Business Standard

<b>Letters:</b> Arbitration blues

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Business Standard New Delhi

This refers to “Arbitration slowdown” by MJ Antony (February 24). While pre-arbitration disputes may result in legal squabbling, post-arbitration court cases should be uncommon as arbitration is founded on the trust reposed in the third party by the contestants. Once they proceed with the arbitration process, they should be bound by the award, and with some exceptions as provided in the Arbitration and Conciliation Act, 1996. Courts should take a strict view on this.

Apart from commercial disputes, industrial disputes also find their way to adjudication, though mediation and arbitration are less expensive and more time-saving. Trade unions have an aversion to arbitration essentially because they cannot opt out of the verdict if the same does not suit them, that’s why they have recourse to bilateral negotiations and conciliation. If the Arbitration Act is suitably amended to avoid its misuse in business contracts and its avoidance in employment situations, it will lead to reduction in litigation and resolve the trade unions’ “dependence dilemma”.

 

YG Chouksey, Pune

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First Published: Mar 01 2010 | 12:20 AM IST

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