ADR
ADR
Q11 Why Lok adalats are constituted or object of Lok Adalat? (14,17)
Ans. The object of Lok Adalat is to mobilize and involve the people in non-judicial
process at the grass-root level, and promote an atmosphere of mutual satisfaction and
goodwill. It is a voluntary and conciliatory agency which operates on the principle
that, a settlement or compromise is to be preferred between the parties.
Q12 How many Arbitrators can be appointed according to the Arbitration &
Conciliation Act, 1996? (05,09,11,15,18)
Ans. Only odd number of Arbitrators can be appointed under the Act. According to
S.10 of the Act, the Parties are free to determine the number of Arbitrators provided
that such number shall not be even number, failing which the Arbitral Tribunal shall
consists of sole Arbitrator.
Q14 Which are the two international conventions dealt by A&C Act, 1996?
(05,10,16,18)
Ans. New York Convention and Geneva Convention.
Q15 Is the Arbitrator required to be an Indian under the A & C Act? (16,17,18)
Ans. Acc. to S.11(1), a person of any nationality can be appointed as an Arbitrator, if
the parties to agreement have not agreed upon the nationality of the Arbitrators.
Q16 What is the legal effect of an award made by a Lok Adalat? (07, 09,10,11,16,18)
Ans. S.21(2) of the Legal Services Authorities Act, 1987 lays down that- “Every
award of Lok Adalat shall be final and binding on all parties and no appeal shall lie to
any court against such award.
Q17 What is statement of claim and Defense in Arbitration?
Ans. Statement of claim of Plaintiff- Within the period of time agreed upon by the
parties or determined by the arbitral Tribunal, the claimant shall state the facts
supporting his claim, the points at issue and the relief or remedy sought.
Defense of Defendant- the respondent/defendant shall state his defence in respect of
these particulars stated by the plaintiff. [S.23(1)].
Q20 Within how many days an Additional Award can be given by an Arbitrator.
Ans. A party with notice given to other party may make a request, within 30 days
from the receipt of the Arbitral Award, to the Arbitral Tribunal to make an Additional
Arbitral Award after correcting any error therein [S.33(4)]; and if the Arbitral
Tribunal considers the request made under Sub-Section (4) to be justified, it shall
make the Additional Arbitral Award within 60 days from the receipt of such request.
[S.33(5)].
Q29 How many number of conciliators can be appointed by the parties? (16,19)
Ans. There shall be one Conciliator unless the parties agree that there shall be two or
three conciliators. Where there is more than one conciliator, they ought, as a general
rule, to act jointly – S.63(1) & (2).
Q42 What is the limitation to file an application to set aside an arbitration award?
(08,10,11,18)
Ans. The application for setting aside the Arbitral Award must be made within 3
months from the date on which the party has received arbitral award; if any request
under S.33 has been made by the party for correction, interpretation or making of an
Additional Award, then the application for setting aside the Arbitral Award can be
made within 3 months from the date on which the request under S. 33 is disposed by
the Arbitral Tribunal
Q52 With What Section 23 deals under the Arbitration and Conciliation Act,1996?
Ans. It deals with the statement of Claim and Defence.
Short Notes:
Q1 Foreign award
Ans. S.46 of Chapter-I of Part-II of the Arbitration and Conciliation Act, 1996,
deals with provisions relating to the Foreign Awards, when they are binding. Under
the New York Convention Award, as per S.46, the Foreign Awards are binding when
they have been made in a regular manner after complying with all the formalities that
are required to be fulfilled for making an Arbitral Award.
If the provisions of S.48, i.e., the conditions for Enforcement of Foreign
Awards are satisfied, then the Award becomes enforceable under S.58 of the Chapter-
I of Part-II of the Arbitration and Conciliation Act, 1996.
Such enforceable Foreign Awards are deemed to be the Decree of the Court.
All the foreign awards which are enforceable as per S.58 of the Arbitration and
Conciliation Act, 1996, are binding for all purposes on the persons, between whom
they were made.
It is not required to apply in writing to the competent court to make the
enforceable Foreign Awards binding or enforceable. All the enforceable Foreign
Awards can be used as a defence as a set off or in any legal proceeding in India, by all
those persons between whom such Foreign Awards was made. The term ‘Enforcing of
Foreign Award’ includes the term ‘Relying on a Foreign Award’, for the purpose of
Chapter-I of Part-II of the Arbitration and conciliation Act, 1996.
Under S.50 of the act, foreign awards are appealable before the court
authorized by law to hear the Appeals. Filing of Second Appeal is not allowed.
