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ARBITRATION
INTRODUCTION :
The Ordinance amends this provision to specify that if the Court passes such an
interim order before the commencement of arbitral proceedings, the proceedings must
commence within 90 days from the making of the order, or within a time specified by
the Court. Further, the Court must not accept such an application, unless it thinks that
the arbitral tribunal will not be able to provide a similar remedy.
Time period for arbitral awards: The Ordinance introduces a provision that requires
an arbitral tribunal to make its award within 12 months. This may be extended by a
six month period.
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3.What is Arbitration?
Section 2 of an Arbitration and Conciliation Act 1996 defines any arbitration whether
or not administered by permanent institution with an Arbitration agreement ant its
clause, Award may also be a foreign Award as mentioned in Geneva and new York
convention, means interim award and tribunal means a sole or an panel of Arbitrator
with its jurisdiction party means party to the Arbitration.
6 Concept of Arbitration
For the settlement of the conflict , arbitration is an old age practice in India .
Panchayat system is based on this concept . In 1958 it was incorporated in the code of
Industry discipline . In 1962 in Indian Labor conference it was decided that the
Arbitration would be preferred after conciliation under the adjudication , The
Government of india setup Nation Arbitration Board , In 1956 , it was decided that
Voluntary Arbitration would be included finally in 1957, section 10A was inserted
which was enforced from March 1957.
The first Statutory recognition was given to domestic Arbitration in India by Indian
Arbitration Act 1940, it purpose was to consolidate and amend the law relating to
Arbitration.The statutes dealing with international Commercial Arbitration were the
Arbitration act 1937 and Foreign Award Act 1961Geneva and Newyork convention.
The UNCITRAL Model Law on international Commercial Arbitration the Arbitration
and conciliation act 1996 seek amendment which was amended latest.
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having been convened at Geneva by the Governing Body of the International Labour
Office, and having met in its Thirty-four h Session on 6 June 1951, and
Having decided upon the adoption of certain proposals with regard to voluntary
conciliation and arbitration, which is included in the fifth item on the agenda of the
session, and
Having determined that these proposals shall take the form of a Recommendation
designed to be implemented by the parties concerned or by the public authorities as
may be appropriate under national conditions,
adopts this twenty-ninth day of June of the year one thousand nine hundred and fifty-
one, the following Recommendation, which may be cited as the Voluntary
Conciliation and Arbitration Recommendation, 1951t
Voluntary arbitration
. If a dispute has been submitted to arbitration for final settlement with the
consent of all parties concerned, the latter should be encouraged to abstain from
strikes and lockouts while the arbitration is in progress and to accept the arbitration
award.
General provision
provision of this Recommendation may be interpreted as limiting, in any way
whatsoever, the right to strike.
C154 - Collective Bargaining Convention, 1981 (No. 154)
Article 6
The provisions of this Convention do not preclude the operation of industrial relations
systems in which collective bargaining takes place within the framework of
conciliation and/or arbitration machinery or institutions, in which machinery or
institutions the parties to the collective bargaining process voluntarily participate.
With respect to the public sector, the Labour Relations (Public Service) Convention,
1978(No. 151) provides that the settlement of disputes over the terms and conditions
of employment is to be sought through independent and impartial machinery, such as
mediation, conciliation and arbitration, established in such a manner as to ensure the
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9 COMPARITIVE WITH UK
The general assembly of the United Nations adopted the United Nations
Commission on International Trade Law (UNCITRAL) Model Law on 21 June,
1985 (with amendments as adopted on 7 July, 2006) at the end of eighteenth
session of the commission. Both the Indian Arbitration and Conciliation Act,
1996 and the UK Arbitration Act, 1996 are based on the UNCITRAL Model Law.
Schemes
Part III in the Indian act governs Conciliation and procedures for
conducting due conciliation proceedings.
Part IVs of both the countries acts provide for general provisions.
