful agreement.
- No notice to the other party.
- Subject matter extent to the scope of the arbitration agreement.
- Formation of Tribunal not as per the agreement.
- Subject matter not under the arbitration law.
- Award in conflict with the public policy of India.
Q8. What is Geneva convention? Write important provisions.
Sections 53-60 of the Arbitration and Conciliation (Amendment) Act, 2015 contains provisions relating to foreign awards passed under the Geneva Convention. The conditions for enforcement of foreign awards under the Geneva Convention are provided under Section 57 of the Arbitration and Conciliation Act, 1996. These are as follows:
- the award has been made in pursuance of a submission to arbitration which is valid under the law applicable thereto;
- the subject-matter of the award is capable of settlement by arbitration under the law of India;
- the award has been made by the arbitral tribunal provided for in the submission to arbitration or constituted in the manner agreed upon by the parties and in conformity with the law governing the arbitration procedure;
- the award has become final in the country in which it has been made, in the sense that it will not be considered as such if it is open to opposition or appeal or if it is proved that any proceedings for the purpose of contesting the validity of the award are pending;
- the enforcement of the award is not contrary to the public policy or the law of India.
Q9. Write short note on Arbitrator.
Chapter III of the Arbitration and Conciliation Act, 1996 lays down the arrangements for the Composition of an Arbitral Tribunal. The arbitrator must have requisite qualifications and none of the disqualifications prescribed in the arbitration agreement.
Section 10(1) of the Arbitration and Conciliation Act, 1996 gives provision for the number of arbitrators in the arbitration tribunal. The parties to the dispute are allowed to mutually choose the number of arbitrators that shall establish the arbitral tribunal to adjudicate the dispute. It is, in any case, necessary that the number of arbitrators appointed shall be an odd number and not an even. This provision guarantees that there are no ties.
According to Section 10(2) of the Arbitration and Conciliation Act, 1996, if the parties to the dispute are unable to choose the number of arbitrators, in that case, just a single arbitrator shall be appointed.
Section 11(1) of the Arbitration and Conciliation Act, 1996, a person of any nationality may be an arbitrator unless otherwise agreed by the parties. According to Section 11(2) of the Arbitration and Conciliation Act, 1996, if parties fail to appoint arbitrator as specified in Section 10 clause 2, then each party shall appoint one arbitrator and the two appointed arbitrators shall appoint the third arbitrator who shall act as the presiding arbitrator.
Q10. How Conciliator is appointed?
Conciliation is a process of persuading parties to reach settlement in existing and ongoing conflict with the help of third impartial party called conciliator with the to preserve the relationship they have with each other.
Once the proposal of conciliation is accepted by the other party the next important step is to have a conciliator. Section 63 of the Arbitration and Conciliation Act, 1996 act provides that there under usual circumstances there will be only one conciliator and in no case the number of conciliators shall exceed three [section 63(2)] which is the maximum limit and the general rule is that they shall act jointly.
According to section 80 of the Act, a conciliator should not be an arbitrator or a representative of the parties in any kind of legal proceedings in respect to a matter that is subject of the dispute. He/she also cannot be presented as a witness for/against the parties in any arbitral or judicial proceeding.
Q11. Explain any three salient features of the Arbitration and Conciliation Act,1996.
Following are some of the key features of the Arbitration and Conciliation Act, 1996 (Write only Three):
- Replacement of three old statutes: The Act is a consolidation of three laws of arbitration previously in force – viz, the Arbitration Act, 1940, the Arbitration (Protocol and Convention) Act, 1937, and the Foreign Awards (Recognition and Enforcement) Act, 1961 into one enactment. Though the three Acts have been consolidated the provisions regarding each of the acts have been kept distinct within the 1996 Act.
- Necessity of Arbitration Agreement: The Act emphasizes the importance of the Arbitration agreement without which arbitration proceedings cannot be instituted. The arbitration agreement is a clause in a contract or an agreement between parties stating that any dispute will be referred to arbitration proceedings. The Act mentions that the arbitration agreement or arbitration clause must contain the following information – the subject matter of dispute, the timing of dispute (past/present/future), number of arbitrators, qualifications of arbitrators, jurisdiction, and composition of the tribunal.
