03 - Abstract HTTPHDL - Handle.net10603180576
03 - Abstract HTTPHDL - Handle.net10603180576
Introduction
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the economic reforms initiated in 1991. The thrust being on the
minimization of court’s intervention in the arbitration process by
adoption of United Nations Commission on International Trade Law
(UNCITRAL) Model Law on international commercial arbitration.
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3. China International and Economic and Trade Arbitration
Commission (CIETAC)
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The 1940 Act covered only the domestic arbitration while the two Acts
dealt with enforcement of foreign awards. These three statutes have
been repealed and replaced by a consolidated, comprehensive legislation
in the Arbitration and Conciliation Act, 1996. This legislation, by and
large adopts the UNCITRAL Model Law in its entirety.
The Arbitration and Conciliation Act, 1996 is the result of borrowing the
provisions from UNCITRAL Model Law and an improvement over the
Arbitration Act 1940, which only deals with Domestic Arbitration while
the Act of 1996 is mainly for the purpose of dispute resolution in
International Trade. Although the Arbitration and Conciliation Act,1996
is based on UNCITRAL Model Law still it departs from Model Law –
Subsection. (1) of section. 10 of the 1996 Act deals with the number of
the arbitrators in an arbitral tribunal and provides that the number shall
not be of even number. The Model Law does not contain any such
limitation. Where the parties fail to determine the number of arbitrators,
the Model law provides that the number of arbitrators shall be three.
Subsection (2) of section 10 of 1996 Act provides that in such an
eventuality, the arbitral tribunal shall consist of a sole arbitrator. In the
matter of appointment of arbitrators, where the parties fail to reach an
agreement, the model law permits the party to approach a court or other
authority specified in the National Law for appointment of the third
arbitrator or sole arbitrator as the case may be. However, section 11 of
the 1996 Act empowers the Chief Justice of the High court concerned
or any person or any person or institution designated by him to appoint
the arbitrator. Further in the case of International commercial
arbitration, it is the Chief Justice of India, or any person or institution
designated by him, who is empowered to appoint the arbitrator. Sub-
section (10) of the section 11 empowers Chief Justice of India or the
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Chief Justice of High Court, as the case may be, to make such scheme as
he may deem appropriate for dealing with such appointments.
The Model Law lays down the procedure for challenging an arbitrator. It
empowers the arbitral tribunal to decide on the challenge and, if a
challenge is not successful, the challenging party may request a court or
other authority to decide on the challenge. While such a request is
pending, the arbitral tribunal may continue the arbitral proceedings and
make an award. The corresponding provision contained in section 13 of
the 1996 Act does not permit the challenging party to approach the court
at that stage. However after the award is made the party could challenge
the award on the ground that the arbitrator has wrongly rejected the
challenge.
Selection of Topic:
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Statement of Research Problem and Hypothesis:
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dimensions of the arbitration law in India in dispute resolution for the
effectiveness under the provisions of the Arbitration and Conciliation
Act, 1996.
The main object of the present study is to examine the use and the
misuse of the Arbitration Law in India and also to analyse that whether
the present statutory provisions relating to contract are sufficient to
meet any situation and are capable to do justice, or there is dearth and
scarcity of the statutory provisions in this field, and if so to make
suitable suggestions in this regard.
Research Methodology:
Presentation of Study:
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present Arbitration Law by getting influenced from various Laws of
different nations and organizations is a success or failure.
1. Domestic Arbitration
2. International Arbitration
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of certain special Acts which specifically provide for arbitration in
respect of disputes arising from matter covered by those Acts.
In the second chapter an attempt has been made to discuss the Genesis
of the Arbitration Law in India in which it has been discussed that the
arbitration is not a new phenomenon in our country but it has its
existence from Vedic era that’s why Yajnavalkya refers to three types of
popular courts and at the time of Britishers several regulations came into
existence and before the 1996 Act, the three Acts i.e The Arbitration Act
1940, Arbitration (Protocol and Convention )Act 1937 and the foreign
awards (Recognition and enforcement) Act 1961 were in existence for
Arbitration Law in India and on the recommendation of United Nations
Commission on International Trade Law i.e UNCITRAL Model Law
India adopted several provisions and result was Arbitration and
Conciliation Act 1996. The various stages of growth of arbitration Law
is discussed in this chapter. It is also discussed in this chapter why there
was a need for Arbitration and Conciliation Act, 1996. As the
UNCITRAL Model Law was available to guide us for dispute resolution
in International Trade as well as Law Commission of India also
recommended change to be made in the Arbitration Law to face the pace
of International changing scenario. So the present Arbitration and
Conciliation Act, 1996 was the need of the day.
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have existed since the dawn of commerce. Commercial Arbitration is
distinguished from other types of Arbitration in as much as the
Commercial Arbitration derives their authority solely from contract,
they resolve the whole dispute and generally do so according to law.
UNCITRAL Model Law is also well connected to the Commercial
Arbitration as the United Nations Commission on International Trade
Law (UNCITRAL) adopted in 1985, the Model Law on International
Commercial Arbitration because the General Assembly of the United
Nation recommended that all countries should give due consideration to
the said Model Law, in view of the desirability of uniformity of the law
of Arbitral procedure and the specific need of International Commercial
Arbitration practice.
Although the said UNCITRAL Model Law and rules were intended to
deal with International Commercial Arbitration and Conciliation, they
could, with appropriate modifications, serve as a model for legislation
on Domestic Arbitration and Conciliation. The Arbitration and
Conciliation Act, 1996, has taken into account the UNCITRAL Model
Law and Rules.
