Alternative dispute resolution(ADR)

1. ARBITRATION AGREEMENT, KINDS OF AWARD
Ad Bhavna Katheriya P.
B.A.LLB,MSU, Law faculty

2.  Arbitration can be defined as the means by
which the parties to dispute consent to get the
same settled through the intervention of the
third person, called arbitrator, without
having recourse to a court of law.

3.  Arbitration agreement means an agreement by the parties
to submit to arbitrator all or certain disputes which have
arisen or which may arise between them in respect of
defined legal relationship.
 An arbitration agreement must be in writing, which may
be in the form of a signed document, exchange of letters,
telegrams or an exchange of settlements of claim and
defense or other means of communication.
 The S.C in, M.M.T.C Ltd.V. Starlight industries Ltd.
Observed that the validity of an arbitration agreement
does not depend on the number of arbitrators specified
therein.There is nothing in the act to suggest that
requirements of the no,. Of arbitrators is a part of an
arbitrators agreement.

4.  Property
 Insurance
 Contract (including employment contracts)
 Business / partnership disputes
 Family disputes (except divorce matters)
 Construction
 Commercial recoveries

5.  Award means the decision of the arbitrator. An award may
be defines as the final and binding decision of dispute by
forum created by agreement of the parties to the dispute.
Further the term arbitral awards include as an interim
award.
 Forms and content of arbitral award
o Arbitration award must be in writing.
o Must state the reason unless otherwise agreed by the
parties or award is an u/s 30.
o It must be dated and signed by the arbitrators.
o It must state the place of arbitration.
o A signed copy of the award must be delivered to each
parties to the reference.

6.  Interim Award –This is a temporary award until the tribunal has given its
final decision. Interim award can be challenge as its not a final award.A
provisional award can only be made if the parties have agreed that “the
tribunal may have the power to order on a provisional basis any relief
which it would have power to grant in a final award” (s.39 Arbitration Act
1996).
 This includes;
 making a provisional order for the payment of money or the disposition of
property as between the parties; or
 an order to make an interim payment on account of the costs of the
arbitration.
 Partial Award – Some elements of the parties’ claim have been
determined but other issues remain and need to be resolved before the
final award is made. Parties can continue arbitrating the remaining
issues.
 Consent Award – Usually the parties have reached a settlement and
agreed terms which are then incorporated into an award which can be
enforced. (similar to a Judgment by consent).

7.  Draft Award -This is not binding on the parties until it has been
confirmed by the tribunal.
 Final Award –This should usually be in writing and signed by all
the arbitrators.The award must contain reasons and state where
the arbitration took place. It must also be dated (this is important
for calculating interest on payments). Once the final award is
made this ends proceedings.
 Additional Award – Usually once the final award it made, the
tribunal has no further authority. However, the parties can request
an additional award be made on an undecided issue still in dispute.
If there is any mistake the act allows a tribunal to correct any
computation, clerical, typographical or similar error, make an
additional award as to claims omitted from the original award

8.  Are there any time limits on delivery of the
award?
 In accordance with the Arbitration and
Conciliation (Amendment) Act, the tribunal must
render awards within 12 months of the date that
it enters the reference. This period can be
extended by up to six months if all of the parties
agree. If the award is not made within 12
months or within the mutually extended period,
the tribunal’s mandate would be terminated,
unless the period has been extended by the
court.

9.  What is the procedure for challenging awards?
 An application to challenge the award must be filed in court within three
months of receipt of the award. In certain circumstances, the court may
consider an application for setting aside within a further period of 30 days
if it is satisfied that there was sufficient cause for such delay. If the court
rejects the application for challenge, the award is enforceable as a decree
of the court.
 The unsuccessful party has only one right to appeal an order setting
aside or refusing to set aside an award and no second appeal can be
made against an appellate order. However, there is a constitutional
right to file an appeal before the Supreme Court of India (a ‘special
leave petition’). The Supreme Court will exercise its discretion
sparingly and consider such an appeal only if there is a gross error of
law or an important issue of law is involved.
 The parties cannot enter into an agreement to waive their right to
challenge an arbitral award.

10.  How enforceable is the award internationally?
 India is a party to the New York Convention. The enforceability of an award issued by a
tribunal seated in India in an international jurisdiction will therefore depend on whether that
jurisdiction has signed the New York Convention and its reservations at the time of signature.
 How enforceable are foreign arbitral awards in your jurisdiction?
 Awards issued in most of the major arbitration centers of the world are enforceable in India.
Part II of the Arbitration and Conciliation Act, which governs enforcement of foreign awards
in India, applies only to awards issued in jurisdictions notified by the Indian government as
jurisdictions in which the New York Convention applies. The government has notified all key
centers of international arbitration, including France, the United Kingdom, China, Singapore,
Sweden, Switzerland and the United States.
 A party enforcing an award issued in an arbitration seated outside India under the New York
Convention must apply to court and produce the following documents:
 the original award or an authenticated copy;
 the original arbitration agreement or a duly certified copy;
 such evidence as may be necessary to prove that the award is a foreign award; and
 translations of these documents into English, if necessary.

11.  Indian council of arbitration (1965)
 Abide Arbitration and Conciliation Act, 1996
 Comprehensive legal framework
 95% arbitration is of type ad-hoc
 India No. 2 in arbitration cases reaching Singapore
centre
 Mumbai to have India's first International
Arbitration Centre soon 21