2. A process of dispute resolution
A neutral third party (called the arbitrator) renders a decision after a
Both the parties have an opportunity to be heard
It is the means by which parties to a dispute get the same settled without
having recourse to court of law
An arbitrator is basically a private judge appointed with consent of both
8. DOMESTIC ARBITRATION
In a domestic arbitration:
1) The arbitration takes place in India
2) The subject matter of contract is in India
3) The merits of the dispute are governed by the Indian Law.
4) The procedure of arbitration is also governed by the
Clause(f) of sub-section (1) of section 2 of the 1996 Act defines international
arbitration as the arbitration relating to disputes arising out of legal relationships,
whether contractual or not, where at least one of the parties is:
1) An individual who is a national of, or habitually resident in or any country other
2) A corporate body which is incorporated in any country other than India
3) A company or an association or a body of individuals whose central management
and control is exercised in any country other than India
4) The government of foreign country.
10. The 1958 New York Convention
each contracting state shall recognize an agreement in
under which the parties undertake to submit to arbitration
all or any difference which have arisen or which may arise
in respect of a defined legal relationship, whether
contractual or not,
concerning a subject matter capable of settlement by
11. France, Civil Code
one cannot submit to arbitration questions of status
and capacity of persons
questions relative to divorce and separation
questions respecting controversies that concern public
entities or public establishments
12. Arbitration Law of China
contractual disputes between citizen of equal status, legal persons and
other economic organizations and disputes arising from property rights
may be put to arbitration.
Following disputes can not be put to arbitration :
disputes arising from marriage, adoption, guardianship, bringing up of
children and inheritance
disputes that have been stipulated by law to be settled by
14. may be composed of three arbitrators or one arbitrator.
In the case of three arbitrators, there should be a chief arbitrator.
An arbitrator shall be withdrawn if :
the arbitrator is a party involve in the case or a blood relation or
relative of the parties concerned or their attorneys.
the arbitrator has vital personal interests in the case.
The arbitrator meets the parties concerned or their attorneys in
private or has accepted gifts or attended banquets hosted by the parties
concerned or their attorneys.