Legal

ARBITRATION

• A form of alternative dispute resolution (ADR) • A technique for the resolution of disputes outside the courts • A third party reviews the evidence in the case and imposes a decision that is legally binding and enforceable

• It can either be binding or non-binding

COMMERCIAL ARBITRATION

1923 Protocol • “Each Contracting State reserves the right to limit the obligation mentioned above to contracts which are considered as commercial under its national law.” • Concept of commercial - not clarified

New York Convention, 1958 • Essentially repeated the provision originally found in the 1923 Protocol

• Is not by itself limited to arbitration in respect of commercial disputes

• The limitation applies only if a State makes the necessary declaration, and only 44 of the current 135 Contracting States have done so

COMMERCIAL ARBITRATION

1961 European Convention

• 1st international instrument to refer to international commercial arbitration by name

• Limited in application “to arbitration agreements concluded for the purpose of settling disputes arising from international trade between … .”

• The Model Law describes “commercial” in a footnote to cover matters arising from all relationships of a commercial nature like: 1) 2) 3) 4) 5) 6) 7) 8) 9) Any trade transaction for the supply 10) or exchange of goods or services 11) Distribution agreement 12) Commercial representation or agency 13) Licensing 14) Factoring 15) Leasing Construction of works 16) Consulting Engineering Investment Financing Banking Insurance Exploitation agreement or concession Joint venture and other forms of industrial or business co-operation Carriage of goods or passengers by air, sea, rail or road”

INTERNATIONAL COMMERCIAL ARBITRATION

• Means: Arbitration relating disputes arising out of legal relationships considered as commercial under the law in force in India and where at least one of the parties is1) An individual who is a national of, or habitually...