- Application to Domestic and International Arbitration: The Act provides the procedure not only for domestic arbitration but also includes International Commercial Arbitration. The 1996 Act is a law that relates to the enforcement of foreign Arbitration awards and ensures greater autonomy in the process of arbitration and puts a limit on the intervention of the judiciary.
- Procedural Advantage: Arbitral Tribunal has full powers to decide the procedure to be followed unless parties agree on the procedure to be followed. The Tribunal also has powers to determine the admissibility, relevance, materiality, and weight of any evidence. The place of arbitration will be decided by mutual agreement. However, if the parties do not agree to the place, the same will be decided by a tribunal. Similarly, language to be used in arbitral proceedings can be mutually agreed upon. Otherwise, Arbitral Tribunal can decide. The Act allows parties to choose the substantive law to be applied by the arbitration tribunal and this must also be mentioned in the arbitration agreement.
- Party Autonomy: The concept of party autonomy is the central theme of the Act. The expressions used in the Act – ‘unless otherwise agreed by the parties’, ‘with the agreement of parties’, `if the parties in dispute have expressly authorized’ etc., strengthens the idea of party autonomy.
- Minimal Interference by Judiciary: One of the major defects of earlier arbitration law was that the party could access court almost at every stage of arbitration – right from the appointment of an arbitrator to implementation of the final award. Thus, the defending party could approach the court at various stages and stall the proceedings. Now, the approach to court has been drastically curtailed. In some cases, if an objection is raised by the party, the decision on that objection can be given by Arbitral Tribunal itself. After the decision, the arbitration proceedings are continued and the aggrieved party can approach Court only after Arbitral Award is made.
- Arbitral Award: Decision of Arbitral Tribunal is termed as ‘Arbitral Award’. The arbitrator can decide the dispute ex aequo et bono (In justice and in good faith) if both the parties expressly authorized him to do so. The decision of the Arbitral Tribunal will be by majority. The arbitral award shall be in writing and signed by the members of the tribunal. The award should be dated and the place, where it is made, should be mentioned. Copy of award should be given to each party.
- Reasoned Award: The award must be in writing and signed by the members of the Arbitral Tribunal. It must state the reasons for the award unless the parties have agreed that no reason for the award is to be given. Previous to this Act reasoning of the award by the arbitrator was not mandatory.
- Enforceability of Award: Under this Act, every final arbitral award is enforceable as a decree of the court of law and not required to be made a “rule of court”.
- Over-Riding Effect of the Act: Section 5 of the Act clarifies that notwithstanding anything contained in any other law for the time being in force, in matters governed by the Act, the judicial authority can intervene only as provided in this Act and not under any other Act.
- Applicability of the Limitation Act: For this purpose, the date on which the aggrieved party requests another party to refer the matter to arbitration shall be considered. If on that date, the claim is barred under Limitation Act, the arbitration cannot continue. If the Arbitration award is set aside by Court, time spent in arbitration will be excluded for purpose of the Limitation Act.
- Aligning Procedure with the UNCITRAL Model Law: The Act has been enacted taking into account the United Nation’s Commission on International Trade Law (UNCITRAL) Model Law and UNCITRAL Conciliation Rules. This promotes unification and harmonization of International Tarde Law by harmonizing concepts of Arbitration and Conciliation of the legal system of the world.
- Clear Distinction Between Arbitration and Conciliation: The provisions that relate to the process of Arbitration are contained in Part I which includes Chapters I to IX, while the provisions that relate to the process of Conciliation are dealt with in Part III that includes section 61 to 81.
- Conciliation: Conciliation is the amicable settlement of disputes between the parties, with the help of a conciliator. Part III of the Act makes provision for conciliation proceedings. In conciliation proceedings, there is no agreement for arbitration. In fact, conciliation can be done even if there is an arbitration agreement. The conciliator only brings parties together and tries to solve the dispute using his good offices. The conciliator has no authority to give an award. He only helps parties in arriving at a mutually acceptable settlement. After such an agreement, they may draw and sign a written settlement agreement. However after the settlement agreement is signed by both the parties and the conciliator, it has the same status and effect as if it is an arbitral award.
