Whenever there are disputes between the parties, recourse is taken to a court of law for the settlement of such

disputes Such a course of action is time consuming expensive and burdensome. After globalization and liberalization, multinational companies doing business in India are not always happy to get the disputes settled through law courts. Hence alternative disputes resolution (ADR) system is necessary. Even statute like Code of Civil Procedure, 1908 was amended in 1999 to provide for settlement of disputes outside the court.

The United Nations Commission on International Trade law (UNCITRAL) adopted in 1985 the Model Law on International Commercial Arbitration. An important feature of the said UNCITRAL Model Law and Rules is that they have harmonized concepts on arbitration and conciliation of difference legal systems of the world and thus contain provisions which are designed for universal application.

The present Act seeks to consolidate and amend the law relating to : domestic arbitration international commercial arbitration enforcement of foreign arbitral awards to define the law relating to conciliation

To cover international commercial arbitration and conciliation as also domestic arbitration and conciliation. To permit an arbitral tribunal to use mediation, conciliation or other procedures during the arbitral proceedings to encourage settlement of disputes To minimize the supervisory role of Courts in the arbitral award To provide that, for purposes of enforcement of foreign awards, every arbitral award made in a country to which one of the two international Conventions relating to foreign arbitral awards to which India is a party applies, will be treated as a foreign award.

Determination of damages in case of breach of contract Question of validity of marriage or maintenance payable to wife Question of law or of law and fact in terms of seperation between husband and wife. Matters of personal or private rights of the parties, e.g., right to hold the office of a priest in a temple Disputes regarding compliment and dignity Time-barred claims.

The arbitration agreement is a contract. The parties must be competent to enter into a contract so that they can be bound by the award of the arbitrator. Minor or Lunatic represented by his natural guardian Manager of a joint Hindu family Agent

Attorneys and counsels Persons jointly interested Partner Trustee Insolvent represented by Official Receiver with the leave of the Court

A person, who is appointed to determine differences and disputes between two or more parties by their mutual consent, is called an arbitrator. The parties are free to determine the number of arbitrators provided that such number shall not be an even number. A person of any nationality may be an arbitrator, unless otherwise agreed by the parties Failing any agreement on a procedure, in an arbitration with three arbitrators, each party shall appoint one arbitrator. Thereafter, the two appointed arbitrators shall appoint the third arbitrator who shall act as the presiding arbitrator.

Equal treatment of parties: The parties shall be treated with equality and each party shall be given a full opportunity to present his case. Freedom of parties with regard to conduct of Arbitral proceedings The parties are free to agree on the place of arbitration. The arbitral proceedings in respect of a particular dispute commence on the date on which a request for that dispute to be referred to arbitration is received by the respondent.

After receiving notice of appointment, the arbitrator should see that his appointment is in order. He shall enter into the reference and make an award within the prescribed time. He shall act judicially and impartially. He shall stand indifferent between the parties and shall have no interest direct or remote in the subject-matter of the dispute or in the parties. He shall encourage settlement of the dispute by mediation or conciliation or other proceedings. He shall observe the rules of natural justice. He shall give a final award on all matters referred to him

Administrative assistance Jurisdiction Interim measures Place of arbitration and language Hearings and written proceedings Termination of proceedings Appointment of experts Court assistance in taking evidence Costs: Costs of Arbitration

Award means an arbitral award. It is a final judgement of the arbitral tribunal on all matters referred to it. It is in fact a final adjudication by a tribunal of the parties own choice. It is binding in the same manner as the decision of a Law Court.

It must be in writing An award on something outside the agreement is void and if the void part cannot be severed form the rest of the award, the whole award is void An arbitral tribunal must be careful to see that its award is a final decision on all matters requiring its determination. The award must be certain, reasonable and possible of performance so that no reasonable doubt can arise upon the face of it, or as to the nature and extent of the duties imposed by it on the parties It must be dated and signed It must be legal

Avoidance of publicity, for the proceedings are held in private Simplicity of procedure, as proceedings are held more informally. Avoidance of delay and uncertainty involved in appeals, as the award, assuming it to be valid, is final. Reduction of expenses in most cases. Saving of time, as proceedings are quicker than a trial in a Court. Appointment of a person having the required technical qualification as arbitrator, should the matter be of a technical nature.

The principal disadvantages: The arbitrator may be incompetent ( both in the trade and in the legal aspects of the matter) or biased; Injustice may result from the informality of the procedure.

An arbitral award may be set aside by the Court, only if The party making the application furnishes proof that (a) a party was under some incapacity The arbitral award deals with a dispute not contemplated by or not falling within the terms of the submission to arbitration. The composition of the arbitral or the arbitral procedure was not in accordance with the agreement of the parties.

The Court finds that the subject-matter of the dispute is not capable of settlement by arbitration under the law for the time being in force The court finds that the award is in conflict with the public policy An application for setting aside an arbitral award may be made within 3 months form the date on which the party making that application had received the arbitral award.

For the first time the concept on Conciliation is given statutory recognition by the Arbitration and Conciliation Act, 1996. This concept is based on conciliation rules adopted by UNCITRAL. In conciliation, an impartial third party, the conciliator, assists the parties to a dispute in reaching a mutually agreed settlement of the dispute. Mediation and conciliation are interchangeable expressions. In mediation the parties have the freedom to agree as they lease and the mediator decides nothing, advises as to nothing.

He helps parties agrees without himself reaching or announcing a conclusion or decision. He shall be guided by the principles of objectivity, fairness and justice. The conciliator is not bound by the Code of Civil Procedure or the Indian Evidence Act.

(a) by taking into account the circumstances of the case (b) The wishes of the parties may express, including any request by a party that the conciliator hear oral statements The settlement agreement duly signed by the parties and authenticated by the conciliator. The conciliator and the parties are required to keep confidential all matters relating to conciliation proceedings.