What is Arbitration in Law - Definition, Types, Benefits

What is Arbitration in Law - Definition, Types, Benefits

Edited By Team Careers360 | Updated on Sep 12, 2023 02:53 PM IST | #CLAT

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.

This Story also Contains
  1. Who is an arbitrator?
  2. How does the arbitration process happen?
  3. Types of Arbitration:
  4. Benefits of arbitration include:

Who is an arbitrator?

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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How does the arbitration process happen?

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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Types of Arbitration:

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: In ad hoc arbitration, the parties involved directly select the arbitrator(s) and determine the procedures and rules to be followed. This type of arbitration does not rely on any specific arbitration institution or set of rules.

2. Institutional Arbitration: Arbitrations conducted by reputable arbitral organisations, such as the International Chamber of Commerce (ICC), the American Arbitration Association (AAA), or the London Court of International Arbitration (LCIA), are referred to as institutional arbitrations. These institutions provide rules, guidance, administrative services, and a panel of qualified arbitrators to facilitate the arbitral process.

3. Domestic Arbitration: Domestic arbitration takes place within the boundaries of a single country. It involves disputes between parties from the same country or those that have agreed to arbitrate within that jurisdiction.

4. International Arbitration: International arbitration occurs when the parties involved are from different countries or when the dispute has a cross-border element. It might be governed by laws or regulations governing international arbitration, such as the ICC Rules of Arbitration or the Model Law of the United Nations Commission on International Trade Law (UNCITRAL).

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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Benefits of arbitration include:

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.

Case study:

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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Frequently Asked Questions (FAQs)

1. What is an example of arbitration?

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.

2. What is the main purpose of arbitration?

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.

3. How's Arbitration in India?

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.

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You can predict more law colleges using the CLAT college predictor tool.

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Hi,

Based on the previous year analysis, According to your CLAT 2025 AIR and category some of the law colleges in which you have possibility of getting a seat are the following:

  • Dr B.R Ambedkar National Law University, Sonipat
  • Tamil Nadu National Law University, Tiruchirapalli
  • Gujarat National Law University
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You can predict more National Law University using CLAT 2025 law college predictor tool.

Hope this information will help you

With an AIR rank of 3,210 in CLAT 2024, you have a good chance of being selected for the LLM program at Nirma University, based on previous years’ trends. Typically, Nirma University has admitted candidates with CLAT PG ranks between 2,000 and 5,000, so you're within the expected range.


However, the final decision depends on factors like seat availability and the overall number of applicants. To improve your chances:


Stay Updated: Keep an eye on the official Nirma University website for updates on the admission process.


Be Ready with Documents: Make sure all your documents are ready for submission.


Have Backup Options: While waiting for your results, it’s always a good idea to consider other universities as backup.



Things are looking promising, but it’s always good to keep your options open!

Hello,

Based on previous years' trends and cut-offs for Nirma University’s LLM program, here are the key points regarding your chances with an AIR of 3210 in CLAT PG:

  • Previous Year Cut-off: Nirma University’s LLM cut-off generally ranges between 1700-3500 for general category candidates.
  • Category Consideration: If you belong to a reserved category, your chances could improve.
  • Ranking Comparison: Your rank of 3210 is near the upper end of the range, which suggests a competitive chance, but not guaranteed.
  • Admission Factors: Other factors like academic performance and the number of applicants can impact the cut-off.

You can also use the CLAT college predictor tool to predict which college you can get based on your rank or score.

Hope it helps !

Yes, you can appear for the CLAT exam in Hindi medium, as the exam offers question papers in both English and Hindi. However, it’s important to note that the English language section will still be in English. So, proper preparation for that section is essential. Make sure to review both sections thoroughly to do well in the exam.

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Read the passage carefully and answer the question

The Contract should be performed by the promisor himself. However, in certain cases, it can also be performed by his agents or legal representatives. It all depends upon the intention of the parties. Normally a contract can be performed by the following persons. 

