ARBITRATION

Submitted by:
Deepak Bhatia
Shweta Sharma
Richa Pant
(U.S.A.P , 5th Year)

Arbitration is a method of settling the disputes and differences between two or more parties after hearing all the parties in a
judicial manner by a person or persons other than court of competent jurisdiction.

ADVANTAGES OF ARBITRATION
Experts in profession are appointed to ensure fair decision and eliminate chances of guesswork. In building construction
works , architects and engineers are chosen.
Legal formalities are cut short and less time is consumed as compared to a court case.
Savings in cost.
Time , date , place of meetings can be arranged so as to suit conveniences of all concerned.
Privacy as hearing is not public.
Arbitrator can view the subject at any convenient time.
Finality of the award
ARBITRATION
WHO IS AN ARBITRATOR?
A person to whom the disputes and differences are referred for necessary adjudication.
One arbitrator is called sole arbitrator
More than one are known as joint arbitrators.


HOW IS THE ARBITRATOR APPOINTED?
In case of sole arbitrator ; by the agreement of the parties. In case of disagreements; the appointment may be made by the
court or by the associations.
In case of two arbitrators , each party will appoint one from each side.
In the above case the arbitrators have to appoint an umpire or chairman of the panel of joint arbitrators within one month
from the date of entering upon the reference. This is done because at times the two arbitrators may not give the same
decision.




QUALIFICATIONS OF THE ARBITRATOR

Must be expert in profession to which the dispute relates.
Must be honest, disinterested and independent of the parties.
Must not be of bias mind or having ill feeling against any of the parties .
Cannot be a witness and an arbitrator in the same dispute.



POWERS AND DUTIES OF ARBITRATOR

Arbitrators appoints the umpire.
To make the awards within 4 months from date of entering upon the reference or within the extended time limit, but vide act
1996 time limit is abolished.
To examine the persons and witnesses appearing on oath and hear the parties.
To seek opinion of the court on law point.
To enlarge the time limit for declaring the award on application from the parties or direct parties to file an application to court
for necessary enlargement of time limit.
To decide on cost of reference and award and in what proportion the same are to be borne by the parties concerned.
To decide upon the measurements and valuations of the work.
To decide upon the withholding of final certificate by the architect.
To decide upon the determination of the contract by the contractor.

The powers of the arbitrators come to an end as soon as the award has been filed and as such no correction can be made except
of clerical type. After filing of the award the arbitrators become functus officio.



COST OF ARBITRATION

The cost of reference and award are left to the discretion of the arbitrators or umpire and they are at liberty to direct in their award
to and by whom and in what manner these costs are to be paid. The costs also includes arbitrators fees.


AWARD

It is the decision given by the arbitrators or by an umpire after careful investigation of the case submitted to them for adjudication.
It is binding on both the parties.


FILING OF AWARD IN COURT

The award requires certain legal formalities to be compiled with before it becomes effective. If one party has to pay certain amount
as per the award then the other party will have to get a decree in terms of award from the court in order to recover the said
amount.






ACTUAL HEARING

The claimant opens his case , files his statement of claim compilation of documents on which he relies.
The claimant examines his witnesses who are in turn cross examined by the respondent.
The respondent opens his case , files his reply to the statement of the claim of the claimant and also submits his statement of
counter claim along with compilation of his documents on which he relies upon.
The respondent examines his witnesses, who are in turn examined by the claimant.
The respondent sums up his case.
The claimant replies.
the proceedings come to an end and what now remains is the award by the arbitrators.







ARBITRATION AND THE BUILDING CONTRACT

If there will arise disputes and differences between employer and the contractor on any matter connected with their contract
either during construction or after completion of the work, the same shall be referred to the arbitration of the architect to be
chosen by the employer and the contractor. Such arbitration will be governed by Indian Arbitrator Act, 1940 and its
subsequent amendment.s
Condition No. 56 of the form of contract of indian institute of architects also provides for arbitration in case of all disputes
and differences of any kind whatsoever arising out of or in connection with the contract or carrying out of work.
The arbitration proceedings not to take place unless-
a} work is complete or alleged to have been completed.
b} termination or alleged termination.
c} abandonment of works.
The decision of the architect on excepted matters as provided in clause No.55 is final and without appeal.
The architect is required to give his decision on the disputed points and if either of the parties is dissatisfied with the decision,
then within 28days after receiving notice of decision, give a notice to other party through the architect requiring that such
matters are required to be arbitrated upon.
Powers of the arbitrators will be to open up , review, and revise any
{a}certificate , {b] opinion, {c} decision , {d} Requisition {e} Notice {f} measurements and / or valuation of work, {g}
to determine all maters in disputes referred/ submitted for their decision , {h} to decide upon the cost of reference and
incidental to reference.
5. The arbitrators should be fellows of I.I.A.