Q12. Explain the role of the Conciliator.
According to section 67 of the Arbitration and Conciliation Act, 196.
- the conciliator shall maintain his independence and impartiality and persuade the parties in away to help them reach an amicable settlement.
- the conciliator should not only uphold the principles of objectivity, fairness and justice but should also keep in mind the rights and obligations of the parties and various circumstances surrounding the dispute.
- the conciliator may conduct the proceedings of the case in a manner that is appropriate in his opinion. However, he should consider the circumstances leading to the case and the wishes of the parties or any other requests of the parties that are related to the subject of the dispute and are reasonable in the eyes of the law.
- a settlement of the dispute can be proposed by the conciliator at any time when the proceedings are still in force. Any such settlement proposition need not be in writing or accompanied by a statement of reasons, necessarily.
Q13. Explain types of Arbitrations.
Different kinds of arbitrations are as follows:
- Domestic Arbitration: It is that type of arbitration, which happens in India, wherein both parties must be Indians and the conflict has to be decided in accordance with the substantive law of India.
- International Arbitration: When arbitration happens within India or outside India containing elements which are foreign in origin in relation to the parties or the subject of the dispute, and the dispute is decided in accordance with substantive law in India or any other country, then it is called as International Arbitration.
- Institutional Arbitration: When an arbitral Institution conducts arbitration in accordance with the prescribed rules of such institution, it is called Institutional Arbitration.
- Ad-hoc Arbitration: If the parties agree among themselves and arrange for arbitration, it is called Ad-hoc Arbitration without having an institutional proceeding. It can either be domestic, international or foreign arbitration.
- Statutory Arbitration: It is mandatory arbitration, which is imposed on parties by the operation of law. There are many central and State Acts which makes arbitration mandatory.
- Fast Track Arbitration: It is a time bound arbitration, with strict rules of procedure, which do not allow for any laxity or scope for extensions of time and delays.
Q14. Explain the role of Mediator.
The role played by the mediator is a key ingredient in the qualitative success of mediation.
- The mediator is a facilitator and not a decision-maker. Unlike the Judge in a traditional Court setting or for that matter even an arbitrator; the mediator is neither a trier of fact nor an arbiter of disputes.
- He should provide structure, focus, and assistance with communication to the parties in dispute. The role of the mediator is to create an environment in which parties before him are facilitated towards resolving the dispute in a purely voluntary settlement or agreement.
- He should provide unbiased, impartial assistance and should not have any interest in the dispute. As a neutral, the function of the mediator is to enable the parties to arrive at a mutual and voluntary agreement.
- He has to open up communication between the parties and between the parties and himself.
- He has to enable the parties to understand their own interests and to understand the interests of the disputing party.
- He must enable parties to distinguish between their positions and interests and to appreciate and evaluate their own interests and those of each other.
- He has to ensure that through the mediation dialogue parties arrive at a solution which is in their best interest.
- He has to control the process of negotiation.
Q15. What do you mean by Arbitral Award?
An arbitration award is an instrument embodying the decision of the arbitral tribunal, given after determination in a quasi-judicial manner of matters in dispute between two or more contending parties, referred in pursuance of valid written arbitration agreement between them providing for such reference giving arbitrators the power to decide and imposing a duty which makes it incumbent upon the parties to obey the decision arising from the submission.
Essentials of Arbitration Award:
- The award must be in writing. (Section 31(1))
- It must be signed by all or majority members of the arbitral tribunal. Reasons for the non-signing of defaulting members should be mentioned in the award. (Section 31(2))
- It must reasonable, legal and possible. (Section 31(3))
- It must have a date and place of arbitration (Section 31(4))
- It must talk about the cost of the arbitration (Section 31(5))
- It must be certain. If it is uncertain, it cannot be enforced.
- It must follow the agreement and not purport to decide matters, not within the agreement. An award outside the agreement is void, and the void award cannot be severed from the rest of the award, the whole award is void.
