ARBITRATION

Form of Alternative Dispute Resolution.

Alternative to court room litigation.
Parties submit their disputes to a NEUTRAL third
party called the Arbitrator (s) or Arbiter (s) for
resolution. Binding dispute resolution, equivalent
to litigation in the courts
 Sources of Arbitration
• State regulate arbitration through a variety of
laws.
• A number of national procedural laws may
also contain provisions relating to arbitration.
• Key international instrument – 1958 New York
Convention on Recognition and Enforcement
of Foreign Arbitral Awards
 Procedure
• Arbitration agreement
• Reference to arbitration
• Composition of arbitral tribunal
• Appointment of arbitrators
• Grounds for challenge (doesn’t qualify)
• Termination of mandate
• Substitution of arbitrator
 Case:

NTPC Limited has awarded a contract

to Ms Doosan for Erection and
commissioning of 2 X 800 MW Steam
Generator.

All projects in the oil, gas and

petrochemical sector Engineering,
Procurement and Construction (EPC).
Process, piping, mechanical,
civil/structural, electrical, instrument
and control expertise, supporting the
upstream, downstream and chemical
process sectors.
 Details
• NTPC Limited has awarded a contract to Ms Doosan for Erection &
commissioning of 2X800 MW Steam Generator:
• In GCC following clauses are indicated for settlement of Disputes:
• 1. Adjudicator: if any dispute arises between the employer and the
contractor in connection with or arising out of the contract the parties
shall seek to resolve any such dispute through mutual consultation and if
it fails then dispute shall be reffred in writing by either partyto the
adjudicator, with a copy to other party.
• 2.The adjudicator shall give the decision in writing to both the parties
within 28 days of the dispute referred to it. If the adjudicator has done so
and no notice of intention to commence arbitration has been given by
either party within 56 days of reference, the decision shall become final
binding upon employer and contractor.
• 3. Should the adjudicator resign or die, or should the employer or
contractor agrees that the Adjudicator is not fulfilling its functions in
accordance with the provision of the contract, another retired Judge of
High Court of India Shall jointly be appointed by both parties.
 Arbitration:
• If either the employer or the contractor is dissatisfied
with the adjudicators decision, or adjudicator fails to
give a decision with 28 days, then employer or
contractor may within 56 days give notice to other
party with a copy of information to adjudicator of its
intention to commence arbitration, no arbitration may
be commenced unless such notice is given.
• Any dispute in respect of which a notice of intention to
commence arbitration has been given, in accordance
with GCC, shall finally be settled by Arbitration.
Arbitration
• Any dispute submitted by a party to arbitration shall be
heard by the arbitration panel composed of 3
arbitrators with the provision set forth below.
 Employer and the contractor shall each appoint 1 arbitrator and these two
arbitrator shall jointly appoint a third arbitrator who shall chair the arbitration
panel. If the two arbitrator do not succeed in appointing a third arbitrator within
28 days after the two arbitrators appointed, the third arbitrator, shall at the
request of either party, be appointed by the appointing authority for arbitrator
designated in SCC.
• If one party failed to appoint the arbitrator within 42 days after the other party has
named its arbitrator, the party which has named its arbitrator May request the
appointing authority to appoint second arbitrator.
• If for any reason and arbitrator is unable to perform its functions, the mandate of
the arbitrator shall terminate in accordance with the provision of applicable laws
as per in GCC clause.
• Arbitration proceedings shall be conducted i) in accordance with the the rules of
the procedure designated in SCC ii) place designated in the SCC iii) in the language
in which its contract has been executed
• The decision of majority of the arbitrators shall be final binding and shall be
enforceable in any Court of the competent jurisdiction as decree of the court. The
parties thereby waive any objection to or claim of immunity from such
enforcement.
• Arbitrator shall be given reasoned award.
Thank You