Hello Bandi Suryanarayana,

Overview

Arbitration is the means by which parties to a dispute get the same settled through the intervention of a third person (or more persons) but without recourse to a Court of Law. The Settlement of disputes is arrived by the judgement of third person( or Persons , in case of more than one),called arbitrators.

The party repose confidence in the judgement of the arbitrator and show their willingness to abide by his decision.

Well, the essence of the arbitration is based upon the principle of keeping the disputes from the intervention of the courts enabling the parties to substitute by a domestic tribunal.

“United Nations Commission on International Trade Law (UNCITRAL) has adopted the UNCITRAL Model Law on International Commercial Arbitration in 1985 and the General Assembly of the United Nations has recommended that all countries give due consideration to the said Model Law, in view of the desirability of uniformity of the law of arbitral procedures and the specific needs of international commercial arbitration practice. The Arbitration and Conciliation Act, 1996 is based on United Nations Commission on International Trade Law (UNCITRAL) Model Law on International Commercial Arbitration”

Power to refer parties to arbitration where there is an arbitration agreement .

Section 8(1) provides that a judicial authority, before which an action is brought in a matter which is the subject of an arbitration agreement shall, if a party to the arbitration agreement or any person claiming through or under him, so applies not later than the date of submitting his first statement on the substance of the dispute, then, notwithstanding any judgment, decree or order of the Supreme Court or any Court, refer the parties to arbitration unless it finds that prima facie no valid arbitration agreement exists.

What If Original Copy of Arbitration Agreement is not available?

Section 8(2) specifies that a duly certified copy of the original agreement is sufficient for the entertainment of the arbitration proceedings.

What if original agreement of or Duly certified copy is not available with the applicant??

Where the original arbitration agreement or duly certified copy is not available with the party applying for arbitration,and the said agreement or certified copy thereof is retained by the other party, the party so applying can file such application along with a copy of the arbitration agreement praying the Court to call upon the other party to produce the original arbitration agreement or duly certified copy thereof before the Court.

Number of arbitrators

As per Section 10(1) of the Act, the parties are free to determine the number of arbitrators, provided that such number shall not be an even number.

Failing the determination referred to in Section 10(1) above, the Arbitral tribunal shall consist of a sole arbitrator.

Citations

*Countries with border and treaty disputes often look to the international arena for resolution. For example, China and the Philippines have been arguing over territorial rights in the South China Sea for several years. The Filipino government wants the arbitral tribunal formed under the United Nations Convention on the Law of the Sea (UNCLOS) to arbitrate the matter. Any decision would be binding in both countries. But to get to the arbitral tribunal, China has to agree to its jurisdiction even though it and the Philippine government ratified the UNCLOS. China believes it has undisputed sovereignty in this area and is resisting compulsory arbitration though it has not ruled out alternative dispute resolution measures such as a conciliation commission, Further, the arbitral tribunal has yet to accept jurisdiction over the issues, which could affect the future validity and enforceability of international law.

This case highlights the high stakes involved in certain arbitration matters but also the uncertainties of international law and the viability of tribunals that many nations hoped would be an alternative to the use of force.

Personal Injury

Arbitration may be a sound and practical alternative to formal litigation for personal injury cases. As indicated above, most litigants do not want to wait for years to have their cases resolved, especially if the sole or main issue is one of damages. If a party was seriously injured, then medical expenses and the loss of income can overwhelm a family that cannot be made up through medical or disability insurance or other plans. Insurance companies are also motivated to resolve claims quickly in most cases.

There is a movement to have medical negligence or malpractice claims resolved by arbitration. When signing up for a plan, consumers often have the option of resolving a medical malpractice allegation by arbitration. Most choose arbitration since trials and courts are intimidating, costly, and can take years to get their case to trial. Some observers feel that consumers often receive less in compensation, if at all, in medical negligence cases decided by arbitration but most cases with compelling evidence will generally result in reasonable compensation for the claimant.

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Hope this helps...

Thank you and all the best...