What is Arbitration?
Arbitration is a legal technique for the resolution of disputes outside the courts, wherein the parties to a dispute refer it to one or more persons (the "arbitrators", "arbiters" or "arbitral tribunal"), by whose decision (the "award") they agree to be bound.
Following are the types of arbitration:
The following are the advantages:
Arbitration is speedier and more cost effective than litigation.
In case of arbitration parties can choose their own arbitrators which is not true in case of court cases. The arbitrators are competent and have expertise in their respective fields and therefore are better capable of resolving disputes in a fair, convenient and speedy manner.
Arbitration hearings are not public which is not the case in judicial proceedings. Only the parties in dispute receive copies of the arbitral award.
Arbitral awards get more international recognition than judgments of Courts.
The decision of the arbitral tribunal is final and binding on the parties in dispute.
The place of arbitration can be decided by both parties with mutual consent. It need not be a formal set up like in Court cases.