Arbitration and Conciliation

LEGAL ASPECTS OF
MANAGEMENT

GROUP - 9

Arushi Zibbu
Garima Garg
Joshil Sharma
Nitin Goyal
Shivangi Kishore
 Arbitration Act
Arbitration is the reference of a dispute between not less than two
parties, for determination, after hearing both sides in a judicial
manner, by a person or persons other than a court of competent
jurisdiction.
Advantages of Arbitration.

Cost Effective & Efficient

Choice of Decision Maker (Arbitrator)

Disadvantages of
Arbitration.
Unenforceability of the interlocutory
orders of Arbitrator.
Waiver of the right to access the court.
ARBITRATION

ARBITRAL DISPUTES
Property
Insurance
Contract
Business
Partnership
Family disputes
Construction
Commercial
Recoveries

Presentation name goes here

PROCEDURE FOR FILING A CASE

• Each party shall submit to the conciliator a brief

written statement describing the general nature of
the dispute and the points at issue. A copy of the
same shall be sent to the other party.
• The conciliator may require each party to send a
detailed statement supported by documents and
other evidence, a copy where of shall be sent to the
other party also.
• The parties involved shall co-operate with the
conciliator in good faith, comply with requests for
submitting written materials, providing evidence and
attending meetings.
• A party may submit to the conciliator suggestions
for the settlement of the dispute.
5
 ARBITRATOR
The person who is appointed to determine the disputes is called the arbitrator.
The arbitrator (s) can be appointed by any of the following manners:
• By the parties as per agreed procedure
• Each party may appoint one arbitrator and then the third arbitrator is appointed by
the two arbitrators
• Appointment by the court
The challenge to the appointment of an Arbitrator- an appointment of the arbitrator
can be challenged on the grounds of :
• his independence or impartiality; or
• He does not possess the requisite qualifications. The appointment of the arbitrator
can be challenged by submitting a written statement before the arbitration tribunal.
 ARBITRATION AWARD &
RECOURSE AGAINST IT

• The decision of an arbitrator is called an award. The award shall be made

in writing and shall be signed by the arbitrator(s) and shall also state the
reason upon which It is based unless agreed by parties otherwise. The
award shall also state its date and place.
• An award can be challenged before the Courts by the aggrieved party.
However, the Arbitration Act provides very limited grounds on which,
the award can be challenged.
 Oriental Insurance Company Limited v.
M/s Narbheram Power and Steel Pvt. Ltd.
CASE STUDY
• In this May 2018 judgment, the Apex Court held
that an arbitration clause is required to be strictly
construed.
• In this case, the Respondent had suffered
damages on account of the cyclone in Odisha in
2013.
• Accordingly, the respondent intimated the
Appellant Insurance Company of the damages
suffered by it and requested the appellant to settle
the claim.
• However, the claim was not settled and
consequently, the respondent invoked the
arbitration agreement and requested the appellant
to concur with the name of the arbitrator whom it
had nominated.
INTRODUCTION

CONCILITATION
Conciliation is an alternative dispute
resolution (ADR) process whereby the parties
to a dispute use a conciliator, who meets with
the parties both separately and together in an
attempt to resolve their differences.

Presentation name goes here 04

Offer for Conciliation:

• The conciliation proceeding can start when one

of the parties make a written request to other to
conciliate, briefly identifying the disputes.
• The conciliation can start only if other accepts
in writing the invitation to conciliate.
• Unless there is a written acceptance,
conciliation cannot commence. If the other
party does not reply within 30 days, the offer
for conciliation can be treated as rejected.

10
 ROLE OF CONCILIATOR

Act as a
As a Promoter for Discussion Leader
Collective Bargaining

As a Safety Valve
Act as Innovator

Presentation name goes here

 WHAT CAN NOT BE REFERRED
TO CONCILIATION ?

Matters of
• Criminal nature
• Illegal transaction
• Matrimonial matters like
divorce suit etc.

WHAT CAN BE REFERRED TO

CONCILIATION ?

Matters of
•Civil nature
•Breach of contract
•Disputes of movable and immovable property
Presentation name goes here
Advantages of Conciliation Disadvantages of Conciliation

• The process is not legally

• Ensures Party Autonomy
binding
• Ensures the expertise of the
• No decision is guaranteed at
decision maker
the end
• Time and cost efficient
• Process is considered too
• It ensures confidentiality
informal
• No appeals
• No legal aid

Presentation name goes here 15

CASE STUDY Venkatesh Gas Agencies Vs. Secretary to Government

• Writ Petition is filed under Article 226 of

the constitution of India praying to issue a
writ of Mandamus for bearing the fifth
respondent for dealing the conciliation
clause in Na.Ka. No. 620/2015, and
637/2015 and
• Directing the respondents 1 to 4 to transfer
the cases in Na.Ka No. 620/2015and
637/2015 on the file of Labor Officer,
Madurai to some other impartial and
unbiased Labor Officer by acting upon the
petitioner's representation dated-30.10.2015
and pass such further or other orders.

Presentation name goes here

 Thank You

Presentation name goes here