What cases are not allowed arbitration?

leadindia422
Aug 17, 2024
3 min read

The Judicial Authority Is Required By Section 8 Of The Act To Request Arbitration Under The Terms Of The Arbitration Agreement. The Class Of Conflicts That Must Be Handled As Non-Arbitrable Is Not Excluded By The Act. But In Some Cases, The Courts Decline To Send The Parties To Arbitration Under Section 8 Of The Act.

Cases That Are Not Allowed In Arbitration

The Following Types Of Disputes Are Exempt From Arbitration Under Indian Law:

Offenses Against The Law.
Marriage-Related Arguments.
Guardianship Is Important.
Applications For Insolvency.
Testamentary Legal Actions.
Disagreements Over Trust.
Labour And Business Conflicts.
Rent Control Laws Regulate Tenancy And Eviction Issues.

Although A Conclusive Ruling On The Matter Is Pending, Extant Doctrine Indicates That Arbitration Is Not Appropriate For Conflicts Involving Issues Related To Competition Law. Conflicts In Personam Involving A Specific Individual Are Frequently Arbitrated, But Conflicts In Rem Involving An Object Or Property Are Typically Not. Additionally, Where A Specialized Venue Has Been Identified To Settle Particular Types Of Issues, Such As Consumer Complaints, The Law Forbids Arbitration.

Case Laws:

The Supreme Court Has Made It Clear That A Court Cannot Refuse To Submit Parties To Arbitration Based Only On An Accusation Of Fraud. In The Vidya Drolia V. Durga Trading Corporation Case, This Was Reaffirmed. It Decided That Claims Of Fraud Would Only Be Grounds For Rejection In The Context Of Arbitration:

Where It Is Impossible To Say That The Article Or Agreement Exists On Its Own.
Should The Accusation Be Directed Towards The Government Or Its Establishments, A Public Investigation Would Be Necessary.

In A Widely-Reaching Ruling, The Supreme Court Said Recently That "Intra-Company" Issues Aren't Arbitrable Inside The Same Case. This Sometimes Includes Shareholder Disputes Involving Allegations Of Tyranny And Mismanagement, On Which Several Courts Have Adopted Differing Positions. However, Because There Was Little Analysis To Back The Court's Findings, It Is Anticipated That This Area Of Law Will Change In The Upcoming Months. The Result Deviates From Prior Jurisprudence Because Of The Quite Wide Consequences.

Regarding The Arbitrability Of Intellectual Property (Ip) Law Conflicts, There Is Still Considerable Doubt. The Consensus Is That Subordinate Rights In Personam Within The Context Of Economic Agreements About The Use Of Intellectual Property Rights Are Arbitrable, Even While Disputes About Ip Rights Per Se Are Not.

Characteristics Of Arbitration:

The Arbitration Is Voluntary: Only With The Consent Of Both Parties May Arbitration Proceed. The Parties Include An Arbitration Clause In The Pertinent Contract For Future Disputes Arising Under It. A Submission Agreement Between The Parties Can Be Used To Send An Ongoing Dispute To Arbitration. A Side Cannot Unilaterally Leave Arbitration, Unlike In Mediation.
The Parties Choose The Arbitrators: The Parties May Choose A Single Arbitrator Jointly By The Wipo Arbitration Rules. If They Decide On A Three-Person Arbitral Tribunal, The Parties Designate One Arbitrator Each, And They Then Decide Who Would Preside Over The Tribunal. As An Alternative, The Centre May Directly Designate Arbitrators Or Offer Suggestions For Arbitrators With The Necessary Experience. The Centre Has A Large Panel Of Arbitrators That Includes Highly Skilled Practitioners And Specialists In All Areas Of Intellectual Property Law And Technology, As Well As Seasoned Generalists With Experience In Conflict Resolution.
Arbitration Is Impartial: Parties Have The Option To Select Neutrals Of A Suitable Nationality As Well As Crucial Components Including The Arbitration's Language, Venue, And Relevant Legislation. By Doing This, They Can Make Sure That Nobody Has A Home-Court Edge.
Arbitration Is A Private Process: The Confidentiality Of The Arbitration's Existence, Any Disclosures Made During The Process, And The Award Are All Expressly Protected Under The Wipo Rules. The Wipo Rules Permit A Party To Limit Access To Trade Secrets Or Other Private Information That Is Provided To The Arbitral Tribunal Or One Of The Tribunal's Confidentiality Advisors Under Specific Conditions.
The Arbitral Tribunal's Ruling Is Final And Simple To Implement: The Parties Agree To Immediately Implement The Arbitral Tribunal's Ruling By The Wipo Rules. Under The New York Convention, National Courts Have The Authority To Enforce International Awards, And They Can Only Be Revoked Under Extremely Specific Conditions. The Convention Has More Than 165 States As Parties.

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