Arbitration is a party autonomy concept where the parties try to resolve their dispute through an arbitrator. In simple words, we can understand arbitration is a process by which they try to resolve disputes between them through an agreement and without going for litigation, they engage a person, or persons, or Institutional body. The provisions related to Arbitration are mentioned under Arbitration and Conciliation Act, 1996.
The procedure to be followed in arbitration proceedings is mentioned under Section 23 to 27 of Arbitration and Conciliation Act, 1996.
Composition
Chapter III of Arbitration and Conciliation Act, 1996 talks about composition. Usually there are 3 arbitrators to resolve the dispute between the parties.
Appointment
Section 11 of Arbitration and Conciliation Act, 1996 talks about appointment of arbitrators. It states that both the parties will appoint one arbitrator each. The two appointed arbitrators will appoint another arbitrator to proceed with the arbitration proceedings. If the arbitrators fail to appoint the third arbitrator then the third Arbitrator shall be appointed by the Chief Justice, or any person or institution designated by him.
Jurisdiction
The Arbitral Tribunal has no inherent Jurisdiction
However, Section 17 talks about jurisdiction to determine explicit matters.
Conduct of Arbitral Proceedings
Section 24 of Arbitration and Conciliation Act, 1996 talks about the manner in which Arbitration proceedings will commence. If there is agreement between the parties, then the proceeding will be according to the agreement but if there is no prior agreement between the parties then the Arbitral Tribunal has the power to decide whether the proceedings shall be held orally or on the basis of documents and other materials.
