Characteristics & Advantages of Arbitration

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  Ankur Yadav April 11, 2026 at 12:08 am

  The Characteristics and Advantages of Arbitration

  Arbitration involves settling a legal dispute without going to trial. Going to trial can be expensive and time-consuming, meaning arbitration can be advantageous to many people. During arbitration, a third party listens to both sides of a legal disagreement. With the documents provided and the oral statements of each person involved, the arbitrator will issue a resolution. Witnesses will sometimes be called in to provide an oral statement. Arbitration can be a great way to avoid legal costs, but careful consideration is required to determine whether or not arbitration is useful for a specific legal case.
  Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute. In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court.

  Its principal characteristics are:
  1.Arbitration is consensual
  Arbitration can only take place if both parties have agreed to it. In the case of future disputes arising under a contract, the parties insert an arbitration clause in the relevant contract. An existing dispute can be referred to arbitration by means of a submission agreement between the parties. In contrast to mediation, a party cannot unilaterally withdraw from arbitration.
  2.The parties choose the arbitrator(s)
  Under the WIPO Arbitration Rules, the parties can select a sole arbitrator together. If they choose to have a three-member arbitral tribunal, each party appoints one of the arbitrators; those two persons then agree on the presiding arbitrator. Alternatively, the Center can suggest potential arbitrators with relevant expertise or directly appoint members of the arbitral tribunal. The Center maintains an extensive roster of arbitrators ranging from seasoned dispute-resolution generalists to highly specialized practitioners and experts covering the entire legal and technical spectrum of intellectual property.
  3.Arbitration is neutral
  In addition to their selection of neutrals of appropriate nationality, parties are able to choose such important elements as the applicable law, language and venue of the arbitration. This allows them to ensure that no party enjoys a home court advantage.
  4.Arbitration is a confidential procedure
  The WIPO Rules specifically protect the confidentiality of the existence of the arbitration, any disclosures made during that procedure, and the award. In certain circumstances, the WIPO Rules allow a party to restrict access to trade secrets or other confidential information that is submitted to the arbitral tribunal or to a confidentiality advisor to the tribunal.
  5.The decision of the arbitral tribunal is final and easy to enforce Section 36(1)
  Under the WIPO Rules, the parties agree to carry out the decision of the arbitral tribunal without delay. International awards are enforced by national courts under the New York Convention, which permits them to be set aside only in very limited circumstances. More than 140 States are party to this Convention.
  6.Arbitration helps in providing speedier remedies as per section 29A and 29B of the Act.
  7.As per section 26 of the Amendment Act 2018 now the expert must be qualified.

  Advantages of Arbitration
  There are many advantages to arbitration:
  1.Fairness: Both parties agree to the arbitrator, resulting in a fair outcome, especially when compared to a traditional legal trial in which neither party has control over the jury or judge selection. Parties can also agree to choose an arbitrator that has experience in their specific area of legal dispute.
  2.Timeliness: A legal resolution through arbitration is much quicker than waiting for a trial date. Arbitration is less formal and more flexible in terms of scheduling. The discovery process is a simple phone call, cutting down on much of the traditional trial process.
  3.Cost: Arbitration does not include expert witnesses or require as much legal preparation. Both parties often split the cost of the arbitrator, meaning the process is much cheaper.
  4.Confidentiality: The arbitration legal process is more private than a trial.
  5.Finality: There is a level of finality to the arbitration process. Because it cannot be appealed, both parties can move on following the outcome.
  6.Agreeableness: Arbitration often results in an agreeable outcome, as parties are encouraged to come up with a solution together.
  7.Simplified Procedures: Legal outcomes are more adaptable to the two parties present in the dispute. Each party does not have to hire an attorney for representation.
  8.Limitation Act is applicable in Arbitration and Conciliation Act by virtue of Section 29(2) of Limitation Act, the same is also provided in section 43.
  9.The award of the arbitrator has to be as per the provisions of substantive law as provided in Section 28 of the Act.
  10.The arbitral award has to be a reasoned award as provided in Section 31(3). However, reasons aren’t required to be specified if the arbitral award is on agreed terms.

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  • 
    Chinar Law April 11, 2026 at 7:04 pm

    Marks 10
    You have not mentioned all provisions

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