It is a legal process whereby the parties to the dispute by virtue of a prior agreement, agreed to resolve their disputes by
decision of an Arbitrator. The attendance of the parties is compulsory in arbitration.
Should the parties fail to attend, the Arbitrator may proceed in their absence and pass an award on merits and the award
of the Arbitrator is final and binding on the parties which can be enforced in the same parlance as that of a Civil Court’s
decree.
Even if the aggrieved parties prefer to challenge the award, the award can be set aside only on limited grounds. The
parties will not be allowed to re-agitate on factual aspects.
What is Arbitration?
• Final and binding resolution of civil disputes by Arbitrator, chosen by the parties.
• The decision rendered in Arbitration proceedings is binding in nature as such it differs from mediation and other
ADR methods.
• Arbitration differs from the courts as it is private, based on an agreement/contractual process.
Why Arbitration?
• Large back log of litigations in the courts.
• To lessen the courts burden.
• Facilitates parties to choose their own procedures.
Advantages of Arbitration
• Flexibility
• Cost savings
• Time saving
• Confidentiality
• Scope of settlement
• Enforceability
Duties of Arbitrator
• On accepting the appointment, the arbitrator shall declare in writing to the parties concern that “there is no
circumstances exist that give rise to justifiable doubts as to his independence or impartiality”.
• As soon as appointment is made, the arbitrator shall arrange a preliminary meeting/first hearing.
In General
• On claim statement being filed, arbitrator shall ensure that a copy is furnished to the other party.
• On respondent raising objections as to jurisdiction, the Arbitrator, shall decide such objections as preliminarily
issue. (Section 16).
• If the jurisdiction is upheld, the respondent shall be given time to file their reply statement and if the reply
statement is filed, time will be given to the claimant to file their rejoinder, if any.
• Oral evidence of the parties on specific request (including Chief & Cross Examination).
• Marking of documents.
• Arguments
• Award
• Communication of Award as Certified Copies.
• Retaining of original file with arbitrator until it is called for by courts.
Recording of Proceedings
• The arbitrator shall record the minutes of proceedings in each & every hearing.
• If the parties appear, their signature is to be obtained in the minutes.
• When one of the parties fail to appear, minutes of proceedings has to be communicated with due
acknowledgement.
Service of Notice
• Notice served on the parties with due acknowledgement would constitute sufficient service.
• Returned postal covers with remarks ‘Refused’, ‘Unclaimed’ or ‘Not Claimed’ and ‘Intimation Delivered’ which
would also constitute sufficient service.
• After service of notice, if the respondent fails to appear, it is recommended to send another notice expressing
the arbitrator’s intention to proceed exparte.
• It is also recommended to serve notice through local News Papers, if the claimant could not serve the notice on
the respondent by post (i.e., Left, Not Known, Left India ).
• If the notice is returned as ‘expired’ or ‘Deceased’, it is for the claimant to proceed against the legal
representatives of the deceased.
• If the parties are represented by either Advocates or Representatives, they shall furnish either ‘vakalat’ or ‘letter
of authorization’ signed by the concerned parties.
Settlement
• With the consent of parties, the arbitrator can encourage settlement at any time during the arbitral proceedings.
• If any settlement in the form of memorandum of compromise, the arbitrator shall pass an “Award on Agreed
Terms”.
• If the matter is settled out of arbitration, the arbitrator can terminate the proceedings. (Section 30).
COMPARISON
11 Right of fixing hearing dates Hearings can be fixed on day to day basis
vested with the court with the convenience of both the parties.
Applicability of Conciliation
Conciliation applies to all disputes arising out of a legal relationship, whether contractual or not.
Process Of Conciliation
On arising of a dispute between the parties, at the interest of one of the parties to conciliate the dispute, the interested
party to send an invitation in writing inviting the other party to resolve the disputes by conciliation. The invitation shall
briefly identify the subject matter of the dispute.
On acceptance of the invitation the conciliation proceedings shall commence. If the invitation is rejected there shall not be
any conciliation proceedings. Similarly, if there is no reply within 30 days from the date of sending the invitation, it shall
be deemed that the invitation is rejected.