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In chapter five the researcher has attempted to discuss the use of
Arbitration in resolution of Intellectual Property Rights Disputes as the
Intellectual Property is emerging is one of the most valuable
commodities in the global market, the global economy has come to be
dependent on technology invariably increasing the importance of its
protection through Intellectual Property Laws. Arbitration mechanism
has been outlined in the recent multilateral agreements with the
recognition that the traditional litigation is no longer the most viable
means of settling International Property Disputes. World Intellectual
Property Organization (WIPO) framed WIPO arbitration rules which
became effective since October 1,1994. WIPO arbitration rules shall be
deemed to be the part of the arbitration agreement if arbitration
agreement has been done to settle the disputes. The tribunal which is
formed for the resolution of dispute regarding the IPR shall consist of
such of arbitrators as has been agreed by the parties. The sole arbitrator
shall also be appointed and any arbitrator may be challenged by a party
if circumstances exists that give rise to justifiable doubt as to the
arbitrators impartiality or independence. The experts are appointed for
the tribunal as the intellectual property disputes requires the tribunal
shall decide the substance of the dispute in accordance with the law or
the rules of law chosen by the party. The tribunal may make
preliminary, interim, interlocutory, partial or final awards. The
arbitration should where ever be reasonably possible, be heard and the
proceedings declared closed within not more than nine month after
either the delivery of the statement of defense or the establishment of
the tribunal whichever event occurs later. This shows that the arbitration
is being used in the resolution of IPR disputes.
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In chapter six Enforcement and Recourses against arbitral awards is
discussed. The nature of arbitral award has been changed after following
the UNCITRAL Model Law because before the Arbitration and
Conciliation Act 1996, came into existence the arbitral awards was filed
in the court of Law. On receiving the arbitral award the court use to
convert the arbitral award into a judgment form than converted into a
decree than it was executed. Therefore the award holder has to face
several obstacles before the execution of the arbitral awards. But after
the Act of 1996 the position has been changed and now the arbitral
award is deemed as a decree and enforceable without facing the
obstacles like earlier. There are also recourses against the arbitral
awards i.e under the Act of 1996 the arbitral award. Even the Supreme
Court has observed that section 34 of the Act is based on the
UNCITRAL Model Law and it will be noticed that under the 1996 Act
the scope of the provision for setting aside the award is far less as it was
under section 30 or 33 of the 1940 Act.
In chapter nine the researcher has tried to discuss that enactment can not
fill the gap of huge lacunae of the existing law therefore the Supreme
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Court and the High Court of this country have contributed a lot in the
development of Law in various fields. So the researcher has discussed
various case laws under this chapter to through some light on the
approach of judges towards the Law of Arbitration and its relevance in
today’s ―Global World‖.
Conclusion
The first Indian Arbitration Act was enacted in 1899, based on the
English Arbitration Act, 1889.
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July 1940. It extended to the whole of India expect the State of Jammu
and Kashmir. The Act dealt with broadly three kinds of arbitration: (i)
arbitration without intervention of a court, (ii) arbitration with
intervention of a court where there is no suit pending, and (iii)
arbitration in suits.
The need for enactment of the Act had arisen on account of several
factors. Though the English Arbitration Act, 1934, on which the 1940
Act was based, had been replaced by the English Arbitration Act, 1950
which in turn was amended by the Arbitration Act, 1975 and the
Arbitration Act, 1979, to keep pace with the developments in the field of
arbitration, the Indian Act had remained static. The Indian courts have
noted for evolving effective safeguards to prevent such abuses. The
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Supreme Court observed in Guru Nanak Foundation v. M/s Ratan Singh
& Sons, AIR 1981 SC 2075.
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lent themselves to resolution by alternative means such as arbitration
mediations and negotiation. The resolution further emphasized the
desirability of disputants taking advantage of alternative disputes
resolution (ADR) which provided procedural flexibility, saved valuable
time and and money and avoided the stress of a conventional trail.
The need for reform in the law relating to arbitration thus became
necessary and urgent. The question then was whether the 1940 Act
should be amended or the new Law be written on a clean slate.
The Act, being based on the Model Law which is also broadly
compatible with the Rule of Arbitration of the International chamber of
Commerce, puts India on the international map of arbitration. The most
significant feature of this Act is the recognition it a accords to the
freedom of the parties to agree on how their arbitration should be
conducted. In certain respects, the Act constitutes an improvement over
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the Model Law inasmuch as it nearly takes away the role of courts
except in a few matters. Though the Model Law was conceived in the
context of international commercial arbitration, the Act uses it, with
certain modifications, as the basic for domestic arbitration of all arbitral
disputes. It was felt that a well conceive law of international commercial
arbitration would be equally appropriate for domestic arbitration.
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to be thwarted by an express provision where under a party who
knowingly keeps silent and then suddenly raises a procedural objection
will not be allowed to do so, the role of arbitral institutions in promoting
and organizing arbitration has been recognized for the first time in law,
the Act provides a considerable improvement in the nature of
appointment of arbitrators with the formulation of the Chief Justice
Scheme which takes the task of selecting an arbitrator by courts outside
the litigation process and makes it an administrative act. The
requirement of formal arbitral agreement under the 1949 Act has now
been relaxed to include even a informal agreement, the 1996 Act has
clothed the arbitrator with the power to grant interim orders in respect of
the preservation of the property and for ordering security; the arbitrator
can now decide on his own jurisdiction; the 1996 Act also provides for
various other time saving measure such as requiring an arbitrator to
disclose any possible bias at the threshold itself; when an arbitrator is
replaced the proceedings conducted by him are protected and finally the
arbitrators are required to give reasons for the award and the award has
now been vested with the status of the decree. Thus Arbitration Law in
India is in transitional phase.
Suggestions
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2. Extend of Judicial intervention must be defined.
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