The Arbitration plays a very vital role to solve the disputes amicably between the
employer and the employees or the parties to the dispute by mutual Arbitral
agreement with equal liberty to negotiation and the Award is a final reward in the
procedure of Arbitration .
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Section 10A
This section 10A has 5 sub section and this section states that where any Industrial
disputes exist or apprehended and the employer and the workmen agree to refer the
dispute to the Arbitration , may at any time before the dispute has been referred under
section 10 to a labor court or tribunal or National Tribunal , by a written agreement ,
refer the dispute to the Arbitration and the reference shall be to such person or persons
as an arbitration as may be specified in the Arbitration Agreement.
1.Legislative changes
This section has been newly inserted in the principal Act by Industrial Disputes
(Amendment and Miscellaneous ) A ct 36 of 1956
b)in subsection 3 the world one month are substituted for 14 days
State Amendment s
5.Rajasthan has inserted many sections 10 b, c, d , e, f, g ,h, I, j,k vide Rajasthan Act
No.14 of 1970
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3. The reference should have been made before the dispute referred under section 10
to labour court , tribunals or National tribunals.
4.The number arbitrator or arbitrators should have been mentioned in the agreement
as such person becomes he presiding officer to the labour court , tribunals or National
tribunals.
2. Procedure before arbitrator or the arbitrators can follow his own procedure however
the rules of natural justice as section 11 of I D act shall follow such procedure as he
may think fit.
IN AN LANDMARK CASE : the Madhya Pradesh high court section 1 in k.p. singh
Court observed that section 11 of the act prescribed the procedure and practices to be
followed by an conciliation officer etc but leaves the arbitrator to follow his own
procedure .
law correctly stated by another division bench of the same High Court in 3.Aftab-
Jadid E-, Urdu Daily ... vs Bhopal Shramjivi Patvakar Sangh (1985) ILLJ 272 MP
the cour ,C.p.senJ
2 Morco Ltd V Government Tamil Nadu Lab Ic 1663 per Naimar Sundram J)
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Employees and the workmen who are not the parties sub section (3A) of this Act was
introduced by ID amendment act 1964- states that the employers and workmen who
are not the parties may be given a notice to present their case before the arbitration
within a period of one month notification is issued, such notification under section
10A (4A) prohibiting the continuance of any strike lock out which exist on the date of
reference connected with the dispute the land mark judgment No5 the court held that
the requirement of this provision have not been completed with, will be rendered
invalid in another case No 6 a single
Subsection (4)
After the investigation, adjudicate upon the industrial dispute referred to the
arbitrator under the arbitration agreement and to submits the award signed by him.
This award is should be published like any other award under the act by appropriate
Government within a period of 30 days from the receipt
section 17 award is final after being published under section 17(2) if itis not published
as referred it will be of being enforced as postulated by section 17 (A) of has no force
of law section 17 makes an enforceable on the expiry of 30 days from date of
publication
Section 18 (2) Makes can arbitration award which has become enforceable and
binding on parties
Section 18 (3) Makes the arbitration award in case of where the notification has been
issued Sub section 3A of U/S 10A become enforced and binding on all parties to the
dispute section
Section 19(3)The arbitral award remain in operation for a periods of one year from
the date on which if become enforce able its government wish to reduce extend the
period
Section 19(6)Awards passed under sector 19(3) further continues to be binding on the
parties even after the expiry of its period of operation period of two month as lapsed
from the date on which either of the parties intimate its intention to the other to
terminate the award
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7.Jurisdiction of an arbitration
States of the arbitrator does not have the status of statutory arbitrator though there is
similarity between the two so he cannot given an order on the award passed by him
as he lacks fundamental inherent judicial power vested by the state in a court .The
arbitrator should settle the dispute and is well expected to do substantial justice
between parties in giving the award the reference of the industrial dispute to an
arbitrator U/S 10A is more Adhoc arrangement the difference from private
arbitration is the agreement made to dispute is published by government his
official Gazette The proceeding before him is Quasi judicial is character, the award
is rendered to he becomes functus officio then he cant inter fere for the further
