International Commercial Arbitration System: A Detailed Analysis

These days courts have been burdened with a massive number of cases. It could be a reason why judgement gets delayed. The whole process consumes the justice seeker’s time and money. Since courts are overburdened with cases, they are not able to release the decision on time. The legal system in any country is expected to resolve disputes quickly and efficiently. But long trials discourage people from considering the court system. Therefore, it is essential to consider alternative dispute resolution. For this, we need to understand alternative dispute resolution in detail.

Alternative dispute resolution covers many types of different dispute resolution processes. Arbitration, conciliation and mediation are some of the best dispute resolution methods that help parties resolve disputes with different parties without going to court. If you do not want to go to court and do not want to invest your time and money unnecessary in court proceedings, you can consider alternative dispute resolution methods.

As per the preliminary report released in 2021, dispute resolution services are in great demand today. At Least 840 cases were filed under the ICC arbitration rules and 13 cases under the rules of ICC as appointing authority. 

Alternative Dispute Resolution (ADR)

Alternative dispute resolution (ADR) is a method to resolve differences and disputes between parties with the help of international institutions. These institutions are responsible for the peaceful settlement of disputes. It is not wrong to say that ADR mechanisms are substitutes to resolve disputes without court intervention. 

These methods are less time-consuming and affordable techniques. They are effective methods to resolve disputes without waste of time, effort and money. Here we will provide a deep analysis of international commercial arbitration and some steps involved in it.

What is Arbitration?

Arbitration is a private method of dispute resolution where parties can select an arbitrator for dispute resolution. Essentially, arbitration has main stages of dispute resolution like initial pleadings, panel selection and trial prep. Parties need to involve in different activities like meeting their attorneys, preparing statements and tracking relevant documents. This can be time-consuming until the final hearing when attorneys prepare for the final hearing.

Both mediation and arbitration  have become popular methods over the year due to the ease and speed of dispute settlement. So, let’s move further and find out some steps of arbitration.

Steps of Arbitration Proceedings 

1. Notice - The first step starts with sending a notice to another party. It creates the proceedings of arbitration. Essentially if the respondent receives the notice of arbitration, then formal proceedings can begin. So, the entire goal of this step is to communicate an intention, refer to the dispute and take a step towards it.

2. Appointment of Arbitrators - The parties are at their discretion to choose an arbitrator. When parties cannot appoint an arbitrator, they need to hire an arbitrator individually. 

3. Reference - The judicial authority will review the agreement of the arbitration clause.

4. Interim relief - Section 9, the arbitration and conciliation act provides interim measures of protection to parties before the commencement of arbitral proceedings and during the arbitral proceedings. Section 7 provides interim measures or security to parties if the matter is dangerous. 

5. Settlement - The parties seeking arbitration can also settle the dispute mutually during the proceedings. If the parties arrive at the settlement amicably, the rest of the proceedings will stop immediately. Sometimes, parties can record the settlement, and it would be called a consent award. 

6. Awards - This is the last step, in this step an arbitrator renders an award after arbitration proceedings by taking into consideration the views of both parties. Usually, an arbitral award is signed by all the members of tribunals.

Conclusion 

If you are in a situation where you need to resolve a dispute with the help of a third party, you can contact the best law firm. A boutique law firm focuses on ICC arbitrations and assists you regularly with your dispute. So, get in touch with the best dispute resolution firm for your bespoke needs.