The growing business Industry of Chandigarh is rapidly moving towards arbitration as a means of dispute resolution. While arbitration enables businesses to settle their disputes expeditiously. At the same time, it is important to have the best arbitration lawyers in Chandigarh onboard especially in cases where the stakes are high. Unfortunately, a lost case in arbitration can bring irreversible losses. A seasoned arbitration lawyer in Chandigarh can rightly guide through the process of arbitration and can help make a substantial difference in the result of the case.
Arbitration is a process of dispute resolution between the parties. It is an alternative to litigation. It is governed by “The Arbitration and Conciliation Act, 1996”. The process of arbitration can commence only if there exists a valid Arbitration Agreement between the parties prior to the emergence of the dispute. Such an agreement must be in writing. And therefore here you will need to find the best arbitration lawyers, advocates, and legal advisors in Chandigarh to resolve the matter efficiently.
The contract, concerning which the dispute arises, must either contain an arbitration clause or must refer to a separate document signed by the parties containing the arbitration agreement. The existence of an arbitration agreement can also be inferred by written correspondence such as letters, telex, or telegrams which provide a record of such agreement.
So we hope that the aforementioned information is thorough enough to make you well versed with the arbitration laws in India. Now if your quest is for the best arbitration advocates in Chandigarh, B&B Associates is a bouquet of seasoned and diligent lawyers. And the experience of senior advocates in Chandigarh high court can be a trust-building consideration for you. Our lawyers with the vast knowledge and experience in the specialized arena are handling different arbitration disputes quite well. So you can get the best arbitrator in Tricity to get your contention clear with B&B.
The right advice and effective recourse is the key to success in an arbitration matter. Consult our top arbitration lawyers and best arbitration law advocates now:
Before you hire the best arbitration lawyer in Chandigarh, acknowledge yourself the consideration you need to take into account for such matters. An exchange of statements of claims and defenses in which the existence of an arbitration agreement is alleged by one party and not denied by other is also considered as a valid written arbitration agreement. Then any party to the dispute can start the process of appointing the arbitrator. If the other party does not cooperate to such an appointment process, the party can approach the office of Chief Justice for the appointment of an arbitrator. And arbitration tribunals can be constituted of a sole arbitrator or of a panel of arbitrators.
The grounds upon which a party can challenge the appointment of an arbitrator:
There is very little scope for judicial intervention in the arbitration process. Only interim measures can be claimed in the court and a dispute pending before the arbitration tribunal.
The arbitration tribunal can decide upon its own jurisdiction. Thus, if any party wants to challenge the jurisdiction of the arbitration tribunal, it can do so only before the tribunal itself. And if the tribunal rejects the request, the parties can approach a court but only after the tribunal makes an award.
If the period for filing an appeal for setting aside an award of the arbitration tribunal is over, or if such an appeal is rejected, the award is binding on the parties and is considered as a decree of the civil court consequently.
The concept of arbitration in India is not a new concept. India has had a long tradition of arbitration. In ancient India, in case any dispute arose people chose to settle the matter on their own. In fact, there were different grades of arbitrators with provisions for appeals in certain cases from the award of a lower grade of arbitrators to arbitrators of the higher grade.
You will find the history of arbitration law in India quite amusing one for sure. Ancient texts of Yajnavalka and Narada refer to three types of popular courts (Puga, Sreni, Kula). And still, in villages, the disputes are settled by Panchayats as a form of alternate dispute resolution.
Before Arbitration was recognized by the Code of Civil Procedure, arbitration was encouraged as a mode of settlement of disputes by the Bengal Regulation of 1772, 1780, 1781 and the Cornwallis Regulation of 1787. Thereafter, the Bengal Regulation of 1793, the Madras Regulation of 1816 and the Bombay Regulation of 1827 provided for arbitration. Again in the year 1877 and 1882, the concept of arbitration was found in Codes for Civil Procedure. However, there was no notable change in the law relating to arbitration in these amendments.
