Types/Kinds of Arbitration
Depending on the provisions mentioned in the arbitration agreement, the nature of the dispute, and the laws according to which such arbitration takes place, arbitration can be differentiated in some categories. These categories have been discussed below:
Ad-hoc Arbitration: In this type, the parties to dispute themselves agree and make arrangements for the procedure of arbitration without the involvement of an arbitrational tribunal. In ad- hoc arbitration if the parties are not able to come to a conclusion as to who will be the arbitrator, according to section 11 of the Arbitration and Conciliation Act of 1996 , the arbitrator will be appointed by the chief justice of a High Court or the Supreme Court(in matters of international arbitration)or their designate.
Domestic Arbitration: The Arbitration and Conciliation Act of 1996 does not specifically define the term ‘Domestic Arbitration’. Though, section 2(7) of the Act says that a ‘domestic award’ is an award that is made Part I. Further, Section 2(2) states that Part I shall be applicable when the place of arbitration is within India. Thus, it can be said that when the arbitration proceedings takes place within India, under the purview of Indian laws, and when the cause of the dispute occurred India, such an arbitration may be called domestic arbitration.
Institutional Arbitration: The Arbitration and Conciliation Act, 1996 categorically mentions the role of arbitral institutions. For the purpose of assisting in the process of arbitration proceedings, section 6 provides the provisions according to which the parties may, with the consent of the parties in dispute seek administrative assistance of an institution. Some of the prominent arbitral organisations in India are Indian Council of Arbitration (ICA), Bengal Chamber of Commerce and Industry (BCCI).
Statutory Arbitration: The process of Arbitration may initiate by an agreement that is entered into by both the parties and when a statute categorically has provisions for arbitration to be used for resolution in certain matters. When the statute of Parliament or a state legislature provides for arbitration , such arbitration is called statutory arbitration. Statutory arbitration is different from other kinds of arbitration as the consent of the parties is not a necessary condition.
Fast Track Arbitration: Fast track arbitration is a form of arbitration where the rules are stricter and the process is time bound which excludes the option of delay.. Fast track arbitration is most suitable for cases in which does not include much of oral hearings or examination of witnesses and a conclusion can be reached on the basis of documents.
These were some kinds of arbitration which are commonly used. They are distinguishable from each other in characteristics such as time involved, place of proceedings, cause of dispute etc. These different types of arbitration are thus capable of providing a resolution for a wide range of disputes.