Arbitration in Lawsuits Clause Samples

Arbitration in Lawsuits. When a dispute is the subject matter of a lawsuit pending in a court, both parties may agree to settlement of the dispute through arbitration in terms of the Act. The Indian Arbitration ▇▇▇ ▇▇▇▇ does not control the conduct of the owner and the contractor in deciding the form of the arbitration agreement. The Act does not prescribe the procedure to be adopted by the arbitrator for conducting the proceedings. The arbitrator thus enjoys flexibility in the procedure leading to expeditious settlement of disputes. The Act does not provide for interference with the award given by the arbitrator. The arbitrator is also not bound under the Act to state reasons in support of the award given by him. The award is, therefore, final and can only be challenged in a court of law on questions of law and / or misconduct of the arbitrator. The advantages of settling disputes through arbitration instead of litigation in the courts are as under: In view of the advantages of arbitration, most of the construction contracts incorporate a suitable arbitration clause in the agreement. Following are the main provisions of the arbitration clause. i. All disputes or claims arising out of or relating to the contract, or the breach thereof, will be settled through arbitration in accordance with the Indian Arbitration Act, 1940. ii. The parties may agree to the appointment of a single arbitrator or each party may nominate an arbitrator and the two nominated arbitrators may mutually select an umpire. iii. The parties will mutually agree regarding the sharing of arbitration fees and expenses. iv. The arbitration proceedings will be conducted by the arbitrator(s) in accordance with laid down procedures at mutually convenient dates and places. v. In the event of a difference of opinion between the two arbitrators concerning the award, matter will be referred to the umpire and his decision will be final. vi. The arbitration award will be final and binding upon both parties. Construction contracts are formalized in the form of a written document which defines clearly the rights and obligations of each party. In engineering contracts, the contractor offers to execute the work for a monetary consideration on certain terms and conditions. A contract is reached when the offer or proposal made by the contractor is accepted by the owner. The elements of a contract consist of offer, consideration and acceptance. The main types of contracts for execution of civil engineering works include lump sum co...