proceeding which is judicial nature
1. Kerala SRTC -VS- A K Unjukrishna Pillai 1976 Lab I C 541, 543 (ker) per J.
Bhaskaran
The arbitrator will not proceed with the arbitration if the dispute referred to him is not
industrial dispute has ne jurisdiction
Sub Sec (4) of S 10 Nor Sub S (1) like Sub S 1 (D) of S. 10 The arbitrator has strictly
adjudicate upon the dispute referred to him by agreement of parties of it court go into
the matters connected with relevant indeciduate dispute the general principal
regarding validity of such arbitrator as mentioned in arbitration Act 1940 award only
would apply. If the misconduct of a part of arbitrator or where he exceeds this
jurisdiction never hears the parties or fails to determine important question referred to
be an severed the answered . The Award will be amenable to judicial review under
Art 226 of the Indian constitutional in a supreme court decision
1. Kerala SRTC -VS- A K Unjukrishna Pillai 1976 Lab I C 541, 543 (ker) per J.
Bhaskaran
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The Award will be amenable to judicial review under Art 226 of the Indian
constitutional in a supreme court decision
1.Mangmt of National projects construction corporation Ltd VS- Workmen (1978) I
LLJ 86(CSC) per Alagirism J
Section 16 (2) requires a labour court Tribunal national tribunal is that their awards
shall be shall be signed by its presiding official in another land mark case it is stated
that the award of an industrial arbitrator is unable to Judicial review in
2.Rohtas industries the supreme court observed :An award under section 10 A is not
only untenable but more sensitively susceptible to the writ lancet being a Quasi
statutory bodys decision
A single judge a madras high court took the view that a person appointed to arbitrator
upon an industrial dispute under section 10A the will be merely private
arbitrator.Since such an arbitrator will not be governed by the provision of S WA the
exclusion of the arbitration act under sub S (5) will not apply to such an arbitrator in
below case
3.Estate staff union of south india commor labar 1970 LLJ 94 (mad) Ramakrishnan
2.Rohtas industries Ltd VS- works 1968 I LLJ 710,715=16 (pat) DB R1 1R 1967 Pat
224 putta J Sub-Section (4) prohibition of continuance of strike and lock outs.
For details refer see sec 10(3)which was discussed earlier in detail
Excludes the application of the provision of the arbitration act 1940 (2) to the award
of an arbitrator under sec 10(A).
2.Rohtas industries Ltd VS- works 1968 I LLJ 710,715=16 (pat) DB R1 1R 1967 Pat
224 putta J
3.Estate staff union of south india commor labar 1970 LLJ 94 (mad) Ramakrishnan
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The scheme of this aAct does not contemplate a private arbitration outside the Act as
method of resolving an industrial dispute merely because the parties says that the
matter will be left for informal arbitration ,the agreement cannot be stated to refer the
dispute to an arbitration outside the preview of section 10(A) in a
land mark judgment i.e (2) Hindustan National glass the calcutta High court
1. Hindusthan National Glass & ... vs Ganesh Kumar Agarwal on 1 March, 2010
held an application under section (30) arbitration Act
Less expensive ,faster and expedious when compare to court , arbitration rules can be
tailored , it is private and confidential, one of the efficient dispute resolution
machinery and Award is final outcome are its Advantages. Legal fees have increased ,
it can also lead to delay , no temporary injunction , no appeal etc
14 Challenge to arbitrator:
1.Hindusthan National Glass & ... vs Ganesh Kumar Agarwal on 1 March, 2010
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If the challenge is not successful the tribunal shall continue with the arbitral
proceedings and render the award, which can be challenged by an aggrieved party at
that stage. This is another significant departure from the Model Law, which envisages
recourse to a court of law in the event the arbitral tribunal rejects the challenge.(1)
The duty of an arbitrator is to disclose any interest or his relationship with any of the
parties to the dispute, or relationship with the industry he is dealing with or close
relationship with any party or family relation known to him or he may the partner of
that particular industry etc which may create an appearance of partiality or bias as he
considered to be an neutral person and the arbitrator act with principle s of natural
justice .A party appointed non- neutral arbitrator is not arbitrator is not subject to
disqualification by the other party based upon matter disclosed.
