Home       Top Rated       Submit Article     Advanced Search     FAQ       Contact Us       Lawyers in India       Law Forum     RSS Feeds     

Register your Copyright Online

We offer copyright registration right from your desktop click here for details.

Latest Articles | Articles 2014 | Articles 2013 | Articles 2012 | Articles 2011 | Articles 2010 | Articles 2009 | Articles 2008 | Articles 2007 | Articles 2006 | Articles 2000-05

Search On:Laws in IndiaLawyers Search

Mutual Consent Divorce in Delhi
We provide fast, cost effective and Hassle free solution.
Contact us at Ph no: 9650499965 (Divorce Law Firm Delhi)
File Caveat in Supreme Court
Contact Ph no: +9650499965

Main Categories
 Accident Law
 Animal Laws
 Aviation Law
 Bangladesh Law
 Banking and Finance laws
 Case Laws
 Civil Laws
 Company Law
 Constitutional Law
 Consumer laws
 Contracts laws
 Criminal law
 Drug laws
 Dubai laws
 Educational laws
 Employment / Labour laws
 Environmental Law
 family law
 Gay laws and Third Gender
 Human Rights laws
 Immigration laws
 Insurance / Accident Claim
 Intellectual Property
 International Law
 Juvenile Laws
 Law - lawyers & legal Profession
 Legal Aid and Lok Adalat
 Legal outsourcing
 Media laws
 Medico legal
 Real estate laws
 Right To Information
 Tax Laws
 Torts Law
 Woman Issues
 Workplace Equality & Non-Discrimination
 Yet Another Category

More Options
 Most read articles
 Most rated articles

Subscribe now and receive free articles and updates instantly.


Published : August 31, 2011 | Author : Priyank
Category : Law - lawyers & legal Profession | Total Views : 3407 | Rating :

Priyank Srivastava Lawyer, Public Sector Undertaking, (Energy Sector)

Dismal picture of ‘Ad-hoc Arbitration’

The maxim ‘ubi jus ibi remedium’ signifies and means that whenever any wrong is done to a person, he has a right to approach the court of law. The legal pattern of resolving dispute has resulted in abundance of pending cases, which rightly justifies the cliché “justice delayed is justice denied”. Accordingly the concept of alternative dispute resolution mechanism gained importance.

Initially the intention for the birth of Arbitration as an Alternative Dispute Mechanism was to eliminate the burden of cases on Courts, and provide speedy /cost effective redressal of disputes. With eminent writers facilitating the legislators to formulate the solution to eliminate the flaws of litigation, the concept of Arbitration gained momentum.

Experiencing the various ad-hoc Arbitration matters, it can now be summed up that the scope of Arbitration in light of the intention of the legislators has been diluted with passage of time.

In this instant write up, those issues have been highlighted which have raised concerns amongst all who promulgated the need for ‘Arbitration.’

As a matter of practice, services of retired Judges from Supreme Court & High Court were taken, and the same was also offered by the retired Judges so as to facilitate the cause of reducing litigation and speedy remedy to the disputes. This was mostly non-professional and gratuitous work taken up with an aim to facilitate and achieve aims & objects of Arbitration.

With the passage of time more reliance has been given to the commercial aspect arising out of the said mechanism. A commercial approach has been adopted now which is even evident from the increase in percentage of fees charged by the Arbitrators and time taken in concluding the arbitration. The end result in most of the cases has been that the slab of percentage for cost incurred for the Arbitration proceedings reaches enormously close to the slab of the claimed amount.

Issues of speed and cost-efficiency were the hallmarks of the arbitration procedure, and are often identified as the core reasons why arbitration very clearly surpasses litigation as a suitable choice for dispute resolution, especially with respect to commercial disputes.

However, the prevalent high cost of arbitration in India, as discussed above is a factor that prevents arbitration from being an effective mechanism for resolution of commercial disputes. For this reason, arbitration is not progressing in a way it was intended to.

There are cases touching about 60-80 hearings being taken for making the parties reach to the so called mound of ‘Justice’ in a span of 6 – 8 years with hearing cost more than 1.25 – 1.50 lakh per hearing.

The aforementioned sad picture of the said mechanism has also been highlighted in various cases by Hon’ble Supreme Court.

