Arbitration is a way of resolving disputes between two or more parties that does not involve the courts. It is a type of alternative dispute resolution (ADR) in which an unbiased third person, known as an arbitrator, is chosen to hear the parties' arguments and evidence. The arbitrator then issues a legally enforceable ruling, known as an arbitral award, that settles the case.
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An arbitrator is a third-party neutral who is appointed to hear and resolve disputes between parties through the arbitration procedure. The arbitrator serves as a judge-like figure with the authority to issue a binding decision known as an arbitral award. They are often picked based on their skill and experience in the dispute's subject area.
An arbitrator's function is to preside over the arbitration processes, listen to all parties' arguments and evidence, and ultimately issue a judgement that resolves the disagreement. The arbitrator must be impartial and independent in order to ensure fairness and provide a neutral viewpoint to the parties concerned. Arbitrators might come from a variety of backgrounds, including retired judges, lawyers, industry experts, or specialised experts in a specific sector. They may be chosen by mutual agreement of the parties or from a panel of arbitrators affiliated with an arbitration institution. The appointment of an arbitrator may be stated in a contract or governed by particular arbitration rules in some situations.
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The functions of the arbitrator include conducting hearings, assessing evidence, analysing legal arguments, and ultimately giving a decision that is usually binding on the parties. The decision of the arbitrator is based on the facts given as well as the applicable legal principles. Depending on the jurisdiction and the parties' agreement, the arbitrator's ruling may be enforceable through national or international legal systems.
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Here's a more in-depth explanation of the arbitration process:
1. Arbitration Agreement: Before arbitration may take place, the parties must agree that they will resolve their issue through arbitration. This agreement can take the shape of a contract arbitration clause or a separate agreement formed after a dispute develops.
2. Arbitrator Appointment: Once the parties agree to arbitrate, they choose an arbitrator (or a panel of arbitrators) to preside over the proceedings. The arbitrator should be objective and independent, as well as knowledgeable in the subject area of the dispute.
3. Preliminary Matters: Before the arbitration commences, preliminary matters such as deciding the applicable arbitration rules, establishing procedural timetables, and defining the scope of the dispute may need to be addressed.
4. Statements and Evidence Submission: Each side presents its case by submitting written statements, presenting witnesses, and giving pertinent evidence. The parties may also be able to conduct discovery, which entails obtaining information and documents relevant to the issue.
5. Hearing: The arbitration hearing is similar to but less formal than a trial. It can be held in person or by videoconferencing, depending on the interests of the parties and arbitrator. Each side presents their arguments, interviews witnesses, and adds evidence to support their viewpoint during the hearing.
6. Arbitral Award: The arbitrator issues an arbitral award after evaluating the arguments, facts, and legal principles. This judgement is a legally binding judgement that ends the dispute and establishes the parties' rights and obligations. It may involve monetary damages, specific fulfilment of contract conditions, or any other acceptable remedies.
7. Award Enforcement: Once the arbitral award is issued, it must be enforced by the appropriate courts or authorities. The majority of countries have legislation and treaties in place to make arbitral rulings enforceable in various jurisdictions.
Arbitration has various advantages over traditional litigation, such as confidentiality, flexibility, speed, and the arbitrator's knowledge. It enables parties to settle their differences more quickly and with less formality than a court proceeding. However, before consenting to arbitration, parties must carefully weigh the benefits and drawbacks, as it may limit their access to certain legal remedies or procedures available in a court of law.
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There are several types of arbitration, which can be categorised based on different factors. Here are some common types of arbitration:
1. Ad Hoc Arbitration:One of the two forms of arbitration that is renowned for providing the disputing parties with the greatest amount of flexibility and autonomy is ad hoc arbitration. This is ascribed to the absence of institutional bodies' regulation or standardized processes. In contrast to other dispute resolution methods, the disputing parties have the greatest degree of autonomy because they choose the technique. The arbitrators can alternatively be chosen by the parties. Ad hoc arbitration is genuinely unusual since it gives the disputing parties a great deal of influence over the proceedings.
2. Institutional Arbitration: In institutional arbitration, the arbitration agreement itself gives the parties the freedom to select the arbitral institution of their choice. The parties or the institution's governing body may designate one or more arbitrators from a predetermined panel of arbitrators. Parties are free to choose an arbitrator to handle a particular matter under Part I of the Act. When the parties do not choose an arbitrator directly, the institution chooses one or more arbitrators with the qualifications and experience specified as being relevant in a particular case. However, if the parties decide to designate one themselves, they can select from the list that the organization has supplied.
3. Domestic Arbitration: Both parties to a domestic arbitration must be Indian, and the arbitration must be held in India. Domestic arbitration is not specifically defined under the 1996 Arbitration and Conciliation Act. We can deduce from a simple reading of Section 2(2) that domestic arbitration is used when parties have agreed to settle any disputes that occur in India. In lieu of India's substantive and procedural laws, the proceedings must take place on Indian soil.
