Arbitration Law- A Primer

Since arbitration is a cost effective and quick way of settling disputes and has become a preferred alternative to the courts, its understanding is necessary for all entrepreneurs, managers, students, academicians, in addition to judges and lawyers. This book meets this requirement and provides the necessary introduction to Arbitration law in a simple and concise way.

This primer on Arbitration Law discusses the Arbitration and Conciliation Act, 2006 and its predecessor legislation i.e. Arbitration Act, 1940 in the present day legal context. Its contents apart from the basic concepts include arbitration proceedings before the arbitral tribunal, judicial intervention in arbitral proceedings, international commercial arbitration and Arbitration and Conciliation (Amendment) Bill, 2003. Important cases on the topic have been given at the end of each chapter. It has been fully updated with the latest legislative and case law developments.

The book will prove to be immensely useful to entrepreneurs, managers, students, academicians, in addition to judges and lawyers.

I. Introduction

1. Concept of arbitration
2. Types of alternate dispute resolution methods
      Conciliation
      Mediation
      Lok Adalat
3. Statutory history of arbitration in India
      The 1940 Act
      The 1961 Act
      The UNCITRAL Model Law
      The 1996 Act
      Distinction between the 1940 Act and the
            1996 Act
4. Alternate dispute resolution methods and the Code of Civil Procedure, 1908
      The insertion of Section 89 in the CPC
      Recommended changes to Section 89
      Interpretation of Section 89
      Constitutional validity of Section 89
      Justice M. Jagannadha Rao Committee Report
      Rule-making powers
5. The right to a speedy trial and arbitration

II. Basic Concepts

1. Derogable and non-derogable provisions
      Party autonomy
      Statutory safeguards
      Derogable provisions
      Non-derogable provisions
      Examples of derogable and non-derogable provisions
      Practical significance of the distinction
2. Restricting the scope of judicial intervention
      Balance between the judiciary and arbitral tribunals
      Arbitration proceedings without judicial intervention
      Permissible judicial intervention
      Supervisory role of the High Courts
      When the principle in Section 5 does not apply
3. Concept of an arbitrable dispute
      A dispute
      Dispute under the 1996 Act
      Disputes capable of settlement by arbitration
      Private disputes
      Civil disputes
      Disputes that are not under the jurisdiction of another special court
      Disputes with the government
      Scope of the term "dispute"
4. Types of arbitral proceedings
      Institutional arbitration
      Ad hoc arbitration
      Fast-track arbitration
      Statutory arbitration
      Online arbitration
5. Agreement to arbitrate
      Importance of arbitration agreements
      Definition of an arbitration agreement
      Doctrine of incorporation
      Form and content of an arbitration agreement
      Arbitration agreement to be certain
      A defined legal relationship
      The doctrine of severability
      Interpretation of arbitration agreements
      Multi-tiered arbitration clauses
      Arbitration agreements under the 1940 Act
      Standard arbitration clause

III. Arbitration Proceedings Before the Tribunal Alone

1. Commencement of arbitral proceedings
      When arbitration proceedings commence
      Relevance of the date of commencement
      Notice to arbitrate
      Importance of the notice to arbitrate
      "Request for reference" and "reference"
2. Appointment of arbitrators by the parties
      Number of arbitrators
      When a sole arbitrator is to be appointed
      Method for making appointments
      Advantages of appointing an arbitral tribunal
3. Challenge to the appointment of the arbitral tribunal
      Grounds for challenge
            Bias
            Lack of necessary qualifications
      Duty to disclose
      Challenge by the appointing party
      Procedure for challenge
4. Termination of an arbitrator’s mandate
      Grounds for termination
      Arbitrator is unable to perform his functions
      The arbitrator is unable to act without undue delay
      The arbitrator resigns
      Termination by the parties' agreement
      Successful challenge under Section 12
      Arbitration proceedings come to an end
      How an arbitrator’s mandate terminates
      Substitution of an arbitrator
      Effect of substituting an arbitrator
5. Doctrine of competence-competence
      Position under the 1940 Act
      Importance of the doctrine of competence-competence
      Concept of "jurisdiction"
      An arbitral tribunal’s jurisdiction
      Scope of enquiry
      Operation of Section 16 with regard to Sections 8, 9 and 11
      Time before which such a plea must be taken
      Who may make a plea under Section 16?
      Jurisdiction as a preliminary issue
      Constitutionality of Section 16
6. Interim measures from the arbitral tribunal
      When can interim relief be granted ?
      Section 17 is a derogable provision
      Enforcement of an order granting interim measures
      Scope of protection
      Observations
7. Conduct of proceedings
      Equal treatment of the parties
      Procedure and rules of evidence
      Place of arbitration
      Language
      Statements of claim and defence
      Evidence may be given under oath
      Default in submitting statement of claim or defence
      Oral hearing and written proceedings
      Expert evidence
      Court's assistance in taking evidence
8. Making of an arbitral award
      Types of arbitral awards
      Decision to be based on Indian law
      Decision to be reached by majority
      Awards passed in terms of a settlement
      Procedural formalities
      Reasoned decision
      Remedies that an arbitral tribunal may provide
      Specific relief
      Grant of interest
      Costs
      Errors and interpretation
9. Termination of arbitral proceedings
      Automatic termination of proceedings
      Termination by an order of the arbitral tribunal
      Withdrawal of the claim
      Agreement to terminate
      Where the proceedings are unnecessary or impossible
      Effect of termination of proceedings
      Other ways in which proceedings may be terminated
10. Finality and enforcement of an arbitral award
      An award must be final and binding
      "Final award" and "finality of an award"
      Enforcement of an award
      Which court can execute a decree?
      Powers of the court granting an order of execution
      An award must be capable of being enforced
      Grace period before enforcement
      Powers of a court to ensure execution
      Severability of an award

