International arbitration system and Indian laws

An introduction to the international arbitration system  and Indian laws

The international arbitration

Arbitration is an alternative to litigation. In this, there are disputing parties presenting their case in front of a third party, who gives a decision. It settles the conflicts arising between the public and private sectors. At the beginning of the 21st century, the court arbitrated more than 10,000 disputes.

The Indian law

Jurisprudence includes statutes, contracts, court decisions, executive orders, and administrative actions. It implements the relationship between the United States and Indian individuals. Our nation has a hybrid legal system it has – civil law, common law, statutory law, and religious law. All these laws originated during the colonial era.

History of the international arbitration system

The use of arbitration between city-states is found in Ancient Greece and in the Middle Ages. We can find the development of international arbitration in the Jay Treaty (1794).

Nowadays investment arbitration is growing rapidly.

Three arbitral commissions were made to settle the conflicts that were arising during the American Revolution. In the 19th century, conclusions were made by many arbitral agreements.

Alabama claims arbitration was under the Treaty of Washington (1871). It helped the US and Great Britain to settle down the claims. Arbitration resolves the disputes of boundaries between states.

1899 the Hague conference made International Arbitration a permanent basis by giving its acceptance. It also established the Permanent Court of Arbitration, consisting of jurists appointed by the governments and arbitrators appointed by litigant governments.

Twenty cases were arbitrated in 1902 and 1932. During the year 1972, only five cases were arbitrated. The dissolution was done by the Permanent Court of Justice (1922).

History of Indian laws

History of law in India

The legal history of India begins from the Vedic Ages. Some civil law systems at the time of the Bronze age and the Indus Valley civilization.

Law at the time of British-ruled India

In 1726 there was the establishment of “Mayor’s Courts” in Madras, Bombay, and Calcutta. Currently, they are in Chennai, Mumbai, and Kolkata.

Judicial functions of the company were enlarged after its victory in the Battle of Plassey and the company’s courts were enlarged from three major cities in 1772. The company had replaced the existing Mughal legal system in such parts.

Supreme courts replaced the existing mayoral courts. These courts were converted to High Courts by the letters of patents which were authorized by the Indian High Courts Act passed by the British parliament in the year of 1962. The Privy Council was considered the highest court of appealing.

Law after independence

After independence, the Indian parliament drafted a document that would help the young nation to understand and implement the law. Dr. B.R. Ambedkar forged a constitution for the independent nation.

India has an organic law the Constitution of India guides all matters regarding executive, legislative and judicial in our country.

Comparison between the international arbitration system and Indian laws

• Clients play an active role in selecting an arbitrator
• International Arbitration is flexible compared to traditional court
• Disputes settled in international arbitration are more efficient than traditional court litigation because limited appeals are there.
• International Arbitration is less expensive than traditional court litigation.
• International Arbitration gives good quality justice because courts are overburdened.
• International Arbitration removes the “home courts” advantage of one party.
• In Arbitration an arbitrator rules independently whereas a judge may not.

What section 89 of CPC 1908 says about the arbitration system?

Approximately lakhs of cases are pending in India because the number of suits filed every year is rising. The situation is that no. of fresh suits surpassed the no. solved cases. Section 89 of CPC concerns the courts to resolve disputes related to civil matters with the help of (ADR) Alternative Dispute Resolution. One of the most popular mechanisms of alternative dispute resolution is the arbitration system. The Arbitration system is practiced in accordance with the Arbitration and Conciliation Act, 1996. The arbitrator will look at all the evidence including both the return and oral evidence of each party, and make a final decision the arbitrator must comply with the

IFLA’s arbitration rule for the scheme and the Arbitration Act, 1996.

Conclusion

In my point of view, arbitration is less effective in India because of the following reasons

• In our country, people met with difficulties searching for an efficient arbitration center.
• People of India are not fully aware of the arbitration system and there is a lack of awareness.
• There may be some hindrances while selecting an appointment expert.
• Sometimes it’s believed that choosing arbitration for the settlement of issues may be costly and have some time factors.
• The arbitration process may sometimes include the court’s intervention; parties are not completely dependent upon decisions given by arbitrators.
• Parties in dispute are not always satisfied with the decisions of arbitrators.
• When parties agree to it then only this process will work.
• This process is not partial and a fair approach will be made.
• Parties have the benefit of choosing an arbitrator by mutually deciding.
• Parties have all the powers of fixing the date, place, and time.

This article has been submitted by Anisha Sharma.