Question

1. What are the advantages of arbitration over litigation? How do you commence arbitration?

2. What are the actions parties can take if one of the arbitrators has been absent for an unreasonable length of time?

3. What is the significance of filing a Request for Arbitration or Notice of Arbitration? Is an arbitration agreement a condition precedent to the filing of an action in court? What is an arbitration agreement?

Answer 1

Ans 1) Following are the advantages of arbitration :

a) Time saving - Arbitration is way faster as compared to litigation,therefore is save time for both the parties

b) Flexibility - Arbitration are flexible and economically feasible compared to litigation as it does involves any laywer and courts legal formalities

c) Confidentiality - The disputes which are subjected to arbitration are treated with privacy so data is not released to public in any way

d) Enforceability - Arbitration awards are way easier to enforce as compared to court verdict

An arbitration can be commenced by issuing a notice in writing to other party of its intention in order to refer dispute for arbitration

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Ans 2) If one of the arbitrator is absent for unreasonable length of time then according to article 15 of arbitration rules, an arbirator can be replaced upon acceptance by the court of challenge or upon acceptance of request of all parties.

Also, an arbitrator can also be replaced by court is he/she is not fulfilliing his/her duties according to the rules or within prescribed time limit

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Ans 3 Request of arbitration or notice of arbitration includes certain information like name of parties representative, information regarding dispute, place of arbitration etc which depend of rule of institution administrating the dispute . The request of arbitration has a significance to commence an arbitration process .

Yes, an arbitration agreement condition precedent to filing an action in court in order to maintain action or suit .An arbitration agreement is a document of contract by two or more parties, to submit disputes in respect of defined legal relationship , whether contractual or not.In simple words, an arbitration agreement is a written contract between two or more parties in which they agrees to settle dispute outside of court.