Law Relating To Arbitration in India

Law Relating To Arbitration in India – What is arbitration law – Arbitration law in India – Arbitration is one of the important forms of Alternative Dispute Resolution. It means the settlement of deferences or disputes outside the court. The arbitral award includes an interim award and the arbitral award is binding on the parties.

Law Relating To Arbitration in India


Arbitration is a legal technique in which the dispute settled through the intervention of an agreed third person (i.e the arbitrator or arbitral tribunal )


According to Halsbury-

Arbitration means the reference of dispute or difference between not less than two parties, fir determination, after hearing both sides in a judicial manner by a person or persons other than a court of competent jurisdiction.

Kinds of Arbitration

a)Ad-hoc Arbitration
b)Institutional Arbitration
c)Contractual Arbitration
d)Statutory Arbitration
e)Domestic Arbitration
f)International Arbitration
g)Foreign Arbitration

Essential Elements of an Arbitration Agreement

a)The arbitration agreement must be in writing
b)There must be an agreement between the parties.
c)The parties must be ad idem

Law Relating To Arbitration in India

Who can enter into an Arbitration agreement

Every person who is competent to contract can enter into the arbitration agreement.

1)Minors and lunatics-
Contracts by minors and lunatics persons are not valid and they cannot enter into a valid agreement of arbitration. Through their natural or legal guardians, they can enter into an arbitration agreement.

On behalf of his principal, the agent can enter into an arbitration agreement.

3)Manager of the joint Hindu family-
A manger of joint Hindu family has authority to bind his partners in ordinary matters and he refers the dispute to arbitration so as to bind on other partners. For arbitration, a manager of the joint family can refer to the dispute.

4)Legatees –
Disputes relating to the division of an estate, legatees may refer to the arbitrator.

The power of a trustee to refer to disputes related to trust in arbitration. Trust does not put restrictions on the power of the trustee. If their two or more trustees acting together and they can refer the dispute of related trust to arbitration.

Arbitration Tribunal

Arbitration and Conciliation Act, 1996 contains chapter III of part I regarding the composition of an Arbitral Tribunal.

A)Number of arbitrators-
The parties determine the number of arbitrators, parties are free to determine but the number of arbitrators shall not be an even number. The arbitral tribunal shall consist of a sole arbitrator if failing the determination is referred to in sub-section (1).

B)Appointment of arbitrators-
Under section 11 of the arbitration and conciliation Act, is provided with the procedure of appointment of arbitrators.
1)The parties are free to determine the arbitrator.
2) A person of any nationality may act as an arbitrator if agreed by the parties.

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