ADR Presentation - Arbitration Agreement

1. Banerjee Rohit Sujit Ruby
Roll No. 7
Alternative Dispute Resolution

2. 1) In this Part, "arbitration agreement" means an agreement by the parties to submit to arbitration all or certain
disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether
contractual or not.
2) An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate
agreement.
3) An arbitration agreement shall be in writing.
4) An arbitration agreement is in writing if it is contained in
a) a document signed by the parties;
b) an exchange of letters, telex, telegrams or other means of telecommunication [including communication through electronic means] which
provide a record of the agreement; or
c) an exchange of statements of claim and defence in which the existence of the agreement is alleged by one party and not denied by the other.
5) The reference in a contract to a document containing an arbitration clause constitutes an arbitration agreement
if the contract is in writing and the reference is such as to make that arbitration clause part of the contract.
Section – 7: Arbitration Agreement.

3. The origin of arbitration may be traced back to the age old system
of village panchayats prevalent in ancient india.
Decision of panchas taken as they are embodiment of voice of
God, hence accepted and obeyed unquestionably.
In course of time this divine dispensation of justice underwent
radical changes with changing pattern of society and growth.
Origin

4. Arbitration agreement is defined as an agreement to submit present or
future dispute to arbitration.
This generic concept comprises two basic type :
• A clause in a contract, by which the parties to a contract undertake to
submit to arbitration the disputes that may arise in relation to that
contract (arbitration clause); or
• An agreement by which the parties to a dispute that has already
arisen submit the dispute to arbitration (submission agreement).
Definition

5. SECTION 2(1)(a) arbitration means any arbitration whether or not
administered by permanent arbitral institution.
It is a process of dispute resolution between parties through arbitral
tribunal appointed by parties to the dispute or by the court at the
request of a party.
Precisely it is an alternative to litigation as a method of dispute
resolution.
Definition (contd.)

6. • It must arise out of mutual consent.
• The parties must have legal capacity.
• The agreement must be made in writing.
• It must arise out of a defined legal relationship.
• The subject matter must be arbitral.
Requirements for the Arbitration Agreement

7. Kinds of Arbitration Agreement
ARBITRATION CLAUSE
• Future disputes.
• Short and broad.
• Provided clause in the main
contract.
SUBMISSION AGREEMENT
• Disputes which have already
arisen
• Detailed and specific setting
out the exact dispute.
• After dispute arisen.

8. BIHAR STATE MINERAL DEVELOPMENT CORP. V. ENCON BUILDERS (P)
LTD
(AIR 2003 SC3688)
In this case The Supreme Court of India held that the essential elements of an
arbitration agreement are:-
• There must be present or a future dispute in connection with some
contemplated affairs.
• Intention of the parties to settle such dispute
• Parties must agree to be bound by decision of such tribunal.
• Parties must be ad idem (consensus between the parties)
Case Law

9. THANK
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