International Confuration: What Is International Arbitration?

International Arbitration

As per the Model Law (1985) by UNCITRAL, arbitration is international if: — The parties to an arbitration agreement have, at the time of the conclusion of that agreement, their places of business in different states; or — One of the following places is situated outside the state in which the parties have their places of business: – the place of arbitration if determined in, or pursuant to, the arbitration agreement; or

– Any place where a substantial part of the obligations of the commercial relationship is to be performed or the place with which the subject matter of the dispute is most closely connected; or – The parties have agreed expressly that the subject matter of the arbitration agreement relates to more than one country.

In

Enforceability: Awards passed by tribunal are very widely and readily enforced compared to court judgment because of New York Convention of 1958(it is a multilateral treaty for arbitral award enforcement) where around 145 states are a party to it.

2. Neutral forum: The tribunal is an impartial forum where parties submit for dispute resolution whereas national court may not be impartial. Thus international arbitration gives a scope of neutral decision to any dispute between parties.

3. Procedural flexibility: Rules of arbitration are streamlined and flexible. They are also simpler than any countries civil procedural rules which make it more suitable for parties belonging to different jurisdiction.

4. Arbitrators with the appropriate experience: Arbitrators are selected based on their knowledge to relevant commercial practice, trade, usage or legal framework. They also maybe are appointed for their expertise of a particular subject-matter. They may have been appointed for their ability to deal with national law in comparison with other laws.

5. Party autonomy: The parties have autonomy to decide law governing the arbitration proceedings, place of arbitration, appointment of arbitrators,