WHAT IS ARBITRATION?
In simple terms, Arbitration is an informal form of the judiciary that helps in resolving the dispute between two or more than two parties. Arbitration is a legal procedure in which both parties refer their dispute to one or more arbitrators which implies a binding decision on both parties. Arbitration proceedings in India are more like a private dispute resolution mechanism instead of going directly to court.
HOW ARBITRATION PROCEEDINGS IN INDIA ARE REGULATED?
Arbitration proceedings in India are regulated by Arbitration & conciliation (amendment) act, 2019; which clearly defines various features of Arbitration proceedings in India:
1. Institute of arbitration
‘Arbitral institution’ means the institute which is designated either by the supreme court of India or the High court of any state to work in that direction.
2. Appointment of Arbitrator
As per section (11) of the Arbitration & conciliation (amendment) act, 2019 only the supreme court of India or the High court of any state is empowered to designate an Arbitral institution provided that they are graded by the Arbitration council.
Chief justice of India or Chief justice of the concerned high court may review the panel from time to time as and when it deemed necessary.
3. Arbitration council
Part 1(A) of the Arbitration & conciliation (amendment) act, 2019 introduced the concept of Arbitration council of India which is headquartered in New Delhi. Arbitration Council of India so formed will include a Chairperson, Arbitration practitioner, and an academician.
Some ex-officio members of the council will include various secretaries to the government of India in Department of legal affairs, Ministry of law & justice, and Ministry of Finance.
4. Qualification of arbitrators
Any person looking forward to become a qualified arbitrator who can perform arbitration in India must fulfill any of the below-mentioned qualifications:
(i) ‘Advocate’ as per the Advocates Act, 1961 with a minimum of ten years of experience in the field of advocacy;
(ii) ‘Chartered accountant’ as per Chartered Accountants Act, 1949 with a minimum of ten years of experience in the field of chartered accountancy.
(iii) ‘Cost accountant’ as defined under Cost & Works Accountants Act, 1959 having at least ten years of experience in the same specialization;
(iv) ‘Company secretary’ according to the Company Secretaries Act, 1980 having at least ten years of experience as a company secretary;
(v) has been an officer of the ‘Indian Legal Service’
5. Confidentiality of information
The arbitral, arbitration institution and the parties associated with the arbitration proceedings in India must maintain the confidentiality of information except in a few cases.
WHAT IS ARBITRATION AGREEMENT?
Section (7) of the Arbitration & conciliation (amendment) act, 2019 defines it as an agreement between which is made by two or more parties to resolve any dispute arising amongst them due to any contract agreement in the near future without directly going to the courts and with the help of an arbitrator. An idle arbitration agreement contains the following details accurately:
- Nature of issues to be resolved
- Signature of the parties
- Place of arbitration
- Written document
- True intention
HOW CAONWEB PROVIDES ONE STOP SOLUTION FOR ARBITRATION?
CAONWEB offers various legal services that are helpful in business compliance. Our lawyers, chartered accountants, company secretary & various other legal experts help you in all your compliance needs. CAONWEB has proved to be one of the most effective arbitrators and business compliance service providers. Our legal experts will guide you throughout your arbitration proceedings in India.
For more information on any legal matter or any arbitration; visit our office at E-36, Ground Floor, Sector 8, Noida, Uttar Pradesh 201301 OR talk to our legal expert @ 0120 (4231116), +91-7065818801 or write to us at firstname.lastname@example.org | email@example.com
Chartered Accountant by profession, CA Sanket Agarwal has an experience of above11 years in Cross Border compliance , Import Export , International Taxation & is a passionate content creator.