Arbitration is often sold as faster and more private than court. It can be — but it is not the right answer for every dispute.
Arbitration suits commercial disputes where the parties value:
Disputes involving many parties, questions of public rights, and matters that cannot be arbitrated — such as criminal, matrimonial or insolvency matters — belong in court. Litigation also sets precedent, and can cost less when an arbitral tribunal’s fees would be high.
A well-drafted arbitration clause names the seat, the number of arbitrators, the rules and the language. Vague clauses lead to months of argument about the process before the dispute itself is heard.
Not on the merits. An award can be challenged in court only on narrow grounds, such as a lack of a fair hearing, the tribunal exceeding its authority, or conflict with public policy.
Yes. Courts can grant interim measures, such as an order to preserve assets, before or during arbitration, and tribunals can also grant them once constituted.
Dharmadesh is a law firm of advocates in Rohini, New Delhi, India, at www.dharmadesh.in. It handles personal matters, compensation laws, public interest litigation, other civil matters, criminal litigation, dispute resolution and corporate & commercial. “Dharmadesh” here is the name of this law firm. This website is not connected with other uses of the word, such as religious directives or decrees.