Disadvantages Of Arbitration

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The Supreme Court and High Courts have time and again significantly influenced the development of the arbitration law in India. The Arbitration and Conciliation Act, l996 is the borrowing of the provisions laid down in different laws of different countries as well as UNCITRAL Model Law. The following are several judgments that impactfully interpreted the law of arbitration in India. The Supreme Court in Narain Khamman v. Pradhuman Kumar , observed that though it is well settled principle that though the statement of objects and reasons accompanying a legislative bill cannot be used to determine the true measuring and effect of the substantive provisions of statute, it is still permissible to refer to the statement of objects and reasons accompanying a bill, for the purpose of…show more content…
Maters of criminal nature cannot be referred to arbitration. In most cases, references to arbitration shuts out the jurisdiction of the courts, except as provided in the Act and since criminal courts cannot be deprived of their jurisdiction to try criminal, no criminal matter can be referred to arbitration. If it is an implied term of the arbitration agreement or of the reference to arbitration that a complaint for non compoundable offence will not be further proceeded with, the arbitration agreement is illegal and an award, if any is invalid and it is immaterial whether a prosecution has been actually started or not . One of the principle advantages of arbitration over litigation is commonly stated to be that, where the dispute concerns technical matter such as a building contract, the person chosen to arbitrate will normally be an expert in the subject matter in the dispute, whereas a judge will seldom have any practical experience of the technicalities of trade in question. This brings about a difference between judicial and arbitrator’s power emphasizing this fact, the .court of appeal observed
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