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The concept of arbitration involves resolution of disputes between the parties at the earliest point of time without getting into the procedural technicalities associated with the functioning of a civil court.

The dictionary meaning of arbitration is hearing and deciding a dispute between the parties by a person or persons chosen by the parties. 

 Kinds of arbitration 

 On the basis of Jurisdiction

  • Domestic Arbitration

Domestic arbitration is that type of arbitration, which happens in India, wherein both parties are Indians and the conflict has to be decided in accordance with the substantive law of India. As per the act, domestic arbitration means an arbitration in which the arbitral proceedings must necessarily be held in India, and according to Indian substantive and procedural law, and the cause of action for the dispute has completely arisen in India, or in the event that the parties are subject to Indian jurisdiction.

  • International Arbitration

When arbitration happens within India or outside India containing elements which are foreign in origin in relation to the parties or the subject of the dispute, it amounts to International Arbitration. The law applicable may be Indian or foreign depending upon the facts and circumstances of the case and the contract in this regard between the respective parties. If any one of the parties to the dispute is domiciled outside India or if the subject matter of dispute is abroad, it amounts to international arbitration. 

  • International Commercial Arbitration

Nani Palkhiwala defines International Commercial Arbitration as a 1987 Honda car, which will take you to the same destination with far greater speed, higher efficiency and dramatically less fuel consumption. International Arbitration is considered to be commercial when it is related to disputes arising out of a legal relationships irrespective of their contractual nature and are considered as commercial under the law in force in India and where at least one of the parties is-

  1. A national or habitual resident in any country other than India or
  2. A body corporate which has to be incorporated in any foreign country or
  3. An association or a body of individuals whose core management and control in a country which is not India or
  4. the government of a country other than India.

 In International Commercial Arbitration the arbitral tribunal shall decide the conflict according to the rules of law chosen by the parties as applicable to the substance of the dispute. 

 On the basis of structure and procedure:

  • Institutional arbitration

When an arbitral institution conducts arbitration, it is known as Institutional Arbitration. An institutional arbitration is one in which a specialised institution intervenes and takes on the role of administration of the arbitration process. Each institution has its own set of rules which provide a framework for the arbitration, and its own form of administration to resolve the dispute. 

  • Ad-hoc arbitration

If the parties agree among themselves and arrange for arbitration, it is called Ad hoc Arbitration without any institutional proceedings. In ad hoc arbitration, arbitration should not be conducted according to the rules of an arbitral institution. Since, parties are not obliged to submit their arbitration to the rules of an arbitral institution, they are free to state their own rules of procedure. Most of the issues concerning arbitration will be resolved in accordance with the national law of the seat of arbitration.

  • Fast track arbitration

Arbitration, being developed to consume less time too can be lengthy and tedious and thus this process of arbitration works like a remedy to the issue of time. Fast track arbitration is a method, which is time conscious in the provision of the arbitration and conciliation act. Its procedure is established in a way that it upholds the simplicity which is the original purpose of such arbitration.

Thus based on requirements and situation of the parties, it becomes important to approach the right medium of arbitration in dispute resolution. After careful consideration of all the factory, the parties must agree on the forum to be approached in case of dispute. 


  • Meaning
  • Kinds of arbitration
  • Conclusion

BY : Gargi Sahasrabudhe

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