the parties (unless otherwise agreed) must refer the dispute to an arbitrator with an external arbitrator (who cannot be the same person as the mediator) agreed by the parties or appointed by the institution`s president in the absence of an agreement.” Example: Arbitration is subject to the Arbitration and Conciliation Act of 1996, and headquarters are in New Delhi, India. The arbitration court meets, examines witnesses and listens to the trial in Mumbai, India. www.legalserviceindia.com/arbitration/Arbitration9.html The seat of an arbitration procedure determines the law applicable to the procedure. It refers to the courts that would be exclusively competent for arbitration. The Honourable Supreme Court, which is void, declared its judgment of July 03, 2017 in TRF Ltd. against Energo Engineering Projects Ltd. that the arbitration clauses, the sole arbitrator appointed by a party that may have some interest in the outcome of the disputes, are not valid. ? Mutual – an arbitration agreement should be decided on each other and should not be inclined to the employer`s interest. In one decision, the Supreme Court of Hon`ble held that the following attributes must be included in an arbitration agreement:[iv] Section 7 of the Arbitration and Conciliation Act, 1996 lists that an arbitration agreement can be entered into in the form of a separate agreement or in the form of a compromise clause in the contract. ? Abandonment of Class Remedies – This provision prevents workers from filing unnecessary remedies and arbitrations against the employer.
In conclusion, arbitration is one of the most effective ways to resolve disputes between the parties. However, the development of an effective compromise clause is an essential condition of any contract. In the event that the clause itself is challenged in court and unworkable, it may open floodgates to the courts, making the whole purpose of arbitration unnecessary. The emphasis should therefore be on the implementation of succinct, clear, airtight and as simple arbitration clauses as possible! It is important to decide what is the language of arbitration in the agreement itself. Especially in a country like India, where Hindi and English are not the only two to speak, it can be extremely difficult to resolve and settle disputes. The choice of the language of arbitration is also very inexpensive, as it would save you from paying exorbitant fees to translators. The same is true as a preferred means and as a subject of interpretation of the courts to make India an appropriate seat for arbitrations around the world. The Arbitration and Conciliation Act is silent on the power of a court to consolidate separate arbitrations under one or more contracts.
However, it is unlikely that the Indian courts will prejudice a court`s decision to consolidate the proceedings with the agreement of the parties. An arbitration agreement should be carefully developed, while anticipating different factors in transactions.