  1. Promisor himself: If from the nature of the contract it appears that it was the intention of the parties that the promise should be performed by the promisor himself, such promise must be performed by the promisor. This usually applies to contracts involving personal skill, task, or artwork. 
  2. Promisor or his Agent: Where the contract does not involve the personal skill of the promisor, the contract could be performed by the promisor himself or by any competent person employed by him for the purpose, 
  3. Legal Representatives: The contracts which do not involve any personal skill or taste, may be performed by his legal representative after the death of the promisor.
  4. Third Person: In some cases, a contract may be performed by a third person provided the promisee accepts the arrangement. According to Section 41 of the Indian Contract Act, once the promisee accepts the performance from a third person, he cannot compel the promisor to perform the contract again. 
  5. Performance of Joint Promises: According to section 42 of the Indian Contract Act, when two or more persons have made a joint promise, the joint promisors must fulfill the promise jointly during their lifetime. And if any one of them dies, then his legal representatives and survivors must jointly fulfill the promise. 

Section 43 of the Indian Contract Act further provides that unless a contrary intention appears from the contract, each joint promisor may compel every other joint promisor to contribute equally to the performance of the promise. If any joint promisor makes a default in such contribution, the remaining joint promisors must bear the loss arising from such default in equal shares.

Question:

Aman received a box of chocolates from Basant and promised to pay Rupees 5000. Later on, A becomes bankrupt. Chetan who is a friend of Aman pays rupees 1000 to Besant on behalf of Aman. Aman is not aware of such a transaction. In civil court, insolvency proceedings have started against Aman. Meanwhile, Basant has also applied for a recovery of 5000 rupees. Decide.

Option: 1

Basant is entitled to recover the amount of 5000 from Aman.


Option: 2

Basant is entitled to recover the amount of 4000 from Aman.


Option: 3

Chetan is entitled to recover the amount of 1000 from Basant.


Option: 4

Basant cannot recover any amount from Aman as he has become insolvent.


Read the passage carefully and answer the question

The Contract should be performed by the promisor himself. However, in certain cases, it can also be performed by his agents or legal representatives. It all depends upon the intention of the parties. Normally a contract can be performed by the following persons. 

  1. Promisor himself: If from the nature of the contract it appears that it was the intention of the parties that the promise should be performed by the promisor himself, such promise must be performed by the promisor. This usually applies to contracts involving personal skill, task, or artwork. 
  2. Promisor or his Agent: Where the contract does not involve the personal skill of the promisor, the contract could be performed by the promisor himself or by any competent person employed by him for the purpose, 
  3. Legal Representatives: The contracts which do not involve any personal skill or taste, may be performed by his legal representative after the death of the promisor.
  4. Third Person: In some cases, a contract may be performed by a third person provided the promisee accepts the arrangement. According to Section 41 of the Indian Contract Act, once the promisee accepts the performance from a third person, he cannot compel the promisor to perform the contract again. 
  5. Performance of Joint Promises: According to section 42 of the Indian Contract Act, when two or more persons have made a joint promise, the joint promisors must fulfill the promise jointly during their lifetime. And if any one of them dies, then his legal representatives and survivors must jointly fulfill the promise. 

Section 43 of the Indian Contract Act further provides that unless a contrary intention appears from the contract, each joint promisor may compel every other joint promisor to contribute equally to the performance of the promise. If any joint promisor makes a default in such contribution, the remaining joint promisors must bear the loss arising from such default in equal shares.

Question:

K promises to paint a picture for L on a certain day, at a certain price. K dies before the day of the contract. Decide. 

Option: 1

The contract can be enforced by K’s representative 


Option: 2

The contract can be enforced by L


Option: 3

The contract can be enforced either by K’s representation or by L 


Option: 4

The contract cannot be enforced either by K’s representative, or L


Read the passage carefully and answer the question

The Contract should be performed by the promisor himself. However, in certain cases, it can also be performed by his agents or legal representatives. It all depends upon the intention of the parties. Normally a contract can be performed by the following persons. 

  1. Promisor himself: If from the nature of the contract it appears that it was the intention of the parties that the promise should be performed by the promisor himself, such promise must be performed by the promisor. This usually applies to contracts involving personal skill, task, or artwork. 
  2. Promisor or his Agent: Where the contract does not involve the personal skill of the promisor, the contract could be performed by the promisor himself or by any competent person employed by him for the purpose, 
  3. Legal Representatives: The contracts which do not involve any personal skill or taste, may be performed by his legal representative after the death of the promisor.
  4. Third Person: In some cases, a contract may be performed by a third person provided the promisee accepts the arrangement. According to Section 41 of the Indian Contract Act, once the promisee accepts the performance from a third person, he cannot compel the promisor to perform the contract again. 
  5. Performance of Joint Promises: According to section 42 of the Indian Contract Act, when two or more persons have made a joint promise, the joint promisors must fulfill the promise jointly during their lifetime. And if any one of them dies, then his legal representatives and survivors must jointly fulfill the promise. 

