ARBITRATION

Arbitration
means any arbitration whether or not

administered by permanent arbitral

institution.
arbitration typically follows after attempts at

mediation between the parties have proven

unsuccessful.

Types
arbitration may be
depending on the legal circumstances or the

choice of the parties. In any case, arbitration

involves the intervention of a neutral third
party who is empowered to examine legal
arguments and evidence from both sides and
to make a binding decision in the case.

Section 10 A of the ID Act 1947: Voluntary reference of disputes to arbitration.

3*[10A. Voluntary reference of disputes to arbitration.-

(1) Where any industrial dispute exists or is

apprehended and the employer and the workmen agree
to refer the dispute to arbitration, they may, at any time
before the dispute has been referred under section 10 to
a Labor Court or Tribunal or National Tribunal, by a
written agreement, refer the dispute to arbitration and
the reference shall be to such person or persons
(including the presiding officer of a Labor Court or
Tribunal or National Tribunal) as an arbitrator or
arbitrators as may be specified in the arbitration
agreement.

Section 10 A of the ID Act

1947:
4*[(1A) Where an arbitration agreement provides

for a reference of the dispute to an even number of

arbitrators, the agreement shall provide for the
appointment of another person as umpire who shall
enter upon the reference, if the arbitrators are
equally divided in their opinion, and the award of
the umpire shall prevail and shall be deemed to be
the arbitration award for the purposes of this Act.]

ADVANTAGES OF ARBITRATION
Speedier resolution; however, there can be exceptions due to multiple parties, arbitrators,

lawyers and litigation strategy.

B. Less costly; however, there can be exceptions due to multiple parties, lawyers, arbitrators
and litigation strategy.
C. Exclusionary rules of evidence dont apply; everything can come into evidence so long as
relevant and non-cumulative.
D. Not a public hearing; there is no public record of the proceedings. Confidentiality is
required of the arbitrator and by agreement the whole dispute and the resolution of it can
be subject to confidentiality imposed on the parties, their experts and attorneys by so
providing in the arbitration agreement.
E. From defense point of view, there is less exposure to punitive damages and run away
juries;
F. A party may record a lies pendent even if there if an arbitration pending by filing a law
suit and then holding the case in abeyance until the arbitration is resolved.
G. The ability to get arbitrators who have arbitrator process expertise and specific subject
matter expertise.
H. Limited discovery because it is controlled by what the parties have agreed upon and it is
all controlled by the arbitrator.
I. Often, the arbitration process is less adversarial than litigation which helps to maintain
business relationships between the parties.
J. The arbitration is more informal than litigation.
The finality of the arbitration award and the fact that normally there is no right of appeal to
the courts to change the award

CONTI

how and when is takes place..

1. Any industrial dispute takes place between employer and employee
in any industry.
2. Both parties are agree to resolve the dispute by a arbitrator (third
person).
3. So, both parties sign a written agreement for resolving the dispute
by arbitrator.
4. Then they send the written agreement and notice to the appropriate
government such as, labor court , tribunal ,national tribunal.
5. The appropriate government find the majority of both parties .
6.. The appropriate government shall within one month from the receipt
of such copy ,publish in the same in the official gazette .
7. Then arbitrator have the same power as labor court , tribunal,
national tribunal.
8. when the dispute is resolved the award are given to the arbitrator.
same as in industrial dispute act. 1947.


Section 10 A

(2) An arbitration agreement referred to in sub-section (1) shall be in such form and shall be

signed by the parties thereto in such manner as may be prescribed.

(3) A copy of the arbitration agreement shall be forwarded to the appropriate Government and

the conciliation officer and the appropriate Government shall, within 1*[one month] from the
date of the receipt of such copy, publish the same in the Official Gazette.

2*[(3A) Where an industrial dispute has been referred to arbitration and the appropriate

Government is satisfied that the persons making the reference represent the majority of each
party, the appropriate Government may, within the time referred to in sub-section

(3) issue a notification in such manner as may be prescribed; and when any such notification is

issued, the employers and workmen who are not parties to the arbitration agreement but are
concerned in the dispute,

shall be given an opportunity of presenting their case before the arbitrator or arbitrators.]

(4) The arbitrator or arbitrators shall investigate the dispute and submit to the appropriate

Government the arbitration award signed by the arbitrator or all the arbitrators, as the case may
be.

2*[(4A) Where an industrial dispute has been referred to arbitration and a notification has been

issued under sub-section (3A), the appropriate Government may, by order, prohibit the
continuance of any strike or lock-out in connection with such dispute which may be in existence
on the date of the reference.]

(5) Nothing in the Arbitration Act, 1940 (10 of 1940), shall apply to arbitrations under this

section.]

In the matter of Gujarat Steel tubes Vs. Its Mazdoor

Sabha AIR 1980 SC 1896

Facts appellant is an engineering enterprise.
Over 800 employees.
Enterprise earned profit but conditions of the employees
were not good.
Employees went conciliation but their conditions did not
improved.
Management sacked 853 employees and recruited
freshers for the same work.
The arbitrators decision went against the Mazdoor
Sabha.
Mazdoor Sabha challenged the decision and under
Article 226 in the High Court and the High Court
virtually vindicated its stand.

Issues present before the Supreme Court :- Whether the termination orders issued by the management against
the workmen whose names were out in the annexure to the
reference were illegal proper and justified.
Whether the workman were entitled to any reliefs including the
relief of reinstatement with continuity of service and full back
pages.

Decision of the Supreme Court : It was held that as the arbitrator under Sec 10-A of the Industrial
Disputes Act has the power to bind even those who are not parties
to the reference or agreement and the whole exercise under Sec10-A as well as the source of the force of the award on publication
derived from the statue, it is legitimate to regard such an arbitrator
now as part of the infrastructure o the sovereigns dispensation of
justice, thus failing within the rainbow of statutory tribunals
amenable to judicial review under Articles 226 & 227. the High
court can interfere with an award of the industrial adjudicator if that
is based on a complete misconception of law or it is based on
evidence or that no reasonable man would come to the conclusion
to which the arbitrator has arrived.

- Supreme Court further stated that :- The effect of the omission to hold enquiry is that the
tribunal would have to consider not only whether
there is prima facie case but would have to decide
for itself on the evidence adducted whether the
charges have been made out. A defective enquiry in
this connection stands on the some footing as no
enquiry and in either case the tribunal would have
jurisdiction to go into the entire matter and the
employer would have to satisfy the tribunal that on
the facts the order of dismissal or discharge was
proper. Therefore the arbitrator had full jurisdiction
to adjudge de novo both guilt and punishment.
Once therefore it was held that the enquiry was not
proper, it was irrelevant whether the workman
withdrew from the enquiry or participated in it the
decision had to be on appraisal of evidence.