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The need for Arbitration proceedings arises from specific clauses that are written in employment and a commercial agreements.
The finding or a decision in the arbitration is called an Award.
A Non-binding Arbitration is similar to Mediation in the sense that the Award is not obligated on the parties. By definition, a non-arbitration is not arbitration at all because arbitration by definition is binding.
An Arbitration Clause which forms part of a Contract shall be treated as an agreement independent of the other terms of the contract. A decision by an Arbitral Tribunal that the contract is null and void shall not entail ipso jure the invalidity of the arbitration clause.
Advantages & Dis-advantages of Arbitration
Related Cases / Recent Cases / Case Law
- April 2011: Union of India vs Tantia Construction Ltd; Special Leave Petition (c) No.18914 of 2010-Decided on 18-04-2011: Supreme Court of India held that Arbitration clause in a contract would not exclude the power of the high courts or the Supreme Court to decide disputes between the parties.
- Stolt-Nielsen Vs AnimalFeeds International Corp., 130 S. Ct. 1758, 1776 (2010), US Supreme Court said, "class-action arbitration changes the nature of arbitration to such a degree that it cannot be presumed the parties consented to it by simply agreeing to submit their disputes to arbitration."
- Oxford Health Plans LLC Vs Sutter,12-135, US Supreme Court, Whether an arbitrator acts within his powers under the Federal Arbitration Act or exceeds those powers by determining that parties affirmatively "agreed to authorize class arbitration," Stolt-Nielsen, 130 S. Ct. at 1776, based solely on their use of broad contractual language precluding litigation and requiring arbitration of any dispute arising under their contract.