Section 43 of the Indian Contract Act further provides that unless a contrary intention appears from the contract, each joint promisor may compel every other joint promisor to contribute equally to the performance of the promise. If any joint promisor makes a default in such contribution, the remaining joint promisors must bear the loss arising from such default in equal shares.

Question:

Rohan has agreed to manage the catering services during the marriage of Sohan’s son Ramu. On the day of marriage, Rohan felt ill and sent his manager to the management of catering services. Ramu happily gets married to Tina and people appreciated the food and decoration of the event. When Rohan asked Sohan for the remaining amount, he denied it because Rohan himself had not managed so it is a breach. Decide.

 

Option: 1

Rohan is not entitled to get the remaining amount due to a breach of contract.


Option: 2

Rohan is entitled to sue Sohan for the remaining amount.


Option: 3

Rohan is entitled to sue Ramu because it was his marriage.


Option: 4

Instead of Rohan, his manager can only sue Sohan for the breach.


Read the passage and answer the question that follow.

Natural justice is another name for common sense justice rules of natural justice are not in codified form these principles are embedded or ingrained or inbuilt in the conscience of human beings. It supplies the omission made in codified law and helps in the administration of justice. Natural justice is not only confined to ‘fairness’ it will take many shades and colours based on the context. Thus natural justice apart from ‘fairness’ also implies reasonableness, equity and equality. They are neither cast in a rigid mould nor can they be put in a legal straitjacket. These principles written by nature in the heart of mankind, they are immutable, inviolable, and inalienable.

It is true that the concept of natural justice is not very clear and, therefore, it is not possible to define it; yet the principles of natural justice are accepted and enforced. In the case of Ridge V. Baldwin Court observed that “in modern times have sometimes been expressed to the effect that natural justice is as vague as to be practically meaningless. But I would regard these as tainted by the perennial fallacy that because something cannot be cut and dried or nicely weighed or measured therefore it does not exist”. The term natural justice signifies fundamental rules of judicial procedure and fair play in action. According to Lord Widgery “the principles of natural justice were those fundamental rules; the breach will prevent justice from being seen to be done”. Earliest expression of ‘natural justice’ could be found in the philosophical expression of Roman Jurist (jus natural) and signified rules and principles for the conduct of man which were independent of enacted law or customs and could be discovered by the rational intelligence of man and would grow out of and conform to his nature.

The rule against bias that surfaced in 1610 in Dr Bonham's Casewhere Chief Justice Coke went so far as to say that the Court could declare an Act of Parliament void if it made a man as judge in his own cause, or otherwise ‘against common right and reason’. This was one of his grounds for disallowing the claim of the College of Physicians to fine and imprison Doctor Bonham, a Doctor of Physics of Cambridge University, for practising in the city of London without the licence of College of Physicians. The statute under which the College acted provided that fines should go half to the King half to the College so that the College had a financial interest in its own judgement and was judged in its own cause.

Question:

X is a student of a college and his father Y is a professor in the same college. In one instance, X is caught to be involved in unparliamentary activities inside the college campus. The enquiry committee is set up and Y is appointed as the head of the committee. Decide.

Option: 1

Y is a professor of the same college hence he can become a member of the enquiry committee


Option: 2

Y is X’s father hence he should not be a part of the enquiry committee


Option: 3

Y can be a part of the enquiry committee but cannot be its head


Option: 4

There is no rule that prevents the appointment of Y until he fulfils his function diligently


Read the passage and answer the question that follow.

Natural justice is another name for common sense justice rules of natural justice are not in codified form these principles are embedded or ingrained or inbuilt in the conscience of human beings. It supplies the omission made in codified law and helps in the administration of justice. Natural justice is not only confined to ‘fairness’ it will take many shades and colours based on the context. Thus natural justice apart from ‘fairness’ also implies reasonableness, equity and equality. They are neither cast in a rigid mould nor can they be put in a legal straitjacket. These principles written by nature in the heart of mankind, they are immutable, inviolable, and inalienable.

