Arbitration process under arbitration and conciliation act with step by step procedure

Arbitration process under arbitration and conciliation act with step by step procedure 

Arbitration proceedings are used to resolve a wide range of disputes across various industries and sectors. Some common types of cases that are often solved through arbitration proceedings include:

Commercial Disputes: Business-related disputes, such as contract breaches, partnership disagreements, and commercial transactions, are commonly resolved through arbitration.

Construction Disputes: Disagreements arising from construction projects, including issues with contractors, delays, and payment disputes, are often settled through arbitration.

Employment Disputes: Employment-related matters, such as wrongful termination, discrimination, and wage disputes, can be resolved through arbitration, particularly when employment contracts include arbitration clauses.

Consumer Disputes: Disputes between consumers and businesses, such as product defects, service-related issues, and consumer rights violations, are sometimes settled through arbitration.

Intellectual Property Disputes: Disagreements over intellectual property rights, including patents, trademarks, and copyrights, can be resolved through arbitration, especially when parties agree to it in their licensing or collaboration agreements.

International Trade and Investment Disputes: Cross-border disputes between parties from different countries, such as international trade disputes and investor-state disputes, are often resolved through international arbitration forums like the International Chamber of Commerce (ICC) or the International Centre for Settlement of Investment Disputes (ICSID).

Insurance Disputes: Disagreements between policyholders and insurance companies over coverage, claims, and settlements are sometimes resolved through arbitration, especially when insurance policies include arbitration clauses.

Real Estate Disputes: Property-related disputes, such as landlord-tenant issues, property ownership conflicts, and boundary disputes, may be resolved through arbitration.

Family Law Disputes: Some family law matters, such as child custody and property division, can be resolved through arbitration, though it is less common compared to mediation or court proceedings.

It's important to note that not all cases are suitable for arbitration. Certain disputes, such as criminal cases and cases involving significant public interest, are generally not appropriate for arbitration and are handled through traditional court proceedings. The decision to use arbitration often depends on the parties' agreement and the specific laws and regulations governing arbitration in each jurisdiction.

Step 1: Agreement to Arbitrate

Prakash and Bablu must first agree to resolve their dispute through arbitration. This agreement can be part of a contract or established separately.

Step 2: Appointment of Arbitrator(s)

The next step is to appoint an arbitrator or a panel of arbitrators. They must be neutral and impartial parties who will hear the case and make a binding decision.

Step 3: Notice of Arbitration

Once the arbitrator(s) are appointed, Prakash or Bablu (the claimant) will serve a notice of arbitration to the other party (the respondent). This notice should contain the details of the dispute and the relief sought.

Step 4: Response to Notice

The respondent, Bablu, will have a specific time frame to respond to the notice of arbitration. This response should address the issues raised and may also include counterclaims.

Step 5: Preliminary Hearing

After receiving the response, the arbitrator(s) may hold a preliminary hearing to discuss the issues, set the procedural rules, and agree on the timeline for the arbitration process.

Step 6: Exchange of Documents and Evidence

Both parties will exchange relevant documents and evidence to support their claims and defenses. This process is similar to the discovery phase in a court trial.

Step 7: Hearing

During the arbitration hearing, both parties will present their cases, evidence, and witnesses before the arbitrator(s). The arbitrator(s) will listen to the arguments and make a decision based on the evidence presented.

Step 8: Award

After considering all the evidence and arguments, the arbitrator(s) will issue an award. This award is a written decision that is legally binding on both parties.

Step 9: Enforcement of Award

If either Prakash or Bablu fails to comply with the award, the other party can enforce it through the court as per the provisions of the Arbitration and Conciliation Act.

Example Case:

Prakash and Bablu are in a contractual dispute over the sale of a property. They have a clause in their contract stating that any dispute will be resolved through arbitration.

Step 1: Prakash initiates the arbitration process by serving a notice of arbitration to Bablu.

Step 2: Bablu agrees to the arbitration and consents to the appointment of a single arbitrator.

Step 3: The arbitrator is appointed, and a preliminary hearing is scheduled.

Step 4: Bablu responds to Prakash's notice, denying the allegations and presenting his counterclaims.

Step 5: At the preliminary hearing, both parties agree on the procedural rules and set a timeline for the arbitration process.

Step 6: Prakash and Bablu exchange relevant documents, such as the contract, property records, and communication between them.

Step 7: During the arbitration hearing, Prakash presents evidence showing that Bablu breached the contract, while Bablu defends himself, claiming that Prakash failed to fulfill certain obligations.

Step 8: After considering the evidence and arguments, the arbitrator issues an award, finding in favor of Prakash and ordering Bablu to pay compensation for the breach of contract.

Step 9: Bablu complies with the award, and the dispute is resolved without the need for court intervention.

Please note that this is a simplified example, and real cases may involve more complexities and legal procedures. The actual length of the arbitration process can vary depending on the specific circumstances and the cooperation of the parties involved.