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Arbitration vs. Court Litigation: Key Questions Answered.



  Oct 27, 2023

Understanding Arbitration: A Comprehensive Q &A"



Q1: What is arbitration, and how does it differ from traditional court litigation?

A1: Arbitration is an alternative dispute resolution (ADR) method that doesn’t require court involvement in the selection of arbitrators or the issuance of awards.
It differs from court litigation as it relies on mutual consent, where parties agree to resolve their disputes outside of court through an arbitrator.

Q2: What are the key issues driving the adoption of arbitration in India?

A2: The adoption of arbitration in India is driven by the massive backlog of cases in the judicial system. With over 4.47 lakh cases pending, policymakers are exploring alternative justice delivery methods like ADR to reduce the burden on courts.

Q3: What is the Arbitration and Conciliation Act, 1996, and how has it evolved?

A3: The Arbitration and Conciliation Act, 1996, is a significant ADR statute in India. It has its roots in the 1940 Arbitration Act and has undergone amendments to make arbitration accessible to anyone seeking dispute resolution outside of court.

Q4: How does arbitration differ from mediation?

A4: In mediation, disputing parties choose a mediator and resolve the conflict with expert advice, while in arbitration,
parties give the arbitrator decision-making power with mutual consent. The arbitrator passes an enforceable legal award, whereas in mediation, parties themselves reach a resolution.

Q5: Are court interventions common in arbitration proceedings?

A5: Court interventions in arbitration are limited. Courts can intervene under specific circumstances, such as referring parties to arbitration,
granting interim measures, appointing an arbitrator when parties can’t agree, and setting aside an award if certain conditions are not met.

Q6: What are the challenges and issues surrounding the adoption of arbitration in India?

A6: One of the challenges is the lack of awareness about arbitration as a non-court dispute resolution method. Initiatives to promote arbitration and educate the public about its benefits are essential.
Additionally, there is a need to address instances of arbitration institutions allocating cases without mutual consent, which is a violation of arbitration principles.

If you have more questions or need further information, feel free to ask! SRIRAM’s is here to assist!


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