What is Arbitration

Arbitration is Private Adjudication

Arbitration is Private Adjudication and is a form of ADR, Alternate Dispute Resolution and its salient features include - 

• Arbitration is basically private adjudication of a dispute, before a forum other than the Court of law, by an independent third party.  An arbitration process may involve the use of an individual ad-hoc Arbitrator or an Arbitral Tribunal. 
• Arbitration is the most traditional form of private dispute resolution.
• Arbitration is popular as it aims to minimize the burden from the shoulders of the court of law and provide speedy remedy to the parties.
• Matters in arbitration are disposed within 1 year whereas in courts the parties to the dispute have to wait for several years depending upon the complexities of their case.
• Arbitration is also preferred by the parties because of the autonomy granted by it and exercised by the parties in determining the course that the proceedings may take.
• The term Arbitrator is not defined under The Arbitration and Conciliation Act, 1996, while all related terms like Arbitration, Arbitration Agreement, Arbitration Award, Arbitral Tribunal and Arbitration Institution stands defined.
• The object of arbitration is to arrive at a fair resolution of disputes by an impartial third party without unnecessary expense or delay.
• Parties are free to agree how their disputes are resolved, subject only to such safeguards as are necessary in the public interest.

Courts generally do not interfere in the Arbitral proceedings

• The arbitrator has the power to render a legally binding decision which both parties must honour and the award is enforceable in our courts and the courts of 142 countries.
• Arbitration Law in India has always been trending since its inception, in 1940.

Types of Arbitration 

Practically all disputes can be resolved by way of Arbitration except those which are expressely barred under Law. Some fields are-

• Commercial Arbitration is the most common of disputes. Just as it sounds, it is a dispute between two commercial enterprises.
• Consumer Arbitration relates to disputes between a consumer and a supplier of goods or services.
• Labour Arbitration pertains to employment related disputes. 
• Sports Arbitration pertains to disputes related to sports.
• Construction Arbitration focuses on disputes emanating from Construction and infra related projects.
• IPR Arbitration pertains to disputes relating to Trademark, Copyright and other IPR matters.