4. International Arbitration:As the name implies, international arbitration takes place outside of the country due to a provision added to the parties' agreement or a cause of action resulting from a foreign element connected to the parties or the dispute. Indian or international law would apply depending on the facts that led to the case being filed.
5. Commercial Arbitration: Commercial arbitration is the most common form of arbitration and usually involves disputes arising from commercial contracts. It can cover various areas of commerce, such as business contracts, construction projects, or international trade disputes.
6. Investor-State Arbitration: Investor-state arbitration arises when a foreign investor brings a claim against a host country under a bilateral or multilateral investment treaty. This type of arbitration allows investors to seek compensation for potential violations of their rights by the host state.
7. Labor Arbitration: Labor arbitration is used to resolve disputes between employers and employees or labour unions. It often involves issues related to employment contracts, workplace conditions, disciplinary matters, or collective bargaining agreements.
These are just a few examples of the types of arbitration. Depending on the nature of the dispute, the parties involved, and the preferred procedural structure, a particular style of arbitration may be chosen.
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There are several benefits of arbitration compared to traditional litigation. Here are some examples:
1. Confidentiality: The contents of the dispute remain private and confidential between the parties concerned because arbitration hearings are typically private and confidential. This can be particularly advantageous for businesses or individuals who want to avoid negative publicity or protect sensitive information.
Example: A company has a contractual dispute with one of its suppliers. They opt for arbitration to maintain confidentiality and avoid potential damage to their reputation if the dispute becomes public in a court hearing.
2. Flexibility: Arbitration offers more flexibility in terms of scheduling and procedures than traditional court proceedings. The parties have the ability to choose the arbitrator, agree on the procedural rules, and determine the timing and location of the hearings.
Example: Two parties have a construction dispute. They decide to choose an arbitrator with expertise in construction law and set a schedule that allows for faster resolution of the dispute, minimising delays and costs associated with court proceedings.
3. Expertise of the Arbitrator: Parties in arbitration have the opportunity to select an arbitrator with specialised knowledge or experience in the subject matter of the dispute. This ensures that the case is heard by someone who can understand the technical or complex issues involved.
Example: In a dispute between two pharmaceutical companies over a patent infringement, the parties agree to appoint an arbitrator who is an expert in patent law or has a background in the pharmaceutical industry. This ensures that the arbitrator has the necessary expertise to understand the nuances of the case.
4. Efficiency and Cost-Effectiveness: Arbitration is often faster and more cost-effective than traditional litigation. The streamlined procedures and expedited timelines in arbitration help parties save time and money by avoiding lengthy court processes and formalities.
Example: Two parties have a commercial dispute over unpaid invoices. They choose arbitration to resolve the issue more swiftly and avoid the time-consuming and expensive process of going to court, allowing them to focus on their core business activities.
5. Finality and Enforceability: An arbitral award is usually final and binding on the parties involved. International conventions like the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards allow it to be enforced in numerous countries, giving parties a way to stand up for their rights.
Example: An international contract dispute arises between a company based in Country A and a company in Country B. They opt for arbitration and agree that any arbitral award will be enforceable in both countries, ensuring that the award can be enforced without further litigation.
A well-known case study related to arbitration is the dispute between Apple Inc. and Samsung Electronics Co. In 2012, the two tech giants engaged in a high-stakes legal battle over patent infringement. The case involved multiple lawsuits filed in various countries. Both parties agreed to engage in arbitration attempts to settle the dispute outside of the courtroom. Although arbitration did not ultimately resolve all aspects of the case, it played a significant role in narrowing down the issues and facilitating settlement discussions. This case study underscores the importance and benefits of arbitration as a means to manage complex disputes in a more efficient and collaborative manner.
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Two businesses have a dispute over a contract. Instead of going to court, they agree to have an arbitrator review the evidence and make a decision. The arbitrator considers the facts and the contract before rendering a binding judgement that both companies agree to abide by.
The main purpose of arbitration is to provide a faster and more cost-effective alternative to litigation in resolving disputes. It allows parties to present their case before a neutral third party, the arbitrator, who will decide. The aim is to provide a fair and impartial resolution to the dispute.
The Arbitration and Conciliation Act, 1996, governs arbitration in India. It is a popular method of alternative dispute resolution in India, often used in commercial and contractual disputes. The main objective of arbitration in India is to provide an efficient and effective mechanism for resolving disputes, promoting international trade, and minimising the burden on courts. The Indian arbitration law incorporates the UNCITRAL Model Law principles and aims to provide a fair and unbiased process for resolving disputes through arbitration.
