1. Arbitration agreement means an agreement by the parties to submit to arbitration all/certain disputes which have arisen or which may arise between them in respect of their legal relationship, whether contractual or not.
2. Arbitration may be in the form of an arbitration clause/contract/separate agreement.
3. Arbitration must be in writing.
4. There is no specific form of arbitration. The only requirement is that there should be an agreement of a contract in writing containing arbitration clause.
5. Parties are free to determine the number of arbitrators provided that such numbers shall not be an even number or the arbitral tribunal shall consist of sole arbitration.
6. Parties are free to appoint any person as arbitrator/s or their choice.
7. It is advisable to nominate and appoint the arbitrators in the contract itself, to later avoid the process of appointment by court.
8. In case the parties disagree, they may approach the High Court U/s 11 of the Arbitration and Conciliation Act – 1996 for appointment of an arbitrator.
9. The parties are free to agree the place of arbitration; otherwise the place of arbitration shall be determined by the arbitral tribunal having regard to circumstances of the case and convenience of the parties.
10. The arbitration hearing can be held oral or otherwise as the parties to the arbitration decide.
11. High court usually appoints retired judges as arbitrators.
12. Court assistance can be taken in taking evidence of witnesses etc.
13. Arbitrator can encourage the settlement between the parties.
14. If the parties agree, award can be passed without giving any reasons, i.e., on the agreed terms.
15. A signed copy of the arbitral award must be delivered to each party after making it.
16. Even interim award can be passed.
17. Arbitrator can fix the cost of the arbitration and specify the party entitled to cost, the party liable to pay the cost, the amount of cost, manner of payment, legal fee and expense, fees and expenses of the arbitrators and witness etc., unless otherwise agreed.
18. Under Section 34 an application to the court may be made to set aside the award.
19. Against setting aside or refusing to set aside the arbitral award, an appeal shall be made to the appellate court.
20. The Limitation Act, 1963 applies to arbitration, as it applies to the proceedings in court.
21. Award can be enforced through civil court by filing execution proceedings.
22. Arbitration proceedings do not involve court fees.
23. Arbitration is advisable and suitable in commercial contracts like works contract, agency, supply, insurance, sale agreements, partnership, joint venture, tenders etc.,
24. Arbitration clause in cases such as cases regarding genuineness of Will or Divorce etc., are matters barred for adjudication by arbitrators.
25. Several statutory laws provide for arbitration such as:-
i) Co-operative Societies
ii) Small Scale Industries
iii) Electricity Laws etc.
TO BE CONTINUED ………..