On the commencement of the conciliation proceedings and on the appointment of the conciliator the conciliator may
request the parties to submit a brief written statement enumerating the disputes and the point of issues. The parties shall
exchange the copies of their statements. On exchange of statements, the conciliator may request the parties to submit
before him along with the necessary documents.
During the submissions by the parties before the conciliator the conciliator shall assist parties to reach at an amicable
settlement. The conciliator is not bound by the provisions of Civil Procedure Code or Evidence Act.
On arriving at a settlement, the terms of settlement shall be reduced in to writing, singed by the parties and the
conciliator. The said terms of agreement shall have the status and effect of an arbitral award passed under section 30 of
the Arbitration and Conciliation Act, 1996.
In case the parties fail to arrive at a settlement they may express the same in declaration before the conciliator and
terminate the proceedings.
In order to facilitate the conduct of conciliation proceedings, the parties may arrange for administrative assistance of a
suitable institution such as CNICA.
Conciliation and Mediation
This process is similar to mediation but the conciliator acts more as an 'inventor' of solutions which are presented
to the parties with a view of getting them to agree as to how the disagreement can be resolved. The conciliation
mediator frequently provides suggestions and ideas. Conciliation differs from mediation in that the main goal is to
conciliate, most of the time by seeking concessions. Generally there is a mixture of fact-to-face and private
caucuses. The conciliator meets with each party to separately prioritize a list of interests from most to least
important. Then goes back and forth between the parties and encourages them to "give" on the issues one at a
time, starting with the least important and working toward the most important for each party in turn. The parties
rarely place the same priorities on all objectives, and usually have some objectives that are not on the list. The
conciliator builds a string of agreements and help the parties create an atmosphere of trust which the conciliator
can continue to develop into a ‘total’ mutually agreeable resolution.
COMPARISON
An alternative to resolving a dispute through the Court system is mediation. The judiciary is encouraging parties to use
mediation. The benefits of mediation are well recognised.
What Is Mediation?
Mediation is a voluntary process in which a trained and impartial third person, the mediator, helps the parties in dispute to
reach an amicable settlement that is responsive to their needs and acceptable to all sides.
The mediator brings the parties together face-to-face in a private and confidential settling. Each party will have the
opportunity of putting forward his point of view and listening to what the other party has to say.
Role Of Mediator
• Discuss and decide what matters are in dispute;
• Explore each party’s real needs and interests;
• Expand settlement options and assess the most suitable solution;
• Draw up the settlement agreement in detail, setting out how the parties have agreed to resolve each matter in
dispute.
Process Of Mediation
• Parties may be invited to attend a preliminary meeting in which the mediator will assess whether mediation is
suitable for the particular circumstances.
• The parties may seek legal advice at any stage of the mediation.
• Both parties have the right to terminate the mediation process at any time.
• Both parties must appreciate that what the other party says in a mediation session is without prejudice and
therefore cannot be used in any legal proceedings.
• An agreement drawn up in a mediation session and signed by both parties is legally binding as a matter of
contract. However, the agreement itself is not enforceable as a judgment, an order of Court, or an arbitration
award, but an innocent party may sue upon it if the other party is in breach of terms.
Advantages Of Mediation
• Parties may avoid the tension, conflict and risk in the adversarial court system.
• Parties may save some time and money in not having to contest matters in court.
• Mediation can start before any litigation or at any stage during the process of litigation.
• Parties can make their own decision and reach agreements with which the parties may be more willing and
ready to comply.
• The settlement terms can be kept private and confidential.
• Mediation can result in terms of settlement of greater flexibility and in more practical ways going beyond the
legal remedies that the court is empowerted to grant.
• Mediation can help maintain a continuing relationship with the other party or parties involved in the dispute and
may improve that relationship.
• The chances of an appeal are greatly reduced, in contras to the litigation.
Mediators may also be required to abide by an Ethical and Professional Code of Practice of CNICA Mediation Rules.
What Is The Time Duration For Mediation?
It depends on the complexity and number of issues that parties require to settle. The degree of the parties’ co-
operation and readiness to participate in the mediation sessions also count. If issues are not complicated and the
process goes smoothly, it may only take one mediation session of a day or less for the parties to reach
agreement. All in all, mediation is generally a far more expeditious form of dispute resolution when compared to
arbitration and litigation. This is of enormous benefit to all parties especially in relation to costs.
