Arbitration is a type of Alternative Dispute Resolution (ADR) and it is used when the parties fail to settle their dispute through litigation. Contrary to litigation, in Arbitration, the parties are at freedom to choose their own tribunal (arbitrator(s)). The decision of the Arbitrator(s) is binding on both the parties and enforceable in the courts, unless otherwise is agreed by the parties. The main purpose of arbitration is to achieve fair resolution of the dispute by an impartial third party. Arbitration provides flexible, better-quality justice, less time consuming and less expensive resolution of the dispute.


Arbitration is a method by which a dispute is settled by an independent third party. It is a private dispute resolution procedure in place of litigation and the decision of the Arbitrator is binding upon the disagreeing parties. The dispute is usually decided either by a sole arbitrator or an arbitral tribunal (of odd number). The role of an arbitrator is similar to that of a judge and it is their responsibility to ensure that the parties get a fair and just opportunity to present their case, and deliver an award accordingly, which is final and binding on the parties.[i]


The characteristics of arbitration are:[ii]

  • Arbitration is mutual, i.e., both the parties have to agree to it. If an arbitration clause is not present in the relevant contract beforehand, the parties can insert an arbitration contract in case of further disputes arising under a contract.
  • Arbitration is neutral, the parties are at freedom to choose the applicable law, language, appropriate nationality and venue of the arbitration, which ensures that no party enjoys a home court advantage.
  • The parties have the power to choose the Arbitral Tribunal. They are free to choose the arbitrators, given the number is not even.
  • The award decided by the arbitral tribunal is final and binding. The award is easy is to enforce.


Arbitration can be divided into two categories:

  • On the basis of jurisdiction.
  • On the basis of procedure and rules (in India).


  1. Domestic Arbitration.
  2. International Arbitration.
  3. International Commercial Arbitration.


  1. Ad-hoc Arbitration.
  2. Institutional Arbitration.
  3. Fast track Arbitration.


Arbitration is a part of the ADR, whose main purpose is to provide fast, flexible and reasonable dispute resolution in comparison to Litigation. Some of the advantages of arbitration are:[iii]

  1. Flexibility.
  2. Neutral nature.
  3. Freedom of the parties to choose their own arbitrators.
  4. Confidentiality in contract to the open court proceedings.
  5. Easy enforcement of the award.


Along with the advantages of arbitration, there are some added disadvantages to arbitration. Some of them are:[iv]

  1. There has to be a good faith and consensus among the parties for arbitration to be carried out.
  2. An arbitrator’s power is not even to find someone in contempt of court.
  3. The decision of an arbitrator has limited scope to challenge.


It can be concluded that Arbitration is generally the most efficient form of remedy for settlement of disputes amongst the parties. It is time saving, flexible, confidential and cost efficient too. Hence, it remains a popular means of dispute resolution in both the private and public sector.


[i] WIKIPEDIA, https://www.wikipedia.org/ (last visited Nov 10, 2021).

[ii] WIPO (WORLD INTELLECTUAL PROPERTY ORGANIZATION) https://www.wipo.int/portal/en/index.html (last visited on Nov 9, 2021).

[iii] ADGM ARBITRATION CENTRE, https://www.adgmac.com/ (last visited Nov 10, 2021).

[iv] BURLINGTONS, https://burlingtonslegal.com/ (last visited Nov 10, 2021).

Aishwarya Says:

I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.

If you are interested in participating in the same, do let me know.

Do follow me on FacebookTwitter  Youtube and Instagram.

The copyright of this Article belongs exclusively to Ms. Aishwarya Sandeep. Reproduction of the same, without permission will amount to Copyright Infringement. Appropriate Legal Action under the Indian Laws will be taken.

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We also have a Facebook Group Restarter Moms for Mothers or Women who would like to rejoin their careers post a career break or women who are enterpreneurs.

We are also running a series Inspirational Women from January 2021 to March 31,2021, featuring around 1000 stories about Indian Women, who changed the world. #choosetochallenge

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