Essential Elements Of Arbitration Agreement Under Arbitration And Conciliation Act 1996

Thus, in today`s world of laptops, tablets, blackberries, iPads, near-prehistoric fax machines and other unspecified technologies, it is not entirely impossible or difficult for parties to record in writing the existence of a dispute settlement agreement by referring to arbitration and complying with the requirements of the law. Does that sound fair enough? So why are there so many disputes that have done so? As Sherlock Holmes would have said, “Elementary my dear Watson.” Have you ever been in a situation where it is not clear whether you should bring proceedings before a court or invoke arbitration? Have you ever regretted not taking the time to read the compromise clause allegedly “boiler plate” (which was probably taken up in your last agreement)? You`re not alone! There have been enough cases where parties have argued in lengthy hearings up to the Supreme Court of India (“Supreme Court”), not on the flesh of the dispute between them, but on whether the right remedy is before a court or an arbitral tribunal. This is especially true in India, where legal proceedings can be lengthy. Why is this happening? After agreeing to refer disputes to arbitration, why is the arbitration agreement not “valid and binding” for the parties? Why do political parties have to bear huge expenses and opportunity costs and accept unnecessary litigation? The answer lies in a carefully crafted arbitration agreement. The appointment of the arbitrator is decided and mutually appointed by the parties. The parties to the arbitration agreement or clause decide each other and give the name of the arbitrator concerned who will settle the dispute. If the parties do not decide each other or appoint the arbitrator, then in this case, Section 11 of the Arbitration and Conciliation Act, 1996 stipulates that the parties to the Court and ask to appoint an arbitrator. Significantly, while the law requires to be a written arbitration agreement, it offers some relaxation from such a requirement, providing that an arbitration agreement would be considered written if included: In 2018, it was decided by the High Court of the United States that without the violation of the National Labour Relations Act , workers are invited by employers to sign a class action provision.

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