What is Arbitration?

What is Arbitration?

Arbitration can be considered as the form of dispute resolution. If one party is desired to solve the dispute with the help of arbitration but the party does not want to go with the process of arbitration, the arbitration cannot be done. The mutual consent of both parties is a must for the arbitration.

There are many arbitral tribunals which help the people to resolve the disputes. They have their arbitrators which are well educated and experienced in specific fields. That means the parties can hire the arbitrator who is master to solve the problems related to their disputes. We are going to discuss the arbitrator, working, and legality of arbitral awards.What is Arbitration?


Arbitration is a remedy to a dispute where the parties of the dispute settle their dispute outside the court through an independent person (the arbitrator) appointed with their consent.


What is arbitration?

Arbitration is a technique given under the statute for the resolution of disputes out of the court where the parties choose their one or more arbitrator with free consent and bound themselves with the decision of arbitration tribunal. There will be an arbitration agreement to do the process of arbitration.

What is the arbitration agreement?

It is an agreement between the parties where they add the clause of arbitration. now, with this agreement, all the future disputes shall be resolved with the process of arbitration.

Who is an arbitrator?

Arbitrators can be any person appointed by the parties to solve their dispute. There is no qualifications are given for the arbitrator, any person who is sound of mind can be the arbitrator. The reason behind this is that the parties who are facing the issue are appointing the arbitrator with their will.

The arbitrator must be in odd numbers. People usually choose one or three arbitrators for the resolution of disputes. The reason is to make the decision more powerful and correct. Supposes there are two arbitrators and both are giving different decisions, the dispute can never be resolved but in some cases, if there are 3 arbitrators, where the decision of 2 arbitrators is the same that decision will consider as the final decision of the arbitral tribunal.

What is Arbitral tribunal?

The arbitral tribunal or the arbitration tribunal is penal of one or more arbitrators which are used to settle the dispute by the arbitration. There must be an odd number of arbitrators in the tribunal. The members selected for the arbitration tribunals are chosen by the parties to the dispute.

What is the work of the arbitrator?

The arbitration has to solve the dispute by hearing both the parties and their witnesses and finally pass the arbitral award which is suitable for the dispute. An arbitrator is an independent person appointed by the parties to the dispute which has similar powers as the judge in his case. He can ask for the pieces of evidence and collect the pieces of evidence and can also serve the summons for witnesses.

What is the procedure for arbitration?

The process of arbitration tribunal begins as other tribunals or as provided by the parties. In the process, the penal take the evidence and hear the parties and their witnesses and also cross-examine the parties and witness with documents presented as evidence. The arbitration process is faster than simple courts. Generally, the arbitrator passes the award within one year or depends upon the case to case.

Is a decision legally enforceable?

The decision passed by the arbitrator is known as arbitral award and it is binding for both the parties or the dispute as it is passed by the judge of the court. No party can challenge the arbitral award unless on the grounds given under section 34 of the arbitration and conciliation act.


Characteristics of arbitration

There are various characteristics of the arbitration, such as



The parties when coming into the contract can agree upon to settle the future disputes with arbitration by adding this point in their agreement. The name or the qualification of the administrator can also be added to this agreement. The party agreed for the arbitration cannot withdraw the consent.

Chosen by the parties

The arbitrator is chosen with the free consent of both parties. And if the parties fail to appoint the arbitrator, they can ask the court to appoint the arbitrator.


Independent arbitrator

An arbitrator is an independent person. He should not in the relation of the party. But if the parties agree that there is no problem with such relations, then it will not disallow him to be the arbitrator in the dispute.


Arbitrators are experts

The parties are free to use the arbitrator. It means they can choose the arbitration who is more experienced and expert in his field. The dispute can be solved in an easy way if the arbitrator has the knowledge of the issue arising in the dispute.

The choice to choose procedure and venue


The parties of the dispute are free to choose the procedure and the arbitral tribunal venue as they want. The parties can also choose the language of the court.

Confidential procedure


This is a confidential procedure. The arbitrator cannot disclose the facts or any other matter of the dispute with other persons. The information related to the dispute must be secure.

The decision of the arbitral tribunal is final and easy to enforce The decision or the arbitral award was given by the arbitrator is binding for both the parties. In the arbitral agreement, the parties already bind themselves that the decision given by the arbitrator shall be binding for us without any delay.

Setting aside the arbitral award


The [arbitration] award can be set aside on some grounds which are:

Incapacity of party

If either of the party to the dispute is not capable of any reason, the [arbitration] award will be set aside. For example, in the case of a minor or a person who is not a sound mind.


The arbitration agreement is not valid

If the arbitration agreement was not valid, either of the party can challenge the arbitral award.

Notice to the parties

Either of the Party not given proper notice of arbitral proceedings


Nature of dispute

If the nature of the dispute is not falling within the terms of arbitration the award will be set aside. For example, the murder case cannot be solved in the arbitration tribunal.

Arbitral procedure


The award can also be set aside on the bases that the procedure was not in accordance with the agreement.

Conflict with the public policy

If the award given by the arbitrator is conflicting with the public policies, the award can be set aside.



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