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Role of courts in arbitration process
The main aim of arbitration is to ensure effective, quick and consensual decision making with minimum court intervention. The intervention of the courts can be categorised into three:
(a) pre arbitral stage
(b) during arbitration process
(c) post arbitral award
- Pre arbitral stage
Section 8 of the arbitration and conciliation act mandates any judicial authority to introduce the parties to arbitration in respect of an action brought before it, which is the theme of arbitration agreement.
Section 9 gives the court the power to grant interim measures in accordance to Section 36 of the act. The court shall have the power of making order as it has for the purpose of, and in relation to, any proceedings before it.
Section 11 gives the courts the power regarding the appointment of an arbitrator. According to this section the Supreme Court or the High court or a person designated by them should make sure that an arbitrator is appointed within sixty days from the date of notice to the opposite party.
Section 45 talks about the power of judicial authority to refer the parties for arbitration. That is through this section the act enables the courts to decline to refer parties to arbitration if it is found that the arbitration agreement is null and void, inoperative or incapable of being performed.
- During the arbitration process
Section 27 states the court assistance in handling the evidences. Section 27 of the arbitration and conciliation act makes a provision for the arbitral tribunal to seek the assistance of the court in taking evidences. Such help can be looked for willingly, or by involved with the contest, with the endorsement of the court.
- Post arbitral award
Section 34 specifies about the application for setting aside an award. An arbitral award might be put aside by the court only if:
- The party was under some incapacity
- When the arbitration agreement is not under the law
- When the party making the application was not given legitimate information or notice of the appointment of an arbitrator
- It contains choice on issues past the extent of discretion
- The composition of the tribunal or arbitral procedure was not at par with the agreement of the parties.
The award may also be set aside if the court finds out that:
- The topic of the contest isn't fit for settlement by assertion under the law
- The arbitral award is in strife with the open arrangement of India
Section 34 gives the court the judicial power to intervene and set aside the arbitral award.
- Pre arbitral stage
- During the arbitration process
- Post arbitral award
