Scope
of Arbitration in Legal Field / Merits & Demerits of Arbitration
By- Bhaskar Pandey
Introduction
It
is a part of an Alternative Dispute Resolution process where the parties take
their matter in the Court. This situation is arising which is too much complex
between two or more parties having their dispute in a particular
misunderstanding between them. It is a method to solving their disputes as
mentioned in Alternative Dispute Resolution Mechanism. It is a time consuming
and costly process for both the party to settle their disputes by the court.This
method of arbitration is to preserve or protect the relationship amongst the
parties.
Arbitration
It is defined in
the Section 2 (1)(a) of the Arbitration and Conciliation Act, 1996. It is a
process where both the parties have to present their arguments and evidence on
a particular dispute arises between them. The court will point an independent
third party who is arbitrator helps to Solving the disputes. The arbitration
methods are generally used when there is a very difficult subject matter is there
and it may be voluntarily ordered by the court. Arbitration is a more formal
and structured process than the meditation, conciliation and negotiation.
Arbitration is a different from the negotiation, conciliation and meditation
because in the arbitration process the solution of the disputes is provided by
the arbitrator who makea binding on both the parties.
Scope of
Arbitration in Legal Field
- It means the
settlement between one or more parties and the decision is binding for the
parties.
- The dispute is only of commercial in
nature
- Challenge the decision of an arbitrator
is limited
- The settlement is outside from the
involvement of the court
- If the party is not satisfied with the
decision of the arbitrator, then the party go for the arbitral tribunal
- It is no more or less than litigation
- It does not affect any other law that
are being in force in India
- Arbitration is to find the facts and the law behind it to give the relief to the disputed parties If there is an agreement between the parties are from the India and any other country this part of the arbitration is applied
Merits of
Arbitration
- There is a minimum intervention of Court
- The cost of the dispute is to be reduced
- It is timely disposal
- It this process the arbitrator is
appointed
- A fair trail is to be done in the court
- The party is having fully freedom from
the judicial intervention
- The place of arbitration is chosen by
the parties
- It is less time consuming
- The arbitral award is enforced
- The proceedings are to be kept private
Demerits
of Arbitration
- It can be more expensive
- There is a limited opportunity to
correct the decision
- There is no specific rules, procedures
and evidence that are involved in the trial by court
- This process is lack of transparency
- The arbitrator could be biased for a one
party
- Arbitrator act as a judge or jury for
the parties
- It is an uncertain because the procedure
is not followed properly
- There is no punishment
- If there aremultiple partiesso this
method cannot be used properly
Conclusion
The method of arbitration is increasing day by day in India. The conflicts or disputes that are done outside the court because in the process of arbitration is less time consuming. Many people are not having the strong financial status so they go for the arbitration. The main reason people not take the help the court because it is delaying process so they choose the method of arbitration
