Alternate Dispute Resolution (ADR)

One liners

1. What does the procedure of arbitration End ?

Ans. Arbitration proceedings end when the arbitrator issues a final award, which is the
arbitrator’s decision on the case. The arbitration proceedings are terminated on the date the
parties receive the signed award.

How does arbitration end ?

1. The arbitrator closes the hearings after all evidence and arguments have been presente.
2. The arbitrator may announce the award at the end of the hearing or take time to consider
the case.
3. The arbitrator issues a written award and files it with the court.
4. The arbitrator must state the reason for the decisions made in the award.

2. What are good offices ?

Ans. Good offices is a procedure in alternate dispute resolution (ADR) that involves a neutral
third party to help resolve a dispute.

How does good offices work?

The third party brings the parties together.

The third party may offer services and facilities.

Third party may seek diplomatic means.

The third party may not actively participate in the negotiation.

3. What is the full form of UNCITRAL ?

Ans. UNICTRAL stands for United Nations Commission on International Trade Law.

4. Who is mediator ?

Ans. A neutral person called a mediator helps the parties try to reach a mutually acceptable
resolution of the dispute. The mediator does not decide the case, but helps the parties
communicate so they can try to settle the dispute themselves.

5. When registration of an award is compulsory ?

Ans. According to Indian Registration Act ,1908 registration of and arbitral award is compulsory
when it affects any immovable property, meaning that if the award deals with rights related to
land, it must be registered to be legally enforceable ; otherwise, it not required to be registered.

6. What is fast track procedure in arbitration ?

Ans. Fast track arbitration is the process whereby arbitration procedure is mandated to be
wrapped up within six months. The provision placed in the act delt only with written pleadings
and did not make any accommodations for oral proceedings.
7. What is consent award.

Ans. A consent award is settlement agreement between parties to an arbitration that is recorded
as an award by an arbitral tribunal. It’s an alternate to a simple settlement agreement.

How does it work :The parties negotiate a settlement and submit it to the arbitral tribunal for
approval.

When is consent award used :

8. Why Lok Adalat’s are constituted ?

Ans. Lok Adalat is meant for conciliated settlement of disputes outside courts. Its is also called
people’s court. It provides fair and uncomplicated justice. It’s purpose is to promote amicable
settlement of disputes through compromise and mediation rather than adversarial litigation.

9. What is foreign award ?

Ans. Section 44 Arbitration and Conciliation Act ,1996,defines Foreign Award as an arbitral award
on difference between persons arising out of legal relationships, whether contractual or not,
considered as commercial under the law in force in India.

10. Who is presiding arbitrator ?

Ans. Each party shall appoint one arbitrator. The two arbitrator thus appointed shall chose the
third arbitrator who will act as an presiding arbitrator. A presiding arbitrator is a head of the
arbitration panel and is responsible for the smooth running of the arbitration process. He is
aapointed in accordance with agreement between the parties.

Responsibilities of presiding arbitrator: Procedural decisions, evidentiary hearings,

11. Write any two salient features of the Arbitration and Conciliation Act,1996 ?

Ans. 1. Flexibility: Parties can choose arbitrators , rules of procedure and substantive law.

2. Confidentiality: Proceedings are confidential , which is important for business disputes.

12. What do you mean by arbitration award ?

Ans. An arbitral award is a final decision made by an arbitration tribunal to settle a dispute. It is
similar to a judgement from a court of law.

13. What is the nature of arbitration ?

Ans. Arbitration may be arranged by the parties themselves on adhoc basis or it may be
conducted according to the rules of an arbitral institution.

14. what is the role of conciliator ?

Ans. A conciliator is a neutral third party who helps the disputing parties find mutually
acceptable solutions. Conciliator facilitate the communication between the parties and help
them identify key issues.

15. what is the nature of ADR system ?

16. what is Conciliation ?

Ans. Conciliation is a process where a neutral third party helps people in a dispute to reach to an
agreement. It can be used to resolve legal disputes, work place disputes and community
conflicts.

17. what do you mean by lok Adalat ?

Ans. A lok Adalat is a forum for settling disputes outside the court. It is also known as people’s
court. Lok Adalat are free and fast and they can resolve disputes amicably.

18. what is mediation ?

Ans. Mediation is method of ADR that helps opposing parties resolves conflicts without going to
the court. A neutral third party, called a mediator , helps the parties to negotiate a mutually
acceptable resolution.

19. How many minimum and maximum number of arbitrators are permitted to be appointed on
an arbitral tribunal ?

Ans. The numbers of arbitrators permitted is typically determined by the agreement between the
parties involved, but most commonly a dispute can be decided by one or three arbitrators with
the option to choose single arbitrator for smaller disputes.

20. whether provisions of CPC and Evidence Act are binding for arbitration ?

Ans. The arbitral tribunal shall not be bound by the CPC or Indian Evidence Act.

Subject to this part the parties are free to agree on the procedure to be followed by arbitral
tribunal in conducting the proceedings.

21. Explain the term “arbitration agreement”.

Ans. Section 7(1) of the act provides that an 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 between them in respect of defined legal relationship, whether contractual or
not.

Section 7 (2) lays down that an arbitration agreement may be in the form of an agreement clause
in a contract or in the form of a separate agreement.