Hello ,
As per your mentioned query, you will be glad to know that yes you are eligible for giving CLAT exam , if you haven't maths in your class 11th. As per the eligibility criteria , student must passed their class 12th from any recognised board from any stream having the minimum percentage of 45% .
To know more , refer this :
https://law.careers360.com/articles/clat-eligibility-criteria
All the best !!
Hi aspirant,
Securing a seat with a rank of 8290 in CLAT 2025 may be difficult, but not impossible, given the cutoff trends from the previous year and the fact that IP University (Guru Gobind Singh Indraprastha University) takes into account CLAT scores for admission to its BA LLB program. This is especially true if you are a candidate from Delhi.
According to the 2024 cutoff data, some colleges connected with IP University had closing ranks for the BA LLB program that exceeded 8,000 in subsequent rounds, especially for the Delhi area.
To find out the precise requirements for admission and the list of linked universities that accept CLAT scores, it is best to consult the official IP University admission pamphlet for 2025. Additionally, after every counseling session, monitor the cutoff lists that IP University releases.
All the best!
Hello,
Yes, you can take part in CLAT counselling even if you passed through a supplementary exam. But make sure you have your final passing marksheet or result before the admission process starts.
Most colleges will ask for proof that you have passed your Class 12 before giving final admission. So, if your result comes out in time, you won’t face any problem.
Hope it helps !
The Common Law Admission Test (CLAT) is a national-level entrance exam for law programs in India. As a Class 12 student, you're eligible to take the exam if you meet the minimum percentage requirements: 45% for general category and 40% for SC/ST.
Exam Pattern:
- Mode: Offline (pen-and-paper test)
- Duration: 2 hours
- Questions:120 multiple-choice questions
- Subjects: English Language, Current Affairs & GK, Legal Reasoning, Logical Reasoning, and Quantitative Techniques
- Marking Scheme: 1 mark for correct answers, -0.25 marks for incorrect answers
Subjects and Weightage:
- English Language (20%):Comprehension, grammar, vocabulary, and verbal reasoning
- Current Affairs & GK (25%): Awareness of current events and general knowledge
- Legal Reasoning (25%): Understanding legal principles and rules
- Logical Reasoning (20%): Logical and analytical reasoning skills
- Quantitative Techniques (10%): Mathematical operations and problem-solving
Preparation Tips:
- Start early to cover all topics thoroughly
- Practice regularly with mock tests to familiarize yourself with the exam format and timing
- Utilize resources like CLAT study materials and online platforms for structured preparation
- Join study groups to share knowledge and stay updated
Coaching and Study Materials:
- Consider joining CLAT coaching after your 12th board exams, unless you're a self-study expert
- Use recommended study materials like "Word Power Made Easy" by Norman Lewis for English, "Lucent's General Knowledge" for GK, and "Manorama Yearbook" for current affairs
*Eligibility and Application:*
- Check the official CLAT website for application deadlines and process
- Ensure you meet the minimum percentage requirements and have a valid ID proof
and passport-sized photographs.
For more information CLAT 202 6
Hello,
In Vijayawada, several institutes offer CLAT coaching alongside intermediate studies. Here are some options:
1. Sri Chaitanya IAS Academy
2. Abhyaas LawPrep
3. T.I.M.E. Institute
4. Career Launcher
5. IMS Victory Academy
Hope it helps !
A lawyer is a professional who practises law. An Individual in the lawyer career path defends his or her client's cases and makes arguments on his or her behalf in both criminal and civil proceedings. A lawyer may advise and assist clients on how they should handle their legal issues. An individual as a career in law in India is considered one of the most sought-after careers.
A lawyer's job requires inhibiting skills. It involves practical applications of abstract legal theories and knowledge to solve specialised individual problems or to facilitate the interests of those who hire a lawyer to perform legal services. Here, in this article, we will discuss how to become a lawyer after 10th, is lawyer a good career in India, and how to become a lawyer in India.
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Family lawyers are required to assist a client in resolving any family-related problem. In general, family lawyers operate as mediators between family members when conflicts arise. Individuals who opt for a career as Family Lawyer is charged with drafting prenuptial agreements to protect someone's financial interests prior to marriage, consulting on grounds for impeachment or civil union separation, and drafting separation agreements.
Cyber law careers deal with cyber law job opportunities concerning cybercrimes of all aspects such as cyberbullying, cyber frauds, cyber stalking, sharing personal information without consent, intellectual property and intellectual property, transactions, and freedom of speech.
An immigration lawyer is responsible for representing the individuals (clients) involved in the immigration process that includes legal, and illegal citizens and refugees who want to reside in the country, start a business or get employment.
A career as Government Lawyer is a professional who deals with law and requires to work for the government. He or she is required to work for either the state government or central government and is also known as Advocate General of the state and attorney general. A career as Government Lawyer requires one to work on behalf of government ministers and administrative staff. He or she gives legal advice and provides legal services in the public interest.
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