The Arbitration tribunals have proved to be real effective with lacs of cases pending in Judicial system in India.
In case, separate alike steps would not have been inculcated in our system, it would have led to rise in number of cases pending in Courts.
The objective of The Arbitration and Concilation Act, 1996, an act to consolidate and amend the law relating to settlement of disputes and matters incidental thereto.
The huge pendency of cases in judicial system underlining the justice over number of years since independence has led to a major decision for formulating such a law.
Under this, before the dispute is entertained to be solved by the judicial authorities, rather settled by the tribunal set up by the Government – a more meaningful set up where there is a possibility of out of court settlement.
An Arbitral tribunal means a sole arbitrator or the panel appointed to settle a dispute.
In case the parties before entering into an agreement or Contract, mention a clause regarding the appointment of a third party for faster redressal mechanism, is termed as arbitration clause.
In case, a separate agreement is entered setting all the terms and conditions of appointment of the third party (arbitrator) is termed as an Arbitration Agreement.
The result announced by the tribunal settling the dispute is termed as an award which can be temporary or Final Award.
The tribunal is free to award costs including interest thereon or any other expenses borne by one party regarding the Arbitration proceedings.
Arbitration is an Alternate Dispute Redressal Mechanism system where the parties settle the disputes, out of Court, by Arbitral Tribunals.
The Arbitrators are required to be appointed by both the party. Whenever parties enter into business transactions in order to avoid future disputes, they appoint any third person as an intermediary to get their dispute settled in case any future dispute arises.
An appointment by a party without the knowledge of the other, is not a valid appointment.
The parties are free to appoint any person as an Arbitrator provided that in whole they should notbe in even numbers but should be in odd numbers.
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