ARBITRATION AGREEMENT

BY:-
DEEPTI SINGH(11)
PRERNA SHUKLA(30)
“ARBITRATION AGREEMENT”
means an agreement by
the parties to submit to arbitration all
or certain disputes which have arisen
or which may arise between them in
respect of a defined legal relationship
or not.
[sec.7(1)]
 The person who is appointed to determine
differences and disputes is called the
ARBITRATOR or ARBITRAL TRIBUNAL.
 The proceedings before arbitrator are
called arbitration proceedings.
 Arbitrator’s decision is called an AWARD.
 Arbitral tribunal may consist of a sole
arbitrator or a panel of arbitrators.
 The no. of arbitrators shall not be in even
number.
Essentials of Arbitration Agreement:-

 It must be in writing.[sec.7(3)]
 It must have all the essential elements of
a valid contract.
 It must be to refer a dispute, present or
future, between the parties to arbitration.
 It may be in the form of an arbitration
clause in a contract or in the form of a
separate agreement.[sec.7(2)]
ADVANTAGES OF ARBITRATION:-

 Avoidance of publicity, for the

proceedings are held in private.
 Simplicity of procedure, as
procedures are held more informally.
 Avoidance of delay and uncertainty
involved in appeals, as the award,
assuming it to be valid, is final.
 Reduction of expenses.
DISADVANTAGES OF ARBITRATION:-

 The arbitrator may be incompetent

(both in the trade and in the legal
aspects of the matter) or biased;
 Injustice may result from the
informality of the procedure.
TYPES OF ARBITRATION:-
 FOREIGN ARBITRATION: takes place
outside India and delivers arbitral
award known as foreign award.
 ARBITRATION CONDUCTED IN INDIA:
a) International commercial
Arbitration- one party is foreign
b) Domestic arbitration- both the
parties are domestic.
PRESENTATION (2)

ARBITRATION AGREEMENT CASES:

BY:
Prerna Shukla(30)
Deepti Singh(11)
CASE:1

B and C enter into an agreement to

submit their differences to
arbitration. The parties have
reduced the agreement to writing
but have not signed the same. But
they have given their consent
verbally. Is the agreement valid?
CASE:2
 A and B enter into an agreement in
writing to refer their differences to
arbitration. One of the terms of the
agreement is that arbitrator will be
appointed by Z, who is not a party
to the agreement.
To empower a stranger to the
agreement to appoint arbitrator
valid?
CASE:3
A dispute arose between A,B and C,
three neighbors, on the distribution
of wages paid to the street
watchman. A and B decided to refer
the dispute to X for arbitration. X,
by an award fixed the liability of A,B
and C to contribute wages in the
ratio of 3:2:2.
Is the award binding on C ?
CASE:4
(Cook vs Catehpole-1864)
A partnership deed contained an
arbitration clause. A suit was filed
by one of the partners against his
other partners for misappropriation
of partnership money and for
improper retention of the balance.
Can such matters come under
arbitration clause?