Meaning

The dictionary meaning of Arbitration is hearing and determining a dispute between the
parties by a person or persons chosen by the parties. It is an alternative to litigation in courts
and is advantageous as it provides flexibility and confidentiality. According to section 2 (1)(a)
of Arbitration and conciliation act 1996 "Arbitration" means any arbitration whether or not
administered by permanent arbitral institutions.
The arbitration act of 1940 did not contain the definition of the term "Arbitration".
The word arbitration as defined in the present act connotes the same meaning as contained
in article 2(a) of the model Law of UNCITRAL.
Definition:
According to Nacham of Breslov arbitration is the justice blended with charity.
According to Black's Law Dictionary, arbitration means a method of resolving disputes which
includes two parties and neutral third party whose decision is binding on both parties.
In an English judgement named Collins vs. Collins (1858) 28 LJCh184:53 ER916 gave a wide
definition of the concept of Arbitration which reads as follows :-
An arbitration is a reference to the decision of one or more persons either with or without
an umpire a particular matter in difference between parties. It was further observes by the
Court that proceedings are structured for dispute resolution wherein executives of the
parties to the dispute meets in presence of a neutral advisor and on hearing both the sides
and considering the facts and merits of the dispute an attempt is made for voluntary
settlement.
According to Byrne's law dictionary:
The term "arbitration includes practically every question which might be deterred to
arbitration. This under the English law, arbitration means the settlement of disputes by the
decisions of one or more person’s called arbitrator.

The procedure for arbitration involves the following steps:

Arbitration Agreement:
Before a dispute arises, the parties must have a valid arbitration agreement in place. This
agreement may be part of a contract, a separate agreement, or a clause in a contract that
specifies that any disputes will be resolved through arbitration instead of going to court.
Selection of Arbitrators:
The parties involved in the dispute, as per the arbitration agreement, select the arbitrator(s).
In some cases, the agreement may specify a particular arbitration institution or organization
that will appoint the arbitrator(s).
Initial Filings:
The party initiating the arbitration, known as the claimant, files a Notice of Arbitration,
detailing the dispute's nature, facts, and legal claims. The respondent, the other party,
responds to the claim in a timely manner.
Preliminary Conference:
The arbitrator(s) may hold a preliminary conference to discuss the procedural aspects of the
arbitration, including timelines, discovery procedures, and any preliminary issues that need
to be addressed.
Discovery (Optional):
Depending on the arbitration agreement and the applicable laws, the parties may engage in
a limited form of discovery, such as requesting documents and information from each
other.Estate planning services
Hearing:
The arbitration hearing is the main stage of the process, where both parties present their
cases. Each party has the opportunity to present witnesses, documents, and other evidence
to support their position. The arbitrator(s) may ask questions and seek clarification during
the hearing.
Closing Arguments:
After the presentation of evidence, both parties are usually allowed to make closing
arguments, summarizing their positions and emphasizing the key points of their case.
Deliberation and Award:
After the hearing and closing arguments, the arbitrator(s) deliberate and reach a decision,
known as the arbitration award. The award is a written decision outlining the arbitrator(s)'
findings, conclusions, and any remedies or damages awarded to the prevailing party.
Enforcement of the Award:
In many jurisdictions, the arbitration award is final and binding. To enforce the award, the
prevailing party may need to seek confirmation from a court. Conversely, the losing party
may challenge the award in court under limited grounds provided by law.
It's essential to note that the arbitration procedure can be adapted based on the specific
arbitration agreement, the rules of the chosen arbitration institution (if applicable), and the
complexity of the dispute. The process can be faster and more flexible compared to
traditional court litigation, making it an attractive option for resolving certain types of
disputes. However, as with any legal process, parties involved in arbitration are encouraged
to seek legal advice to understand their rights, obligations, and potential outcomes.
Kinds of Arbitration
In arbitration a dispute is submitted to the arbitral tribunal and not to a regular civil court or
otherwise. The arbitral tribunal must give a decision on the dispute and this decision is thus
binding on the parties in the dispute since they have no grounds to appeal.
When contrasted with the traditional approach of a judicial proceeding which ordinarily
happens in a Court; and has to go through judicial proceeding which can save a lot of time
for the parties.
A few types of Arbitrations in India on the basis of Jurisdiction
Domestic Arbitration
Domestic arbitration is that type of arbitration, which happens in India, wherein both parties
must be Indians and the conflict has to be decided in accordance with the substantive law of
India. The term a domestic arbitration has not been defined in the Arbitration and
Conciliation Act of 1996. However when reading Section 2 (2) (7) of theAct 1996 together, it
is implied that €˜domestic arbitration means an arbitration in which the arbitral
proceedings must necessarily be held in India, and according to Indian substantive and
procedural law, and the cause of action for the dispute has completely arisen in India, orin
the event that the parties are subject to Indian jurisdiction. Legal services
International Arbitration
When arbitration happens within India or outside India containing elements which are
foreign in origin in relation to the parties or the subject of the dispute, it is called as
International Arbitration. The law applicable can be Indian or foreign depending upon the
facts and circumstances of the case and the contract in this regard between the respective
parties. To fulfill the definition of International Arbitration it is sufficient if any one of the
parties to the dispute is domiciled outside India or if the subject matter of dispute is abroad.
International Commercial Arbitration
International Commercial Arbitration is defined as the substitution of many burning
questions for a smouldering one. NaniPalkhiwala has stated that International Commercial
Arbitration is a 1987 Honda car, which will take you to the same destination with far greater
speed, higher efficiency and dramatically less fuel consumption[ii] International Arbitration
is considered to becommercial if it related to disputes arising out of a legal relationships
irrespective of their contractual nature and are considered as commercial under the law in
force in India and where at least one of the parties is-
A national of, or habitual resident in, any country other than India or
A body corporate which has to be incorporated in any foreign country, or
An association or a body of individuals whose core management and control in a country
which is not India or
the government of a country other an India. In International Commercial Arbitration the
arbitral tribunal is bound to decide the conflict according to the rules of law chosen by the
parties as applicable to the substance of the dispute; any designation by the parties of the
law or legal system of a given country can be interpreted, unless it has been expressed
otherwise, one which directly refers to the substantive law of that country and does not
refer to its conflict of laws rules.
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Types of arbitrations that are primarily recognized in India on the basis of procedure and
rules:
Institutional arbitration
Ad hoc arbitration
Fast track arbitration
Institutional arbitration
When an arbitral Institution conducts arbitration, it is called Institutional Arbitration. The
parties have the choice of specifying, in the arbitration agreement, to refer the differences
to be determined in accordance with the rules of as elected arbitral Institution. One or more
arbitrators can be appointed from a pre-selected panel by the governing body of the
institution or the disputants themselves can select their panel but it has to be restricted to
the limited panel. Arbitration and Conciliation Act 1996 provides that where in Part I except
section 28, the parties are free to determine a certain issue, that liberty encompasses the
right the parties have to authorize any person including an institution, to determine that
issue. The Act also explicitly provides that where Part I €˜refers to the fact that the
parties have agreed or that they may agree, or in any other way refers to an agreement of
the parties, that agreement shall include any arbitration rules referred to in that agreement.

