► Arbitration – Meaning and Scope

Arbitration is a method of dispute resolution where parties agree to submit their disputes to an impartial third party (arbitrator) for final and binding decision. It provides a faster, private, and cost-effective alternative to litigation.

► Arbitration Agreement

A mutual agreement between parties to refer their present or future disputes to arbitration. This agreement can be in the form of an arbitration clause in a contract or a separate arbitration agreement.

► Arbitral Award

The final decision given by an arbitrator or arbitral tribunal. It is binding on the parties and enforceable in court. An award includes reasons for the decision and must be issued within the time specified.

► Appeal

Limited appeal provisions exist in arbitration. Parties may seek recourse only on grounds of procedural irregularities, jurisdiction issues, or violation of public policy. Appeals are not based on merits.

► Enforcement of Awards and Foreign Awards

Arbitral awards are enforced through legal proceedings. Domestic awards can be enforced under Section 36 of the Act, while foreign awards may be enforced under the New York Convention or Geneva Convention.

► New York Convention Award

Awards issued in countries that are signatories to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards receive international recognition and are enforceable in over 170 countries.

► Geneva Convention Award

The 1927 Geneva Convention governs international commercial arbitration. It provides framework for the enforcement of awards issued in convention countries, though the New York Convention has largely superseded it.

► Conciliation – Meaning and Scope

Conciliation is a less formal ADR process where a neutral third party (conciliator) assists disputing parties in reaching a mutually acceptable settlement. The conciliator cannot impose a decision.

► Commencement and Termination of Conciliation Proceeding

Conciliation commences when parties agree to it or when referred by court. It terminates when a settlement is reached, when either party withdraws, or when the conciliator deems further efforts futile.

► Appointment of Conciliator and Role of Conciliator

Conciliators are appointed by mutual agreement of parties or by an institution. Their role is to facilitate communication, identify common ground, propose solutions, and help parties reach a voluntary settlement agreement.

► Settlement Agreement

A binding agreement reached during conciliation. Once executed, it becomes binding on the parties and can be enforced through legal proceedings similar to arbitral awards.

► Impact of UNCITRAL Rules

The UNCITRAL (United Nations Commission on International Trade Law) Model Law on Arbitration has significantly influenced international arbitration practices. India's Arbitration and Conciliation Act, 1996 is largely based on the UNCITRAL Model Law.

► Justice Mallimath Committee Report

This committee recommended reforms in the criminal justice system, including the promotion of alternative dispute resolution mechanisms, victim compensation schemes, and faster trial procedures.

► Mediation and Negotiation Council (Salishi Sabha)

A community-based mediation system that helps resolve local disputes through local mediators. It operates at the grassroots level and promotes community participation in dispute resolution.

► Judicial Settlement (Sec. 89 of CPC)

Section 89 of the Code of Civil Procedure empowers courts to mediate and settle disputes before trial. Courts can refer cases to mediation, conciliation, or arbitration with the consent of parties.

► The Legal Services Authorities Act, 1987 (With Special Emphasis on Lok Adalat)

This Act established the Legal Services Authority to provide free legal services to poor sections of society and promote ADR. Lok Adalat is the main institution under this Act that conducts camp proceedings for amicable settlement of disputes.

Key Components of Lok Adalat:

• ✓ Provides free and speedy settlement of disputes
• ✓ Open to civil, criminal, and quasi-criminal matters
• ✓ Settlement agreements are enforceable like court orders
• ✓ No fees or costs involved
• ✓ Awards are final and binding