Parties using ADR methods like arbitration or mediation have a choice between designating an institution, such as IIAM to administer it or proceed ad hoc outside an institutional framework. In ad hoc cases, the arbitration or mediation will be administered by the arbitrators or mediators themselves.

However, should problems arise in setting the ADR in motion or in constituting the Arbitral Tribunal, the parties may have to seek outside legal assistance or take recourse to court. Further such arbitrations do not follow any set of Rules of arbitration or mediation and are conducted at the sole discretion of the Arbitrator or Mediator. There are also no guidelines as to the fee and expenses that are to be charged. These are also fixed by individual arbitrators or mediators. Due to these factors, ad hoc arbitrations and mediations may some times turn out to be more expensive and delayed. 
 
In Institutional ADR, the entire costs are fixed by the Institution based on a Fee Schedule, which is known to the party prior to the initiation ADR. The Institution also fixes a time frame in which the arbitration or mediation is to be completed. Although institutional ADR requires payment of a fee to the administering institution, the functions performed by the institution can be critical in ensuring that the ADR proceed to a finality with minimum of disruption and without the need for recourse to the courts.

The Benefits of conducting Arbitration & Mediation at IIAM

Procedure for mediation and arbitration at the IIAM may be mutually agreed upon by the parties. The IIAM Arbitration Rules and Mediation Rules provide an easy and comprehensive procedure for parties to adopt. Copies are available on request.

Under the IIAM Arbitration Rules and Mediation Rules, parties are required to submit to the tribunal all written pleadings / statements within a time limit. The tribunal is obliged to determine the issues expeditiously and render reasons with its award within 45 days from close of hearing. A normal dispute could well be resolved within 6 months of the commencement of arbitration.

When requested, IIAM as a neutral appointing authority will appoint the tribunal from its panel of accredited Arbitrators and Mediators.

IIAM provide support and administrative services which include settling fees of the arbitrators, providing accommodation for hearings, arranging dates for meetings between the tribunal and parties' representatives, and acting as the registry / depository of pleadings / documents / correspondence. IIAM will also assist parties in arranging the enforcement of awards.

Compared to international Institutions and present court expenses, the administrative charges and expenses are significantly less. Roughly in regular court litigation, when the court fee alone comes to around 7%, in IIAM arbitration the arbitrator fee and the administrative expenses together will come around 5%. For IIAM Mediation, the total expense will be less than 1%. For further details on cost of arbitration and mediation see Fee schedule.

Function

IIAM oversees the arbitration and mediation process and, among other things, is responsible for appointing arbitrators or mediators; confirming, as the case may be, arbitrators or mediators nominated by the parties; and fixing the arbitrators' fees.

Designation of Arbitrators

It is commonly said that arbitration is no better than the arbitrators. Selection of the Arbitral Tribunal is, therefore, one of the most critical steps in arbitration.

The Arbitral Tribunal is composed of one or more arbitrators. IIAM Arbitration Rules provides for effective designation or appointment of arbitrators.

Whenever IIAM is designated as the appointing authority, it will draw up lists with names of qualified arbitrators and submit the lists to the parties. Thereby only persons having the necessary professional and business background, primarily those who have demonstrated their capacity as arbitrators will be considered.

Monitoring the Arbitral process 

IIAM monitors the entire arbitral process, from the initial Request to the final Award.

Fixing Arbitrator remuneration

The arbitrator’s fees are fixed by the IIAM on the basis of a published Fee Schedule attached to the IIAM Rules. Under that scale, the arbitrators' fees are fixed with reference to the amount in dispute. IIAM also considers the time spent, the rapidity of the proceedings and the complexity of the dispute. The fees and expenses system is therefore intended to encourage the efficient handling of cases within a financial framework that is proportionate to the amount at stake in the arbitration.

Scrutinizing Arbitral Awards

IIAM scrutinizes all awards as to their form and may also, without affecting the arbitrators' liberty of decision, draw their attention to points of substance. In IIAM arbitration, scrutiny is a key element ensuring that arbitral awards are of the highest possible standards and thus less susceptible to annulment in the courts than they might otherwise be. The scrutiny process provides the parties with an additional layer of protection that would not otherwise be available, since arbitral awards are generally not subject to appeal. This unique quality-control mechanism makes IIAM arbitration a most reliable arbitration system.