This document discusses arbitration and adjudication as methods for resolving disputes outside of court. It defines arbitration as involving a neutral third party to resolve a dispute when two parties cannot agree. There are two main types of arbitration discussed - voluntary arbitration, where parties agree to arbitration, and compulsory arbitration, where parties are required to arbitrate. The document also outlines merits like cost-saving and time-saving, and demerits like inability to strike. If parties are unsatisfied with arbitration, they can pursue adjudication involving lawyers or courts. A tier system of labor courts, industrial tribunals, and national tribunals is also described.

1. ARBITRATION &
ADJUDICATION
CHANDAN SINGH
FACULTY OF COMMERCE AND MANAGEMENT
PURNEA UNIVERSITY, PURNIA

2. Contents
• Introduction.
• Types of Arbitration.
• Merits of Arbitration.
• Demerits of Arbitration.
• Tier system of Arbitration.

3.  Arbitration means when two parties are arguing
they can not come to an agreement they call
someone in who is neutral and they figure out the
matter.
 In arbitration rules will be followed to solve the
problem by the mediator.
Introduction

4. Types of Arbitration
1. Voluntary Arbitration
2. Compulsory Arbitration

5. Voluntary Arbitration
 It is a non-binding.
 Under voluntary arbitration the parties to the
dispute can and do they refer voluntarily and
dispute to arbitration before it is referred for
adjudication . This type of reference is known as
voluntary reference.

6. Essential elements in Voluntary
Arbitration
 The voluntary submission of dispute to an
arbitrator.
 It involves the presence of witness and
investigation.
 The enforcement of an award may not be necessary
and binding because there is no compulsion.
 Voluntary arbitration may be specially needed for
disputes arising under agreements.

7. Compulsory arbitration
 Compulsory arbitration is a non-binding.
 Compulsory arbitration is one where the parties are
required to accept arbitration without any
willingness on their part.
 Compulsory arbitration leaves no scope for strikes
and lock-outs, it deprives both the parties of their
very important and fundamental rights.

8. Essential elements in compulsory
arbitration
 The parties fail to arrive at a settlement by a
voluntary method.
 When there is a national emergency which requires
that the wheels of production should not be
obstructed by frequent work-stoppages.
 The country is passing through a grave economic
crisis.
 Public interest and the working conditions have to
be safeguarded and regulated by the state.

9. Merits of Arbitration
 Confidential
 Cost saving
 Time saving
 Expert neutral
 Arbitrators often work faster than a judge to decide
disputes.
 The parties can select their arbitrator.

10. Demerits of Arbitration
 Worker can not go on a strike during the discussion.
 Sometimes arbitrator show result towards one group
due to bias.
 Two groups of people should agree the result what
the arbitrator said.
 The couple gives up their power to decide and
leaves their fate in the hands of a third party
stranger.
 The arbitrator’s settlement is final.

11. Adjudication
 This is next level of problem solving. If
they not satisfied with the arbitrator
result they can approach the adjudication
method.
 In this, the problem will be solved by the
lawyer who is appointed by the
government.

12. Tier system of adjudication
 Labour courts
 Industrial tribunals
 National tribunals

13. Labour courts
Labour court shall consist of one person.
 Retirement of high court judge.
 For a period of not less than three years as district
judge.
 Judicial office in India for not less than seven
years.

14. Function of labour courts
 To hold adjudication proceedings expeditiously.
 Submit its award to the appropriate government as
soon as practicable on the conclusion of the
proceedings.

15. Industrial tribunal
 It is formed by central or state government.
 One man court who is the president or retired high
court judge.
 Industrial disputes will come under this.

16. National tribunal
 Only central government is empowered to form
national tribunal.
 Single member body who is the president. He can
be retired judge of supreme or high court.