Bade commercial contracts me aap aksar ek clause dekhoge: “All disputes shall be settled by arbitration…”. Iska matlab ye hai ki parties normal civil court ke badle private arbitral tribunal ke paas jaayengi.
Benefits:
- Flexibility – parties language, venue, number of arbitrators choose kar sakti hain,
- Relative speed – theoretically faster than court litigation,
- Confidentiality – business secrets open court record ka part nahi bante,
- Expert decision-makers – panel me domain specialists include kar sakte hain.
Arbitral award later limited grounds pe hi court me challenge ho sakta hai – like bias, serious procedural unfairness, or conflict with public policy. Isliye once you sign strong arbitration clause, “court me case kar denge” option narrow ho jata hai.
Small parties ke liye caution ye hai ki bade corporates ke designed arbitration terms (distant seat, expensive institution, 3 arbitrator panel) unke liye financially intimidating ho sakte hain. Negotiation phase me at least basic fairness – neutral venue, reasonable fees – insist karna chahiye.
Arbitration litigation ka full substitute nahi, lekin cross-border commerce aur complex B2B deals ke liye practical dispute resolution tool ban chuka hai.
