IIAM Arbitration is based on the Arbitration Rules published by the Indian Institute of Arbitration & Mediation (IIAM), which is intended to help parties and arbitrators to take maximum advantage of the flexible procedures available in arbitration for the resolution of disputes quickly and economically. The Rules provide that the wishes of the parties regarding procedure will be respected as far as possible, but they also seek to ensure that the Arbitrator will have sufficient powers to direct the proceedings if the parties cannot agree on procedure or will not co-operate.
Arbitration Rules have been developed to encourage greater use of administered arbitration. By providing for arbitration under these rules, parties can avoid the uncertainty of having to petition a court to resolve procedural impasses. These rules are intended to provide effective arbitration services through the use of administered arbitration. The Rules allow the procedure to be as short and as inexpensive as practicable.
Under these rules, the parties are free to adopt any mutually agreeable procedure for appointing arbitrators, or may designate arbitrators upon whom they agree. Parties can reach agreements concerning appointing arbitrators either when writing their contracts or after a dispute has arisen. This flexible procedure permits parties to utilize whatever method they consider best suits their needs. For example, parties may choose to have a sole arbitrator or a tribunal of three or more. They may agree that arbitrators shall be appointed by IIAM, or that each side shall designate one arbitrator and those two shall name a third, with IIAM making appointments if the tribunal is not promptly formed by that procedure. Parties may mutually request IIAM to submit to them a list of arbitrators from which each can delete names not acceptable to it, or the parties may instruct IIAM to appoint arbitrators without the submission of lists, or may leave that matter to the sole discretion of IIAM. Parties also may agree on a variety of other methods for establishing the tribunal. In any event, if parties are unable to agree on a procedure for appointing arbitrators or on the designation of arbitrators, IIAM, after inviting consultation by the parties, will appoint the arbitrators. Appointment is also guided by the IBA Guidelines on Conflicts of Interest in International Arbitration. The rules thus provide for the fullest exercise of party autonomy, while assuring that the IIAM is available to act if the parties cannot reach mutual agreement.
The costs and expenses of arbitration will be governed by the Fee Schedule of the IIAM Arbitration Rules.
The parties themselves should take an active part in every stage of arbitration. This will ensure that they always know what is happening, why it is happening, what it is costing, how long it will take and what the ultimate benefit is expected to be. The closer the party stays to the dispute, the easier it is to resolve. Technical and legal advisers are urged to encourage their clients to meet the arbitrator at the preliminary meeting to discuss ways in which the procedure can be simplified.
For administered arbitration by IIAM, there should be an arbitration clause in their contracts or in the absence of any such clause; there should be an agreement between the parties to arbitrate under the IIAM Rules. A business contract, lease or other written contract may contain an arbitration clause. By using such a clause, the parties to the contract agree to arbitrate any future disputes. The following arbitration clause language may be modified to suit the needs of the parties or used "as is" in order to utilize the services of IIAM, if arbitration is ever needed.
Suggested Arbitration Clause:
Future Disputes:
Parties to a contract who wish to have any future disputes referred to arbitration under the IIAM Arbitration Rules may insert in the contract an arbitration clause in the following form:
"Any dispute or difference arising out of or in connection with this contract, including any question regarding its existence, operation, termination, validity or breach thereof shall be referred to and finally resolved by arbitration as per the Arbitration & Conciliation Act, 1996 and shall be conducted by the Indian Institute of Arbitration & Mediation, in accordance with their Arbitration Rules ("IIAM Arbitration Rules") for the time being in force which rules are deemed to be incorporated by reference to this clause."
Parties to an existing dispute who wish to refer it to arbitration under the IIAM Arbitration Rules may agree to do so in the following terms:
‘We, the undersigned, agree to refer to arbitration under the Arbitration Rules of the Indian Institute of Arbitration & Mediation, all disputes or differences arising out of or in connection with:
(Brief description of contract under which disputes or differences have arisen or may arise.)
Signed __________________________ (Claimant)
Signed __________________________ (Respondent)
The parties may wish to consider adding:
- “The number of arbitrators shall be (one or three)”,
- “The place of arbitration shall be (city and/or country)”,
- “The language(s) of the arbitration shall be ________________”, “The Tribunal shall consist of _________ arbitrator(s) to be appointed by the Administrator of IIAM”.
Existing Disputes:
Parties who wish to arbitrate an existing dispute, but there is no agreement between the parties for arbitration, can enter into an IIAM Arbitration agreement.
See sample Forms 101, 102, 105.
For more information please contact IIAM Administrator: adm@arbitrationindia.com |
