arbitration
Arbitration is a private, binding method of dispute resolution. It rests on an arbitration agreement: a written agreement to submit present or future disputes to arbitration, either as a clause in a contract or as a separate agreement. If a party sues in breach of such an agreement, the court must refer the parties to arbitration unless the agreement is prima facie invalid.
The Arbitration and Conciliation Act, 1996, based on the UNCITRAL Model Law, governs domestic and international arbitration in India, with major amendments in 2015 and 2019. Court interference is kept minimal. Arbitration may be ad hoc or institutional. Some disputes, such as criminal offences, matrimonial matters and guardianship, are not arbitrable.
Example
Because the supply contract contained an arbitration clause, the court referred the parties to arbitration under s.8 instead of trying the suit.
In Indian law
- Section 7, Arbitration and Conciliation Act, 1996 (arbitration agreement)
- Sections 8 and 11, Arbitration and Conciliation Act, 1996 (reference by court; appointment of arbitrators)
See also
arbitral award · alternative dispute resolution · conciliation · mediation
Read more in the study notes
- Arbitration: meaning, kinds and salient features of the 1996 Act (Alternative Dispute Resolution Systems)
- Reasoned decisions, exceptions to natural justice, effect of breach and Article 136 (Administrative Law)
- Government contracts and state liability: the administrative-law angle (Administrative Law)
- Methods of dispute resolution: adversarial, inquisitorial and ADR (Alternative Dispute Resolution Systems)
- Need for ADR, international commitments and suitability of disputes (Alternative Dispute Resolution Systems)
- ADR and the Civil Procedure Code: section 89 and Afcons (Alternative Dispute Resolution Systems)