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Aug 173 min read

What Cases Are Suitable For Arbitration ?

Arbitration Could Be Understood As A Form Of Alternative Dispute Resolution (Adr). It Is A Method Used To Sort Out Disputes, As An Alternate Method To The Process Of Litigation, Where A Non Related Third-Party Would Be Involved To Sort Out The Matter In Dispute. Adr Is A Cost-Efficient, Time-Saving Method, Which Reduces The Burden Over The Courts As Well. Arbitration Could Be Understood As A Way Of Receiving Justice At The Earliest. 

Arbitration Clause In The Contract Has Been Provided Under Section 7 Of The Arbitration And Conciliation Act 1996, Which Could Be Added On Discretion Of The Parties, That If A  Dispute Arises In The Near Future, It Could Be Solved By The Process Of Arbitration.


Disputes Which Can Be Dealt With Using The Arbitration Process


With An Intention To Reduce The Overburden Of The Courts, Parties To A Dispute Are Advised To Accept The Adr Methods,  As Each Small Dispute Could Not Be Referred To In The Court.


Civil Disputes

  • Each Civil Or Commercial Dispute Could Be Adjudicated By Way Of Arbitration- Which Is A Right In Personam And Could Be Sorted Through Arbitration Methods, However,  Non-Arbitrable Disputes Could Be Understood As- Right In Rem And Would Fall Under Jurisdiction Of The Courts.  

  • Commercial Disputes Related To Business Disputes, Consumer Transactions, Boundary Disputes Or Any Kind Of Tortious Claims Could Be Decided Through Arbitration Methods And Shall Fall Under Jurisdiction Of  Arbitration.  

  • Provided Under Section 8 Of The Arbitration And Conciliation Act, 1996,  Judicial Courts Will Have An Authority To Order The Parties To Deal The Matter Via Arbitration In Case The Contract Signed Between Them Includes An Arbitration Clause, Could  Prove The Contents Of The Agreement. Disputes Related To Ipr Matters Could Also Be Dealt With By The Arbitration Methods,  Including The Methods Related To Copyrights And Trademarks Infringement Which Shall Include Passing Off Claims.

  • The Claims Related To Tortious Contract Could Be Solved Through Arbitration, As Per An Agreement, If Such Claims Are Closely Connected To Such Claims Which Are Related To Such Transactions Which Are Intimately, Directly Or Interminably In Connection Within The Contract. 

  • The Court Provided Guidelines In The Case Of Bharat Heavy Electricals Pvt. Ltd. V. Assam State Electricity 2017, As What Kind Of Tortious Claims Could Be Dealt With Under The Arbitration-

  • Claims Dependable Upon The Scope And Subject Falling Under Arbitration Clause.

  • A Tortious Claim, Shall Be Arbitrable, If It Is Related To The Contract Or Is A Result Of Any Breach Of Such Contract.

  • If The Claims Are Connected Within The Respective Contract.

  • Nature Of Claims Shall Depend If They Could Be Treated Under Arbitration.

  • Claims Which Are A Result Of The Contract And Fall Under The Arbitration Agreement In Case  A Close Connection Is There Between The Claim And The Transaction Agreed To. 


Criminal Disputes


Section 8 Of The Act, Provides An Obligation Over The Judicial Authority To Inquire About The  Arbitration Under The Arbitration Agreement. The Act, Per Se , Does Not Exclude Any Category Of Disputes Which Could Be Dealt With Under The Adr Method And Which Must Not Be. But, The Courts In Some Disputes Could Refuse To Refer Respective Parties For Arbitration, As Provided  Under Section 8 Of The Act. The Types Of Disputes Which Could Not Be Sorted By Arbitration Shall Include:

  • Criminal Offences.

  • Matrimonial Disputes.

  • Insolvency Petitions.

  • Testamentary Suits

  • Guardianship Matters.

  • Trust Disputes.

  • Labour And Industrial Disputes.

  • Tenancy And Eviction Matters Which Are Governed By Rent Control Statutes


Conclusion


With Commercialization Of Business As Well As The Industries, It Is Important To Have A Flexible Approach When Dealing With Private And Civil Suits, Which Shall Maintain A Balance Between  Statutory And Contractual Provision, Which Have Been Provided Under An Agreement.


Lead India Offers You A Team Of Experienced Advocates Who Can Assist You With Procedure Of Adr, With Matters Related To Drafting, Negotiating, Reviewing The Documents, Etc. Thus, If You Wish To Talk To A Lawyer, Or Seek Free Legal Advice Online, You May Contact Us.


SOURCE:-

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