Arbitration often refers to “Alternate Dispute Resolution” (ADR), which is accepted with open arms by our diversified population of our country because of its flexible and less complicated nature from the past few years. This acceptance has taken place because arbitration is a little non complicated in nature which is due to its flexibility. In arbitration dispute or any matter dissolved by a person called an “Arbitrator or Panel of Arbitrators” and this arbitrator is commutatively decided by the disputed parties themselves according to their matter’s requirements. This method is also preferable because of another very important factor i.e. cost; arbitration is less expensive as compared to the judicial proceedings i.e. why this method is considered as an effective and efficient way to resolve any dispute outside the court. Alongside of acceptance, arbitration evolved too with the changing environment and adapted the diversifying nature of the legal matters for e.g., arbitration has proved itself as an indispensable tool for resolving the matters of Commercial disputes, International matters, labor and consumers disputes and so on.

Arbitration takes place when any dispute arises between the parties regarding the topic which is mentioned in the already made agreement between the parties. There are two types of arbitration – 1. Ad hoc arbitration 2. Institutional arbitration.

  1. Ad Hoc Arbitration – This is a type of arbitration in which each and every aspect of arbitration like number of arbitrators chosen, arrangement for selection of arbitrators everything is based on the choice and preference of parties themselves. In this arbitration there is no need of any administrative authority to resolve their dispute as it considers the most flexible way to resolve the matter. But this method has not completely restricted the parties from knocking the door of appropriate authority, in case parties found difficulty in deciding any kind of aspect of arbitration like procedure, seat of award and so on.
  1. Institutional Arbitration – In this method of arbitration the whole arbitration is conducted by an established arbitral institutions or organization which is already determined in the Arbitration agreement. This method is mainly opt in the international business community as it requires a specific arbitration procedure, experienced panel of arbitrators which provide the disputed parties an effective and a quick arbitral award(final decision).

 Minimal Judicial Intervention

 Arbitration aims to minimize the judicial intervention in the proceedings of arbitration. Section 5 of “Arbitration and Conciliation Act, 1996” deals with this aspect. 

After the amendment of 2015, it is determined that the judicial intervention must be minimized by the courts either the High Court or The Supreme Court. It is only depends upon the High Court and the Supreme Court to appoint the arbitral tribunal if the parties are unable to do it.


International Commercial Arbitration

Arbitration has wider its scope in such a manner that arbitration takes place nationally and internationally in the present time. Our growing economy needed this kind of amendment in our law for resolving disputes which has been taken place in India or outside India. Also it further reduces the interference of Judicial system if the arbitration seat is belong to abroad, because it depends upon the seat only that where the case could happen in India or outside India.


So, it is conclusive from the above reading that arbitration is a very effective and efficient way to provide justice without the interference of judicial system with the cost effective manner and follows a flexible way to resolve the dispute between the parties in almost every type of cases holds the option to provide justice by the process of “Arbitration”.    

Author: Vanshita Agarwal, a Student of Agra College, Agra

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