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Arbitration and its various types

Kinds of Arbitration

Arbitration is a mechanism of resolving disputes using private entities called arbitral tribunals. The dispute is decided by one or more persons, known as the arbitrators or arbiters, who render an arbitration award. Such an award is legally binding on both the parties and is enforceable in the courts.

 Domestic Arbitration

The term ‘domestic arbitration’ has not been expressly defined in the Arbitration and Conciliation Act, 1996. However, after interpreting Section 2 (2) (7) of the Act, we can imply that ‘domestic arbitration’ means an arbitration in which the arbitral proceedings must necessarily be held in India and according to Indian substantive and procedural laws and the cause of action for the dispute has completely arisen in India or in the case that both the parties are subject to Indian jurisdiction.

International Arbitration

When arbitration happens within India or outside India containing elements that are foreign in origin in nature to the relations of the parties or the subject of the dispute, it is called International Arbitration. To fulfill the criteria of an international dispute, it is sufficient

  • If any of the parties is domiciled abroad


  • If the subject matter of the dispute is foreign in nature

Institutional Arbitration

In the arbitral agreement, the parties have the choice of specifying a selected arbitral institution whose rules will be referred to in the event of disputes. An institution that has the relevant experience will ordinarily have a list of arbitrators having expertise in that field; from which one can potentially appoint one or more arbitrators especially in a case when parties don’t appoint them on their own. Some arbitral institutions do not allow the parties to designate an arbitrator or co-arbitrator.

Ad-hoc Arbitration

It means that the arbitration is being conducted without adherence to the rules of an arbitral institution. Since parties do not have an obligation to submit their arbitration to the rules of an arbitral institution, they are free to establish their rules of procedure. The geographical jurisdiction of Arbitration is pertinent since most of the issues concerning arbitration will be resolved in accordance with the law applicable to the seat of arbitration.

Fast track Arbitration

Other processes of arbitration may prove to be time-consuming and wearisome; therefore, people can resort to Fast track Arbitration to save time and energy. Its procedure has been established in such a way that it has abandoned all the methods which consume time and uphold accessibility and expeditiousness, which constitute the very essence of the process of Arbitration.

  • Domestic Arbitration
  • International Arbitration
  • Institutional, Ad-hoc and Fast track Arbitration

BY : Astha Dhawan

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