- It must be final.
- It must dispose-off all the differences submitted to arbitration.
- The award must be reasoned in the circumstances earlier.
Q16. Explain – Foreign Award.
Part II of the Act deals with foreign awards based on New York and Geneva conventions. An arbitral award is said to be a foreign award if it has a foreign element in it or has one or more of the following factors:
- If the award is made in a foreign country.
- If the subject matter of the arbitration agreement involves international transaction that, is it is related to international trade, commerce, investment, etc.
- Where a tleast one of the parties to arbitration agreement is a foreign national
- If the award is made in accordance with the foreign law.
The New York Convention defines “foreign award” as an arbitral award on differences between persons arising out of legal relationships, whether contractual or not, considered as commercial under the law in force in India, made on or after the 11th day of October, 1960
As per the Geneva Convention, “foreign award” means an arbitral award on differences relating to matters considered as commercial under the law in force in India made after the 28th day of July, 1924
India is the signatory to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, 1958 as well as the Geneva Convention on the Execution of Foreign Arbitral Awards, 1927.
Q17. Explain – Lok Adalat.
The word “Lok Adalat” means ‘People’s Court. The Legal Services Authority Act makes provisions in relation to the establishment, powers and functions etc. of the Lok Adalat. The object of establishment of Lok Adalat is to settle the disputes quickly by counselling and discussions, etc. Its basis is to provide quick justice with the mutual and free consent of the parties. Other objects are to reduce burden on the Courts so that the problem of law’s delay may be solved and people may get justice within due time. Lok Adalat provides alternative resolution or devise for expeditious and inexpensive justice.
Under Section 22 of Legal Services Authority Act, 1987, Powers of Lok Adalats are as follows:
- The Lok Adalat will have similar powers of a Civil Court and is governed under the Code of Civil Procedure.
- It has the power to summon and enforce the attendance of a witness and their examination under oath;
- It has power to order the discovery and production of any document;
- It has power to receive evidence on affidavits;
- It has power to receive evidence regarding a particular case.
- It has power to ask for any public record or document or copy of such record or document from any court or office;
- The Lok Adalat has the power to follow its own procedure for determining any dispute.
- The proceeding of a Lok Adalat is considered to be judicial proceedings.
Q18. Write any three qualifications of an Arbitrator.
The requisite qualifications of arbitrator are as follows:
- The arbitrator must have requisite qualifications and none of the disqualifications prescribed in the arbitration agreement.
- The arbitrator should possess all the required capacity by law to assume the office of the arbitrator.
- H must be a person of the general reputation of fairness, integrity, and capable of applying objectivity in arriving at settlement in the dispute.
- The arbitrator should be free from any bias
- The arbitrator must be free from any connection with parties and the subject matter.
Q19. What do you mean by misconduct of Arbitrator?
Misconduct of Arbitrator means that, improper behaviour that involves the bribing of an Arbitrator or the presence of a personal interest of an arbitrator in the dispute. This may cause improper behaviour in an ethical pr deontological manner and covering all the instances.
In Cochin Shipyard and Apeejay Shipping case, the Apex court ruled that the allegations of misconduct by an arbitrator can only be proved on the basis of the arbitration proceedings and its records and no witnesses can be called in to record fresh oral evidence to substantiate the charge. The Court also observed that legal misconduct would be complete if the arbitrator on the face of the award arrives at an inconsistent conclusion or arrives at a decision by ignoring material documents which can help in arriving at a just and fair decision.
Q20. Explain – Negotiation is the process of dispute resolution.
Negotiation is a method of dispute resolution whereby a dispute between two individuals or groups is settled amicably by an impartial third person called as a negotiator, using different techniques. The negotiator, in this form of resolution, uses various communication methods to bring the parties of the dispute to a settlement.
The main features of negotiation are as follows:
- Since negotiation is an informal process, it is relatively flexible.
- Quick resolutions as compared to litigation.
- It facilitates in maintaining a healthy relationship between the disputing parties.
- Takes place in a private environment
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