IV. Judicial Intervention

1. Duty of the court to refer parties to arbitration
      Antecedents to Section 8
      Circumstances in which there is no duty to refer
      Preconditions for reference
      Bifurcation of a suit is not permissible
      The duty is mandatory but not automatic
      A party must apply to the court under Section 8
      Fate of a suit once reference is made
      "Arbitration" and "arbitral tribunal"
      Conversion to an application for interim relief
      When arbitration proceedings may commence?
2. Interim measures from the court
      Prerequisites for the grant of interim relief
      Prima facie case
      Balance of convenience
      Irreparable damage
      Interim relief granted at the court’s discretion
      Ex parte interim relief
      The need for Section 9
      There must be a manifest intention to commence arbitration proceedings
      Principle of compatibility
      Conflict between Section 9 and Section 17
3. Appointment of arbitrators by the court
      Statutory procedure for appointment of an arbitral tribunal
      Extent of scrutiny of the arbitration agreement
       Distinction between judicial and administrative functions
      Argument to show why the function is an administrative one
      Argument to show why the function is a judicial one
      Clarification of the "S.B.P. case"
      "Live claim"
      No conditional appointments
      Expiry of the right to appoint
      The Chief Justice of India’s scheme under Section 11
4. Challenge to an arbitral award
      Grounds for challenge
      "Challenge" and not "appeal"
      Constitutionality of Section 34
      Challenge because of incorrect procedure adopted
      Challenge on the grounds of public policy
      Criticism of the "ONGC case"
      "Error of law apparent on the face of the award"
5. Appealable orders
      Right to appeal.
      Appealable orders under the 1996 Act
      Order granting or refusing to grant any measure under Section 9
      Order setting aside or refusing to set aside an arbitral award under Section 34
      Order of the arbitral tribunal accepting a plea referred to in Section 16
      Order granting or refusing to grant interim measures under Section 17
      Orders under the 1996 Act which are not appealable
      No appeal against a consent decree
      No second appeal
      Which courts are authorised to hear such appeals?
      Revision

V. International Commercial Arbitration

1. Concept of international commercial arbitration
      "International"
      "Commercial"
      Power to refer parties to international commercial arbitration
      Interpretation of Section 45
2. Concept of applicable law
      Contractual obligations to be given due regard
      Private international law
      Laws applicable in four stages
      Law governing the recognition and enforcement of the arbitration agreement
      Law governing the procedure to be adopted before the arbitral tribunal
      Law governing the substance of the dispute
      Law governing the recognition and enforcement of the arbitral award
3. Recognition of a foreign award
      Requirements for a foreign award
      "Convention country"
4. Enforcement of a foreign award
      Conditions for the enforcement of a New York Convention award
      Conditions for the enforcement of a Geneva Convention award
5. Applicability of Part I in international commercial arbitration proceedings
      Position before 2002
      Arguments against the application of Part I to international commercial arbitration
      Part I is applicable to international commercial arbitration
      Explanation of the "Bhatia case"
      Application of Section 34 to international commercial arbitration

VI. Arbitration and Conciliation (Amendment)  Bill, 2003

1. The need for amendment to the 1996 Act
2. Salient features.
      Types of arbitration
      Arbitration division
       Fast-track arbitration
      Applicability of Part I to international commercial arbitration
      Some other salient features of the proposed amendment
3. In conclusion


Subject Index