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Arbitration
Meaning
In legal language, arbitration means the act of setting present or
future disputes (civil nature) between two parties out of court by
one or more persons. It refers to a written agreement to submit
present or future differences to arbitration whether an arbitrator
is named therein or not.
According to M.C. kuchhal, an arbitration may be defined as
the settlement of disputes & differences relating to the civil
matters (money or property) between one party & another in a
judicial manner by the decision of one or more persons, called
arbitrator appointed by the contending parties without having
resources to a concern of law.
According to blacks law dictionary, arbitration is a method of
dispute resolution involving one or more neutral 3rd parties who
are usually agreed to be the disputing parties & whose decision
is binding.
Thus, an arbitration agreement means a written agreement
between the parties to submit present or future dispute. Hence,
arbitration is a method of alternative dispute resolution.
Importance of arbitration
The arbitrator must affix his signature on the award. But if any
arbitrator could not sign it due to any reason, the rest of the
arbitrator must sign it.
11)
The arbitrator mainly the umpire, must read out the award
before all the parties & give a copy of such award to each party.
12)
4) Binding award
In the course of arbitration proceedings, if a party dies or
disappears or becomes insane, all his rights & liabilities pars to
his hire or legal representatives.
5) Restriction on repeating award
A valid award is final decision & it shouldnt be repeated by the
arbitrator himself or the court.
voidable award
the award of the arbitrator being final & binding in not generally
valid, ordinarily, the court also does not cancel the award. So ,
the parties of the agreement are bound to execute the award.
According to Nepalese arbitration act 2055 section 30.1, :any
dis-satisfied party may file a petition to the appealable court to
make void the award within 35 days from the date of award or
the day the notice of award is received.
On receipt of the petition so submitted, if the court finds the
following faults in the arbitral award, it may according to
section 30.2 may declare the award void.
a) If at the time of agreement, one of the parties was
incompetent to contract due to any reason.
b) The party is not given proper & timely notice for the
appointment of arbitrator or arbitral proceedings.
6) termination of arbitration
by going through the different positions stipulated in the act,
unless otherwise agreed by the parties, arbitration is terminated
after giving award or with the event of the filing the case.
7) Working procedure
The arbitrator has to work in line of procedures that have been
fixed by the agreement or by the act in the silence of the
agreement.
8) provision as to award
as stated in section 24, award must be made within 120 days
from the date of submitting rejoinders. The disputing parties
have to execute award within 45 days from the ate of receipt of a
copy of the award.
9) Invalidity of the award