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Arbitration

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Arbitration is the determination of dispute by one or more persons (called arbitrator or arbitration tribunal) to settle the dispute or matter.

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.

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