In the year 1899, the Indian Arbitration Act came into force which specifically dealt with laws relating to Arbitration, but the Act did not apply to disputes which were subject matters of suits. The scope of this Act was only limited to arbitration agreements and that too only in Presidency towns. In the year 1908, the Civil Procedure Code was amended and in pursuant to the amendment the limit of arbitration to only Presidency Towns was removed.
In the mid-1920s, the Civil Justice Committee was appointed to report on the machinery of “civil justice in the country” which made suggestions for modification of arbitration laws. However, owing to anticipation of taking cues from the British Arbitration Laws, it was finally in 1938 that the Government of India appointed an officer to revise the Arbitration Law. As a result, the first Arbitration Act of the country was enacted in 1940.
The scope of the 1940 Act remained silent on the execution of foreign awards. In fact a separate law and Foreign Awards (Recognition and Enforcement) Act, 1961 was applied to the enforcement of awards under the Geneva Convention, 1927 and New York Conventions to which India was a signatory. Over time, the working of the 1940 Act was found to be unsatisfactory due to too much court intervention.
In 1977, the functioning of the 1940 Act was questioned and examined by the Law Commission of India on grounds of delay and hardship caused due to clogs that affect smooth arbitral proceedings. The Commission instead of reworking the entire framework of the Act recommended amendment of the provisions, consequent to it. The Arbitration and Conciliation Act, 1996, was enacted by keeping in mind the 1985 United Nations International Commission on International Trade Law (UNICTRAL) model law and rules.
However, the amendment Act of 1996, did not solve the main purpose to remove the practical problems. Various Committee reports like highlighted these challenges, check out some of them.
Ultimately the Arbitration and Conciliation (Amendment) Act, 2015 brought in crucial changes to the 1996 statute to overcome the shortcomings.
Firstly you need to know the process of invocation of arbitration to avoid any ambiguity, then you can hire best arbitration attorneys in Chandigarh. Arbitration proceedings can only be initiated when there is a specific arbitration clause in the agreement executed between the parties or there is a special agreement to the effect that in case any dispute between the parties arises. It shall be settled in arbitration proceedings. The existence of an arbitration agreement can be implied by written correspondence such as letters, telex, or telegrams which provide a record of such agreement.
In case there is an of a statement of claims and defenses in which the existence of an arbitration agreement is alleged by one party and not denied by others. It is considered as a valid written arbitration agreement. Any party to the dispute can start the process of appointing the arbitrator and if the other party does not cooperate to such an appointment process. The party can approach the office of Chief Justice for the appointment of an arbitrator. For that purpose, B&B Associates is the one right place for the top law firm and arbitration experts advocates in Chandigarh. Here you can get the best litigation and arbitration lawyers in Chandigarh.
The grounds of the challenge of an arbitrator are mentioned in section 12 of the amendment Act of 2015. Appointment of an arbitrator can be challenged only if circumstances exist that, from the perspective of a reasonable third person, having knowledge of the relevant facts, give rise to justifiable doubts as to the independence or impartiality of the Arbitrator. Or if the Arbitrator is not qualified as per the agreement between the parties.
An arbitrator shall not continue or agree to be an arbitrator if he has a doubt as to his or her ability to be impartial or independent, or if the arbitrator is a legal representative of a party in the arbitration, or if the arbitrator has a significant financial or personal interest in the matter at stake.
The parties can adopt its own procedure to challenge an arbitrator, subject to mandatory court control of the challenge as provided for by the arbitration law in force at the seat of the arbitration.