SUGGESTIONS
There are several factors hampering adoption of voluntary arbitration in India like
that of legal obstacles scarcity of Arbitrators who fails to win the confidence of the
parties.. cost to the parties presence of complicated procedure, no appeal is competent
against the Arbitral Award I consider it as a major drawback.
I analyzed that this is the best dispute resolving machinery with some disadvantages,
which should be encouraged in a wider level by bringing certain amendments in the
act to rectify the disadvantages and to make it more effective . I suggest government
of India to focus more on the voluntary arbitration mechanism so as to minimize the
workload of judiciary and for amicable settlement between the parties which will lead
to smooth economical growth and its development.
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CONCLUSION
The problems are similar to those that have general arbitration which is the
fundamentally is a failure to free arbitration from that of courts based on four things
Secondly no appeal
Fourth the recognition of Trade union on the part of Employee is necessary perquisite
for the success of voluntary Arbitration
India has in place a modern, an efficient Arbitration Act. There have been some
decisions which are not in tune with the letter or spirit of the Act. Hopefully, these
would be addressed by the judiciary in the near future and continuing popularity of
arbitrations would be served by a truly efficient ADR mechanism
CAMBRIDGE
S N Mishra
S.C. Srivastava, "Voluntary Labour Arbitration: Law and Policy", 23, JILI
349, (1981)
LINK
PRS legis ative research
ILO website link
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TABLE OF CASES
1. Rejina VS- Disputes committee of detal ieacnocians (1953) I, ALLER 327 held
there is no instance of which where certiorarior prohibition has gone to any
arbitrator except a statutory arbitrator and he is the to none by a statute parties
must resorts
2. ATKM Employes Assoution -VS- MAsaligar Industries pvt Lts (1961) I. LLJ 81
(KER) per vellupillai J
3. Angle American Direct TEA Trading Ltd _VS- Workmen (1963) 2 LLJ 31 Rom
Air 1962 Rom 274
4. Rohathaas Industries stack union VS- state Bihar (1962) 2 LLJ 420 per DD
refer Jurisdiction of Arbitrator
5. The Engineering Mazdoor Sabha ... vs The Hind Cycles Ltd., Bombay(, (1962) 2
LLJ1963 AIR 874, 1963 SCR Spl. (1) 625Gupta Shah, J.C.
The Supreme court held that though Arbitration is not a Tribunal and Article 136
of Indian constitution in a proper right may lie against the Award as to Article 226
on Indian constitution.
6. Rohtas industries ltd. & anr vs Rohtas industries staff union and .n 18 december,
1975 1976 air 425, 1976 scr (3) 12 krishnaiyer, v.r.J supreme court held that an
Arbitrator in ID Act comes within the Rainbow of statutory tribunals amenable to
judicial review
10. Madras Machine Tools Mfres. vs Spl. Dy. Commissioner Of Labour ... on 7
March, 1979 (1979) IILLJ 331 Mad JUDGMENT Mohan, J.
UNCITRAL
1 Guru Nanak Foundation v Ra an Singh & Sons 1981 (4) SCC 634.
2 General Assembly Resolution 40/72, adopted on 11 December 1985 (Model
Law).
3 General Assembly Resolution 31/98, adopted on 15 December 1976 (UNCITRAL
Arbitration Rules).
4 Konkan Railway Corporation v Mehul Construction Co 2000 (7) SCC 201
ARBITRATION
CONTENTS
1.INTRODUCTION
2.THE ARBITRATION AND CONCILIATION (AMENDMENT)
ORDINANCE, 2015
3. What is Arbitration?
6.Concept of Arbitration
9 COMPARITIVE WITH UK
SUGGESTIONS
CONCLUSION