Ad-hoc arbitration
If the parties agree among themselves and arrange for arbitration, it is called Ad hoc
Arbitration without having an institutional proceeding. It can either be domestic,
international or foreign arbitration. Russell on Arbitration says that, The expression Ad Hoc,
as in Ad Hoc Arbitrationor Ad Hoc Submission is used in two quite different senses:
An agreement to refer an existing dispute, and/or an agreement to refer either future or
existing disputes to arbitration without an arbitration institution being specified to supervise
the proceedings, or at least to supply the procedural rules for the arbitration. This second
sense is more common in international arbitration.
Ad Hoc Arbitration means that the arbitration should not be conducted according to the
rules of an arbitral institution. Since, parties do not have an obligation to submit their
arbitration to the rules of an arbitral institution; they are free to state their own rules of
procedure. The geographical juridiction of Ad hoc Arbitration is of essence, since most of the
issues concerning arbitration will be resolved in accordance with the national law of the seat
of arbitration.
Fast track arbitration
Even the other processes of arbitration can be lengthy and tedious and thus this process of
arbitration works like a remedy to the issue of time. Fast track arbitration is a method, which
is time dependent in the provision of the arbitration and conciliation act. Its procedure is
established in a way that it has abandoned all the methods, which consume time, and
uphold the simplicity which is the originally the prime purpose of such arbitration.
Cause title
IN THE MATTER OF ARBITRATION BETWEEN
VARUN (Contractor)
(Claimant)
AND
RAJEEV (Client)
(Respondent)

Facts of the Case

Varun (Contractor) entered into a Construction Agreement with Rajeev (Client) on 1st
January 2024 for the construction of a residential house to be completed within one year
from the date of the agreement. The contract specified that payment would be made only
after the completion of the project and that any failure to complete the project on time may
result in non-payment, as per the arbitration clause. However, due to a six-month lorry strike
and several other reasons, the project could not be completed on time. As a result, Varun
requested an extension of one more year instead of the originally agreed timeline. Varun
seeks full payment of ₹1 crore, while Rajeev refuses to pay, citing the breach of the agreed
deadline. Varun contends that the delay was beyond his control, whereas Rajeev insists on
strict enforcement of the contract. The matter is now subject to arbitration as per the
agreement.
Claim petition [ section 23 of the Arbitration and Conciliation Act, 1996]
The sole arbitrator XXXXX
Place XXX
Arbitration case no , 000000000
IN THE MATTER OF ARBITRATION BETWEEN
VARUN (Contractor)
(Claimant)
AND
RAJEEV (Client)
(Respondent)
CLAIM PETITION
This Claim Petition is filed by Varun (Contractor) "Claimant" against Rajeev (Client)
"Respondent," in accordance with the Arbitration Clause of the Construction Agreement
dated 1st January 2024 for the construction of a residential house.

