Ans: An arbitration is not defined in arbitration act , 1940 but it is defined under arbitration and conciliation act, 1996. The arbitration and conciliation act comprises of four parts , 86 sections and 3 schedules.
An arbitration is a process of determination of disputes by the decision of one or more persons called the arbitrator. The definition of Arbitration is given under Section 2(1)(a) of Arbitration and Conciliation Act, 1996. The definition of Arbitration Agreement is defined under section 2(1)(b) of Arbitration and Conciliation Act, 1996.
The definition of Arbitration Award is given under section 2(1)(c) of Arbitration and Conciliation Act, 1996.
The Definition of Arbitration Tribunal is given under Section 2(1)(d) of Arbitration and Conciliation Act, 1996.
The court is defined under Section 2(1)(e) of Arbitration and Conciliation Act, 1996.
The international commercial arbitration is defined under Section 2(1)(f) of Arbitration and Conciliation Act, 1996.
The legal representative is defined under Section 2(1)(g) of Arbitration and Conciliation Act, 1996.
The party is defined under Section 2(1)(h) of Arbitration and Conciliation Act, 1996.
A person who is appointed either by the parties or by the court to settle the dispute or matter is called an arbitrator.
So, the dispute is settled by the decision or judgement of two or more arbitrators in arbitration.
Many Jurists like Wharton, Haisbury, Mozley and Whiteley gave the definition of Arbitration .
According to wharton, an arbitration is the settlement of disputes or the case of differences by the judgement of one or more persons known as an umpire or arbitrators.
Halsbury, Mozley and Whiteley and Wharton all gave similar definitions of Arbitration but Wharton mentioned the arbitrator similar to umpire.
Conciliation is a alternate dispute resolution method in which an expert will be appointed to settle the dispute by persuading parties to reach agreement.
Following are the differences between Arbitration and Conciliation:
1. The person who is appointed for the process of arbitration is called an arbitrator. Appointment of Arbitrator is done under provision of section 11 of Arbitration and Conciliation act 1996 whereas the person appointed for the process of Conciliation is called conciliator. The appointment of conciliator is done under the provisions of section 64 of Arbitration and Conciliation act 1996.
2. An arbitrator has the power to enforce his decision wheras the conciliator appointed to settle the dispute would not have the power to enforce the decision taken by him.
3. Arbitration is available for existing as well as for future dispute but conciliation is available for existing disputes only and it does not focus on the future dispute. There is no conciliation agreement like arbitration agreement.
Section 27 (5) of the Arbitration and Conciliation Act, 1996 which expressly confers the power on the arbitral tribunal to punish for its contempt.
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