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Answer 2

Arbitration is a binding form of dispute resolution where parties agree in a contract to have an arbitrator decide the outcome of a dispute rather than going to court. The arbitrator hears arguments from both sides and issues a decision. An arbitration award is legally binding and enforceable unless the parties agree it is non-binding. The arbitration process involves each party appointing an arbitrator, who then appoint a chief arbitrator to oversee the process. The arbitrators conduct a hearing where parties present evidence, similar to a trial. The arbitrator then issues a ruling. Parties can challenge an award if the arbitrator was improperly appointed, the procedure violated the agreement, or the award granted relief outside the arbitrator's powers

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66 views

Answer 2

Arbitration is a binding form of dispute resolution where parties agree in a contract to have an arbitrator decide the outcome of a dispute rather than going to court. The arbitrator hears arguments from both sides and issues a decision. An arbitration award is legally binding and enforceable unless the parties agree it is non-binding. The arbitration process involves each party appointing an arbitrator, who then appoint a chief arbitrator to oversee the process. The arbitrators conduct a hearing where parties present evidence, similar to a trial. The arbitrator then issues a ruling. Parties can challenge an award if the arbitrator was improperly appointed, the procedure violated the agreement, or the award granted relief outside the arbitrator's powers

Uploaded by

Anurag Gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Answer 2:

Arbitration is a contract-based form of binding dispute resolution. In other


words, a party’s right to refer a dispute to arbitration depends on the existence
of an agreement (the “arbitration agreement”) between them and the other
parties to the dispute that the dispute may be referred to arbitration.

Arbitration is the most formal of the ADR procedures and takes the decision
making away from the parties. The arbitrator hears the arguments and evidence
from each side and then decides the outcome of the dispute.

An arbitration decision or award is legally binding on both sides


and enforceable in the courts, unless all parties stipulate that the arbitration
process and decision are non-binding

PROCESS OF APPOINTMENT OF ARBITRATOR:

1. the process of appointing arbitrators must be started within 30 days from


the date when the reason for the settlement of a dispute through
arbitration arises.
2. In case the agreement mentions the Name, surname, address and other
descriptions of arbitrators, they themselves shall be recognized as having
been appointed as arbitrators.
3. each party shall appoint one arbitrator each and the arbitrators shall
appoint the third arbitrator who shall work as the chief arbitrator.

ARBITRAL PROCESS

1. Arbitrations generally are intended to streamline the process and decrease


the costs when compared to resolving a dispute in court. But, as noted
above, arbitrations are not all run the same way. arbitration is typically
intended to provide a more streamlined, time-saving, and cost-effective
method for resolving potential legal disputes.
2. the beginning of the arbitration process involves one party giving notice to
another of their intent to arbitrate a dispute, informing them of the nature
and basis for the proceeding. The other party then gets a period of time to
respond in writing, indicating whether they agree to resolve this dispute via
arbitration. Once it is established that the disagreement will be resolved in
an arbitration, the arbitration process itself begins, based on the rules and
procedures selected by the parties or specified by contract.
3. One of the reasons that arbitration is often thought of as quicker and
cheaper than litigation is that the paperwork involved in a dispute is cut
down sharply when compared to litigation. The arbitration process usually
cuts down significantly on discovery, allowing an arbitrator to take a more
active role and possibly curtail excesses.
4. After this, the process is somewhat similar to a courtroom trial. Parties
make arguments before the arbitrator(s), call witnesses, and present
evidence to establish and defend their respective cases. The rules for an
arbitration hearing may differ from those of a courtroom, however, and
opportunities to question or cross-examine witnesses may be more limited.
Once the hearing is concluded, an arbitrator or panel is given a certain
amount of time in which to consider the decision and make a ruling.\

REASONS FOR CHALLENGING THE ARBITRAL AWARD BY THE DISPUTING PARTIES

 The composition of arbitral tribunal was not in accordance with the agreement;
 The arbitral procedure was not in accordance with the agreement between the parties;
 In the absence of such an agreement, the composition of the arbitration procedure was not in accordance with
law.

An award will be entirely void if;

 The arbitrator was not validly appointed or lacked necessary qualifications.


 The parties never made any binding arbitration agreement.
 the matters in dispute fell outside the scope of the agreement.
 the whole of the relief granted lay outside the powers of the arbitrator.

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