International and Domestic Arbitration

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  • Topic: Arbitration, Law, Arbitration award
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NATIOANL UNIVERSITY OF ADVANCED LEGAL STUDIES

INTERNATIONAL AND DOMESTIC ARBITRATION

Submitted by: Agnes K Varkeychen V semester
TABLE OF CONTENTS
INTRODUCTION......................................................................................................................... 4 DOMESTIC ARBITRATION........................................................................................ ............... 4 INTERNATIOAL ARBITRATION............................................................................................... 6

MEANING OF INTERNATIONAL........................................................................................ ......7 SCOPE OF THE TERM INTERNATIONAL................................................................. ..............7 CRITERIA FOR ESTABLISHING ‘INTERNATIONAL’ CHARCTER.................................. ...8 NATIONALITY OF ARBITRATION AND INTERNATIONAL CONVENTIONS....................12 MODEL LAW AND THE TERM INTERNATIONAL.................................................................14 DIFFERENCES BETWEEN INTERNATIONAL AND DOMESTIC ARBITRATION..............15 APPLICABILITY OF PART 1 OF THE ACT...............................................................................17 CONCLUSION................................................................................................................................19

INTRODUCTION
The Constitution of India, Article 51, clauses (c) and (d) provide that the state shall endeavour to (c) foster respect for international law and treaty obligations in the dealings of organised peoples with one country and (d) encourage settlement of international disputes by arbitration. In the spirit of the Constitutional mandate the President of India promulgated the Indian Arbitration and Conciliation Act 1996. The Indian Ordinance gives freedom to the parties – subject to minimal restrictions in carrying out the arbitration agreement. Under the law there is no clear definition of terms such as Domestic Arbitration or foreign Arbitration either in the statutes or in the decided cases. However the term international commercial Arbitration has been defined in the 1996 Act. The 1996 Act covers domestic arbitration (where both parties are Indian national) as well as international commercial arbitration where at least one party is not an Indian national. The Act of 1996 has been divided in three Parts. Part I entitled, “ARBITRATION” and there are 10 Chapters containing Sections 2 to 43. Part II entitled, “Enforcement of certain Foreign Awards” and contains Chapter I & II containing Sections 44 to 60. Chapter I of part II deals with “New York Convention Awards” and Chapter II deals with ‘Geneva Convention Awards”. Part III (Sections 61 to 81) deals with ‘Conciliation’. Part IV (Sections 82 to 86) provides for Supplementary Provisions. Section 2(2) provides for applicability of Part I. Existing Section 2 (2) reads as follows:

“Section 2(2): This part shall apply where the place of arbitration is in India.”

DOMESTIC ARBITRATION
Domestic Arbitration takes place in India when the arbitration proceedings, the subject matter of the contract and the merits of the dispute are all governed by Indian Law, or when the cause of action for the dispute arises wholly in India or where the parties are otherwise subject to Indian jurisdiction. In the domestic arbitration, the cause of action for the dispute should have arisen wholly in India or the parties are otherwise subject to Indian jurisdiction. Domestic arbitration is an attractive option for the settlement of disputes. In a domestic arbitration:

1) The arbitration...
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