It is true that the concept of natural justice is not very clear and, therefore, it is not possible to define it; yet the principles of natural justice are accepted and enforced. In the case of Ridge V. Baldwin Court observed that “in modern times have sometimes been expressed to the effect that natural justice is as vague as to be practically meaningless. But I would regard these as tainted by the perennial fallacy that because something cannot be cut and dried or nicely weighed or measured therefore it does not exist”. The term natural justice signifies fundamental rules of judicial procedure and fair play in action. According to Lord Widgery “the principles of natural justice were those fundamental rules; the breach will prevent justice from being seen to be done”. Earliest expression of ‘natural justice’ could be found in the philosophical expression of Roman Jurist (jus natural) and signified rules and principles for the conduct of man which were independent of enacted law or customs and could be discovered by the rational intelligence of man and would grow out of and conform to his nature.

The rule against bias that surfaced in 1610 in Dr Bonham's Casewhere Chief Justice Coke went so far as to say that the Court could declare an Act of Parliament void if it made a man as judge in his own cause, or otherwise ‘against common right and reason’. This was one of his grounds for disallowing the claim of the College of Physicians to fine and imprison Doctor Bonham, a Doctor of Physics of Cambridge University, for practising in the city of London without the licence of College of Physicians. The statute under which the College acted provided that fines should go half to the King half to the College so that the College had a financial interest in its own judgement and was judged in its own cause.

Question:

Mr X is an employee of a corporate office. His wife Y is a judge. In one instance, X is found to be involved in a money laundering case at his office. The office now files a suit and Y is appointed as the judge for this case. Decide.

Option: 1

Y is a judge by herself, hence can be appointed to adjudicate this case


Option: 2

Y is can be appointed as a judge only if she fulfils her responsibilities without any bias


Option: 3

Y can adjudicate the case and if the company finds the penalty to be insufficient then they can appeal against it


Option: 4

Y cannot be the judge in this case ab initio


Read the passage and answer the question that follow.

Natural justice is another name for common sense justice rules of natural justice are not in codified form these principles are embedded or ingrained or inbuilt in the conscience of human beings. It supplies the omission made in codified law and helps in the administration of justice. Natural justice is not only confined to ‘fairness’ it will take many shades and colours based on the context. Thus natural justice apart from ‘fairness’ also implies reasonableness, equity and equality. They are neither cast in a rigid mould nor can they be put in a legal straitjacket. These principles written by nature in the heart of mankind, they are immutable, inviolable, and inalienable.

It is true that the concept of natural justice is not very clear and, therefore, it is not possible to define it; yet the principles of natural justice are accepted and enforced. In the case of Ridge V. Baldwin Court observed that “in modern times have sometimes been expressed to the effect that natural justice is as vague as to be practically meaningless. But I would regard these as tainted by the perennial fallacy that because something cannot be cut and dried or nicely weighed or measured therefore it does not exist”. The term natural justice signifies fundamental rules of judicial procedure and fair play in action. According to Lord Widgery “the principles of natural justice were those fundamental rules; the breach will prevent justice from being seen to be done”. Earliest expression of ‘natural justice’ could be found in the philosophical expression of Roman Jurist (jus natural) and signified rules and principles for the conduct of man which were independent of enacted law or customs and could be discovered by the rational intelligence of man and would grow out of and conform to his nature.

The rule against bias that surfaced in 1610 in Dr Bonham's Casewhere Chief Justice Coke went so far as to say that the Court could declare an Act of Parliament void if it made a man as judge in his own cause, or otherwise ‘against common right and reason’. This was one of his grounds for disallowing the claim of the College of Physicians to fine and imprison Doctor Bonham, a Doctor of Physics of Cambridge University, for practising in the city of London without the licence of College of Physicians. The statute under which the College acted provided that fines should go half to the King half to the College so that the College had a financial interest in its own judgement and was judged in its own cause.

Question:

X was a renowned cricketer in the 1980s. His son Y is a struggling cricketer who has been trying to get into the national team for many years. In the year 2020, X is appointed as a member of the selection committee. In the match which is supposed to decide the final team of the nation, Y scores a century and Z scores 65 runs. However, Z is selected to represent India and Y is not. Y now appeals against the decision, the main ground being the presence of X in the committee. Decide.

Option: 1

The appeal will stand as Y scored a century yet Z was selected after scoring 65 runs


Option: 2

The appeal will be quashed since X’s presence should have benefitted Y, but it didn’t, hence the rejection of Y is valid


Option: 3

The appeal will stand as X’s presence is a factor of bias


Option: 4

The appeal will be quashed since X was a renowned cricketer


Read the passage and answer the question that follow.

