What are advantages of Arbitration

Arbitration as an ADR method has several advantages over Court litigation or decisions arrived at various Tribunals. Some of these advantages are-

Choice of Decision Maker in Arbitration

As compared to litigation, where one cannot "choose the judge", arbitration allows the parties to choose their own tribunal. This is especially useful when the subject matter of the dispute is highly technical: arbitrators with an appropriate degree of expertise (for example, quantity surveying expertise, in the case of a construction dispute, or expertise in commercial property law, in the case of a real estate dispute) can be chosen. For example, parties can choose a technical person as arbitrator if the dispute is of a technical nature so that the evidence will be more readily understood.

Efficiency of Arbitral Proceedings

Arbitration is often faster than litigation in Court. Arbitration can usually be heard sooner than it takes for court proceedings to be heard. As well, the arbitration hearing should be shorter in length, and the preparation work less demanding. Arbitration hearing  is generally fixed for one matteror dispute unlike Court where there is a whole causelist of ases listed for the day. 

Privacy in Arbitration

Arbitral proceedings and an arbitral award are generally non-public, and can be made confidential. Arbitration hearings are confidential, private meetings in which the media and members of the public are not able to attend. As well, final decisions are not published, nor are they directly accessible. This is particularly useful to the employer who does not want his ‘dirty laundry’ being aired.

Convenience of hearings in Arbitration

Hearings are arranged at times and places to suit the parties, arbitrators and witnesses. In the pandemic conditions Arbitration hearings were carried out virtually as well. IDRC has carried out hundred's of such successful hearings through its Virtual ADR Hearing Module.

Flexibility of procedure in Arbitration

The procedures can be segmented, streamlined or simplified, according to the circumstances and specific need of the disputing parties. Generally the statute do provide broad procedure as in Arbitration and Conciliation Act,1996. Arbitration institutios on the other hand have their own procedure as in IDRC ie Indian Dispute Resolution Centre Domestic Arbitration Rules, 2019. Parties can also agree to a new imporvised hearing procedure which can be amalgamation of several codified procedures.

Finality of decision in Arbitration

In most legal systems there are very limited avenues for appeal of an arbitral award, which is sometimes an advantage because it limits the duration of the dispute and any associated liability. There is in general, no right of appeal in arbitration except statutory Objections under Section 34 of Arbitration and Conciliation Act, 1996.

Language in Arbitration

In arbitral proceedings the language of arbitration may be chosen, whereas in judicial proceedings the official language of the country of the competent court will be automatically applied. Generall in better part of India and most on INternational Arbitrations are carried out in English Language.

Execution of Arbitration Award

Under Arbitration and Conciliation Act,1996 Arbitral Award can be executed in a Civil Court of competent pecuniary jurisdiction as if its a court Decree by filing of an Execution Petition under Order 21 of Code of Civil Procedure.

Because of the provisions of the New York Convention 1958, arbitration awards are generally easier to enforce in other nations than court verdicts.