Arbitration proceedings refer to a private alternative dispute resolution mechanism whereby disputes between parties are resolved outside the traditional court system by one or more impartial arbitrators, whose decision (known as an arbitral award) is binding on the parties.
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Arbitration proceedings refer to a private alternative dispute resolution mechanism whereby disputes between parties are resolved outside the traditional court system by one or more impartial arbitrators, whose decision (known as an arbitral award) is binding on the parties. In India, the substantive and procedural framework governing arbitration is primarily contained in the Arbitration and Conciliation Act, 1996, which is based on the UNCITRAL Model Law.
Arbitration is commonly invoked in disputes arising out of contracts, commercial transactions, joint ventures, construction agreements, and other civil matters, where the parties have agreed—through an arbitration clause or a separate agreement—to submit their disputes to arbitration.
The arbitral process generally involves the appointment of an arbitrator or arbitral tribunal, submission of statements of claim and defence, production of evidence, and conduct of hearings (if required), culminating in the issuance of an arbitral award. Such an award is enforceable as a decree of a civil court in accordance with the provisions of the Arbitration and Conciliation Act, 1996.
Although arbitration proceedings are essentially civil in nature, certain aspects such as enforcement of arbitral awards, grant of interim reliefs, and court assistance are governed by applicable procedural laws in force. In this context, reference may be made to the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), where relevant. However, it is pertinent to note that BNSS primarily governs criminal procedure and does not directly regulate arbitration proceedings, except in cases where criminal elements such as fraud, cheating, or criminal breach of trust arise in connection with the underlying dispute.
Thus, arbitration serves as an efficient, confidential, and party-autonomous mechanism for dispute resolution, helping reduce the burden on courts while ensuring expeditious justice.
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