Supreme Court on Arbitration: Union of India Vs. Singh Builders Syndicate

“….the cost of arbitration can be high if te arbitral tribunal consists of retired judge/s…the government is forced to bear the high cost of arbitration by way of private arbitrator’s fee…The large number of sittings and charging of high fees per sitting, with several add-ons, without any ceiling, have many a time resulted in the cost of arbitration approaching or even exceeding the amount involved in the dispute…. …solution for this problem is to save arbitration from the arbitration cost…it is unfortunate that delays, high cost, frequent and sometimes unwarranted judicial interruptions at different stages are seriously hampering the growth of arbitrations as an effective dispute resolution process.
[2009 (2) Arb. LR 1(SC)]


The situation has turned grave for the Corporate world. The intention of keeping Arbitration as a medium for “effective” dispute resolution has let the shoulders down. The façade of the corporate world is apprehensive for considering Institutional Arbitration as a mechanism in place of the ad-hoc arbitration. Though institutional arbitration proclaims to be an effective replacement for ad-hoc arbitration, the answer as to the taste of the pudding can only be judged after it is tasted.

Arbitration to regain its magnitude has to be carved out with a proper and cautious implementation of substantive and procedural law. The problem has been experienced world-wide and the International regime has taken it upfront to maintain the sanctity of ‘Arbitration’ as an effective dispute resolution mechanism. With the foundation laid by UNCITRAL rules of Arbitration, the change has been witnessed in rules being kept forth by various Institutions world-wide. The dismal picture of ad-hoc Arbitration also requires a change of attitude by the corporate world towards dispute resolution.

With the above backdrop, it can be summed by stating that the solution for improving and saving the picture of Arbitration lies with the corporate world, i.e. by virtue of taking a cautious approach while adopting the appropriate and strong substantive and procedural law for the resolution process coupled with a positive approach towards the route of dispute resolution.

Authors contact info - articles The  author can be reached at: priyank.srivastava@legalserviceindia.com

1 2 3 4 5
Rate this article!     Poor

Most viewed articles in Law - lawyers & legal Profession category
Professional Misconduct by lawyers in India
Professional misconduct of lawyers in india
Judicial Process in India
Restriction on Advocates
Power of Attorney
Basic Principles & Rules of Law of Evidence
The Legal system in ancient India
Judicial Accountability in India
Development of Adalat System during the time of Warren Hastings
Natural Law
Review of National Education Policy from Student
Interpretation of Statutes
Judiciary system in India
Judges of Supreme Court and High Court can be Impeach - A Controversy
Mesne Profit
Theory of Relationship between Law and Morality
Most recent articles in Law - lawyers & legal Profession category
How to Identify Best Criminal Lawyers
Qualities to Look for Divorce Lawyers
Empowering Aspiring Advocates is necessary
How to get Real Time Experience of solving Legal Issues
Representation of Women in the Legal Profession In India
Freedom of Business, Trade and Profession
Legal Profession in India
Law Firm Document Management Software
Theory of Relationship between Law and Morality
Role of Lawyers in Social Transformation
National Judicial Appointment Commission Act
Tribunalization of Justice
Role of Judiciary In Strengthening PIL
Theory of Justice by John Rawls: its criticism by Martha C. Nussbaum and Amartya Sen
Lets Be Defiant
Litigation: An Inherited Proletarianism

Article Comments

there are no comments...

Please login or register a new free account.

Random Pick
Right to free legal aid is one of the fundamental right that has been provided to every citizen of our country and has been enshrined in Art 22(1) of the Constitution of India. Criminal procedure code of 1973 has also incorporated this ideology in section 304 of the act.

» Total Articles
» Total Authors
» Total Views
» Total categories

Law Forum

Legal Articles

Lawyers in India- Click on a link below for legal Services

lawyers in Chennai
lawyers in Bangalore
lawyers in Hyderabad
lawyers in Cochin
lawyers in Pondicherry
lawyers in Guwahati
lawyers in Nashik

lawyers in Jaipur
lawyers in New Delhi
lawyers in Dimapur
lawyers in Agra
Noida lawyers
lawyers in Siliguri

For Mutual consent Divorce in Delhi

Ph no: 9650499965
For online Copyright Registration

Ph no: 9891244487
Law Articles

lawyers in Delhi
lawyers in Chandigarh
lawyers in Allahabad
lawyers in Lucknow
lawyers in Jodhpur
Faridabad lawyers

lawyers in Mumbai
lawyers in Pune
lawyers in Nagpur
lawyers in Ahmedabad
lawyers in Surat
Ghaziabad lawyers

lawyers in Kolkata
lawyers in Janjgir
lawyers in Rajkot
lawyers in Indore
lawyers in Ludhiana
Gurgaon lawyers


India's Most Trusted Online law library
Legal Services India is Copyrighted under the Registrar of Copyright Act ( Govt of India) 2000-2017
 ISBN No: 978-81-928510-1-3