However, this does not affect the right to file the appeal before SC.
Q2 Appointment of arbitrator
Ans.
Appointment of Arbitrator by CJ
- Along with the arbitration agreement, the names and addresses of the parties and
arbitrators, the qualification of arbitrators, a general note on the dispute and the
justice/reward expected, and other relevant document as requested by the CJ have
to be submitted.
- The CJ would decide to preside over the issue or designate it to someone else.
- If the decision is to designate someone, it is forwarded in writing to that person
who later may ask advice regarding the scheme. The interpretation of the CJ
would be final.
- The appointment made or advised by CJ would be forwarded in writing to all
parties involved.
- The CJ should decide whether the conflicting parties have approached the right
HC, whether arbitration agreement was even drafted and to confirm details
according to the agreement.
The Chief Justice, under section 9 of the Arbitration Act have been conferred with the power
to pass orders for interim relief while dealing with the above mentioned scheme of
appointment of arbitration.
3. During the pendency of the conciliation proceedings, the parties to the dispute
are prohibited to initiate an Arbitral or Judicial Proceedings; whereas, in case
of Arbitration, where the parties have agreed to submit the dispute to
Arbitration by a written agreement, they are prohibited to initiate any legal
proceedings for a dispute, which is the subject matter of the Arbitral
Agreement.
1. If the parties have agreed that, no reasons are to be given for an award. [S.31(3)(a)].
2. The reason for an Award is also not required if the Award can be given without
assigning any reasons. A reasoned award is also known as speaking Award.
1. S.32 of the act provides for the termination of Arbitral Proceedings as under:-
- When the final award is made by Arbitral Tribunal.
- by the order of Arbitral tribunal, where no more proceedings are required to
be conducted, the arbitral tribunal makes an award which is final, and with
making of final award, the arbitral proceedings stand terminated.
2. If the parties agree to the termination of the Arbitral Proceedings, then the
Arbitral Tribunal can issue an order for termination of Arbitral Proceedings.
3. If the arbitral tribunal finds that the continuation of the proceedings is either
unnecessary or impossible for any other reason.
4. The plaintiff withdraws their claim. However it can also be terminated if the
respondent objects to the arbitral award. Looking at which the arbitral tribunal
come to a conclusion that it has a legitimate interest in obtaining a final
settlement.
WHY NEEDED:
1. Amicable settlement of disputes: ADR provides for a friendly settlement of
disputes. In business it is a prudent approach to have a competitor not a rival.
It is clear that a healthy competition brings improvement and it’s also cost
effects cost of service or commodities in every sphere.
2. Speedy Disposal of Trial: ADR provides for speedy disposal of trials. Unlike
litigation process in ADR there is no scope of adjournment or stay order.
Courts are often overburdened with cases, leading to significant delays in
resolving disputes
Importance
With the judiciary being overburdened with the pending cases, especially, subordinate
courts. The status of judicial process in India certifies the phrase of, “Justice delayed
is Justice denied”. With the increasing number of pending cases, there is a need to
speed up the judicial process. The ordinary courts are not able to dispose off the cases
speedily as they have to follow strict rules of procedure and evidenes. To reduce the
burden on the ordinary courts and provide the faster remedy, the concept of Lok
Adalat was evolved.
Justice through courts have become been very expensive. Justice should be
done equally to rich and poor. The socio-economic condition prohibits the access to
equal Justice for all.
Article 39A was incorporated under DPSP,1976.
This Article casts a duty on the state to ensure Justice to all by providing free legal
aide. The free legal aide can be provided by a suitable legislation or scheme to ensure
access to the Justice. Due to economic or other disabilities, opportunity for securing
justice should not be denied to any citizen. However on 24.08.1987 Lok Adalats were
given statutory powers for constituting the statutory legal services authority and to
supplement the existing judicial system.
Role:
1. The conciliator shall assist the parties in an independent and impartial manner
in their attempt to reach an amicable settlement of their dispute.
2. The conciliator shall be guided by principles of objectivity, fairness and
justice, giving consideration to, among other things, the rights and obligations
of the parties, the usages of the trade concerned and the circumstances
surrounding the dispute, including any previous business practices between the
parties.
3. The conciliator may conduct the conciliation proceedings in such a manner as
he considers appropriate, taking into account the circumstances of the case, the
wishes the parties may express, including any request by a party that the
conciliator hear oral statements, and the need for a speedy settlement of the
dispute.
4. The conciliator may, at any stage of the conciliation proceedings, make
proposals for a settlement of the dispute. Such proposals need not be in writing
and need not be accompanied by statement of the reasons thereof.
