PROFESSIONAL PRACTICE

ARBITRATION
•The use of an arbitrator to settle a dispute.

•Arbitration is a legal technique for the resolution of disputes outside the courts, wherein the parties
to a dispute refer it to one or more persons (the "arbitrators", "arbiters" or "arbitral tribunal"), by
whose decision (the "award") they agree to be bound

•Arbitration is a means of securing an award on a conflict issue by reference to a third party. It is a

process in which a dispute is submitted to an impartial outsider who makes a decision which is usually
binding on both the parties.

•It is a process where there is a hearing and a determination of a cause between parties in
controversy by a person or persons chosen by them, or appointed under a statutory provision.

•Commercial arbitration is the process of resolving business disputes between or among transnational
parties through the use of one or more arbitrators rather than through the courts. It requires the
agreement of the parties, which is usually given via an arbitration clause that is inserted into the
contract or business agreement. The main objective of having an arbitration proceeding is to solve
the dispute as fast as possible, which also has a binding effect, without going to the court of law and
getting engaged in the long-drawn judicial procedure.

INTRODUCTION
•Arbitration has a long history in india. In ancient times, people often voluntarily submitted their
disputes to a group of wise men of a community—called the panchayat—for a binding resolution.
The panchayati raj system has found its place in various laws in india.

•Modern arbitration law in india was created by the bengal regulations in 1772, during the british rule. The
bengal regulations provided for reference by a court to arbitration, with the consent of the parties, in lawsuits fo
accounts, partnership deeds, and breach of contract, amongst others. Until 1996, the law governing arbitration in
india consisted mainly of three statutes: (i) the 1937 arbitration (protocol and convention) act, (ii) the 1940 india
arbitration act, and (iii) the 1961 foreign awards (recognition and enforcement) act. The 1940 act was general
law governing arbitration in india along the lines of the english arbitration act of 1934, and both the 1937 and
the 1961 acts were designed to enforce foreign arbitral awards (the 1961 act implemented the new york
convention of 1958)

•The government enacted the arbitration and conciliation act, 1996 (the 1996 act) in an effort to modernize the
outdated 1940 act. The 1996 act is a comprehensive piece of legislation modeled on the lines of the UNCITRAL
(united nations commission on international trade law) model law.

•Its primary purpose was to encourage arbitration as a cost-effective and quick mechanism for the settlement of
commercial disputes. The 1996 act covers both domestic arbitration and international commercial arbitration.

EVOLUTION OF ARBITRATION IN INDIA

Advantages of Arbitration
• Since it is established by the parties themselves, arbitration has the particular advantage of
bringing the dispute settlement procedure down to the level of the parties to the dispute.

•Workers and management tend to have greater faith and confidence in a settlement machinery
which is in effect their own.

•Since arbitration is established by agreement, it is more flexible than other procedures and can
be adjusted to the views, desires and experience of the parties and to the circumstances obtaining
in the undertaking or industry.

ADVANTAGES
Arbitration proceedings in India are conducted under the Arbitration and Conciliation
(Amendment) Act, 2015 (the Act). The Act is based on the UNCITRAL model law. This ensures that
there is a certain level of uniformity in the law.

TYPES OF ARBITRATION PROCEDURE: There are two main types of arbitration procedures. These
are:
Ad- Hoc Arbitration
Institutional Arbitration

AD-HOC ARBITRATION
Ad-Hoc Arbitration can be defined as a procedure of arbitration where a tribunal will conduct
arbitration between the parties, following the rules which have been agreed by the parties
beforehand or by following the rules which have been laid down by the tribunal, in case the
parties do not have any agreement between them

INSTITUTIONAL ARBITRATION
In the case of Institutional Arbitration, the disputing parties submit their issue to an institution that
has been designated to administer the arbitrational process. The institution then arbitrates the
dispute according to the rules laid by them in front of the parties. The institute selects a panel
which administers the whole process.

PROCEDURE OF ARBITRATION
•All the institutes do not provide the same type of services. Some institute just provide the rules on which the
procedure will be based (london maritime arbtration association). Other provide a roster of arbitrators to the
parties but do not appoint the arbitrators themselves (society of maritime arbitrators in new york).

•Certain institutions administer the whole process of arbitration i.E. (International court of arbitration of the
international chamber of commerce).

PROCEDURE OF ARBITRATION
HOW ARE DISPUTES BETWEEN THE CLIENT AND THE ARCHITECT RESOLVED?

•Disputes which may arise between the client and the architect shall be referred to the council of architecture
for arbitration. The arbitrator shall be appointed by the president, council of architecture and the decision and
award of the arbitrator shall be final and binding on the architect and client.

•The architect as an arbitrator between the employer and contactor and his other functions in building
contracts

1. Error or inconsistency in drawings furnished to contractor.

2. Issue instructions to contractor from time to time.

3. Dispute about the manner of execution of works or provision of equipment etc.

4. Sub letting of job by contractor.

5. Materials and workmanship

6. Extension of time- 10 points , in 5 architects decision final.

Contractor can initiate arbitration if he is aggrieved by the Project architects’ decision.

ROLE OF AN ARCHITECT AS AN ARBITRATOR

ARBITRATION ACT