How does arbitration proceedings take place

How does arbitration proceedings take place and is it necessary to hire a lawyer?

Answer (1)

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Team Legistify

  • Sector-1, Noida

The Arbitration process is explained below step by step for your understanding:

1. Appointment of Arbitrator / Arbitral Tribunal

2. Framing of Rules/procedure for arbitration by the Arbitrator / Arbitral Tribunal in consultation with the parties.

3. Submission of Statements of Claim and Defense - The claimant should submit statement of claims, points of issue and relief or remedy sought. The respondent shall state his defense in respect of these particulars. All relevant supporting documents must also be submitted. Such claim or defense may be amended or supplemented any time

4. Hearings and written proceedings - After submission of documents and defense, unless the parties agree otherwise, the Arbitral Tribunal can decide whether there will be oral hearing or proceedings can be conducted on the basis of documents and other materials. However, if one of the parties requests, the hearing shall be oral. Sufficient advance notice of hearing should be given to both the parties.

5. Settlement during arbitration - It is permissible for parties to arrive at mutual settlement even when arbitration is proceeding. In fact, even the Tribunal can make efforts to encourage mutual settlement. If parties settle the dispute by mutual agreement, the arbitration shall be terminated. However, if both parties and the Arbitral Tribunal agree, the settlement can be recorded in the form of an arbitral award on agreed terms. Such Arbitral Award shall have the same force as any other Arbitral Award.

6. Arbitral Award - The decision of Arbitral Tribunal is termed as 'Arbitral Award'. The arbitrator can decide the dispute ex aequo et bono (In justice and in good faith) if both the parties expressly authorise him to do so. The decision of Arbitral Tribunal will be by majority and the arbitral award shall be in writing and signed by the members of the tribunal. The award must state the reasons unless the parties agree otherwise. The award should be dated and place where it is made should be mentioned. Copy of award should be given to each party.

Cost of Arbitration - Cost of arbitration means reasonable cost relating to fees and expenses of arbitrators and witnesses, legal fees and expenses, administration fees of the institution supervising the arbitration and other expenses in connection with arbitral proceedings. The tribunal can decide the cost and share of each party. If the parties refuse to pay the costs, the Arbitral Tribunal may refuse to deliver its award.

It is advisable that you hire a lawyer for the purpose of carrying out the arbitration proceedings who can help you present your case in a better way. Arbitration lawyers in your area can be found by clicking here.

Answered on 28 Sep 2018


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