Natural justice is another name for common sense justice rules of natural justice are not in codified form these principles are embedded or ingrained or inbuilt in the conscience of human beings. It supplies the omission made in codified law and helps in the administration of justice. Natural justice is not only confined to ‘fairness’ it will take many shades and colours based on the context. Thus natural justice apart from ‘fairness’ also implies reasonableness, equity and equality. They are neither cast in a rigid mould nor can they be put in a legal straitjacket. These principles written by nature in the heart of mankind, they are immutable, inviolable, and inalienable.

It is true that the concept of natural justice is not very clear and, therefore, it is not possible to define it; yet the principles of natural justice are accepted and enforced. In the case of Ridge V. Baldwin Court observed that “in modern times have sometimes been expressed to the effect that natural justice is as vague as to be practically meaningless. But I would regard these as tainted by the perennial fallacy that because something cannot be cut and dried or nicely weighed or measured therefore it does not exist”. The term natural justice signifies fundamental rules of judicial procedure and fair play in action. According to Lord Widgery “the principles of natural justice were those fundamental rules; the breach will prevent justice from being seen to be done”. Earliest expression of ‘natural justice’ could be found in the philosophical expression of Roman Jurist (jus natural) and signified rules and principles for the conduct of man which were independent of enacted law or customs and could be discovered by the rational intelligence of man and would grow out of and conform to his nature.

The rule against bias that surfaced in 1610 in Dr Bonham's Casewhere Chief Justice Coke went so far as to say that the Court could declare an Act of Parliament void if it made a man as judge in his own cause, or otherwise ‘against common right and reason’. This was one of his grounds for disallowing the claim of the College of Physicians to fine and imprison Doctor Bonham, a Doctor of Physics of Cambridge University, for practising in the city of London without the licence of College of Physicians. The statute under which the College acted provided that fines should go half to the King half to the College so that the College had a financial interest in its own judgement and was judged in its own cause.

Question:

X is a married judge who is well known for his honesty in the entire city. He has a son Y. One fine day Y gets kidnapped and the kidnapper demands a sum of 20 lakhs from X. However, the kidnapper is caught by the police. X is now appointed as the judge for the hearing of the kidnapper. Decide.

Option: 1

X can be the judge since he can decide the punishment better as he was the sufferer


Option: 2

X cannot be the judge since there is a possibility that he will be biased while delivering the judgement


Option: 3

X can be the judge since he is renowned for his honesty and fulfil his duties


Option: 4

X can be the judge but his statement can be appealed against if delivered with bias


Read the passage and answer the question that follow.

Natural justice is another name for common sense justice rules of natural justice are not in codified form these principles are embedded or ingrained or inbuilt in the conscience of human beings. It supplies the omission made in codified law and helps in the administration of justice. Natural justice is not only confined to ‘fairness’ it will take many shades and colours based on the context. Thus natural justice apart from ‘fairness’ also implies reasonableness, equity and equality. They are neither cast in a rigid mould nor can they be put in a legal straitjacket. These principles written by nature in the heart of mankind, they are immutable, inviolable, and inalienable.

It is true that the concept of natural justice is not very clear and, therefore, it is not possible to define it; yet the principles of natural justice are accepted and enforced. In the case of Ridge V. Baldwin Court observed that “in modern times have sometimes been expressed to the effect that natural justice is as vague as to be practically meaningless. But I would regard these as tainted by the perennial fallacy that because something cannot be cut and dried or nicely weighed or measured therefore it does not exist”. The term natural justice signifies fundamental rules of judicial procedure and fair play in action. According to Lord Widgery “the principles of natural justice were those fundamental rules; the breach will prevent justice from being seen to be done”. Earliest expression of ‘natural justice’ could be found in the philosophical expression of Roman Jurist (jus natural) and signified rules and principles for the conduct of man which were independent of enacted law or customs and could be discovered by the rational intelligence of man and would grow out of and conform to his nature.

The rule against bias that surfaced in 1610 in Dr Bonham's Casewhere Chief Justice Coke went so far as to say that the Court could declare an Act of Parliament void if it made a man as judge in his own cause, or otherwise ‘against common right and reason’. This was one of his grounds for disallowing the claim of the College of Physicians to fine and imprison Doctor Bonham, a Doctor of Physics of Cambridge University, for practising in the city of London without the licence of College of Physicians. The statute under which the College acted provided that fines should go half to the King half to the College so that the College had a financial interest in its own judgement and was judged in its own cause.