The Claimant, a qualified and experienced contractor, entered into the agreement with the
Respondent to construct a residential house, with a completion deadline of 31st December
2024 and payment of ₹1 crore upon successful completion. Due to a six-month-long lorry
strike, which caused disruptions in the timely delivery of construction materials, the
Claimant was unable to meet the agreed deadline.

Despite this unavoidable delay, the Claimant requested a one-year extension to complete
the project, which the Respondent refused. The Respondent has withheld the agreed
payment, citing the delay as a breach of contract. The Claimant, however, asserts that the
delay was caused by factors beyond their control, and the refusal of the extension request
was unjust.

The Claimant argues that the delay was due to the lorry strike, which was unforeseen and
beyond their control. The strict enforcement of the payment clause under these
circumstances should be reconsidered. The Claimant further submits that the contract does
not address delays caused by force majeure events, which should allow for flexibility in both
timelines and payments.
The Claimant has completed substantial portions of the work, incurring significant expenses
and labor costs. Despite the delay, the work completed thus far holds value, and the
Claimant is entitled to the full payment.
The Claimant, therefore, requests the Honourable Arbitrator to direct the Respondent to
honor the contract and compensate the Claimant for the completed work.
In the given situation the claimant is obligated to bring the issue to your attention for
arbitration as you have been designated as the arbitrator by both the parties to resolve the
dispute. The respected arbitrator has the authority to adjudicate on this matter .
Arbitration agreement [ section 6 and 7 of the arbitration and conciliation act 1996 ]

Arbitration Agreement
This Arbitration Agreement ("Agreement") is made on [Date] dddbetween:

Varun ("Contractor"), [Address],

and
Rajeev ("Client") , [Address].

The Contractor and Client signed a Construction Agreement on **1st January 2024** to
build a residential house, which was supposed to be finished by **1st January 2025**, and
payment of ₹1 crore was due when the project was completed. However, the project was
delayed due to a six-month lorry strike and other issues, leading to a disagreement over
payment and completion.
As a result, the parties agree as follows:
Dispute Resolution through Arbitration
Any disagreements, differences, or issues related to the Construction Agreement, such as
project completion, delays, and payments, will be settled through arbitration.
Appointment of Arbitrator
The arbitration will be handled by one arbitrator, chosen by mutual agreement between
both parties. If they cannot agree on an arbitrator within 14 days after a written notice of
dispute, the arbitrator will be selected by [Arbitration Body/Institution, if any] based on its
rules.
Place and Language of Arbitration
The arbitration will take place in [City/Country] and the language used during the
arbitration will be [Language]
4. Arbitration Process
The arbitration will follow the rules of [Arbitration Institution or set of rules, e.g., UNCITRAL,
etc.], which are included in this Agreement.
5. Binding Award
The decision made by the arbitrator will be final and must be followed by both parties. The
decision can be enforced in any court that has the authority to do so.
6. Costs of Arbitration
The costs of arbitration, including the arbitrator's fees, will be shared equally by both parties
unless the arbitrator decides otherwise in the final decision.
7. Confidentiality
Both parties agree that the arbitration process and any decisions made will remain
confidential, unless the law requires disclosure.
8. Governing Law
This Arbitration Agreement will be governed by and interpreted according to the laws of
[Jurisdiction]
IN WITNESS WHERE OF both parties have signed this Arbitration Agreement on the date first
mentioned above.
[Signature of Varun]
Name:
Date:
[Signature of Rajeev]
Name:
Date:

Documents submitted by claimant

1.Construction Agreement/Contract
2.Request for Extension (Formal Correspondence)
A formal request sent by Varun to Rajeev seeking an extension of the project timeline due
to the lorry strike and other unforeseen delays. This document will show that Varun
attempted to address the delay and seek an amicable solution.
3.Evidence of Force Majeure (Lorry Strike and Other Reasons)
4. project timeline and Progress Reports
5.Invoices and Receipts for Materials and Equipment
6. Photographs or Videos of the Construction Site
7. Communication Records (Emails, Letters, etc.)
.8. Payment Claim (Invoice for ₹1 Crore)