Introduction:

Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute. In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court.Arbitration is a form of Alternative Dispute Resolution(ADR) that resolves disputes outside the judiciary courts. The dispute will be decided by one or more persons (the 'arbitrators', 'arbiters' or arbitral tribunal'), which renders the arbitration award'. An arbitration decision or award is legally binding on both sides and enforceable in the courts, unless all parties stipulate that the arbitration process and decision are non-binding.[1]

1. Its principal characteristics are:

• Arbitration is consensual:

Arbitration can only take place if both parties have agreed to it. In the case of future disputes arising under a contract, the parties insert an arbitration clause in the relevant contract. An existing dispute can be referred to arbitration by means of a submission agreement between the parties. In contrast to mediation, a party cannot unilaterally withdraw from arbitration.

• The parties choose the arbitrator:

Under the WIPO arbitration Rules, the parties can select a sole arbitrator together. If they choose to have a three-member arbitral tribunal, each party appoints one of the arbitrators; those two persons then agree on the presiding arbitrator. Alternatively, the Center can suggest potential arbitrators with relevant expertise or directly appoint members of the arbitral tribunal. The Center maintains an extensive roster of arbitrators ranging from seasoned dispute-resolution generalists to highly specialized practitioners and experts covering the entire legal and technical spectrum of intellectual property.

• Arbitration is neutral

In addition to their selection of neutrals of appropriate nationality, parties are able to choose such important elements as the applicable law, language and venue of the arbitration. This allows them to ensure that no party enjoys a home court advantage.

• Arbitration is a confidential procedure

The WIPO Rules specifically protect the confidentiality of the existence of the arbitration, any disclosures made during that procedure, and the award. In certain circumstances, the WIPO Rules allow a party to restrict access to trade secrets or other confidential information that is submitted to the arbitral tribunal or to a confidentiality advisor to the tribunal.

2. Advantages:

• In contrast to litigation, where one cannot "choose the judge,arbitration allows the parties to choose their own tribunal. This is especially useful when the subject matter of the dispute is highly technical: arbitrators with an appropriate degree of expertise (for example, quantity surveying expertise, in the case of a construction dispute, or expertise in commercial property law, in the case of a real estate dispute[2]) can be chosen.

• Arbitration is often faster than litigation in court.[3]

• Arbitral proceedings and an arbitral award are generally non-public, and can be made confidential.

• In arbitral proceedings the language of arbitration may be chosen, whereas in judicial proceedings the official language of the country of the competent court will be automatically applied.

3. Limitations:

• Arbitration agreements are sometimes contained in ancillary agreements, or in small print in other agreements, and consumers and employees often do not know in advance that they have agreed to mandatory binding pre-dispute arbitration by purchasing a product or taking a job.

• If the arbitration is mandatory and binding, the parties waive their rights to access the courts and to have a judge or jury decide the case.

• There is sometimes a disconnect between the presumption of confidentiality and the realities of disclosure and publicity imposed by the courts, arbitrators, and even the parties themselves.[4]

• In some legal systems, arbitration awards have fewer enforcement options than judgments; although in the United States arbitration awards are enforced in the same manner as court judgments and have the same effect.

4. Conclusion:

The arbitrator shall make the final decision as to the parties' respective rights and obligations. This is also save the time of all people to make the decisions quickly and also save the time of the court, it is important because in today time there are many pending cases in the session courts, high courts and even in the supreme court. An arbitral ruling and binding on the parties, and there is no possibility of appeal. However, an aggrieved party has the option of going to court to set aside the arbitral award for one or more of the reasons listed in section 34 of the Arbitration and Conciliation Act, 1996.

Citation:

[1] O'Sullivan, Arthur; Sheffrin, Steven M. (2003). Economics: Principles in Action. Upper Saddle River, New Jersey: Pearson Prentice Hall. p.324. ISBN978-0-13-063085-8. Last visit: 2Dec2023.

[2]. See for example the arbitration service offered by Falcon Chambers, the specialist property barristers chambers www.falcon-chambersarbitration.com.

[3] ."The Supreme Court's retired, but hardly retiring, Ian Binnie". The Globe and Mail. Toronto. Last visit:2dec 2023

[4]. Brown, Alexis (1 January 2001). "Presumption Meets Reality: An Exploration of the Confidentiality Obligation in International Commercial Arbitration". American University International Law Review. 16 (4).