Question:

X and Y have been married for five years. X is a judge and Y is a doctor. X is pretty much unhappy with his married life so he wants to divorce Y. Y refuses to agree to a divorce by mutual consent hence X files a suit against Y. Decide.

Option: 1

X cannot file a suit since he is a judge


Option: 2

X can file a suit against Y in legal capacity but not as a judge


Option: 3

X cannot file a divorce suit against Y since there is no valid ground for divorce


Option: 4

X can proceed with mutual consent but not contested divorce


Read the passage and answer the question that follow.

In the case of M/S Halonex Limited, 59-A Noida vs State of U.P., it was held that “In reply to the aforesaid submission, learned counsel for opposite party no.2 submitted that the case of the applicants that no amount is due from their side to the complainant is a matter of defence which cannot be considered at this stage. It has been submitted that the term 'entrustment' as used in Section 405 IPC has been given a wider interpretation. It has been submitted that the goods returned by the complainant to the Company for replacement or for reimbursement would be deemed to have been entrusted to the Company and as the applicants 2 & 3 were handling its affair they become responsible. To buttress the said submission, the learned counsel for the complainant drew the attention of the Court to a decision of the Apex Court in the case of Ram Narayan Popli Vs. Central Bureau of Investigation: (2003) 3 SCC 641, wherein it was observed that: "the term "entrustment" is not necessarily a term of law. It may have different implications in different contexts. In its most general signification all it imports is the handing over possession for some purpose which may not imply the conferring of any proprietary right at all." Attention was also drawn to an observation made in the judgment of the aforesaid case, where it was observed that: "to establish the charge of criminal breach of trust, the prosecution is not obliged to prove the precise mode of conversion, misappropriation or misapplication by the accused of the property entrusted to him or over which he has dominion. The principal ingredient of the offence being dishonest misappropriation or conversion which may not ordinarily be a matter of direct proof, entrustment of property and failure in breach of an obligation to account for the property entrusted if proved, may, in the light of other circumstances, justifiably lead to an inference of dishonest misappropriation or conversion”.

Question:

X tracks down an expensive necklace on the road. Not knowing to whom it belongs. X sells it promptly to a jeweller without attempting to find the owner or submitting the necklace to the authorities. Decide the liability of X.

Option: 1

Extortion


Option: 2

Criminal breach of trust


Option: 3

Theft


Option: 4

Criminal misappropriation of Property


Read the passage and answer the question that follow.

In the case of M/S Halonex Limited, 59-A Noida vs State of U.P., it was held that “In reply to the aforesaid submission, learned counsel for opposite party no.2 submitted that the case of the applicants that no amount is due from their side to the complainant is a matter of defence which cannot be considered at this stage. It has been submitted that the term 'entrustment' as used in Section 405 IPC has been given a wider interpretation. It has been submitted that the goods returned by the complainant to the Company for replacement or for reimbursement would be deemed to have been entrusted to the Company and as the applicants 2 & 3 were handling its affair they become responsible. To buttress the said submission, the learned counsel for the complainant drew the attention of the Court to a decision of the Apex Court in the case of Ram Narayan Popli Vs. Central Bureau of Investigation: (2003) 3 SCC 641, wherein it was observed that: "the term "entrustment" is not necessarily a term of law. It may have different implications in different contexts. In its most general signification all it imports is the handing over possession for some purpose which may not imply the conferring of any proprietary right at all." Attention was also drawn to an observation made in the judgment of the aforesaid case, where it was observed that: "to establish the charge of criminal breach of trust, the prosecution is not obliged to prove the precise mode of conversion, misappropriation or misapplication by the accused of the property entrusted to him or over which he has dominion. The principal ingredient of the offence being dishonest misappropriation or conversion which may not ordinarily be a matter of direct proof, entrustment of property and failure in breach of an obligation to account for the property entrusted if proved, may, in the light of other circumstances, justifiably lead to an inference of dishonest misappropriation or conversion”.

Question:

P borrows from L his phone for using it to call his parents. However, when L is distracted, P removes the memory card of the phone and later on sells it. Decide the liability of P.

Option: 1

P is guilty under dishonest misappropriation of property

 


Option: 2

P is not guilty for any offence since the phone was given with consent


Option: 3

P is guilty for theft


Option: 4

P has been handed over the phone, so he has the right to use it as he likes


Lawyer

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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