Arbitration is defined as a contract based dispute resolution method. It is a private dispute resolving procedure. It acts as an alternative method to court proceedings. A party’s right to refer the matter to arbitration is depended on the main contract. If the main contract signed between the parties includes the arbitration clause then the matter is admissible for arbitration. In case there is no method stated for dispute resolution the parties may agree upon one at the time the dispute arises. 

Commercial contracts usually include the arbitration clause in their agreement. By entering into an arbitration agreement, both the parties agree to refer the disputed matter to an arbitrator who acts as a neutral third party. 

There are certain principle characteristics of Arbitration: 

1. Arbitration is a voluntary process 
2. The parties choose the arbitrators, there can be more than one arbitrator appointed. If both the parties choose one arbitrator each, then the two arbitrators could select the third arbitrator. 
3. Arbitration is a neutral process 
4. It is a confidential process. 
5. The decision of the arbitration tribunal is final and binding. 

The process of arbitration is similar to that of a court proceeding. The arbitrator hears the parties, the evidence is submitted, arguments are made, and on the basis of this, the arbitrator has to give a decision. The decision of the arbitration tribunal is enforceable by the civil courts. 

The arbitration process begins when one of the parties files the initiation with the arbitration tribunal and then a notice is sent by the tribunal to the other party about the same. Once both parties are on board, the process for selection of the arbitrator begins. The arbitrator is selected by both the parties with the help of the arbitration tribunal. After the selection process is complete, the initial hearing begins. The initial hearing is for the discussion of the issues involved in the matter. Then the parties prepare for the exchange of information. After this is done, the hearing begins, where the parties’ presents, testimony, and evidence. After the hearing, if there are any documents left to be presented, the parties may present the same with the permission of the arbitrator. After the hearings are concluded, the arbitrator gives the final decision on the matter presented before him. The decision of an arbitration tribunal is called an Award, and the same is binding upon the parties and enforceable in the court of law. 

Arbitration is often confused with other methods of dispute resolution such as Mediation. Both the processes are voluntary but unlike in meditation, the decision of the arbitration tribunal is binding on the parties. 

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being.