Advantages And Disadvantages Of Arbitration In Litigation

Advantages And Disadvantages Of Arbitration In Litigation

or impliedly spelt out from the clause.

The Supreme Court held in State of Orissa v Damodar Das, that the cause did not have the effect of being an arbitration clause. The court said that the clause did not contain an agreement nor it envisaged any difference or dispute that might arise or had arisen in the execution of the words for reference to arbitration , where one party raised a dispute and it was desired by the other. It was held that it had to be treated as a dispute. The objection raised could be exclusively within the jurisdiction of the Arbitral Tribunal .

Whatever be the type of dispute, the matter in dispute must be of Civil nature. Maters of criminal nature cannot be referred to arbitration. In most cases, references to arbitration ... Show more content on Helpwriting.net ...Hence, remedies against an award may not be available against a termination. Where the decision of the arbitrator was that there was no jurisdiction or that there was no arbitrable dispute, the court said that this was not an award. An appeal would lie against such an order but not a proceeding under Section 34.

In the case of Wellingtion Associates, Ltd v Kirit Mehta, the Supreme Court has laid down that the appointing authority would have the power to examine whether a valid arbitration agreement exists. In this case the clause provided that disputes may be referred to arbitration. This was held to be not sufficient to constitute an arbitration agreement. Therefore, the appointment of an arbitrator could not be demanded on the basis of such an agreement.

The court said that even if the Chief Justice or his designate is to be treated as an administrative authority, where in the course of a petition under Section 11 the existence of an arbitration agreement is questioned, the Chief Justice or his designate must decide the questions. In a subsequent decision, Nimet Resources Inc v Essar Steels Ltd. , the Supreme Court has tightened the position to this extent unless the Chief Justice is absolutely sure that there exists no

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