Arbitration
Arbitration is a procedure in which a dispute is submitted by agreement of the parties, to one or more arbitrators who makes the binding decision on the dispute. In choosing arbitration the parties opt for a private dispute resolution procedure instead of going to court
Standard Operation Procedure we follow for Arbitration:
- The following clause is suggested to be included as the arbitration clause in the loan agreement between the borrower and lender.
“Any and all controversy(ies) / dispute(s) / difference(s)/ claim(s) / claim(s) in tort arising out of or in connection with or in relation to this contract, including its existence, validity or termination, shall be referred to and finally resolved by arbitration of sole Arbitrator nominated by Jupiter Council for Arbitration and Mediation and Arbitration Rules of Jupiter Council for Arbitration and Mediation shall prevail.
It is further agreed that such arbitration shall be conducted in accordance with the expedited procedure set out in the Arbitration Rules of Jupiter Council for Arbitration and Mediation. The award so rendered shall be final and binding on the parties. The language shall be English.”
- A written communication conveying the intent of the party to resolve dispute/s by way of Arbitration.
- Once both parties have agreed to subject the dispute to Arbitration, the sole arbitrator (also known as Arbitral Tribunal) may be appointed as per the terms of the loan agreement and reference u/s 21 of Arbitration and Conciliation is invoked.
- The Arbitrator is an impartial third party who is appointed to adjudicate on disputes between the parties.
- The Arbitrator hears the preliminary round of arguments, statements and issues to the dispute.
- The parties exchange information and evidence in support of their arguments.
- The Arbitrator conducts a secondary round of hearings before the parties make their final submissions.
- The Arbitrator then declares the decision which is called the Arbitral Award. Such an award must be in writing, signed by the arbitrator or the panel of arbitrators, and must state the reasons for which the award has been decided.