Confidentiality
Mediators are required by their Ethical and Professional Code of Practice to observe confidentiality in respect of
all matters disclosed in the mediation session. When the parties agree to take part in mediation, they will usually
be required by the mediator to sign a Mediation Agreement that all negotiations undertaken pursuant to the
mediation are to be privileged and conducted on a without prejudice basis.
Mediation
Introduction
When a civil dispute is brought before the Court to be resolved, the opposing parties will present their oppositions to the
Court in a hearing. A Judge will decide the case on the evidence before him and by determining how the law is to apply.
It can be a lengthy and expensive process to prepare and present a case for hearing and to have it determined by the
Court.
An alternative to resolving a dispute through the Court system is mediation. The judiciary is encouraging parties to use
mediation. The benefits of mediation are well recognised.
What Is Mediation?
Mediation is a voluntary process in which a trained and impartial third person, the mediator, helps the parties in dispute to
reach an amicable settlement that is responsive to their needs and acceptable to all sides.
The mediator brings the parties together face-to-face in a private and confidential settling. Each party will have the
opportunity of putting forward his point of view and listening to what the other party has to say.
Role Of Mediator
• Discuss and decide what matters are in dispute;
• Explore each party’s real needs and interests;
• Expand settlement options and assess the most suitable solution;
• Draw up the settlement agreement in detail, setting out how the parties have agreed to resolve each matter in
dispute.
Process Of Mediation
• Parties may be invited to attend a preliminary meeting in which the mediator will assess whether mediation is
suitable for the particular circumstances.
• The parties may seek legal advice at any stage of the mediation.
• Both parties have the right to terminate the mediation process at any time.
• Both parties must appreciate that what the other party says in a mediation session is without prejudice and
therefore cannot be used in any legal proceedings.
• An agreement drawn up in a mediation session and signed by both parties is legally binding as a matter of
contract. However, the agreement itself is not enforceable as a judgment, an order of Court, or an arbitration
award, but an innocent party may sue upon it if the other party is in breach of terms.
Advantages Of Mediation
• Parties may avoid the tension, conflict and risk in the adversarial court system.
• Parties may save some time and money in not having to contest matters in court.
• Mediation can start before any litigation or at any stage during the process of litigation.
• Parties can make their own decision and reach agreements with which the parties may be more willing and
ready to comply.
• The settlement terms can be kept private and confidential.
• Mediation can result in terms of settlement of greater flexibility and in more practical ways going beyond the
legal remedies that the court is empowerted to grant.
• Mediation can help maintain a continuing relationship with the other party or parties involved in the dispute and
may improve that relationship.
• The chances of an appeal are greatly reduced, in contras to the litigation.
Who Are Mediators ?
There is no strict legal requirement of who can be mediator. Mediators usually come from various professional
backgrounds and have undergone training in mediation skills and techniques so that they know how to conduct the
mediation process in unlocking negotiations that have become deadlocked and in keeping everyone focussed on finding
a solution.
Mediators may also be required to abide by an Ethical and Professional Code of Practice of CNICA Mediation Rules.
What Is The Time Duration For Mediation?
It depends on the complexity and number of issues that parties require to settle. The degree of the parties’ co-
operation and readiness to participate in the mediation sessions also count. If issues are not complicated and the
process goes smoothly, it may only take one mediation session of a day or less for the parties to reach
agreement. All in all, mediation is generally a far more expeditious form of dispute resolution when compared to
arbitration and litigation. This is of enormous benefit to all parties especially in relation to costs.
Confidentiality
Mediators are required by their Ethical and Professional Code of Practice to observe confidentiality in respect of
all matters disclosed in the mediation session. When the parties agree to take part in mediation, they will usually
be required by the mediator to sign a Mediation Agreement that all negotiations undertaken pursuant to the
mediation are to be privileged and conducted on a without prejudice basis.
Amount in dispute (in Rupees) :
Note: 2 Where the total amount in dispute exceeds Rs.1,00,00,000 (or) the dispute cannot be
expressed in terms of money, the CNICA shall determine the amount of administrative fees, in
its discretion, in each case.