After the arbitration proceedings are initiated the parties lead their defense and their evidence and thereafter an arbitral award is passed. Arbitration is an alternate method of dispute resolution and accordingly, the award is to be passed within twelve months from the date arbitral tribunal enters upon the referral. And then this period of twelve months can be extended up to six months by written consent of both the parties. However, if the proceedings are not completed within the extended period, the mandate of the arbitrator shall terminate unless the Court has, either prior to or after the expiry of the period so specified, extend the period.
|Notice for invoking arbitration and reply by another party|
Composition of Arbitral Tribunal
Section 10, 11
|Appointment of arbitrator/s|
Conduct of Arbitral Proceedings
Section 18, 19, 20, 22
|Equal treatment of parties, determination of rules and procedure, place of arbitration, language.|
Section 21, 24
|Commencement of Arbitral Proceedings, hearing and written proceedings|
Interim measures by court and the arbitral tribunal
Section 9, 17
|Interim reliefs in aid of arbitration|
Statement of claims and defense
Section 23, 24
|Oral Hearings and written proceedings|
Making or arbitral award and termination of Arbitral Proceedings
Section 31, 32
|Arbitral Award and termination of Arbitral proceedings|
Recourse against Arbitral Award
|Challenge the award of the arbitrator|
Finality and enforcement of Award
Section 35, 36
|Execution of Award passed by the arbitrator|
|Appeals to Appellate Court and Supreme Court of India|
Radha Chemicals v. Union of India Civil Appeal No. 10386 of 2018
The Supreme Court reaffirmed its stand was taken in Kinnari Mullick and Another vs. Ghanshyam Das Damani, (2018) 11 SCC 328. It was held that the court while deciding a Section 34 petition has no jurisdiction to remand the matter to the Arbitrator for a fresh decision. Further, it was held that the discretion of the Court under Section 34(4) to defer the proceedings for specified purpose is limited. And it can be invoked only upon request by the party prior to setting aside of the Award.
M/s Emkay Global Financial Services Ltd. v. Girdhar Sondhi Civil Appeal No. 8367 of 2018
The court held that an application for setting aside an arbitral award will not ordinarily require anything beyond the record that was before the Arbitrator. However, if there are matters not contained in such record, and are relevant to the determination of issues arising under Section 34(2)(a). They may be brought to the notice of the Court by way of affidavits filed by both parties. Cross-examination of persons swearing to the affidavits should not be allowed unless absolutely necessary. As the truth will emerge on a reading of the affidavits filed by both the parties.
Anilkumar Jinabhai Patel (D) V Pravinchandra Jinabhai Patel Civil Appeal No. 3313 of 2018 arising out of SLP (C) No.15668 of 2012
Limitation period prescribed under Section 34(3) of the Arbitration Act, 1996 would commence only from the date of the signed copy of the award delivered to the party making the application for setting it aside. Further, the court held that Section 31(5) of the Act requires a signed copy of the award to be delivered to each party.
P Radha Bai v Ashok Kumar 2018 SCC Online SC 1670
The court held that the phrase “but not thereafter” in Section 34(4) of the Act nails the legislative intent of giving “finality” to the Arbitral Award by fixing an “outer boundary period” for challenging an award.
M/s Simplex Infrastructure Ltd. v Union of India 2019 2 SCC 455
In this case, the court held that the statutory time limit to challenge an Arbitral Award has to be strictly adhered to.
M/S Lion Engineering Consultants v State of M.P. & Ors. Civil Appeal NOS. 8984-8985 OF 2017
The Hon’ble Supreme Court has held that the public policy of India refers to the law in force in India whether State law or Central law. Further, the court held that there is no bar on the plea of jurisdiction being raised by way of an objection under Section 34 of the Arbitration Act, 1996 even if no such objection was raised under Section 16.
The State Of Bihar & Ors. v. Bihar Rajya Bhumi Vikas Bank Samiti Civil Appeal No. 7314 of 2018
Contrasting Section 34(5) with Section 80 of the Code of Civil Procedure, the court observed that to construe such a provision as being mandatory would defeat the advancement of justice. And therefore, prior notice to other parties before filing an application to set aside an arbitral award is not mandatory and is merely directory.
Shriram EPC Limited v. Rioglass Solar SA 2018 SCC Online SC 1471
The Supreme Court held that since a foreign award, is not contained within the expression “award” in Item 12 of Schedule I, it is not taxable under the Indian Stamp Act, 1899. And thus, non-stamping of the foreign award would not render it unenforceable under section 49 of the arbitration act.
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