22. what is interim award ?

Ans. An interim award is a temporary decision made by an arbitral tribunal during arbitration
proceedings. It’s a non- binding decision that addresses specific issues in a dispute. The purpose
of an interim award is to provide relief to the parties while arbitration continues.

23. Define lien on award ?

Ans. A lien on an award is when an arbitrator holds back the award until all fees and costs are
paid. The lien on the award covers not only his fees for his services but also all the out of pocket
expenses that the arbitrator has incurred in connection to the dispute.
24. what is non-speaking award ?

Ans. A non-speaking award in ADR, refers to an arbitral award where the arbitrator does not
provide any reasons or explanations for their decision, essentially delivering a verdict without
outlining the legal basis behind it; meaning the simply states the outcome without explaining the
reasoning behind it, making it difficult to review or challenged in court.

25. what should be the nationality of an arbitrator ?

Ans. The Arbitration and Conciliation Act of 1996 states that any person of any nationality can
be an arbitrator,unless the parties agree.

26. How many numbers of conciliators can be appointed by the parties ?

Ans. The numbers of conciliators that can be appointed by the parties depends on the
agreement between the parties. In India :

The parties may agree to have one conciliator, the parties may agree to have two conciliators,
with each party appointing one , the parties may agree to have three conciliators;with each party
appointing one and the parties agreeing on the third.

27. what is the date of commencement of an Arbitral Proceedings ?

Ans. Section 21 of the Arbitration and Conciliation Act 1996 states that this when arbitration
proceedings start. The dispute between the parties begins on the day the respondent receives
the request for arbitration. The Act came into effect on August 22,1996.

28. whether Res -judicata is applicable to award of Lok -Adalat ?

Ans. Yes, the principle of res-judicata applies to awards made by Lok Adalats. This means that
once a Lok Adalat has made an award, the court has no jurisdiction to see it aside.

29. Can a couple appoint arbitrator on wife’s application for divorce ?

Ans. Yes, a couple can appoint an arbitrator on a wife’s application for divorce, as long as both
parties agree to the arbitration process;

30. what is status of arbitration clauses in a void agreement ?

Ans. If the nature of the controversy is such that the main contract would itself be treated as
nonest in the sense that it never came into existence or was void .

31. Name the two statues dealing with ADR.

Ans. 1. Two prominent statues dealing with ADR are the “ Arbitration and Conciliation Act” which
governs arbitration proceedings. 2. The relevant sections of “Code of Civil Procedure” which
allows courts to refer disputes to ADR mechanisms like mediation or conciliations depending on
the jurisdiction.

32. which are the two international conventions dealt by A&C Act,1996 ?

Ans. The two international conventions dealt with by the Arbitration And Conciliation Act, 1996
are 1. The New York Convention. 2. The Geneva Convention

These conventions govern the enforcement of foreign arbitral awards in India with specific
sections in the Act dedicated to each one.
33. Is the arbitrator required to be Indian under the A&C Act ,1996 ?

Ans. No, under the A&C Act 1996, an arbitrator is not required to be an Indian citizen. Any
person of any nationality can be an arbitrator unless the parties to the dispute specifically agree
otherwise.

34. what is the legal effect of an award made by a Lok Adalat ?

Ans. The award made by a Lok Adalat is considered a civil court decree and is final and binding
on all parties. It cannot be appealed in any court of law.

35. what is the statement of Claim and Defence in Arbitration ?

Ans. In arbitration SOC and SOD are the primary documents . the claimant files the claim by filing
SOC and the respondent files the SOD to defend its case and also files the counter claim in the
SOD.

36. Within how many days an Additional Award can be given by an Arbitrator ?

Ans. According to the arbitration and conciliation act 1996, an arbitrator must deliver an
additional award within 60 days from the date of receiving a request for it, if the tribunal deems
the request justified; the time period may be extended if necessary.

37. Is the limitation act is applicable to Arbitration Proceedings ?

Ans. Yes, the Limitation Act is applicable to arbitration proceedings in India, as per section 43 of
the arbitration and Conciliation Act,1996, which explicitly states that the Limitation Act applies to
arbitrations as it does to court proceedings; meaning time limits for iniating arbitration
proceedings are governed by the Limitation Act.

38. what is institutional arbitration ?

Ans. Institutional arbitration in India is a process where parties choose an institution to

How does institutional arbitration work in India?

The parties choose an institution, such as the Indian Council of Arbitration (ICA) or the
International Centre for Alternative Dispute Resolution(ICDR).

The institution maintains a panel of arbitrators form various backgrounds, including lawyers,
engineers, and charted accountants.

The party choose arbitrator from the panel.

The arbitration is conducted in accordance with the institution’s rules.

39. Is the validity of an arbitration agreement depends upon the number of arbitration ?

Ans. No, the validity of an arbitration agreement does not depend on the number of arbitrators
specified within it; the number of arbitrators is a procedural detail that can be determined later,
the key factor is that a valid agreement to arbitrate exits between the parties.

40. whether the signature of both parties are necessary for an arbitration agreement ?
Ans. While a signature form both parties is generally considered ideal for an arbitration
agreement, it is not strictly necessary in all cases as courts can sometimes find that a party is
bound by an arbitration agreement even if they did not signed it.