- What is Arbitration?
Arbitration is a dispute resolution mechanism for resolution of a dispute between two Parties, which is moderated by an Arbitrator. It is a process which helps the parties resolve their disputes in an efficient and effective manner, guided by our team of Arbitration Lawyers in India. The Arbitrator is a neutral third-party appointed by mutual consent of the Parties or through Court of law. There can be more than one Arbitrator constituting the Arbitral Tribunal as well.
- Is it possible to include an Arbitration clause in the agreement or a contract?
Yes, the Parties while drafting, deciding and negotiation the agreement or a contract, our team of Arbitration Lawyers suitably incorporate and cover the scope of dispute resolution by including an Arbitration clause in the agreements. The parties should mention all the details of the Arbitration and the constitution of the Arbitral Tribunal / Arbitrator within the clause itself, in order to avoid any ambiguity.
- Is it possible to initiate Arbitration process even when there is no Arbitration clause in the agreement or the contract?
Yes, it is possible to initiate the Arbitration process even when there is no Arbitration clause in the agreement or the contract. However, that can only happen when the parties mutually decide to do so, by entering into an arbitration agreement and defining the scope and procedure thereupon.
- How is the process of Arbitration initiated?
The Arbitration process is initiated when one of the Parties receives a notice of dispute to be referred to the Arbitration by the other Party, prepared and drafted by our team of Arbitration Lawyers. It is imperative for both the Parties to be signatories to the concerned Arbitration agreement / contract in order for Arbitration to take place as per the Arbitration and Conciliation Act, 1996.
- How are the Arbitrators appointed?
The parties are free to mutually decide the Arbitrators and the number of Arbitrators. The parties can decide as to how many Arbitrators they want however, it should be in odd numbers. As a matter of general practice, usually a Sole Arbitrator or an Arbitral Tribunal of Three Arbitrators are appointed by the Parties. In case, the parties fail to decide and appoint the number of Arbitrators, then in that case the Arbitration Tribunal shall consist of only Sole Arbitrator.
- Can the parties decide the process for appointment of an Arbitrator or Arbitrators?
Yes, the parties are free to decide the process for appointment of an Arbitrator or Arbitrators as per Arbitration Law and in line with the Arbitration and Conciliation Act, 1996.
- What happens in case it is decided to appoint three Arbitrators?
In case the Parties decide to constitute an Arbitral Tribunal with three Arbitrator, then in such a case, each party gets an option to decide / nominate one Arbitrator each. In addition to that, the two Arbitrators appointed by each of the parties shall decide as to who will be the third Arbitrator, who shall be a neutral third-party party.
- Is there any time frame to submit the statements of claim by the Claimant and the statements of defense by the Respondent?
Yes, either the parties to Arbitration or the Arbitral Tribunal shall decide the time frame for submission of Claims or Defence. In addition to that, the parties have to submit their Statement of Claim and all the necessary documents as per the time schedule or time period prescribed by the Arbitrator / Arbitral Tribunal. Such a Statement of Claim, drafted suitably by our team of Arbitration Lawyers, shall lay down all the facts surrounding the dispute between the Parties while laying particular stress upon the claim of the Party invoking Arbitration. This shall be followed by either a Counter Claim or Written Statement or both filed by the opposite party to the Statement of Claim. While the Written Statement shall lay down the defence of the opposite Party, such party may also file a Counter Claim invoking a fresh claim against the party who invoked Arbitration in the first place.
- When does the hearing stage begin?
After the Arbitrators are appointed, the parties and the Arbitrators come together and decide the schedule. During this meeting, the issues of the dispute is discussed and the information is exchanged amongst the parties and the Arbitrators. In the end, the next date of hearing is decided. This stage is known as the Preliminary hearing.
- What is the next stage after Preliminary hearing?
After Preliminary hearing comes the stage of hearing. During this stage, the parties present their case to the Arbitrators and in the end the parties also have to submit their written arguments to the Arbitrators.
- What mode of hearing shall be followed?
The hearing can take place in person (physically) or via virtual conferencing or in some cases, as maybe permitted by the Arbitrators, by submitting their written arguments.
- What comes next after the hearing stage?
After the hearing stage, a date is fixed so that the Arbitral Award can be issued in favor of either of the parties.
- What kind of award is given to either of the parties?
The Award passed by the Arbitrators is final. The Award can be monetary and/or non-monetary. The Arbitrators have to state their reasons for their decision. Finally, the final award is signed by the parties as well as the Arbitrators.
- Can an Arbitral award be challenged in the court of law?
Yes, the Arbitral award can be challenged in the court of law. One of the following conditions must be proved in order to challenge the Arbitral Award. The conditions are as follows:
- That the party was under some incapacity.
- That the Arbitration is not valid under the law they were subjected to.
- That the party wasn’t given a proper notice of appointment of Arbitrators or of Arbitral Proceedings or was unable to present his case.
- If the Arbitral Award does not fall within the ambit of submission to Arbitration.
- What is the time frame to challenge an Arbitral Award?
The aggrieved party has a time period of 90 days, after receiving the receipt of the Arbitral award to challenge it.