Procedure –
1. Commencement of conciliation proceedings – S.62
The conciliation proceedings are initiated by one party sending a written
invitation to the other party to conciliate. The invitation should identify the
subject of the dispute. Conciliation proceedings are commenced when the
other party accepts the invitation to conciliate in writing. If the other party
rejects the invitation, there will be no conciliation proceedings. If the party
inviting conciliation does not receive a reply within 30 days from the date he
sends the invitation, he may elect to treat this as rejection of the invitation to
conciliate. If he so elects he should inform the other party in writing.
4. Administrative assistance – S. 68
It facilitates administrative assistance for the conduct of conciliation
proceedings. The parties and the conciliator may seek administrative
assistance by a suitable institution or the person with the consent of the parties.
If the parties to the dispute reach an agreement to settle the dispute, then,-
i. They make and sign the written settlement agreement, or
ii. They may request the conciliator to make or help the parties to make the
settlement agreement.
The settlement agreement signed by the parties to the dispute is final and binding
upon the parties and the persons claiming under them, respectively. The settlement
agreement shall be authenticated by the conciliator and the copy thereof shall be given
to each of the parties to the dispute.
Lok Adalats are intended to arrive at compromises and settlements. In doing so, it has
the power of a civil court in summoning and examining witnesses, the discovery of
documents, recording of evidence on affidavits and requisitioning of public records.
Further, it is open to Lok Adalats to specify its own procedure, and it is considered
judicial proceedings.
Thus, as per New York Convention, following conditions must be satisfied for an
Award to qualify as a Foreign Award-
The Award must have been made on or after 11.10.1960, because, the New
York Convention came into force in India on 11.10.1960.
The Arbitral Award must be made on a dispute between the parties arising out
of legal relationship, whether contractual or not.
The legal relationship giving rise to dispute must be commercial under the law
in force in India.
The arbitration agreement must be governed by the New York Convention,
1958.
The arbitral award must have been made in one of the territories, which is
declared by the Central Government by notification in Official Gazette, as the
territory which has made the reciprocal provisions for application of the
provisions of the New York Convention, 1958
If all the above conditions are satisfied, then the Arbitral Award is a Foreign Award within
the meaning of S.44 and for the purpose of Chapter-I of Part-II of the Arbitration and
Conciliation Act, 1996.
Acc. to S.20,
a) The parties to arbitration agreement, are free to agree on a place where the
arbitration proceedings can be conducted.
b) If the parties do not agree upon the place of arbitration under S.19(1), then the
place of arbitration shall be determined by the Arbitral tribunal. While fixing
the place of arbitration, the arbitrators shall consider- circumstances of the
case, convenience of the parties, where the place of arbitration is fixed, a
notice to that effect must be given to the parties to arbitration.
c) Even if the place of Arbitration is fixed by the Parties under S.20(1), or by the
Arbitral Tribunal under S.20(2), then also, the Arbitral Tribunal is empowered
by S.20(3), to meet at any place which it considers appropriate for the
following purposes-
- For consultation with other members of the Arbitral Tribunal.
- For hearing the parties, witnesses, etc.
- For inspection of the documents, goods or other property.
Such power of Arbitral tribunal meet at any place is subject to the agreement between the
parties to the contrary. If any restriction is placed by an Agreement between the Parties,
regarding the place of Arbitration, the Arbitral tribunal will be bound by such agreement.
Determining the place of arbitration by a person or an institution is not an Award under the
Arbitration and Conciliation Act, 1996.
1. Written Agreement
It is necessary that the agreement between the parties shall be a written one. It may
contained, inter alia, in
- Documents signed by the parties
- Exchange of letters, telex, telegrams or other means of telecommunication which
provide a record of agreement;
- An exchange of statement of claim and defence I which its existence is alleged by
one party and not denied by other.
There should be valid and binding agreement in writing to submit to arbitration. The parties
to it must be legally competent to contract. The written arbitration agreement must be in the
form of an arbitration clause in a contract or by the way of a separate agreement or arise by
the incorporation of an earlier documents containing an arbitration clause into another
document. In order to constitute a valid arbitration, it is sufficient if the terms are reduced in
writing and the agreement of the parties thereto is established.
Q7 Explain the concept of foreign award with the help of two conventions.
Q15 Explain the concept of Foreign award with the help of two conventions.
Q17 What are the powers of Arbitral tribunal to proceed Ex Parte? Discuss with the
help of decided cases.
Q18 What are the provisions relating to correction, interpretation & additional
award?
Q19