(2) Non- refundable fee referred to in Rule 39(1) - Rs.3000-
(Where the CNICA acts only as an appointing authority)
Note: 1 Where the total amount in dispute exceeds Rs.1,00,00,000 or the dispute cannot be expressed
in terms of money, the CNICA shall determine the amount of fee in each case.
2. In the case of the arbitral tribunal consisting of more than one arbitrator the Arbitrator's fee
shall be the same, in addition to that of the fees of the sole Arbitrator.
3. Charges for facilities: Rs.1,000/- for one day or part thereof Referred to in Rule 38(6)
Note: Where the facilities are provided in a place other than in the CNICA offices, the charges will be
determined in each case and billed separately.
Note: Where the total amount in dispute exceeds Rs.1,00,00,000 (or) the dispute cannot be
expressed in terms of money, the CNICA Mediation Centre shall determine the amount of
administrative fees, in its discretion, in each case.
Note: Where the total amount in dispute exceeds Rs.1,00,00,000 or the dispute cannot be expressed
in terms of money, the CNICA Mediation Centre shall determine the amount of fee, in its
discretion, in each case.
2. In the case of more than one mediator the fees shall be the same, in addition to that of the
fees of the sole Mediator.
Amount in dispute (in US $) : 0
Note2: Where the total amount in dispute exceeds USD 10,00,000 or the dispute cannot be expressed
in terms of money, the CNICA determine the amount of administrative fees, in its discretion in
each case.
(2) Non-refundable fee referred to in Rule 39(1) - US $ 500
(Where the CNICA acts only as an appointing authority )
Note1 : Where the total amount in dispute exceeds USD 10,00,000 or the dispute cannot be expressed
in terms of money, the CNICA shall determine the amount of fee in each case.
2. In the case of the arbitral tribunal consisting of more than one arbitrator the Arbitrator's fee
shall be the same, in addition to that of the fees of the Sole Arbitrator.
Charges for facilities : US$ 200 for one day or part thereof Referred to in Rule 38(6)
Note: Where the facilities are provided in a place other than in the CNICA's office, the charges will be
determined in each case and billed separately.
Note 1: Where the total amount in dispute exceeds USD 10,00,000 or the dispute cannot be expressed
in terms of money, the CNICA Mediation Centre shall determine the amount of administrative
fees, in its discretion, in each case.
Note : Where the total amount in dispute exceeds USD 10,00,000 or the dispute cannot be expressed
in terms of money, the CNICA Mediation Centre shall determine the amount of fees, in its
discretion, in each case.
Clause
Model Arbitration Clause
Any and all controversy(ies) / disputers) / difference(s)/ claim(s) / claim(s) in tort arising out of or in connection with or in
relation to this contract, including its existence, validity or termination, shall be referred to and finally resolved by
arbitration of sole / three Arbitrator(s) nominated by the Council for National and International Commercial Arbitration
(CNICA), having its registered office at New No.90 (73), IV Floor, "Orient Chambers" Armenian Street, Chennai 600 001,
India, and its Rules shall prevail. The award so rendered shall be final and binding on the parties. The language shall be
English and the venue shall be at _______________ (City). *
Note: Add the following for international contracts.
* The governing law of the contract shall be substantive law of _______________ (Country).
Clause
stitute / establish panel of eminent arbitrators from India and Abroad. Agreement
sh and recommend clauses for dispute resolution through arbitration or ADR mechanism, or a combination of both.
Membership
ign such clauses suitable to be used in contracts to cover future disputes and also for agreements made after a dispute
risen, thus to provide for CNICA administered dispute resolution.
mote and popularise the amicable and effective settlement of national and international disputes with various ADR
arise arbitration as an effective dispute resolution mechanism with moderate cost (cost effective) and speedy settlement
commercial disputes.
co-ordinate/assist ADR proceedings by establishing facilities and providing administrating services. ADR Services
Arbitration
promote and effectively act as a balance to social and economic needs of the community.
Conciliation
ovide training in ADR and related matters and to Award Diplomas, Certificates and other academic affiliations.
Mediation
To conduct Workshop, Seminars, Conferences etc.
rovide membership to all sort of communities (Corporate, Professionals, Individuals & Students).