Legal Writing: Arbitration

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Arbitration means any arbitration whether or not administered by the permanent arbitral institution. The definition not quite clear nor comprehensive. The essence of arbitration is that there is some dispute which is referred by the parties to the arbitration for settlement to a tribunal of their own choosing instead of a Court.
Arbitration agreement means an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, contractual or not.

An arbitration agreement may be in the form of an arbitration clause in a contractor in the form of a separate agreement. An arbitration agreement must be in writing, and it is treated to be in writing, if it is contained in (a) a document signed by the parties (b) an exchange of letters, telex, telegrams or other means of late communication which provide a record of the agreement, or (c) an exchange of statements of claim and defense in which the existence of the agreement is alleged by one party and not defined by the other.
The reference in a contract to a document containing an arbitration clause constitutes an arbitration agreement if the contract is in writing and the reference is such as to make that arbitration clause part of the contract.

The Form of agreement. ------ Arbitration agreement is not required to be in any particular form. What is required to be ascertained is whether the parties have agreed that if disputes arise between them in respect of the subject matter of contract, such disputes shall be referred to arbitration, then such an arrangement would spell out an arbitration agreement.

Composition of Arbitral Tribunal
"Arbitral Tribunal" means a sole arbitrator or a panel of arbitrators.

Number of arbitrators.—The parties are free to determine the number of arbitrators, provided that such number shall not be an even number. Failing the determination aforesaid, the arbitral tribunal shall consist of a sole arbitrator.

A person of any nationality may be an arbitrator unless otherwise agreed by the parties.
An arbitral tribunal shall exercise jurisdiction as stated in S. 16 of the Arbitration and Conciliation Act, 1996. (hereinafter referred to as (the Act,) and shall conduct proceedings as laid down in Chapter V of the Act.

Form and contents of arbitral award
Will be as provided in S. 31 of the Act.

Finality and enforcement of arbitral awards.—Where the time for making an application to set aside the arbitral award under Section 34 of the Act has expired, or such application having been made, it has been refused, the award shall be enforced under the Code of Civil Procedure 1908 (V of 1908) in the same manner as if it were a decree of the Court'' .
Part II of the Act relates to the provisions for enforcement of certain foreign awards and Part I of the Act relates to conciliation of disputes arising out of legal relationship whether contractual or not and to all proceedings relating thereto.

Attestation. — If no registration of Arbitration agreement is desired, it can be attested only by one witness and executed like all other agreements.

Section 17(1)(&) of the Registration Act, 1908 requires any non-testamentary instrument which purports or operates to create, declare, assign, limit or extinguish, whether at present or in future, any right, title or interest, whether vested or contingent, of the value of one hundred rupees and upwards, to or in immovable property should be registered.

Therefore, an award involving immovable property of Rs 100 or more should be compulsorily by registered.

Stamp-duty. ----Under Article 5(c) of Schedule 1 to the Indian Stamp Act, an Arbitration agreement requires to be stamped with a stamp of rupee one. The stamp-duty has been raised in some of the States by local legislation.