Advantages And Disadvantages Of International Arbitration

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“Discords are bound to arise in society and ingenious human minds have always devised ways and means for resolution of conflicts.” The world has become immensely globalised; characterized by intense exchanges of cultural, social, and commercial nature between private/public individuals or corporations. This boost in International businesses and across the border relationships are of pivotal importance and have also brought to light the lacunae in the so-called ‘globalization of the law’. However, the resolution of these conflicts is imperative which is made possible in the legal arena through methods of Litigation, Arbitration and Mediation. It is important to comprehend and distinguish the subtle nuances of these independent processes. The dilemma of balancing efficient International dispute resolutions and the…show more content…
Third parties cannot be bound by the orders and award issued by an arbitration tribunal. The process of arbitration is consensual and cannot bind any party to the arbitration thusly. National courts must sanction arbitration awards, if not adhered to by the losing party. Although arbitrators, in general, may award interim or permanent injunctive relief which must still be enforced in national courts if not adhered to by the losing party. It could take months to constitute an arbitration tribunal as Arbitration may be unable to grant immediate interim relief. On the contrary, courts are permanent institutions and hence capable of providing interim relief on short notice. In an attempt to minimize the effects of this limitation, numerous arbitration institutions (notably the WIPO) have sought the setting up of standing panels of arbitrators to handle

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