Gangavath Ekitha | Edited By Prabhat Bandhulya
A bench headed by chief justice MR Shah and BV Nagarathna mentioned that even if arbitrators really aren't assigned as quickly as possible, the intent of the Arbitration Act would be defeated, possibly affecting commercial transactions and major corporations. As per the court "If somehow the arbitrators are just not appointed as early as possible and applications under Terms of section 11(5) & 11(6) of Arbitration Act are required to be approved for quite a long time, the entity and intention of the Arbitration And conciliation act will be defeated, as well as the importance of the effective Alternate solution Dispute Resolution System may indeed be lost.
The plaintiff may lose all faith in the judicial process, impacting not just law and order but also trade and business in the world." Applications for the appointment of the arbitrators have been currently on hold in many High Courts for even more than 4 - 5 years. A huge range of applicants awaiting approval under Sections 11(5) and 11(6) of the Arbitration Act illustrates a very bad state of affairs." Many applications are currently awaiting inside the declaration of the High Court of Rajasthan in Jodhpur, which were found to be defective. A few of the faulty applications have indeed been pending since 2016, per the Court. As a consequence, the Court system directed High Courts to ensure that applications filed under Sections 11(5) and 11(6) of the Arbitration Act are supposed to be cleared within the span of six months of their filing. WHAT IS ARBITRATION ACT: Arbitration is indeed a process where a conflict is presented between one or more arbitrators who consider a codified solution to the dispute by agreement of the parties. Rather than having to go to court, the stakeholders prefer arbitration as a personal mediation process. The following are indeed the Act's primary goals: To make sure that regulations both for domestic and international arbitration and conciliation are formed. To end up making sure that at least arbitration processes are just, reasonable, as well as efficient. To make sure that the arbitration panel provides justification for its decision.